NFM chiefs grumble over pay

MEMBERS of the management team at the National Flour Mills (NFM) are threatening to resign from the company if their salaries are not improved or brought up to par with managers in similar positions in the private sector.

Some of them have already met with the Chief Executive Officer Michael Potella and complained that their salaries are below standard. Even Potella earns about one-third of the $70,000 monthly salary being paid to Petrotrin executive chairman, Malcolm Jones despite the fact that NFM has been making a healthy profit for several years. Newsday learned that some of the NFM managers are seeking better positions in the private sector. NFM CEO also earns much less than the loss making WASA’s CEO Errol Grimes ($36,000) salary. Potella is not accorded a housing allowance, nor a furnished house.  His perks are minimal, Newsday was informed. However, efforts to reach Potella or Corporate Communications Manager Donna Cox were unsuccessful as they were in meetings all day.

A source at NFM told Newsday that the 24 executive and middle managers at the company have not had a salary increase for three years. Added to that, allowances which formed part of their salary packages were reduced last October under the new Board headed by Christine Sahadeo, who is now tipped to become a Government minister. The source said that the situation was so ridiculous that some employees who earn a lot of overtime, take home more money than their bosses. There are 400 permanent employees as well as 150 casual workers who are represented by the Seamen and Waterfront Workers Union (SWWTU). Salaries of managers range between $11,000 and $15,000.

The NFM source said the company has been making profits ever since it was privatised in 1995. He said even with the loss the company suffered in the Indian rice scandal ($30 million) in 1996, the company has been able to make considerable profits, ensuring that the shareholders collect dividends while increased taxes go to the treasury. “The company’s management rose to great heights in that it had to repair the damage and improve the company’s image which was sullied during the rice fiasco.” the source said.  “This resulted in $30 million of NFM’s money going down the drain and this left a scar on the face of the company which took a lot from the managers to remove.” The source said NFM had to restore its image, pride and confidence over the last four years. Added to that, the company had to produce a balancing act on whether to increase the price of flour as a result of increased prices of wheat worldwide.

The NFM source pointed out that some of the managers believe that their salaries should be much higher and on a level playing field with managers in the private sector. In 1995, NFM recorded $30 million. The profit margin jumped to its highest in 1999 with $71.7 million. It dropped to $33.6 million in 2001, but went upwards in 2002 with $43.8 million.  Last year, NFM recorded an increase turnover by 2.8 percent, an increase in trading income by 13.3 percent, an increase in net income by 30.3 percent, and an increase in earning per share from 18 to 30 cents.