We recently learned that Ibu Made and Dewa Putu, our pembantus, or household helpers, earn less than $90 per month for working six days a week, eight hours a day - or less than $4 per day. We knew that they didn't earn much, but we didn't know it was so little.
We didn't hire them, we didn't select them, and we don't pay them. They were hired by the property manager and are paid by the landlord. They were working at the villa before we arrived, and will likely continue working here after we leave. In other words, it isn't our doing that their salary is so low.
Their work is general care of the villa and cleaning: sweeping, doing dishes, doing laundry, cleaning the pool, doing food shopping at times, some light cooking, and catching the occasional bat.
It is hard for us to get our heads around the fact that they earn so little. But this is a standard wage in Bali. The majority of Balinese live on this much or less. I assume that both Ibu Made and Dewa Putu are staying at this job because it is better than other alternatives available to them, even though Dewa Putu can speak Japanese and once worked as a salesman in an art gallery.
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| Dewa Putu making an offering poolside - perhaps to the spirit of the water |
We feel qualms when purchasing small indulgences. A pint of Haagen-Dazs costs $8. Yes, it is expensive, but sometimes we want to splurge on decent ice cream, especially when we have guests over. But then we think that we just spent the equivalent of what Made and Putu make in two days on a pint of ice-cream, and then that small indulgence feels excessive.
One long-time expat told us that she hides receipts and cuts the price tags off of items before bringing them home, so that neither she nor her pembantus have to confront so clearly the extreme differences in wealth, nor how the pembantu's labor is valued so little compared to the trinkets the expat is purchasing.
Back in the U.S. it is easier to be sheltered from the ramifications of a decision to spend a few hundred dollars or a few thousand dollars on some nice bauble. Here where the person who is helping you unpack that bauble is only making $3 a day and can't afford life's necessities, the ramifications of the choice are clearer.
Living in Bali as an expat requires a form of double-think. When interacting with Balinese, I often translate prices into day-wages equivalent. If I am buying a wood carving or a piece of fabric, and learn that it took three days to make the piece, then I'll assume that paying anything over $10-$15 would be overpaying. Since bargaining is a part of every transaction, I'll use that as a gauge in negotiating and when the seller asks $30 for that piece that took three days to make then I will think that the asking price is too high and will try to negotiate the price down to no more than $15.
Often I will bargain hard to save $1 on something that is already
inexpensive and but then I'll go out to dinner and order a drink that
costs $8 without a second thought. I know that I'm being a jerk for depriving an artisan who is making barely a subsistence wage of an extra dollar that means so much more to him or her than it does to me. Yet on the other hand I don't want to pay well more than the standard price just because I am a tourist, and it also feels like it is more of genuine interaction if I try to negotiate like a local.
Another consideration is that newly arrived expats paying inflated prices can distort the local economy, increasing prices, and making it harder for locals or long-term expats to buy what they need. Long-term expats often grumble that newcomers who don't know the local pricing often overpay. This leads to pockets of inflation, as prices rise to what the newcomers are willing to pay, making costs rise for everyone else.
Many long-term expats are not independently wealthy and need to watch their rupiah. They may have spent years abroad in the Peace Corps or working for non-profits, or are working in Bali at local wage scales, so are trying to stretch a tight budget. Land prices and rents on rental properties are skyrocketing as new arrivals pay the inflated rental rates which in turn is forcing some long-term expats out of homes they have lived in for years.
Is the correct response for us to try to 'meet in the middle'? Should we be willing to pay much higher than local rates, but still well less than DC rates, in an effort to help pull more Balinese out of poverty?
The rates paid for babysitters is an example of a pocket where wage rates are highly inflated compared to standard wages. We pay our babysitters $5 an hour. Coming from DC where the standard
rate is $15 an hour, our first thought was that this is quite a bargain. The
babysitters are warm, patient women with their own children who speak
English well, are experienced and come highly recommended.
When
we come home from an evening out, we'll pay the babysitter $30 for
giving the girls dinner, playing games with them, putting them to bed
and sitting around for an hour. But then we'll realize that we just
paid them more for that evening's light duty than Ibu Made or Dewa Putu
make in a week. So did we just grossly overpay? There are almost
certainly cheaper babysitters, but we are using ones that have an expat
seal of approval and have leveraged that into a fairly substantial
hourly rate compared to local wage scales.
But other experienced English speakers who work with tourists make much less. Tour guides make around $6 a day according to our driver, Dewa, and
rely on tips to make up the rest. Even with many tourists in Bali
flinging dollars around, wages are held in check because there is a huge
supply of labor. There are hundreds of thousands of people making less
than $4 a day doing hard manual labor, or working in shops, who would
gladly jump at a 25% pay increase to earn $5 a day working with
tourists. So employers don't need to increase wages that much to
attract quality staff.
Before when Bali was uniformly poor and agricultural, prices for everything were low, and it was possible for locals to survive on very little money. But now prices are rising as tourist dollars trickle into certain segments of the economy. The cost of rice is a multiple of what it used to be. Land prices are much more expensive. Before very few even had motorbikes, now they are seen as a necessity even if one can't afford them, so many people take out loans at 2.5% interest per month to buy a motorbike. Many can't keep up the payments so the motorbikes are repossessed. The local population of Bali is starting to split into an island of "haves" and "have-nots" which makes it even harder for the farmers and fishermen to survive.
So paying the Balinese who work most closely with tourists much higher wages helps those Balinese, but can disadvantage all those who don't benefit from the tourist economy.
I suppose the answer is not to try to single-handedly solve the problem of wealth disparity. Simply by participating in the local economy, and helping to support local jobs and local merchants, we are in a small way helping the local standard of living to slowly increase, even if we try to only pay 'local' rates.
Living here makes me wonder even more about disparities of wealth. How is it that the U.S. is so wealthy and Bali is so poor. Is it largely self-inflicted? What can the Balinese do to improve their standard of living?
I've watched a carpenter who was helping put up an addition at the most popular yoga studio in town make small square-shaped pieces of wire by laboriously forming those pieces of wire into a square shape by bending them against a crude frame of nails hammered into a board. When all you have to offer is manual labor, especially if others have figured out how to automate what you do manually, then you are in rough shape.
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| Ibu Made helping Charlotte make frangipani wands |
We periodically give Ibu Made and Dewa Putu tips of about $10 apiece. It is a small gesture and we are glad that they appreciate it. But it is also hard when I see how deeply appreciative they are, and how much it means to them.
We don't have any answers. We take our cues from expats who have lived here many years. They behave much as a local would, I suppose, paying a fair, perhaps even generous wage, but not greatly overpaying.
We heard a story of how a well-meaning expat family who when the time came for them to leave Bali gave their motorbike to their pembantu, only to have the pembantu ostracized by her entire village for receiving such an undeserved windfall.
So we contribute our dollars to the local economy. I still often bargain hard, and we give periodic tips to our staff.
But no matter what approach I take, it doesn't quite feel right.