SINGAPORE: The Workers' Party's (WP) proposal for a minimum wage could leave businesses and workers worse off and also become a politicised issue, said National Trades Union Congress’ deputy secretary-general Koh Poh Koon in Parliament on Thursday (Oct 15).
The issue of a minimum wage has been in the spotlight since the General Election in July.
On Monday, WP chief and Leader of the Opposition Pritam Singh called for a universal minimum wage with S$1,300 as a base for Singaporean workers, saying in a Facebook post that this is not just a "moral imperative" but "an act of national solidarity".
During Thursday's debate on Deputy Prime Minister Heng Swee Keat’s ministerial statement on the Government's strategies to emerge stronger from the COVID-19 crisis, Dr Koh said initiatives such as the Progressive Wage Model have already helped to lift the wages of lower-income workers.
Dr Koh's speech drew a response from Mr Singh and other WP MPs, with People's Action Party (PAP) MPs rising to speak as well.
MINIMUM WAGE CAN BECOME "POLITICAL AUCTION": DR KOH
Dr Koh, a Tampines GRC MP, made three arguments in his speech - that a minimum wage could leave the lowest-skilled and most vulnerable workers at a disadvantage as it is difficult to find the right value; that it could become a political tool; and that it calls into question whether it should apply to the migrant worker population who make up more than 1.3 million people in the workforce.
An amount that is too low “defeats the purpose of having a minimum wage”, he said of the difficulties in setting the right minimum wage. Too high, and some businesses will not be able to afford it, causing them to either close down, shed workers or pass on the cost to consumers.
“This is a particular pertinent consideration at this time, when we are in a deep COVID-19 crisis. Many companies, especially your SMEs (small and medium enterprises), such as those in the construction sector, are suffering and not quite out of the woods,” he added.
Dr Koh also questioned Mr Singh’s comments on having a universal minimum wage as a “moral imperative”.
“Today, let’s say we can all agree to S$1,300 minimum wage proposed by the WP, a 'moral imperative' as Mr Singh puts it in his recent Facebook post. But what next? What happens next? How will this number change from this year to the next, and on what basis?” said Dr Koh, who is also a Senior Minister of State for Health.
“In a political contest, a political party will surely come along and say, well, S$1,500 will reflect a higher 'moral imperative'. Yet another will come along and say, S$1,300 is good, S$1,500 is better, but S$1,700 must surely be more divine 'moral imperative'. It can become a political auction.”
https://www.channelnewsasia.com/new...parliament-koh-poh-koon-pritam-singh-13286064
