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“Zorro” Lim Swee Say opposes strongly to minimum wage
January 13th, 2011 | Author: Your Correspondent
Zorro Lim Swee Say
Claiming that “it would cost low-skilled workers their jobs”, NTUC labour chief “Zorro” Lim Swee Say took the strongest stand against legislating a minimum wage, of all the MPs who spoke during Parlimentary debate on inclusive growth.
The labour movement has no intention of adopting a minimum wage as a way of helping low-wage workers, the National Trades Union Congress secretary-general told the House yesterday.
He used the terms no wage, maximum wage and sticky wage to sum up how a minimum wage would, in his view, cost low-skilled workers their jobs and wage increments, and result in their pay stagnating.
He rebutted calls by Nominated MP Viswa Sadasivan, Ms Irene Ng (Tampines GRC) and Workers’ Party chief Low Thia Khiang for the Government to remain open to a minimum wage law in the future.
‘It’s a solution that can easily be implemented by a stroke of a pen, but actually, we don’t believe it will serve the interest of the low-wage workers,’ Mr Lim said.
How would a minimum wage lead to job losses?
Take a worker who says he needs to be paid $1,400 a month, an employer who says he can afford to pay the worker only $1,000 a month, and a government which sets the minimum wage at $1,200.
When that happens, a less-skilled worker who is paid $800 a month is more likely to lose his job than a higher-skilled worker earning $1,100, Mr Lim argued.
‘I don’t think the labour movement wants to see them end up as no-wage workers,’ he said.
Low-wage workers can forget about annual increments
‘The employers will adopt the position that actually, you are worth only $1,000, but under the law, I’m forced to pay you $1,200. Since I’ve already met the requirement of the law, there’s no way I’m going to give any increment,’ he said.
‘So, a minimum wage will always end up being the maximum wage for low-wage workers,’ he added.
Workers in countries with a minimum wage are also unhappy because their pay can go up only after the government has consulted employers and reached an agreement on revising the wage.
Madam Halimah Yacob (Jurong GRC) had earlier said that some countries spent several years reaching a consensus between workers and employers on raising the minimum wage for their sector.
‘By the time they’ve agreed on the increase, the cost of living has already gone past them,’ Mr Lim said.
For these reasons, the labour movement prefers the Government’s Workfare scheme that pays cash and Central Provident Fund monies to low-wage workers. Mr Lim described the scheme as ‘Singapore’s version of the minimum wage’.
There are also various training schemes to help low-wage workers learn and acquire new skills.
‘The low wage in Singapore is not necessarily sticky for those who are able to upgrade their skills and enhance their productivity,’ he said.
.
Desmond Cai
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January 13th, 2011 | Author: Your Correspondent
Zorro Lim Swee Say
Claiming that “it would cost low-skilled workers their jobs”, NTUC labour chief “Zorro” Lim Swee Say took the strongest stand against legislating a minimum wage, of all the MPs who spoke during Parlimentary debate on inclusive growth.
The labour movement has no intention of adopting a minimum wage as a way of helping low-wage workers, the National Trades Union Congress secretary-general told the House yesterday.
He used the terms no wage, maximum wage and sticky wage to sum up how a minimum wage would, in his view, cost low-skilled workers their jobs and wage increments, and result in their pay stagnating.
He rebutted calls by Nominated MP Viswa Sadasivan, Ms Irene Ng (Tampines GRC) and Workers’ Party chief Low Thia Khiang for the Government to remain open to a minimum wage law in the future.
‘It’s a solution that can easily be implemented by a stroke of a pen, but actually, we don’t believe it will serve the interest of the low-wage workers,’ Mr Lim said.
How would a minimum wage lead to job losses?
Take a worker who says he needs to be paid $1,400 a month, an employer who says he can afford to pay the worker only $1,000 a month, and a government which sets the minimum wage at $1,200.
When that happens, a less-skilled worker who is paid $800 a month is more likely to lose his job than a higher-skilled worker earning $1,100, Mr Lim argued.
‘I don’t think the labour movement wants to see them end up as no-wage workers,’ he said.
Low-wage workers can forget about annual increments
‘The employers will adopt the position that actually, you are worth only $1,000, but under the law, I’m forced to pay you $1,200. Since I’ve already met the requirement of the law, there’s no way I’m going to give any increment,’ he said.
‘So, a minimum wage will always end up being the maximum wage for low-wage workers,’ he added.
Workers in countries with a minimum wage are also unhappy because their pay can go up only after the government has consulted employers and reached an agreement on revising the wage.
Madam Halimah Yacob (Jurong GRC) had earlier said that some countries spent several years reaching a consensus between workers and employers on raising the minimum wage for their sector.
‘By the time they’ve agreed on the increase, the cost of living has already gone past them,’ Mr Lim said.
For these reasons, the labour movement prefers the Government’s Workfare scheme that pays cash and Central Provident Fund monies to low-wage workers. Mr Lim described the scheme as ‘Singapore’s version of the minimum wage’.
There are also various training schemes to help low-wage workers learn and acquire new skills.
‘The low wage in Singapore is not necessarily sticky for those who are able to upgrade their skills and enhance their productivity,’ he said.
.
Desmond Cai
<object data=http://www.temasekreview.net/2011/01/13/ntuc-chief-opposes-strongly-to-minimum-wage/ width="1300" height="400"> <embed src=http://www.temasekreview.net/2011/01/13/ntuc-chief-opposes-strongly-to-minimum-wage/ width="1300" height="400"> </embed> http://www.temasekreview.net/2011/01/13/ntuc-chief-opposes-strongly-to-minimum-wage/. </object>
