Minimum wage not necessary in “today’s world”?

[Watchman]

Minimum wage not necessary in “today’s world”?
Posted by Kirsten on September 19, 2010
Kirsten Han -

<--- http://theonlinecitizen.com/2010/09/minimum-wage-not-necessary-in-“today’s-world”/

Upon reading the ChannelNewsAsia article ‘S’pore should not set a minimum wage for low-income workers: Lim Boon Heng‘ on 16th September, I wrote the following tweet:


It wasn’t meant to be much but it got re-tweeted by a whole bunch of people, so I guess it struck a chord somehow. But now I would like to go through the article again and look at Mr Lim’s argument against the minimum wage.


Mr Lim believes that this could push up the price tag on Singaporean workers, and in turn make it harder for them to find jobs.


Image from The Straits Times

As the government has pointed out, there is actually no shortage of jobs in Singapore. However, what they have constantly overlooked is the fact that many of these jobs pay so little that Singaporeans are simply unable to accept them. The government then brands such Singaporeans as “choosy” and begins to import migrant workers by the truckload to fill these jobs. It all feeds into a vicious cycle: the foreign workers are able to work at a wage that most Singaporeans with mortgages and loans are unable to, so wages get depressed, Singaporeans are unable to take on those jobs, and more foreign workers are imported to work in these low-paying jobs.

Singaporeans are already finding it hard to get employment, because there is no way to compete with the foreigners who are willing to work longer for less.

A minimum wage would not only “push up the price tag” for Singaporeans, it would also “push up the price tag” for the migrant workers. This would have two effects: it would ensure that migrant workers are no longer exploited, working long hours for pittance. It would also level the playing field between Singaporean workers and migrant workers. Although it wouldn’t be able to automatically bring about a system of complete meritocracy, it would at least help make it less about undercutting each other in terms of wages.

And anyway, how would the minimum wage make it difficult for Singaporeans to find work? If there were legislation for a minimum wage, it would mean that all employers in Singapore would have to pay the minimum wage, unless they all want to leave the country. So the claim that Singaporeans would not be able to find work in Singapore if there was a minimum wage is simply ludicrous. Unless every single employer in Singapore decided to move to another country, they would HAVE to hire Singaporeans at this minimum wage.

But perhaps that is what Mr Lim means. Perhaps he is referring to the huge MNCs that would simply pack up and move away if they felt that Singaporeans were no longer cheap enough labour. However, is that really a good enough reason to not have the minimum wage? The truth of the situation is that we in Singapore will never be able to compete with countries like India, Bangladesh and China when it comes to cheap labour. Sooner or later the MNCs in search of cutting costs will move no matter what we do.

Shouldn’t our strategy not be about looking out for our own Singaporeans and dealing with suppressed wages instead of rushing to placate MNCs?

Instead, the government should step in to top up the pay of low-income workers, something that has already been done through the Workfare Income Supplement (WIS).


Mr Lim said: “So we started the WIS system a couple of years ago. I think with this system, we should improve…I believe the minimum wage meets the needs of a bygone era, it does not meet the needs of today’s world.”

The Workfare Income Supplement might have been initiated with good intentions, but it is capped at a maximum of S$2800 a year. You also have to be above 35, living in a property with Annual Value not exceeding $11,000, earning a salary of less than S$1700 a month, etc. etc.

This is simply not good enough as a substitute of the minimum wage. Firstly, it cuts out a large number of Singaporeans who might be earning above S$1700 but are still not well off enough to meet the rising cost of living in Singapore. All you need to do is look at all the cases of the “working homeless” in Singapore. It doesn’t take a rocket scientist to understand that although S$1500 – S$1700 is considered “too high” a monthly income to be deserving of social welfare, it is not enough to make ends meet, especially if you have more dependents and responsibilities.

Here is the list in Wikipedia of minimum wages in countries: List of minimum wages. An awful lot of countries have minimum wage laws. Many who don’t have some sort of union/collective agreements that more or less set minimum wages for their workers. Is Mr Lim suggesting that all these countries are being run by fools who don’t know what “the needs of today’s world” are? Perhaps he would like to educate us all: what are the needs of today’s world, and how is the minimum wage inappropriate?

 

[cass888]

It doesn’t take a rocket scientist to understand that although S$1500 – S$1700 is considered “too high” a monthly income to be deserving of social welfare, it is not enough to make ends meet, especially if you have more dependents and responsibilities.

Get real. It is usually the rabbits who have more than 2 children when they can't afford it who are in such a sad situation.

 

[bodycells]

i disagree with the PAP.

The education of sinkapore has made people into non-thinking blur cock and take in whatever those in power suggested into some gospel truth.

PLease remember that, whatever they say, it is up to you to decide if you agree or not after some thoughts of your own.

Here, i disagree with him (PAP) totally. This PAP nut only says things that protect their policies that crafted out by them. Any suggestions that go against them and make them look bad will be frown upon.

 

[sir cum-a-lot]

if minimum wage is not necessary, in tandem, men-in-white r also no longer necessary.

 

[halsey02]

>Mr Lim believes that this could push up the price tag on Singaporean workers, and in turn make it harder for them to find jobs.>

What price tag?, you mean the MIW price tag, like him? If he is with the common man, he would be pushing for a minimum wage, rather than let the capitalist exploit the workers, especially the workers of the country, in which they come to set up their enterprise.

The absence of a min.wage has caused many SINgaporeans, unable to find gainful work, for their wages to survive in their own country; is further depressed by the huge, unrelentless influx of cheap foreign labours of all Nationalities & qualifications.

Without a min wage, the aging workers; are exploited relentlenlessly by the system, making them unable to cope with the barest minimum to survive in their twilght yeras, plus having to compete with younger cheap labours from countries like PRC, Vietnam, Kampucea, West Malaysia & so forth.

Limp Beh Heng, should come down from the ivory tower he sits on, and walk in the over run ground, which is densely populated by the FT's, stiffling the locals.

The rubbish about companies moving away from SINgapore moving away is pure nonsense, what does he think, we are daft?. I have gone through, six major economic cycles, from Recession, Gulf War, Economic crisies, etc..& have worked for major MNC's that during the bad times, pull up their roots & go. This had nothing to do with the SINgapore workers being overpaid or over priced; the world is in flux, they have to go, they go.

What is left floundering are, workers like us, who in the better times, have to learn by themselves to acquire newer skills & to multitask, so that, the next economic tidal waves come by, they are able to find new work.

But, we need that mimimum wage, to be paid enough, not only to feed ourselves, our family; but people like Mr. Limp Beh Heng...It is time, the workers, wake up, for their future...VOTE WISELY!

 

[ChaoPappyPoodle]

Minimum wage on its own may not be ideal if the intention is to improve the lives of Singaporeans. For success, minimum wage has to be supported by a laws and programmes to hire Singaporeans first before foreigners.

With these two programmes in place, we can have a better country for Singaporean.

Let's not forget who is the biggest employer in Singapore. There is a clear conflict of interest here.

 

[halsey02]

Minimum wage on its own may not be ideal if the intention is to improve the lives of Singaporeans. For success, minimum wage has to be supported by a laws and programmes to hire Singaporeans first before foreigners.

With these two programmes in place, we can have a better country for Singaporean.

Let's not forget who is the biggest employer in Singapore. There is a clear conflict of interest here.

That is why, they will never will pass the law for minimum wage & enshrine in the system, that the locals must be employed first. The reason is that, it is them who needs the foreigners to be here, to support their renumerations; which has no minimum; but maximum.

It is time, the SINgapore workers start to think for their future..

 

[Subok]

There will INDEED no need for talks on minimum wage if PAP rigorously get the market up and provide JOBS for LOCALS.

There will INDEED no need for talks on minimum wage if the people's employment rights had been championed by the pseudo TRIPARTITE union.

 

[Airlib]

Eh... no minimum wage... but Ah Kong say... top civil servant must be paid this amount of money to prevent corruption... is that considered minimum wage???

 

[coolguy]

No minimum wages = no maximum wages.
get it?