- Joined
- Apr 29, 2013
- Messages
- 197
- Points
- 0
Which is sexier?
The Progressive Wage Model
or
The Minimum Wage Model?
The Progressive Wage Model has career progression for low-wage workers like your uncle auntie cleaners (implemented and licensed), security guards (unfortunately resisted by T.Mogan who does not believe that guards deserve better pay and respect), trolley handlers (implemented) etc.
Workers under this model don't just stop at a minimum wage point. They move beyond that. They have the option of moving up the career ladder if they acquire more skills. For example, if your auntie is an indoor cleaner, she can choose to learn to operate machines and upgrade to become outdoor cleaner. Of course, if she is willing to keep improving, she can eventually take on a supervisory role. So workers who take on cleaning jobs don't just stop at a cleaner, they have a meaningful career path to work towards to.
When they become more skillful with the help of technology, they will also become more productive. For example, once upon a time, in the landscaping industry, you needed 5 grass cutters to tend to a field. It is very laborious, I must add. But with a remote controlled machine, it is much easier. You only need 1 worker to handle the equipment. It will munch up grass, flowers, small bushes and puppy dogs. It can even navigate on steep inclines.
So, when they acquire new skills and become more productive, of course pay will increase also. That's the good thing. Each time they move up a rung, there is a wage increase. So with Progressive Wage Model in place, they will earn minimum of $1000 and have a chance to increase to $1,200, $1,400, $1,600 etc. It could even be higher depending on the industry and difficulty of job. So this is the real career progression i'm talking about. PMEs have this ladder and i think there's no reason why low-wage workers should not benefit from such practices too. After all, they are also workers contributing to the society. They deserve as much respect as any other workers.
What about the Minimum Wage Model?
It is somewhat easier to implement as it's just a flat wage implemented across the board. However, there are several drawbacks. Firstly, employers may fire some workers because of the increased labour cost incurred to comply with a minimum wage, and may even look to hiring more experienced foreign workers for the same wage instead. Secondly, there is no room for career progression as there is no incentive for companies to upgrade and train their workers. Thirdly, the minimum wage may eventually become the workers’ maximum wage as companies can simply choose to pay them this minimum wage throughout their entire career. And lastly, without a clear career progression and little opportunity to increase wages, workers are not incentivized to work smarter or harder, causing business competitivity and productivity to become stagnant. Do we really want this?
While Progressive Wage Model isn't as straight forward as we would like it to be, but we can see the real benefits in the long run. Much sexier than Minimum Wage Model to me.
The Progressive Wage Model
or
The Minimum Wage Model?
The Progressive Wage Model has career progression for low-wage workers like your uncle auntie cleaners (implemented and licensed), security guards (unfortunately resisted by T.Mogan who does not believe that guards deserve better pay and respect), trolley handlers (implemented) etc.
Workers under this model don't just stop at a minimum wage point. They move beyond that. They have the option of moving up the career ladder if they acquire more skills. For example, if your auntie is an indoor cleaner, she can choose to learn to operate machines and upgrade to become outdoor cleaner. Of course, if she is willing to keep improving, she can eventually take on a supervisory role. So workers who take on cleaning jobs don't just stop at a cleaner, they have a meaningful career path to work towards to.
When they become more skillful with the help of technology, they will also become more productive. For example, once upon a time, in the landscaping industry, you needed 5 grass cutters to tend to a field. It is very laborious, I must add. But with a remote controlled machine, it is much easier. You only need 1 worker to handle the equipment. It will munch up grass, flowers, small bushes and puppy dogs. It can even navigate on steep inclines.
So, when they acquire new skills and become more productive, of course pay will increase also. That's the good thing. Each time they move up a rung, there is a wage increase. So with Progressive Wage Model in place, they will earn minimum of $1000 and have a chance to increase to $1,200, $1,400, $1,600 etc. It could even be higher depending on the industry and difficulty of job. So this is the real career progression i'm talking about. PMEs have this ladder and i think there's no reason why low-wage workers should not benefit from such practices too. After all, they are also workers contributing to the society. They deserve as much respect as any other workers.
What about the Minimum Wage Model?
It is somewhat easier to implement as it's just a flat wage implemented across the board. However, there are several drawbacks. Firstly, employers may fire some workers because of the increased labour cost incurred to comply with a minimum wage, and may even look to hiring more experienced foreign workers for the same wage instead. Secondly, there is no room for career progression as there is no incentive for companies to upgrade and train their workers. Thirdly, the minimum wage may eventually become the workers’ maximum wage as companies can simply choose to pay them this minimum wage throughout their entire career. And lastly, without a clear career progression and little opportunity to increase wages, workers are not incentivized to work smarter or harder, causing business competitivity and productivity to become stagnant. Do we really want this?
While Progressive Wage Model isn't as straight forward as we would like it to be, but we can see the real benefits in the long run. Much sexier than Minimum Wage Model to me.
