[h=2]NWC recommends $50 pay rise for low-wage workers[/h]
May 24th, 2012 |
Author: Editorial
The National Wages Council (NWC) has recommended a minimum $50 pay rise for low-wage workers during its announcement of its annual wage guidelines on Wed (23 May). It’s recommendations cover the period from 1 July 2012 to 30 June 2013.
For low-wage workers earning a basic salary of up to $1,000 a month, the NWC recommended a minimum built-in wage increase of S$50. For companies that are doing well, the NWC recommended that they give these workers a larger increase.
The NWC also suggested rewarding workers through variable wage components, where possible. Companies doing well may also consider granting these workers an additional one-off lump sum payment to help them better cope with the cost of living.
NWC Chairman, Professor Lim Pin, said, “The NWC wage guidelines focus very strongly, especially strongly, on the low-wage workers. We have noted that the low-wage earners have fallen behind the income increase of the rest of the workforce. As a result, I’m happy to report there has been a clear and unequivocal support from all tripartite partners of doing more to help the low-wage workers.”
The government has supported the NWC’s recommendation. It urged companies to especially pay attention to the low-wage workers.
Union leaders also said that a minimum pay rise of $50 is a welcome start. Unionists encouraged companies to subscribe to best sourcing, rather than cheap sourcing.
Cham Hui Fong, NTUC’s assistant secretary-general, said, “Why we chose $1,000 and why this $50…is to ensure that this group of people would have at least a 5% wage increase. And coming from the union, of course, we will not stop there. We will ask for 50+plus. What the percentage will be will depend on how well the company is doing.”
NTUC said it would push strongly for such specific wage increases for the next three years.
The NWC said that Professor Lim Chong Yah’s recent suggestion on low-wage workers did have a bearing on its recommendations.
Prof Lim has earlier proposed that wages of our low-income workers should be raised substantially by 50% over three years notwithstanding that they are already underpaid for their current level of productivity. Prof Lim said, “My position, however, is that our lowly paid workers have been underpaid by much more than 100 per cent of their pay when compared with their counterparts in countries with comparable national affluence like Hong Kong, Japan or Australia.”
However, the NWC said that at the end of the day, it has to ensure that the recommendations are sustainable and balanced.
Still, all these wage increase recommendations by NWC for low-wage workers may be academic as long as companies are allowed to massively import cheap foreign workers to do the work. Even if companies do not give any increments to the foreign workers, the foreign workers are “locked in” since they have to work to clear their debts. Also, they can’t change employer on work permit. Two years later, companies will simply let go of their current batch of foreign workers and another batch from the third world countries will be more than happy to come and fill the place. No wage increase is needed cause if our locals don’t want to work so cheaply, cheap foreign workers will.
The National Wages Council (NWC) has recommended a minimum $50 pay rise for low-wage workers during its announcement of its annual wage guidelines on Wed (23 May). It’s recommendations cover the period from 1 July 2012 to 30 June 2013.
For low-wage workers earning a basic salary of up to $1,000 a month, the NWC recommended a minimum built-in wage increase of S$50. For companies that are doing well, the NWC recommended that they give these workers a larger increase.
The NWC also suggested rewarding workers through variable wage components, where possible. Companies doing well may also consider granting these workers an additional one-off lump sum payment to help them better cope with the cost of living.
NWC Chairman, Professor Lim Pin, said, “The NWC wage guidelines focus very strongly, especially strongly, on the low-wage workers. We have noted that the low-wage earners have fallen behind the income increase of the rest of the workforce. As a result, I’m happy to report there has been a clear and unequivocal support from all tripartite partners of doing more to help the low-wage workers.”
The government has supported the NWC’s recommendation. It urged companies to especially pay attention to the low-wage workers.
Union leaders also said that a minimum pay rise of $50 is a welcome start. Unionists encouraged companies to subscribe to best sourcing, rather than cheap sourcing.
Cham Hui Fong, NTUC’s assistant secretary-general, said, “Why we chose $1,000 and why this $50…is to ensure that this group of people would have at least a 5% wage increase. And coming from the union, of course, we will not stop there. We will ask for 50+plus. What the percentage will be will depend on how well the company is doing.”
NTUC said it would push strongly for such specific wage increases for the next three years.
The NWC said that Professor Lim Chong Yah’s recent suggestion on low-wage workers did have a bearing on its recommendations.
Prof Lim has earlier proposed that wages of our low-income workers should be raised substantially by 50% over three years notwithstanding that they are already underpaid for their current level of productivity. Prof Lim said, “My position, however, is that our lowly paid workers have been underpaid by much more than 100 per cent of their pay when compared with their counterparts in countries with comparable national affluence like Hong Kong, Japan or Australia.”
However, the NWC said that at the end of the day, it has to ensure that the recommendations are sustainable and balanced.
Still, all these wage increase recommendations by NWC for low-wage workers may be academic as long as companies are allowed to massively import cheap foreign workers to do the work. Even if companies do not give any increments to the foreign workers, the foreign workers are “locked in” since they have to work to clear their debts. Also, they can’t change employer on work permit. Two years later, companies will simply let go of their current batch of foreign workers and another batch from the third world countries will be more than happy to come and fill the place. No wage increase is needed cause if our locals don’t want to work so cheaply, cheap foreign workers will.
