I refer to the article “Singapore could lose its competitive edge, locals could lose jobs” (Today, Oct 26).
Progressive wage concept
It states that “SNEF cited the example of tiered starting wages for different types of cleaners, as well as the progressive wage structure and upgrading paths in the cleaning industry as a “more practical and sustainable” way of raising wages”.
In this connection, the “progressive wage concept” which is being promoted by the National Trades Union Congress (NTUC), has been rather confusing from the perspective of lower-income workers.
So, what’s really happening, and what does it really mean for workers?
When, but not now, and for whom?
First, NTUC said that the target was to raise cleaners’ wages to at least $1,000 by 2015, and then about four months later said that the $1,000 target would be by 2013, but only specifically mentioning cleaners in certain sectors, such as those who clean housing estates and hawker centres.
By targeting a minimum wage by a certain date, does it not imply that we are accepting the principle of a minimum wage?
Well, here’s the fundamental difference – a minimum wage would apply to all workers, and not just some types of workers, or in some sectors. Also, a minimum wage would apply from a certain date, rather than what we have now which is only targeted dates.
By the time the progressive wage concept is applied to all sectors with low-wage workers, to cover all workers, some of the actors in the current debate may no longer be around.
Leave it to companies?
With regard to “President of the Association of Small and Medium Enterprises (ASME) Chan Chong Beng believes there is no need to put in place a minimum wage.
He said more companies will raise wages of low-income workers within the next two years.
Mr Chan was responding to Professor Lim Chong Yah’s call for a minimum wage scheme, should the wages of the lowest-paid resident workers remain stubbornly low in two or three years’ time.
Prof Lim, who is the former chairman of the National Wages Council (NWC), made the suggestion at the Singapore Economic Policy Forum today.
Mr Chan felt the progressive wage model, championed by the labour movement, will be effective in helping to raise wages.
Under the progressive wage concept, wages will be gradually scaled up as workers become more skilled and productive.
Mr Chan also said low-wage workers are generally mobile and will move to a company that can pay them more.
Mobility of labour?
Mr Chan said: “Workers are very fluid; they will move around and if the industry cannot pay workers the minimum (wage) of S$1000, they will go to another industry that has (a minimum wage of) S$1000.”” (“No need for minimum wage“, Today, Oct 25) – His argument may be flawed because if there is truly absolute mobility of labour, why is it that we still have so many working for $800 or less now?
It is sad that practically every institutional body is against the minimum wage other than professor Lim Chong Yah.
Perhaps what we really need is not some more “double talk”, but just to implement a minimum basic per hour wage (not minimum wage through longer working hours) like Hong Kong and Malaysia.
Not all cleaners are equal?
To put it simply in another way, not all cleaners are equal or for that matter other low-wage workers where some are more equal than others – and that is being “progressive” to protect and help workers – the “uniquely Singapore” way!
Leong Sze Hian
