I refer to the reports “GE: PAP says WP’s proposal for minimum wage will lead to complacency” (Channel News Asia video, May 2)http://www.channelnewsasia.com/video/index.php and “More shortcomings than benefits in minimum wage system, says Lim Swee Say” (Channel News Asia, Apr 25).http://www.channelnewsasia.com/stories/singaporelocalnews/view/1124806/1/.html
The latter states that “He said 90 per cent of countries wordwide have adopted a minimum wage system to pay workers”.
What type of countries?Since there are about 195 countries in the world, it may be
instructive to name the 20 or so which do not have a minimum wage.
I believe few if any of these countries are developed countries like
Singapore, with a high cost of living and basically no welfare system.
Are there any developing countries like Singapore which do not have a
minimum wage?
I believe most if not all the 20 or so countries, may be third world
countries, with relatively low cost of living.
No study on minimum wage?
Instead of merely repeating that a minimum wage is not good for
Singapore, why hasn’t the Minister backed up his arguments with at
least some sort of study as to how many workers are getting less than
say $800 a month, how many hours do they work, financial impact on
employers, which sectors may be affected and to what extent, feedback
from employers and more importantly from workers and Singaporeans, etc?
Other developed countries with well established and world renowned
universities would normally have embarked on studies of the minimum
wage issue, often with generous funding from the Government and the
private sector.
After all, shouldn’t decisions on such an important issue be examined,
preferably with academic vigor?
As I believe no such study has been done in Singapore, at least not
one that has been reported in the media, perhaps the obvious question
to ask may be, why not?
How many earn below $800?
I find it rather strange that whilst the minimum wage figure of around
$800 has been mentioned, notably by some opposition parties, no
statistics are available as to how many Singaporeans are earning not
more than $800?
In this connection, according to the 2010 Census, there were 226,928
resident workers (Singaporeans and permanent residents (PRs)) earning
not more than $1,000, which was about 12 per cent of the total
resident workforce. The break-down is 63,864 earned less than $500 and
163,064 earned $500 – $999.
According to the Ministry of Manpower’s (MOM) wage data, about 400,100
resident workers earned not more than $1,200.
So, how many Singaporean workers earn not more than $800?
Why does the Minister not tell us when he dismisses the minimum wage?
I estimate this figure to be about 8 per cent of the workforce, which
may be about 75,000.
If my estimate is not too far off, then the absence of a minimum wage
may continue to make the lives of many Singaporeans and their families
more stressful, as the wages of the lower-income may have declined in
real terms over the last 11 years or so.
This is extrapolated from my analysis of the MOM wage data and the
Department of Statistics’ Consumer Price Index (CPI) data, that the
real median wage only grew by about 1.2 per cent per annum, from 1999
to 2000.
Since the median is half the resident working population, the bottom
quarter or so may have had declining real wages.
Ministers have minimum wage?
I am somewhat perturbed by the logic of having in essense, a minimum
wage for Ministers in order to attract and retain political leaders,
but not a minimum wage for Singaporeans who are toiling away for less
than $800.
Even S-Pass and Employment Pass holders who are foreigners had their
minimum wage raised recently to $2,000 and $2,800, respectively.
May I suggest that the Minister visit the markets, food courts, coffee
shops, and talk to the cleaners, road sweepers, etc, who typically are
elderly Singaporeans who work very long hours , for around $650.
In this connection, according to the 2010 Census, 12,802 age 65 and
above workers worked very long hours – 4,709, 2,609, 1,931 and 3,553,
worked 65 and above, 60- 64, 55 – 59 and 50 – 54 hours, respectively.
Also, 11,273 earned less than $500, but worked very long hours –
2,289, 1,095, 849, 1,329, 1,688 and 4,023 worked 65 and above, 60 –
64, 55 – 59, 50 – 54, 45 – 49 and 40 – 44 hours, respectively.
Security guards
With regard to the example given by the Minister of a security guard
whose pay goes up from $850 to $1,450 after re-training, why is it
that the MOM’s data, indicate that the gross pay of private security
officers at the 25th percentile is only $1,100 in 2010, falling from
$1,150 in 2009, despite the record 14.5 per cent GDP growth and robust
job market last year?
If one looks deeper into the generally very long working hours of
security guards today, whose typical work week is between 50 to 70
hours, their increase in pay may be due more to much longer working
hours.
Therefore, perhaps what we need is hourly wage data, instead of just
gross wages data.
Security guards were highlighted by the new PAP Candidate, Mr Desmond
Choo, who said that he understands security guards because his father
is one who works 12-hour shifts, and he is also the Executive
Secretary of the Union of Security Employees .
Workfare
Workfare may not be the solution for all lower-income Singaporeans,
because it does not help those below 35 years old, the bulk of
Workfare (about 71 per cent) goes to CPF, and for the self-employed
its even worse with 100 per cent going to Medisave.
Leong Sze Hian
