6 of 8 job categories negative real wage growth? (Part 2)

In part 1, I talked about why most Singaporeans may not know how bad the wage statistics are, due to the changes in publication and presentation of the wage statistics.

5 stories in 1 newspaper?

Now, let me talk about propaganda – five stories in one newspaper in one day that may appear to be trying to paint a rosy picture about wages.

Incomes have risen?

Story No. 1: “‘Inequality has risen, but so have incomes‘” (Straits Times, Aug 24) – “But he stressed that inequality in Singapore has been accompanied by a significant increase in standards of living for most of the population. The bottom 20 per cent of households has seen incomes rise by about 60 per cent in real terms since 1990, while median income households have doubled their living standards. “Inequality does not mean that economic policies are failing”.”

– a “60 per cent in real terms since 1990” means that the annualised increase was only about 2.06 per cent.

If 2.06 per cent does not look too bad, you have to ask yourself the obvious question – why only cite the statistics from 1990 to now – what about the more recent statistics like the last decade or so?

You see – in statistics, the period that you choose to show to support whatever you are saying – may be crucial to the perception that you may want to expound.

Incomes at bottom continue to rise?

– In this connection, let me illustrate this with an example – the article “Incomes at bottom continue to rise, says Chan Chun Sing” (Straits Times, Feb 5) said that “Acting Mnister for Social and Family Development Chan Chun Sing gave figures to show that incomes at the bottom continue to rise, in response to Nominated MP Tan Su Shan’s question on social mobility.

The real median gross monthly income for employed residents increased 1.3 per cent a year from 2002 to 2012, after rising 2.7 per cent a year from 1996 to 2002, Mr Chan said.

For the lowest 20th percentile of employed residents, their real gross monthly income rose 0.1 per cent each year from 2002 to 2012, and 2.2 per cent a year from 1996 to 2002.”

So, the real wage increase for say a lower-income worker who earned $1,000 has increased to $1,010, in the last decade. This $10 increase in 10 years is what the Minister gave to show that incomes at the bottom had continued to rise!

If you are a lower-income worker, after reading the above telling you that incomes have risen – How would you feel?

0.85 % real income growth last decade?

I also estimate that the real growth in the Median Gross Monthly Income From Work of the Full-Time Employed (not all employed including part-time) per annum from 2002 to 2012 was only about 0.85 per cent. If we use the all workers (full-time and part-time) data, is it even worse?

In the final analysis, if the above dismal wage statistics “does not mean that economic policies are failing”, then what does?

50 years in same job, company – earn $1,000!

Story No.2: “Flour packer, 73, valued for her experience” (Straits Times, Aug 24) – “When 73-year-old Madam Lim Gek Tee joined flour miller Prima as a packer 50 years ago, her pay was $4 a day and the work was mostly done by hand.

The grandmother is still doing the same job today, except she now operates machines which can pack 500 bags of flour every hour. She also earns $1,000 every month.”

– After reading this article, I don’t know about you but I felt a sense of nausea – that our labour movement seems to be so proud of the fact that a 73 year-old Singaporean female worker still only gets just a princely sum of  $1,000, after working in the same job in the same company for 50 years!

How much was a plate of chicken rice 50 years ago?

Effectiveness in serving the interests of workers?

Story No.3: “NTUC has record 770,000 members” – “The numbers by themselves are not the key performance indicators for the labour movement. ” The effectiveness of the labour movement, he added, is measured by whether it serves the interests of workers, regardless of whether they are union members.”

– So, looking at how dismal the wage statistics are (as well as this 73 year old worker) – our labour union  seems to be so proud of its effectiveness in serving the interests of workers, inspite of record union membership?

Ripley’s believe it or not?

Story No.4: “More than 7 in 10 S’pore workers happy: Survey” (Straits Times, Aug 24) – “42 per cent of those aged 18 to 34 cited higher pay as the most important factor in terms of what would keep them happy. For the overall group, the figure was 37 per cent.”

– This may fly in the face of other recent studies that say that Singaporean workers are amongst the least happy in the world. Since “higher pay” had the most dominant score in the survey out of the eight indicators respondents were asked to choose – in view of how bad the wage statistics are – do you believe it or not?

Concerned about age discrimination?

Story No.5: “Time for S’pore to have laws against age discrimination” (Straits Times, Aug 24) – “As recently as March this year, Deputy Prime Minister Tharman Shanmugaratnam acknowledged that older workers in Singapore face “an element of age discrimination”. Both older professionals, managers and executives (PMEs) and older low-wage workers are affected. While younger PMEs can find jobs quite easily, he noted that older PMEs are not just vulnerable to competition from foreigners but also have difficulty securing new jobs after unemployment: “I believe there’s an element of age discrimination that we have to tackle.”

– I don’t know about you, but don’t you get tired of hearing repetitive “words of concern” in the recent years – but where is the concrete action and will to solve this discrimination issue – still allow companies to have 100 per cent of its employees under “employment pass”, 55 per cent permanent residents (PRs)/20 per cent S-pass/15 per cent Malaysians/10 per cent foreigners from non-traditional countries, allow companies to offer any terms and conditions at age 62 under the (very weak) Re-employment Act, etc?

Leong Sze Hian

 

 

 

About the Author

Leong
Leong Sze Hian has served as the president of 4 professional bodies, honorary consul of 2 countries, an alumnus of Harvard University, authored 4 books, quoted over 1500 times in the media , has been a radio talkshow host, a newspaper daily columnist, Wharton Fellow, SEACeM Fellow, columnist for theonlinecitizen and Malaysiakini, executive producer of Ilo Ilo (40 international awards), Hotel Mumbai (associate producer), invited to speak more than 200 times in about 40 countries, CIFA advisory board member, founding advisor to the Financial Planning Associations of 2 countries. He has 3 Masters, 2 Bachelors degrees and 13 professional  qualifications.