The justification for having a minimum wage is an issue of fairness as Gilbert Goh points out. Is it fair that the free market rate is so low that it is below the rate that someone cannot support him or herself. Put it this way and given S’pore is a rich, developed city state, the govmin sounds mean to deprive S’poreans and others working here of a minimum wage.
If as a matter of ”fairness”, we should implement it, then the issue becomes what damage, if any, to the economy? And can any damage be quantified?
And then decide (assuming that it does damage the economy), whether fairness or “the greater gd” should prevail.
There are several empirical studies that suggest that a minimum wage moderately above the free-market wage would not harm employment much and could (in some circumstances) potentially raise it.
Let’s not mix the issues up, something that many on both sides of the debate seem to do. But maybe they mix up the issues on purpose: to try to win the debate.
Me? I think that fairness demands we have it, but I am concerned about the paperwork. Remember even businesses that are exempted, have to keep records in case the govmin comes ‘ checking. And smaller businesses that are not exempted, have to keep the same records as a GLC, TLC or MNC that has a large HR department.
The whole “fairness” issue is a red herring. It’s merely a distraction.
This is a classic example of a proposed solution which begets further problems of its own.
The underlying issue is the way the economy has been structured since independence – and how it has failed to adapt with the times.
Why are low-paying jobs still being created?
Rubbish collectors in Sydney are being paid 50K a year. Would you like to know why? And no, it’s not just the unions.
Translation:
1) Why is the free market rate so low in the first place?
2) Why is the economy so susceptible to the “damaging” effects of wage increases?
Melbourne
Would opine that you are in error as a garboman gets more than US$50K per annum in Sydney.
Did their taxes
Further, it is a closed rort system where the only way to get in is to either marry into it or be an extremely good buddy.
No public advertisements
Cheers Mate
@Wang
Wouldn’t be the expert there since I’m obviously not a resident.
But got nosey some time back and found a couple of employment agreements off some councils’ websites. Wouldn’t be surprised if they were a tight knit bunch, they even had yearly increases built into their contracts.
If they’re paid even more, the point still holds eh?
On the side, accountants, mortgage brokers and bank managers. You guys must have a lot to talk about when you go out…