Poll: Are you in favour of wage shock proposal?
THE PROPOSAL
Economist Lim Chong Yah recently floated a shock proposal to help tackle Singapore’s growing income gap.
Under his suggested "wage shock" plan, the former chairman of the National Wage Council from 1972 to 2001 and professor at NTU's School of Humanities & Social Sciences, suggested raising the monthly salaries of workers who earn S$1,500 or less by 50 per cent over three years. At the same time, the wages of those who over S$15,000 a month would be freezed for the same period.
GOV'T SAYS...
National Trades Union Congress secretary-general Lim Swee Say labeled it a “very risky” move because it would push up wages of low-wage workers but a corresponding increase in skill, productivity or employability may not follow suit.
He also added that such an increase for low-wage workers would result in a higher cost of living as businesses passed on higher costs to consumers.
BUSINESSES SAY...
Managers of small and medium-sized enterprises (SMEs) also criticised Lim’s suggestions, saying they were too extreme. Such a move could lead to the mass closure of SMEs as the companies may not be able to bear the cost of the wage increments, they said.
UNION LEADERS SAY...
However, union leaders welcomed Lim’s proposal, saying it was “a real morale booster” and “long overdue”.
YOUR SAY...
What do you think? Do you believe the proposed “wage shock therapy” will work? Take part in our poll.
