Sunday, July 01, 2018

Make employer prefer local workers

Most people consider $3,000 a month to be an "adequate" wage. A wage below this level is considered to be inadequate.

More than half of the work force, I suspect, earn below this wage. They cannot command a higher wage because of the influx of foreign workers who are wiling to accept a lower wage.

The government should set the example by paying a wage of at least $3,000 in the private sector. It should also stop the bad practice of outsourcing of private sector jobs, e.g. cleaning and security guards.

It is a shameful practice for the government to reduce its cost by exploiting the workers through outsourcing.

What about the private sector? They are not able to afford this wage. They have to pay high rentals and do not have enough business.

The solution is for the government to provide a monthly subsidy of $500 to employ a local worker. They can charge a levy of $500 to $1,000 to employ a foreign worker.

The system of subsidy and levy will help to balance the market for local and foreign workers. It will make employers opt to employ local workers, as the cost is equalized.

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