Tan Kin Lian's Blog: Need for a minimum wage

Wednesday, December 30, 2009

Need for a minimum wage

Here is a case to illustrate the need for a minimum wage to offset the harmful effects of free market competition.

Bus operators in Malaysia compete fiercely for business. They have to offer lower fares. To survive, they pay low wages to their bus drivers, who have to work long hours to make up for the inadequate pay. Due to insufficient sleep and rest, they are more prone to accidents, which is risky to the passengers.

There is a need for regulation on the minimum wage and maximum hours of work for bus drivers to ensure safety to the public. This principle can be extended to construction and production work. We should have a minimum wage and maximum working hours in most occupations.

Tan Kin Lian

5 comments:

A Singaporean said...: Another example where minimum wages would be good: coffeeshop helpers, including drinks stall helpers and table cleaners. Some of these people in the coffeeshop industry work 12-hour shifts for large chains...; December 30, 2009 1:04 PM
Anonymous said...: I have been working in the construction industry for more than 12 years and I used to work 13 days continuously before get to rest for a day, even Mon to Sat working hrs was min 8am to 7pm sometimes up to 10pm, max monthly salary I got was $3.9k without any overtime pay becos I fall under "executive". I felt like overworked and underpaid.

I did not even have the time to socialise which worried my parents. End up they tried to match make for me but was unsuccessful.

I finally joined the SDU to try my luck, I did not even have the time to go down to collect my membership card personally unless I took a half day off from my busy work schedule.

I have not heard before such thing called min wages and max working hrs and these will not change as long as the ruling party still rule S'pore.

Mr Tan, you are like an oasis in the desert and best of all you did not get a M$ pay like our ministers...; December 30, 2009 4:40 PM
Ghim Moh Resident said...: Could there be a surplus of bus drivers which resulted in lower fares?

I have mixed views on minimum and maximum wages but regulation can come in to protect bus drivers.; December 31, 2009 12:50 AM
Cardin Lee said...: I second the view on minimum wage.

If the wage is low because of high supply and the drive to lower costs, then when we raise the cost artificially, the bus operators might be inclined to hire locals instead. Having a knowledge of Singapore's roads, culture and landmarks are well worth the wage hike, but unfortunately the benefits are often overlooked by the operators instead, since they provide marginal cost benefits to the customer.; December 31, 2009 6:45 PM
Anonymous said...: Essentially with minimum wage, customers benefit by the upholding of minimal acceptable standards. This is something the PAP govt, obsessed only with quantifiable numbers, do not appear to be concerned with. As such in the past 5 years we are witnessing declining productivity, declining service standards - where service staff cannot even speak competent English.

Generally the nation is regressing to third world standards.; January 01, 2010 3:11 PM