1/08/2009
NWC's unenviable task
The NWC will have to make its recommendations on wages soon. This time it is very likely on how to cut wages or reduce wage increases. Bet with you the people who is going to get the wage cut or wage freeze will be the workers.
We will likely see how the use of absolute sum and percentages at its best. Some will be affected by a fixed sum and some by percentages to the benefits of some and disadvantages of others.
The message is likely to be belt tightening to save jobs.
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16 comments:
Is there such organization as National Wage Council in other countries?
Or
is our NWC a neccessary institution?
patriot
dunno man. there are necessary institutions there are unnecessary institutions.
Is there such an organisation as a Government controlled trade union anywhere else in the world?
Central planning of wages is a recipe for eventual failure.
ALL unemployment is voluntary i.e. if you are not working, you are responsible. Therefore, why should govt interfere — especially the S'pore govt with its 'meritocracy' and 'non-welfare state' stance. (yeah, right)
If price are rising whilst economic output is falling, then stagflation is the reason. And the cause of stagflation: the govt and it's central bank inflating the money supply.
No amount of wage increase will over come stagflation. Any tinkering with the wage level by central planners is more a short term POLITICAL MOVE than it is to some 'beneficial' economic end.
The most sensible and HONEST way (but govt's are incapable of honesty) to deal with economic recession is for the state to:
1. Stop inflating the money supply
2. Reducing spending and close down as many ministeries and stat boards as possible. (I'll bet you the stat boards still have truck loads of money). For e.f. MITA --> close down. Esplanade --> sell off. MAS --> close down. Temasek and GIC --> close down. HDB --> close down. CPF --> close down etc etc. Reduce civil service by 90% +
3. Cut all taxes to zero. Sell off govt assets (Temasek, GIC, buildings and land) to pay for police, military, justice and tiny civil service
4. Cut all govt salaries by at least 50%. Top govt officials a minimum of 90% pay cut.
But no. The NWC are going to make sure the workers get nailed before even one cent is cut from a stat board's budget.
90% pay cut is too much,I dont think that is a good idea.
We should not offer low pay and expected ministers to sacrifice,it is not realistic and not practical.
I still remember vividly when corrupted Ah Bai took over as president of Taiwan,he volunteered to cut his pay by 50%,see what happened,he took political donation of about 700 million NT(about S$35 million)He is destined to spend the rest of his life in prison,and the whole clan condenmed.Thios is bad for the country and for his family.
Neither do I agree to pay our ministers the current pay,I think a pay slightly lower than that of their HK counterparts should be about right.
I hope MM Lee would think about this,as he mentioned when he floated the scheme,he said:"In 10 years time,this would go away and surely be non-issue"
But it has not!
Sinner-Spore
'Reducing spending and close down as many ministeries and stat boards as possible'
That could greatly reduce their majority in the next election because it is an open secret that most (I say most and not all) sewer serpents vote for the PAP out of, well, let us say a rooted fear of loosing their jobs.
Such ministeries and stat boards provide the crowd support at PAP election rallies, so give some face lah!
To Sinner Pore:
No pay can ever be logically warranted for anyone employed by the government, simply because government does not ADD VALUE, it takes away value from all private economic activity to achieve its function.
anon 509:
> Such ministeries and stat boards provide the crowd support at PAP election rallies, so give some face lah! <
The only face I can think of is giving them a bukkake face... but reconsidering that option I've concluded that it would be a waste of good sperm. :)
i actually like matilah's suggestions. it will definitely bring down inflation and the cost of living. but in a time like this, we need to give them a pay rise and encourage them to spend more to revive the economy. we need them badly, to spend money here.
> it will definitely bring down inflation and the cost of living. <
That is NOT the goal. The goal is to restore integrity to the CAPITAL STRUCTURE and individual FREEDOM, because those are the FUNDAMENTALS for a healthy economy. i.e. the govt has no business in the economy except to enforce contracts and prosecute fraud.
> to spend money here <
Spending will not "repair" an economy. What is destroyed (or at the very least severely distorted) is the inter-temporal capital structure and the freedom of individuals to act freely according to their time-preferences.
But hey, give those lazy fork-tongued thieves a rise anyway... I don't care. Maybe one of them can open a French restaurant with their new skills ;)
One should not force sinners to become criminals,as I sinner,I reat my case!
To control or even to reduce wages is to encourage the company to continue operating.
WAGES is one of the highest expenditure which company incur. The government is taking an easier way out.
Just like that companies in other countries, when they are not making money, they retrench worker to improve shareholder value.
Hopefully, the Sing dollar will remain strong, so as to control the inflation,
How about the commonly-touted argument that in small countries like Singapore, the government has to take the lead when it comes to entreupenuership?
e.g. SIA, and it was said that Singaporean businessman were generally risk-averse and had to be pushed
the workers is at the lowest end of the pecking order. they will take the brunt of cost cutting.
Lets not have this 'gangster mentality' to manage the people !
Note, 100% Power corrupts. Just be fair to all, that is what the people are asking.
hi capt's longhouse, welcome to the blog.
why is it that people got this image of gangsterism? the PR dept must not be doing its job.
anon 1252
When in business, occasional failure is simply a fact.
The govt doing business is the govt exposing itself to risk and liability -- this is not the function of govt. When they 'lose', as everyone in business does (at least a few times), the govt simply gets money off the people.
Whether or not s'pore businesspersons are 'risk averse' is simply an opinion. IMO, it is not HOW MUCH risk you take but HOW MUCH MONEY YOU MAKE which determines 'success' in the world of capitalism.
When LKY was a young lawyer, many of the business elite used to dis him and ake him jump thru hoops -- why? Because in this world if you ssign the cheque, you call the shots.
When LKY got into power he was already a 'failure' in the free-market, and he hated it with a vengence. He wanted to put those old-rich family companies out of business because he was simply an ugly, jealous, tiny-little man.
Make no mistake, LKY is a damn good ruthless politician, but in his early days he was HOPELESS in the free market (and still is... that's why he needs 'protection' by the courts)
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