The National Wages Council (NWC) was established in 1972 to advise the government on wage policies and also issue wage guidelines in line with long-term economic objectives. The NWC’s recommendations, when accepted by the government, serve as a basis for wage negotiations between employers and unions. NWC’s recommendations apply to both the public and public sectors
The key function of the NWC is to enhance
A minimum wage is defined by International Labour Organization as:
The minimum amount that must be paid to the majority of the workers of a country, generally on an hourly, daily or monthly basis; and which is ideally fixed in such a way as to cover the minimum needs of the worker and his/her family, in light of the prevailing national economic and social conditions.
According to the conditions for work and employment information sheet published by the International Labour Organization, minimum wage laws are now enforced in more than 90% of all countries.
Adjustments to the minimum wage are driven by two criteria: social, and economic. The social criteria takes into account the needs of the workers and their families, the cost of living and / or inflation, general level of wages, and the level of social benefits. The economic factors are the economic situation and / or development of the country, the capacity of enterprises to pay, employment, and productivity.
There have been commentaries on introducing minimum wage legislation in
The National Wages Council (NWC) has completed its deliberations on wage and wage-related guidelines for 2008/2009. In its deliberations, the Council took into account the prevailing national economic factors, such as its economic performance, labor market conditions, productivity, wages and inflation trends,
The
In addressing the high inflation in
Although the lump sum inflation buster payment is meant to assist rank and file workers to make ends meet, the council could not prescribe the quantum to be payable. Hence, the amount of the one-off lump sum payable and its implementation are left to the creativity of companies and perhaps the devices of compensation and benefits practitioners.
NWC recommendations on wage and wage-related guidelines did not, in my opinion, delve adequately into the social factors such as the ability of workers to pay for what are considered to be basic necessities. As inflation sets in, a higher benchmark in terms of pricing for a basket of food will be re-established, and the affordability of workers to purchase basic necessities threatened.
Why do workers work? At the basic level, rank and file workers work to bring bread (and rice) to the table for themselves and their families. With the price of food and commodities reaching dizzying heights, are they still able to bring bread crump to the table?
Will we have the minimum wage to make ends meet?