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| Singapore, as we plan |
On April 10, 2012, on the front page of Straits Times, Professor Lim Chong Yah (still proud to say I had the privilege of being your student) presented his "Economic Restructuring II" (ER II) ie. to raise the salary of those $1,500 or less by 50% over 3 years.
With the exception of a single vocal union member (and perhaps thousands of silent members) who called the ER II as a "real morale booster" and "long overdue", every notable senior member of establishment who came forward voiced their objection in various degrees of politeness.
The first off the block was Mr Lim Swee Say when he said on April 14, 2012, "This approach is VERY risky. What is at stake are jobs and structural unemployment."
Minister of State for National Development Lee Yi Shyan warned of the consequences of pushing up wages ahead of productivity by using the analogy of injecting too much hormone into a person. For more examples of words against Prof Lim's proposal, please read http://theonlinecitizen.com/2012/04/prof-lim-chong-yahs-proposals-are-timely-and-should-be-implemented/.
On May 1, 2012 being May Day, Prime Minister Lee Hsien Loong has put in what employers hope will be the final word on Professor Lim's controversial proposal. Mr Lee said while he appreciate his good intentions and share his concern over this group of workers, he clearly and unequivocally said he does not agree with his drastic approach. Again he echoes the need for wages and productivity to go up in tandem.
PM Lee surprisingly questioned the relevance of National Wage Council's (NWC) existence as wages are no longer dictated by the NWC. Wages today are determined by the forces of globalisation and technology, something beyond the control of the tripartite committee. Could the end of NWC be near?
To demonstrate that the low-wage conundrum is NOT simply resolved by unilaterally raising their salaries, PM Lee presented three strategies that Singapore will exercised.
Quote
First, Singapore will remain open to the world and to business, by supporting free trade and investments, and striking a balance between foreign and local workers while seeking the "maximum advantage" for Singapore and Singaporeans. The second strategy is to keep growing the economy, restructure it to stay competitive, encourage companies and workers to boost productivity, and share the fruits of growth. Third, growth must be translated to higher wages, with special attention paid to low-wage workers who are most affected by globalisation and inflation. (Unquote)
Just two days after PM Lee's speech to the unions on May Day, National Trades Union Congress (NTUC) has proposed to the NWC that "workers be given a minimum dollar amount as an increment to their basic pay - instead of getting it as a one-off payment" to beat inflation. A big gasp disbelief when I read that!!! Do they not get it that any pay increase without a corresponding productivity improvement is just a short term solution!!! But then, the proposed increase is definitely smaller than the quantum as proposed by Prof Lim.
My views
Despite the last part of perhaps a bit of shooting themselves in the foot, I am curious as to why Prof. Lim, a man of the establishment himself, would come forward and spark a debate in which he ended up defending singly against the rest of the establishment. I honestly do not think you have "lost your marbles".
Perhaps this is a new strategy of the establishment to bring their thinking/deliberation process in policy formulation into the open for all to see. Perhaps the debate over last few week represents a need to openly demonstrate to certain constituents that their concerns are seriously being considered. But the debate clearly demonstrates that we still have a problem with the low wage workers, inflation, rising costs to SME, etc.
While Prof. Lim may be credited with the "successful" wage restructuring between 1979 and 1981, perhaps he should just be like all heroes, get on the horse and ride towards and fade into the sunset.
