Workers Are Not 'Free' To Determine Their Wages

This letter was submitted to TODAY on 6 March 2013 but not published.

The Acting Minister for Manpower Mr Tan Chuan Jin's argument ("Let remuneration be set according to market principles, says Tan Chuan-Jin") that workers are free to decide if employment terms on offer suit their needs ignores the reality and experiences of many workers, including that of low wage migrant workers. It is misleading to suggest that disagreements arising from unacceptable employment conditions may come from unreasonable demands of the workers themselves when government laws and policies are also responsible for disadvantaging workers.

It is also contradictory for the minister to suggest that remuneration should be determined by market principles when government policies themselves are responsible for distorting the market to the detriment of workers. For example, work permit terms and conditions disallow them from switching jobs even when they are badly exploited. High foreign worker levies which are meant to discourage employers from hiring migrant workers only worsens the situation for the workers because the costs are passed on to them: The worker's wages either remains stagnant or the employer recovers the cost of hiring by collecting kickbacks from them. This argument also ignores the fact that low wage workers have little bargaining power in the first place, and that migrant workers in particular, depend on an employer's goodwill to remain in Singapore.

It is disconcerting for the Minister to suggest that because the SMRT drivers were aware that they were not entitled to wage increments in their contract, employers are still 'free to determine how much they are willing to pay for a particular job'. As the dispute over wage increments in the SMRT case was about the difference in treatment among Singaporeans, Malaysians and Mainland Chinese, is the Minister suggesting that wage discrimination by nationality is acceptable in Singapore? Equal pay for equal work is an internationally recognised labour right. The International labour Organisation (ILO), of which Singapore is a member, has included this principle in its core labour standards. When we endorse wage discrimination by nationality, it undermines the 'meritocratic' system that we as a society claim to uphold.

The government, unions and employers need to realise that the principles of equality and non-discrimination are essential components in our current drive for better productivity in the work place. When employees feel that they are fairly treated and have a stake in the company's performance, they are more likely to contribute positively to the work environment. Those who are exploited and discriminated against are more likely to resign, and move on to companies and other countries with better work prospects and employment protections.