Mar 12, 2012

Taiwan - Taiwan minister proposes minimum wage raise



Wang Ju-hsuan, minister of the Council of Labour Affairs (CLA), yesterday proposed to raise both the minimum hourly and monthly wages for next year.

During an event in southern Pingtung County yesterday, Wang said the CLA is considering hiking the minimum monthly wage to NT$20,000 (US$678) from the current NT$18,780, and hourly wage to NT$115 from the current NT$103.

The CLA will propose the wage increase during a minimum wage review panel that convenes during the third quarter of each year to decide how much pay labourers will receive in the following year.

“The exact margin of increase will be decided during the panel,” said Wang, who along with other Cabinet members are required to conduct “long stays” in different parts of Taiwan to hear local residents out.

According to Wang, increasing the minimum hourly wage to NT$115 is to offer more protection for young people and women looking to start their second careers.

“Here in Pingtung, there are instances where employers can't attract any workers with the current minimum hourly wage,” she said. “It is our hope employers can offer higher pay, at least pay that reflects an increase in price.”

As for concerns whether Taiwan will pay local and foreign labourers on two separate tracks, Wang said that is unlikely.

“For countries that offer minimum wages, they are not likely to separate out foreign labourers from the system,” she said. “That way they will avoid being accused of violating foreign labourers' human rights and will be condemned by international organizations.”

Wang's remarks yesterday are expected to raise a few eyebrows, considering raising minimum wage has always been a sensitive issue.

The current minimum hourly and monthly wages are already an increase from last year, and hiking them up is all but certain to elicit sharp criticism from the corporate world.

Companies have voiced concerns that raising minimum wage “blindly” would be detrimental to their operations and may ultimately result in a migration of businesses to overseas.

According to private enterprises, an increase in minimum wage must take into consideration their sales and cost structure. Hiking it up hastily may add to their burdens and cause them to invest in other countries, they said.

Wang's remarks however may be welcome news for labourers, especially those in central and southern Taiwan where wages are noticeably lower than those in northern Taiwan.

Also at the same event, Wang said that the CLA's goal this year is to put one million people to work.

“Over the past two days I was in Pingtung, I observed that temporary jobs are hot, where workers will show up whenever they are called,” Wang said.

“This means a lot of people are still at home, waiting for jobs,” she said. “And our goal this year is to put one million people to work so they can make ends meet.”

News Desk
The China Post



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