Reference no: EM133043310

National Wages Council suggests raising basic wage threshold for low-wage workers, proposes S$45-S$60 built-in wage increase 

(Extracted from Business Times - 31 May 2017) 

The National Wages Council (NWC) is proposing to raise the basic wage threshold of quantitative wage guidelines for low-wage workers from the current S$1,100 to S$1,200 - the second time in two years it is doing this. 

This means that more low-wage workers will be in employers' consideration when they are looking to follow the NWC's guidelines to propose a built-in basic wage increase in the range of S$45 to S$60 - a shift downwards from last year's proposed range. 

"This will ensure that increases in real wages are in line with productivity growth over the long term. This is quite critical to the future of our economy," said Peter Seah, chairman of the NWC. 

1 (a) Discuss the impact of this guideline to the employers of these affected companies on any FOUR (4) compensation components payable to these low-wage workers.  

1 (b) Contrast and explain the different perspectives of the various stakeholders, as in the employers, employees, government and unions on this wage proposal. Support your answers with the rationale of this guideline where necessary. (16 marks) 

(c) Examine the likely impact of internal alignment policy and pay structure due to the rise of basic wage for low-wage workers in affected industries? 

NOTE

Kindly do NOT provide answers in point forms

Cite any reference used for your answers

REFERENCE: Gerhart, B., & Newman, J. M. (2020).