Global inequalities
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| − | ==The Minimum Wage | + | ==The Minimum Wage in a Global Context== |
As the presures of globalization make povvety, justice and development look less likely for many disadvantaged communites, the need for an adeqaute minumum wage becomes stronger and stronger. If Mimimum wages are going to be effective they have to be set in relation to average earnings and it must be set in to relation to wages in other countries. Unless it is set too low it must allieviate poverty. However if the poor are not in regular employmeny then minimum wage is not going to help much. It is also needed where countries do not have a welfare system. | As the presures of globalization make povvety, justice and development look less likely for many disadvantaged communites, the need for an adeqaute minumum wage becomes stronger and stronger. If Mimimum wages are going to be effective they have to be set in relation to average earnings and it must be set in to relation to wages in other countries. Unless it is set too low it must allieviate poverty. However if the poor are not in regular employmeny then minimum wage is not going to help much. It is also needed where countries do not have a welfare system. | ||
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In developing countries there are often no minimum wage of labour standards. Japan has moved many mfgs to China. Sdvances int eechnology have allowed resourcing from developing countries. The garment industry has moved from HK, Sinagpore and South Korea to Thailand, Mexico and Indonesia. Part of this move was due to age pressure but also becuase those countries moved in to more value added products. | In developing countries there are often no minimum wage of labour standards. Japan has moved many mfgs to China. Sdvances int eechnology have allowed resourcing from developing countries. The garment industry has moved from HK, Sinagpore and South Korea to Thailand, Mexico and Indonesia. Part of this move was due to age pressure but also becuase those countries moved in to more value added products. | ||
| − | Many counties have large informal sectors that are not covered by legislation. Small co's or home workers. However, MNC's circumventing low pay can be overstated. Only 15% are employed in | + | Many counties have large informal sectors that are not covered by legislation. Small co's or home workers. However, MNC's circumventing low pay can be overstated. Only 15% are employed in Mfg and 80% of wage pressure are factors associated with competition from low wage economies.In Advanced Countries - Increasingly moving to lower paid service industries which are often part time. |
===Deficiencies in minimum wage systems=== | ===Deficiencies in minimum wage systems=== | ||
Minimum wages should be adjusted often but few countries have legislation that cover any worker. In Luxemborg MW is set high and covers 16% but in Spain it is low and covers 2%. ILO offer lttle guidence on what the veles should be but it should meet the Cost of Living but in most countries it comes no where near that. In Niguragua for intance it is 33% of CoL. Women are most affected by MW legislation and compliance can be a problem. Non-compliance is 54% in Guatemala and 9% in Chile. | Minimum wages should be adjusted often but few countries have legislation that cover any worker. In Luxemborg MW is set high and covers 16% but in Spain it is low and covers 2%. ILO offer lttle guidence on what the veles should be but it should meet the Cost of Living but in most countries it comes no where near that. In Niguragua for intance it is 33% of CoL. Women are most affected by MW legislation and compliance can be a problem. Non-compliance is 54% in Guatemala and 9% in Chile. | ||
| − | Govts are concerned that MW can inpact inflation and reduce employment but they could be offset by higher productivity | + | Govts are concerned that MW can inpact inflation and reduce employment but they could be offset by higher productivity or reduction in profits. Also higher input prices might render their goods uncompetitive but many of these jobs are i the service sector not impacted by foreign competition and often wages are a small part of the value added and stability, raw materials, infrastructure, legal protections are more important. |
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| + | At the moment MW legislation can only be acted by the nation state and even Unions in some countries are sketical as they fear it will undermine collective bargaining, but should we adopt a global rate at say $1/hrs and work towards a harmonization of wages over time. | ||
Revision as of 20:44, 22 February 2011
Contents |
The Minimum Wage in a Global Context
As the presures of globalization make povvety, justice and development look less likely for many disadvantaged communites, the need for an adeqaute minumum wage becomes stronger and stronger. If Mimimum wages are going to be effective they have to be set in relation to average earnings and it must be set in to relation to wages in other countries. Unless it is set too low it must allieviate poverty. However if the poor are not in regular employmeny then minimum wage is not going to help much. It is also needed where countries do not have a welfare system.
Reducing injustice and Developing the economy
Although some jobs are defined to as deserving less money some people are being paid due to other reasons. Racism, age, phyisical defects, immigrants. When they do get paid a minimum wage they use that money to buy other goods and service form other low paid employees.Thus increasing domestic demand.
Globalization and low pay
In developing countries there are often no minimum wage of labour standards. Japan has moved many mfgs to China. Sdvances int eechnology have allowed resourcing from developing countries. The garment industry has moved from HK, Sinagpore and South Korea to Thailand, Mexico and Indonesia. Part of this move was due to age pressure but also becuase those countries moved in to more value added products.
Many counties have large informal sectors that are not covered by legislation. Small co's or home workers. However, MNC's circumventing low pay can be overstated. Only 15% are employed in Mfg and 80% of wage pressure are factors associated with competition from low wage economies.In Advanced Countries - Increasingly moving to lower paid service industries which are often part time.
Deficiencies in minimum wage systems
Minimum wages should be adjusted often but few countries have legislation that cover any worker. In Luxemborg MW is set high and covers 16% but in Spain it is low and covers 2%. ILO offer lttle guidence on what the veles should be but it should meet the Cost of Living but in most countries it comes no where near that. In Niguragua for intance it is 33% of CoL. Women are most affected by MW legislation and compliance can be a problem. Non-compliance is 54% in Guatemala and 9% in Chile.
Govts are concerned that MW can inpact inflation and reduce employment but they could be offset by higher productivity or reduction in profits. Also higher input prices might render their goods uncompetitive but many of these jobs are i the service sector not impacted by foreign competition and often wages are a small part of the value added and stability, raw materials, infrastructure, legal protections are more important.
At the moment MW legislation can only be acted by the nation state and even Unions in some countries are sketical as they fear it will undermine collective bargaining, but should we adopt a global rate at say $1/hrs and work towards a harmonization of wages over time.
