Minimum wage debate restarted..

Minimum wage is an emotive issue which has broad consensus of acceptance. Its evident from the ongoing dialogue on the issue in various media outlets. There was an attempt to set up a minimum wage for the country to prevent labour exploitation in the past which was duly shot down by the pro-business lobby in the People’s Majls. The current attempt to set the minimum wage comes at a time the balance of power is shifting in favour of the ruling MDP party which hopes to re-energize the local economy by creating more jobs for the locals, releasing and unsustainable peg on dollar to rufiyaa and introducing long overdue tax reforms. Although there are voices of dissent only from the bussiness lobby which includes resorts owners such as Villa group chairman Gasim Ibrahim, Sun Travel Shiyam the minimum wage issues is expected to proceed through People’s Majlis.

Contrary to popular belief, minimum wage when it becomes reality will not be as high as is expected of it. The figure could be based on criteria such as type of work or age of worker etc or one all encompassing one figure such as 2000.00rf etc. It remains to be seen how the the figure is arrived but one criteria the govt. will have on mind is to device it in such away that the current labour exploitation will be halted by this one stroke of legislation. The Minimum wage figure need only to be above the edge the employers are employing expatriates over locals such as 70$ or 100$ per month levels. With these levels of pay, the workers (often expatriates) are enduring back-breaking work in exploitative conditions and suffering for years on end without any regard to rights and benefits of work. If the minimum wage figure is higher than these levels, there is a good chance that construction industry will be more favourable for local employment.

The business lobby will work hard to undermine this measure and yet they do not have convincing arguments against the measure. Vague observations like “we will go bankrupt.. if this happens” only exposes the depth of their understanding of basic issues in running a business. If they do not offer credible objections or alternatives , then they are just a voice and no more. Running a business is no more like a running a slave-trade operation. That was some time back and does not reflect current working condition in resorts or construction industry or anywhere else.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s