Paying below the minimum wage rate is robbery
Businesses continue to exploit our people, and while this happens, we see little action taken to remedy this problem. There is a reason why there is a minimum wage rate, and those who do not pay above $4 an hour to employees are nothing short of being criminals.
The national minimum wage rate was increased to $4 because it was found that those working on the lowest rate live in poverty and below the accepted standard of living. In over a month, the national minimum wage rate will increase by another 84 sene, making it compulsory for any employer in this country to pay anyone who works for them above $4.84 an hour.
When people continue to exploit the poor and vulnerable, and there is inaction by the authorities, it shows that those in leadership are condoning this act. If you cannot help the vulnerable, who are you helping? A person living on minimum wage barely affords a healthy living, and then there is the added pressure of supporting family and church commitments. The churches demanding exorbitant levies from households on minimum wage are as guilty as the employers who do not pay employees the minimum wage rate.
The government needs to step in and ensure that the law is followed. The national minimum wage rate is a legal requirement that all employers must abide by, like superannuation and the accident levy. Those employers who pay below the minimum wage rate are robbing employees. When someone is robbed or a victim of theft, the police step in and ensure that the culprit is taken to task. Who is helping employees from getting robbed? Where are our elected leaders who make promises for better lives, and yet fail to provide the security to those on minimum wage?
Like so many legal requirements and legislation, the minimum wage rate is becoming yet another redundant law. If the authorities are not holding employers accountable and following through that everyone is above the minimum wage rate, then there is something wrong with the system. A system that is quick to jump and protect the rich, yet does very little for those who need it.
Last year, there was a huge bump in the salaries for government leaders, judges, and civil servants. Compared to what they are paid, people on minimum wage are living on peanuts. The minimum wage increase faced resistance from some employers, and as usual, their argument was that this would impact their revenue. It may be the case, but the benefits of having a higher minimum wage outweigh the negatives.
One has to walk in the shoes of a minimum wage worker to realise the struggles they face. Some are asking for prolonged hours of work, some are hoping to work seven days, and there are requests to the employer that the superannuation not be deducted.
Most on minimum wage are also subject to things such as poor nutrition. Their inability to afford nutritious meals results in lifestyle diseases. Most economists believe that a rise in the minimum wage may reduce unemployment. Workers with higher wages tend to spend more money, which can increase demand for goods and services and create new jobs. Workers on relatively low wages tend to have a high propensity to consume.
A higher minimum wage can lift many workers out of poverty and reduce income inequality, which can lead to a more stable and robust economy. When workers are paid a fair wage, they may be more motivated and productive, which can boost overall economic growth. Efficiency wage theory approaches the issue from this perspective.
Higher wages can make it more attractive for workers to stay in their jobs, reducing the need for employers to constantly hire and train new employees. A higher minimum wage increases the hourly reward from working rather than remaining economically inactive.
Announcing the increase in minimum wage was good. It would be better if the responsible authorities collaborate and check compliance with not just the minimum wage, but also other things that ensure fair employment.
Have a blessed Sunday.