Much ado about Minimum wage

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 Ayuba Wabba:NLC President

Laws are good especially when they are not only enforceable but can be easily enforced. Over the years we have seen

minimum wage laws being made and most often after much pressure from the labour unions.

While the minimum wage is a standard for the whole labour force in the country, those who really benefit from it are the government workers and those in the very organized private sector.

For the rest of the labour force, it is a dicey situation depending on the bargaining power of the worker and the ease of getting alternative openings. While the minimum wage legislation addresses minimum remuneration, it lacks the power to enforce employment.

Thus a company may decide to lay off staff and make a few workers do more than reasonable for a minimum wage. The law lacks the power to question this or cater to the staff laid off.

Now for want of a minimum wage, those in employment are overworked and their unfortunate colleagues are laid off.

In classical Economics, where supply of labour outstrips demand for labour, minimum wage is a no gainer. The workers under such conditions cannot but be desperate and in their desperation, they sleep over their rights.

When however, the demand for labour outstrips supply, the reverse is the case. As conditions of demand and supply vary from sector to sector or from profession to profession, the effects of minimum wage vary across board.

This being the case, rather than demanding for minimum wage, workers and the unions should with other citizens be demanding for minimum conditions of living. 

This is with respect to services at the disposal of workers. For instance, with respect to public transportation. Workers should insist on maximum number of commuters in the different vehicles on offer. The same should apply to number of doctors per general hospital, number of teachers per given number of students.

I have seen students sit, four on a seat, that was previously meant for two students.

In this as in many others, when necessary changes are made, everyone gets value for money whereas with minimum wage, some people end up losing their jobs while traders hike Prices in a quest for their share of the spoils.

In the end purchasing power is eroded, more people are worse off and the Economy regresses.

Over time like with respect to the types of restrooms that should be in homes, government enforces minimum standards but with pressure from the unions more can and will certainly be achieved instead of the fiasco that results from minimum wage legislation.

One thing is clear, the more buoyant and stable an economy the better for everyone.