Minimum wage may phase out low-skilled workers

A normal, competitive labour market should not have to resort to a minimum wage to keep the low-skilled and those with disabilities employed (Tommy Koh's post on ST report sparks online debate; Oct 28).

A free market economy should be independent of government handling and instead relegated to employers.

If employers can economically afford raising wages while providing goods and services for their customers at an acceptable profit, they should, by all means, go ahead.

Forcing every business to inflate wages will only raise the price of goods and services.

Employees will demand compensation for raising the minimum wage to pay for the inflation and the cycle will go on perpetually.

A minimum wage may also phase out low-skilled workers because employers will demand that workers be worth much more in productivity in line with the minimum wage.

Businesses should decide how much they are willing to pay depending on how much they can afford instead.

The ability to negotiate and work for what one is worth is huge in capitalism, because no business will shortchange itself and pay someone more than they are worth.

Cheng Choon Fei

A version of this article appeared in the print edition of The Straits Times on October 31, 2018, with the headline 'Minimum wage may phase out low-skilled workers'. Print Edition | Subscribe