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November 28, 2005
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Helping helpers
Philip Borwing rants about the state of domestic helpers and low-paid workers in today's SCMP (full article below the jump). It's a hit and miss affair. He starts out on the right foot, complaining about the unequal application and enforcement of labour laws when it comes to helpers and low paid workers. He also notes the economic and social benefits of domestic helpers. Then he goes off the rails: At the current level of their minimum wage, it could be argued that domestic helpers are no worse off than the lowest-paid unskilled workers. But the fact that foreigners are prepared to work for half the minimum, or less, does not make it right. It suggests that society tolerates an underclass segregated by race, rights and income.No, what it suggests is the minimum wage is too high. Minimum wages create an artificial floor in the "price" of labour. As a consequence the price of labour is too high, and fewer people get employment as helpers than would otherwise be able to. At the margin the minimum wage may be too high for those who would otherwise employ a helper, and too high for those who would work for less. That's not to say sub-standard working conditions should be tolerated. Far from it. The government is morally culpable if it does not equally enforce laws for all residents. But that's a seperate and very different issue. Bowring then points out how much worse off helpers are in Singapore before coming out with this zinger: Sadly, it is perhaps not surprising - given the tendency of members of Singapore's elite to believe in the superiority of Chinese genes - to find that only women from the "brown" countries of South and Southeast Asia qualify to be employed in this particular form of servitude...they [the helpers] contribute to the economy but get almost nothing back.His thoughts on Singaporean superiority complexes asisde, there is a major piece of the puzzle missing. Helpers are not compelled to take these jobs. They are also not forced to stay in them. Yet most of them do. Why? Because despite the appalling pay, crappy conditions and terrible work, they are prepared to do it. It beats what they could be doing back home, and they are still earning far better than they would otherwise. Yes, there's a line to be drawn. There is a need for certain minimum working conditions to protect fundamental human rights. A minimum wage is not one of them. Patronising helpers by telling what's in their interests does not help. These are consenting adults agreeing to labour contracts. Let the market do its job and it generally does it well. So long as governments actually enforce their laws as they should, the system works to everyone's benefit. If you feel guilty about it, pay your amah extra and give her better working conditions. I do. The shame of an underclass Does Hong Kong really need an underclass of low-paid contract workers? Do we not demean ourselves by demeaning others? Two recent news items are worth pondering: first, the case of a domestic helper being paid just $100 a month; and second, the fact that the government is to allow the import of 5,000 low-paid workers for the textile industry. The first case may be exceptional, but what is not exceptional is the widespread underpayment of domestic helpers, especially Indonesians, and the lack of effort by the government (and the Indonesian consulate) to enforce the law.posted by Simon on 11.28.05 at 12:45 PM in the Hong Kong people category.Singapore category.
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