Wednesday, March 21, 2012

Agencies at odds over minimum wages

By Chris Wang  /  Staff Reporter

Government agencies were at odds yesterday over whether domestic and foreign workers should receive the same minimum wage, as Premier Sean Chen suggested an alternative option was possible.

The Ministry of Economic Affairs and the Council of Labor Affairs have conflicting positions on the hotly debated issue, an issue that was raised by Democratic Progressive Party (DPP) Legislator Chao Tien-lin (趙天麟).

The ministry has had discussions with business leaders, who favor a lower minimum wage for foreign workers, as well as the council on the “complex issue,” which could involve an amendment to the Labor Standards Act (勞動基準法), Minister of Economic Affairs Shih Yen-shiang (施顏祥) said at the legislature.

Council Minister Jennifer Wang (王如玄) said all workers should receive the same minimum wage not only because of the international covenants, but also because it serves the long-term interests of management.

Wang said she would resign if a dual-track minimum wage system were adopted.

Chen said the issue has been a longstanding dilemma and that the government is responsible for taking the opinions of all involved parties into consideration.

“But the fact is that local companies and factories have moved out to seek cheap labor,” he added.

The only feasible solution could be the establishment of a “virtual overseas business area,” which could adopt favorable regulations as those in countries with cheaper labor, for local businesses so companies would keep their investments and job opportunities in Taiwan and the interests of domestic workers would not be compromised, Chen said.

Chen mentioned the planned Kaohsiung Free Trade Zone as an example, although he did not specify if the government planned to experiment with dual-track minimum wage standards in the zone.