Labor officials will tackle a thorny issue this Wednesday: deciding whether to raise the minimum wage. Today trade union members took to the streets to make the case for a basic wage hike. They say that at least a 5% boost is needed to maintain a basic standard of living. But industry leaders say that a wage increase would badly undercut their bottom line amid the U.S.-China trade war and a ponderous tax burden.Representatives of industrial unions across Taiwan rallied outside the Ministry of Labor early this morning. They urged the Minimum Wage Review Committee to recommend a basic wage hike of at least 5% in its meeting on Wednesday.Huang Yu-teSolidarity unionWe also know that Taiwanese workers have an unbalanced power relationship with their employers, and that unions lack sufficient strength. We support the labor committee raising the basic wage by at least 5%.With labor seeking a wage hike, management is pointing to its tax burden. Recently Taiwan raised its total tax rate on corporations to 34.6%, well above Hong Kong’s 22.9% and South Korea’s 33.1%. Given this tax burden, employers say, a basic wage hike would be hard to absorb.Lin Por-fongIndustry group chairmanThe government decided that GDP and price index increases do not meet the criteria needed for giving raises to civil servants. That being the case, why should there be an adjustment to the minimum wage? Right now we’re weathering the effects of the U.S.-China trade war. At such a time, a wage hike would make matters worse. Companies going under or suspending operations – that’s the last thing we’d like to see.Wang Chuan-pingLabor PartyThese management-side groups keep saying, “Don’t adjust the minimum wage. If you adjust, I’m out of here. There would be no other way for me.” But so many Taiwanese investors have returned as a result of the U.S.-China trade war. Am I right?With divisions widening between management and labor, the Ministry of Labor stressed that a decision would be reached Wednesday based on input from labor, management, academia, and policymakers.
Labor officials will tackle a thorny issue this Wednesday: deciding whether to raise the minimum wage. Today trade union members took to the streets to make the case for a basic wage hike. They say that at least a 5% boost is needed to maintain a basic standard of living. But industry leaders say that a wage increase would badly undercut their bottom line amid the U.S.-China trade war and a ponderous tax burden.Representatives of industrial unions across Taiwan rallied outside the Ministry of Labor early this morning. They urged the Minimum Wage Review Committee to recommend a basic wage hike of at least 5% in its meeting on Wednesday.Huang Yu-teSolidarity unionWe also know that Taiwanese workers have an unbalanced power relationship with their employers, and that unions lack sufficient strength. We support the labor committee raising the basic wage by at least 5%.With labor seeking a wage hike, management is pointing to its tax burden. Recently Taiwan raised its total tax rate on corporations to 34.6%, well above Hong Kong’s 22.9% and South Korea’s 33.1%. Given this tax burden, employers say, a basic wage hike would be hard to absorb.Lin Por-fongIndustry group chairmanThe government decided that GDP and price index increases do not meet the criteria needed for giving raises to civil servants. That being the case, why should there be an adjustment to the minimum wage? Right now we’re weathering the effects of the U.S.-China trade war. At such a time, a wage hike would make matters worse. Companies going under or suspending operations – that’s the last thing we’d like to see.Wang Chuan-pingLabor PartyThese management-side groups keep saying, “Don’t adjust the minimum wage. If you adjust, I’m out of here. There would be no other way for me.” But so many Taiwanese investors have returned as a result of the U.S.-China trade war. Am I right?With divisions widening between management and labor, the Ministry of Labor stressed that a decision would be reached Wednesday based on input from labor, management, academia, and policymakers.
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