Financial and Technology News

CONSEQUENCES?A rise in the minimum wage would see blue-collar positions filled by graduates, whose starting salaries are lower, a business group head said.

Major business groups yesterday said they would not take part in a meeting today on a planned minimum-wage increase for fear their presence would lead labor unions to demand a bigger raise.

Instead, they urged the government to be an objective mediator and settle controversies over national holidays and the workweek.

“We will not join the meeting organized by the Ministry of Labor, because our presence would suggest consent to a raise and labor representatives would press for a larger hike,” Chinese National Association of Industry and Commerce chairman Lin Por-fong told reporters.

The ministry and labor unions have proposed raising the minimum monthly wage from NT$20,008 to NT$26,000 and the minimum hourly wage from NT$120 to NT$126 after holding them unchanged for two years.

The hourly rate might also be put up to NT$130 to reflect inflation.

Trade groups have made their views clear and it is up to the government to decide whether to listen, Lin said.

The association and other business groups would agree to an increase of 3 percent, or NT$600 per month, and described a minimum wage of NT$26,000 per month as “unacceptable,” said Lin, who is also chairman of Taiwan Glass Industry Corp.

An increase to NT$26,000 would prompt employers to fill blue-collar positions with college graduates, whose starting salaries are at similar levels, Lin said, adding that the practice would put low-skilled workers out of work.

Lin called on the government to show more flexibility in dealing with labor policy and speed up resolving uncertainty over the schedule for national holidays and the workweek.

Business groups would accommodate a 40-hour workweek if the government agrees not to reinstate seven national holidays, Lin said.

The association asked the government to raise the monthly cap on overtime from 46 hours to 54 hours.

Association member Steven Pan, who is also chairman of FIH Regent Group, the nation’s largest hotel operator, said flexible working schedules are necessary for his business to remain viable and to meet customer needs on a 24-hour basis all year round.

Flexible working hours are more important for the hospitality industry than the introduction of stimulus measures to increase Chinese tourists, Pan said, adding that he is not satisfied with the business outlook for the rest of the year, but it is better than nothing.