Economic Upturn Calls for Wage Increases

Economic Upturn Calls for Wage Increases
China Times editorial (Taipei, Taiwan, ROC)
A Translation
June 20, 2014

Summary: The Executive Yuan recently convened a "National Economics and Trade Conference." The government promoted economic growth. It used the Mainland's inclusive economic development model to promote labor market reforms, It improved the employer/employee relationship. . Only then was it able to prevent the worsening of wealth inequality. and realize the ideal of social justice. Now that the fiscal situation has improved and tax revenues are sufficient, the government should ensure that the fruits of economic growth are shared by all the people.

Full Text Below:

The global economic environment has improved. Taiwan's economy is also enjoying a new dawn. The Ministry of Finance announced the latest import and export trade statistics. May exports totaled $ 26.67 billion USD. This was the second highest month of the calendar year, the result of four consecutive months of growth. Electronics exports totaled $ 8.56 billion USD. The annual growth rate was 15.2%. This was a record single-month high. Among exporting countries and regions, the Chinese mainland accounted for 41.5%. Exports from Hong Kong increased 6.4%. This was the main reason exports increased in May. Between January and May exports from Mainland China, including Hong Kong, the ASEAN-6 countries, Japan, Europe, and the U.S., increased. European and American exports increased over 5%. Economic forecasters predict economic growth this year. They think a 3% increase is likely. Some forecasters even predict 3.6%. The NDC has shone green for three consecutive months. The Business Cycle Indicator rose 29 points. It hit a hundred year high in May. Indications are that Taiwan's economic growth this year will surpass the global average.

Government revenue has also increased noticeably. Between January and May of this year, tax revenues totalled 708.4 billion NTD. This represents an increase of 1.6 billion NTD. Growth went from negative to positive, enjoying a small increase of 0.2%. Total tax revenue reached a new high. Add to this improved stock market performance. Since June the average daily trading volume for listed and over the counter companies totalled 139.7 billion NTD. This exceeded the initially projected turnover of 116.6 billion NTD. Over the past five months capital gains taxes totalled 36.1 billion NTD, growing by more than 3%. The shortfall for the fiscal year has been alleviated.

The job market has continued to improve. In April 11.04 million people were employed, up 0.12%. The number of unemployed fell by 14,000. The unemployment rate was 3.91%, lower than the 4% low for the past 70 months. In April, the labor force participation rate was 58.39%. This was 0.03% lower than last month. Between January and April the average number of people "not in the labor force" totaled 8.171 million. This was a 22.000 person or 0.27% increase over the same period last year. The April unemployment rate for those with university or vocational school degrees was 4.21%. For those with university degrees and above the unemployment rate was 4.80%. For the 15 to 24 age group the unemployment rate was as high as 12.27%. Employment clearly remains a major problem for young people.

As everyone knows, salaries have remained frozen for the past 16 years. This has led to public discontent and complaints that "Low salaries are a national embarrassment." Demands for salary increases are heard everywhere. In early February, New Taipei Mayor Eric Chu proposed increasing the number of legal holidays in order to increase economic prosperity. Taipei Mayor Hau Lung-bin gave employees a raise. He suggested that the central government consider raising the minimum wage. Premier Jiang Yi-hua proposed three ways to increase the number of vacation days. He asked the Ministry of Labor to investigate policy measures to encourage businesses to raise wages. Conditions have stabilized and the fiscal situation has improved. Therefore the government should consider raising wages across the board.

First of all, the relationship between employers and employees has reduced employer dependence on labor. Over the past 20 years Taiwan has imitated Japan's labor dispatch system. This has significantly reduced personnel costs for both government and industry. But the government's extensive use of dispatched labor may result in large scale private sector emulation. It may worsen labor conditions. This is an important contributor to the long-term freeze in real wages. Recently opposition to the personnel dispatch system has intensified. Labor Minister Pan Shi-wei thinks the public sector should prohibit the use of dispatched labor. County and city governments agree. But the central government currently imposes a 173,000 man limit. Many departments continued restructuring last year. They have added labor requirements. A total ban on dispatched labor will increase costs and create difficulties. How will dispatched labor be reduced? That is already a problem. The central government and its many agencies must swiftly draw up plans for manpower utilization and the attendant measures.

Base salaries were increased from 19,047 NTD on July 1 to 19,273 NTD a month. But compared to the other Asian tigers, this is not very high. The government should raise wages again as soon as possible. Increasing base wages will result in top down comparisons. All wage earners will eventually benefit from upward salary pressures. When 4 million wage earners can benefit, raising the base wage is a top priority.

The government should develop a ten year base wage adjustment program. It should establish a rational wage distribution system, in order to reduce the wealth gap, and adopt the correct path for economic and social development. Mainland Chinese authorities implemented the Ten One Five and Eleven One Five programs to promote inclusive economic development. They focused on environmental protection, social responsibility, as well as base wage adjustment. Salaries were doubled. Social security and other measures were expanded. This has allowed Mainland wages to soar in recent years, greatly narrowing the gap between the Mainland and Taiwan.

The Executive Yuan recently convened a "National Economics and Trade Conference." The government promoted economic growth. It used the Mainland's inclusive economic development model to promote labor market reforms, It improved the employer/employee relationship. . Only then was it able to prevent the worsening of wealth inequality. and realize the ideal of social justice.

Now that the fiscal situation has improved and tax revenues are sufficient, the government should ensure that the fruits of economic growth are shared by all the people.

社論－經濟好轉 政策導引全民加薪
2014年06月20日 04:09
編輯部

世 界經濟大環境逐漸改善，台灣經濟也同步出現曙光，財政部公布最新進出口貿易統計，5月出口額266.7億美元，為歷年同月第二高，是連續4個月正成長。其 中電子產品出口值85.6億美元，年增率達15.2%，續創歷年單月新高。就出口國家（地區）來看，占我國出口比重41.5%的中國大陸及香港增加 6.4%，是5月出口維持增長的主因。累計1-5月對中國大陸（含香港）、東協6國、日本、歐洲及美國出口均為成長，且對歐美出口增幅皆超過5%。經濟預 測機構預期今年經濟成長率登上「3%」並不困難，有的預測機構甚至上看3.6%。國發會景氣燈號已連續3個月呈現綠燈，景氣綜合判斷分數升至29分，創下 100年5月來新高，跡象顯示今年台灣經濟成長可望高於全球平均。

政府稅收亦明顯好轉，今年1至5月稅收7084億 元，較去年同期增加16億元，由負成長轉正，小增0.2%，總稅收創歷史同期新高。加上最近股市表現熱絡，6月以來每天上市加上櫃日均成交量1397億 元，高出當初設定的成交量1166億元，前5個月證交稅已收361億元，成長超過3成。今年財政短絀情形可以緩解。

就 業市場也持續改善，4月就業人數為1104萬人，較上月增加0.12%；失業人數較上月減少1萬4千人；失業率為3.91%，係70個月以來再度低於4% 水準。但4月勞動力參與率為58.39%，較上月下降0.03%。1至4月平均非勞動力人數為817萬1千人，較上年同期增加2萬2千人或0.27%。4 月分大專及以上程度者失業率4.21%，其中大學及以上程度者失業率4.80%。15至24歲年齡層失業率仍高達12.27%。顯示年輕人的就業仍有大問 題。

眾所周知，受薪階級平均薪資已停滯16年，引發「低薪是國恥」的民怨，要求調薪呼聲四起。2月上旬新北市長朱立 倫率先提出增加假期拚經濟主張後，台北市長郝龍斌帶頭為臨時雇員加薪，並希望中央重新檢討最低基本工資；行政院長江宜樺隨即以3種方案增加放假天數，要求 勞動部研究透過各種政策工具，鼓勵企業加薪。在大環境回穩及財政改善情況下，政府應全面思考改善勞動薪資結構問題。

首 先要檢討雇傭關係，減少對派遣人力的依賴。過去20年台灣效法日本的派遣制度，確實大幅減輕了政府及企業的人事成本，但大量使用派遣人力，尤其政府帶頭產 生示範作用，民間大量跟進，已拉低整體勞動條件，這是實質薪資長期凍漲的重要原因。最近反派遣聲浪高漲，勞動部長潘世偉也認為公部門應全面禁用派遣勞工； 各縣市政府也多所贊成。但中央政府目前限制員額在17.3萬，不少部會去年陸續改制，都有新增業務的人力需求。全面禁用人事費用會增加，有相當大的難度； 而且已有的派遣人力該如何退場，亦是問題。中央及各單位應趕快提出細緻的人力運用規畫，並研議提出配套措施。

基本工 資7月1日起將從原先每月19047元調整為19273元，但是比起亞洲四小龍其他小龍，我們的確不高。盡速再次提高基本工資也是政府應有的規畫。藉由基 本工資的提升，由下而上產生比價效應，可以逐漸為所有受薪階級產生螺旋向上的調薪壓力，當可造福400萬戶的受薪階級。提高基本工資絕對是重中之重。

政 府更應擬定10年期的基本工資調整計畫，建立合理的分配制度，才能有助於貧富差距的改善，並讓國家經濟與社會往正途發展。我們看到大陸當局在十一五、十二 五計畫中，推廣包容式經濟發展的觀念，除注重對環境的保護等社會責任外，也積極推動基本工資調整、薪資倍增、及社會保障擴大等措施外，已經讓大陸這幾年的 工資扶搖直上，大大拉近與台灣的距離。

行政院近期要召開「經貿國是會議」，政府推動經濟成長，應該採用大陸包容式經濟發展的理念，推動勞動市場改革，改善雇傭關係，才能抑制社會貧富不均惡化、落實社會均富的理想。

財政稅收既已改善，政府應該讓經濟成長果實，由全民分享。