July 31, 2008
Pushing up wages to offset inflation risky move, warns NTUC chief
By Lee Siew Hua
PUSHING wages up to fully offset inflation is a risky move, as workers will end up paying ever-higher prices.
Labour chief Lim Swee Say highlighted this vicious circle on Thursday in a message for National Day, calling on workers to moderate wage expectations.
'Instead of pushing wages up to fully offset inflation, we must continue to link built-in wage increase to productivity gain and help our people through various non-wage measures', he said.
This will prevent a 'price-wage spiral'.
His message came as the second-quarter jobs figures released by the Ministry of Manpower on Thursday showed job creation moderated to 70,600 from April to June and the unemployment rate creeping up to 2.3 per cent.
KNN warn simi lanjiao? So why dont u something about the inflation then?!
Let's see, now unemployment is rising liao.. so wat is the gahment doing about it? Bite some more bullets? Let see you bite the bullet instead... knn...
And he doesn't give any specific what those non-wage measures are... how convenient.