Need the Minimum Wage Rates of Workers
Minimum wages prevent employers from paying workers’ wages which are below a mandated level. There are arguments by the government that minimum wages do more harm to workers than good. They claim that minimum wages lock out job opportunities for low-skill workers, the youth and other minorities who are key beneficiaries of minimum wages. This is usually the basis that governments use to deprive workers their cries to raise the minimum wage.
Government argue that when the minimum wage rates are raised, businesses will make adjustments so as to factor in the additional costs of wages through reducing hiring, slicing the working hours & duration, reducing the benefits which are entitled to a worker and increasing in the prices of goods or services produced.
Its true businesses may have their own policies of maintaining their net earnings even when the rates of minimum wages are increased, but that does not mean that workers should be subject to abuse by paying them peanuts which can’t sustain their livelihoods.
Let’s face it, most beneficiaries of minimum wages are part-time workers, low-skilled workers, youths who are out of college or workers from poor families. These are the groups of people who can easily be discriminated upon based on the social class. Not unless they have someone to help them voice their concerns, unscrupulous employers will always want to take advantage of such people by paying them meager wages.
Benefits of raising minimum wages
Reduce income inequalities.
Income of some individuals is so high while poor people who are not subjected to minimum wages get poor pay. The resulting difference creates a huge disparity between higher income earners and lower income earners, who are comprised of poor people. This induces the creation of a social class of two groups, the rich vs the poor. In this instance, the social class of comprised of poor people may be subject for abuse with the poor people being discriminated.
To avoid this, minimum wage rates need to be adjusted positively. When the minimum wage rate is increased, the incomes gap is reduced so as to severe the rise of social class and consequent discrimination.
There are many people who thrive under the various cycle of poverty. They can’t afford a decent meal, decent housing and other basic necessities because of poor pay.
With the cost of living rising, it is important to ensure that minimum wage rates are increased so as to enable poor workers get some good pay to help them cater for basic necessities.
Encourage motivation and developments.
Investments are made as a result of savings. When a worker a good pay, after basic spending, such a worker is left with some amount to save. The worker will become more motivated to put more efforts at work and increase the savings so that later the worker could use the savings for investment. This in turn encourages investments and brings up developments.
Reducing workers turnover.
Employers also benefits by the increased rates of minimum wages because of reduction in costly employee turnover and subsequent recruitment process. They enjoy the benefits of paying higher wages without being placed at a competitive disadvantage because all the companies/businesses in a field are required to do so.
When workers are paid more by a company, they will stick to the current employer thus reducing chance of employee turnover.