Tuesday, February 19, 2013

Another TIA FAIL?

We have blogged before about our thoughts on the concept of politicians price-fixing a minimum wage upon businesses.
"Business groups get sucked in and advocate either the status quo or a small increase pegged to the rate of inflation while the usual pinko suspects howl that they are owed a substantial increase.

The question we should be asking is if the government should be setting a minimum wage all?

Purchasing labour is no different than buying any other product or service. If the product or service costs more - you will buy less. If it costs more to hire labour - fewer workers will be hired.

Ironically the low skilled workers that minimum wage legislation is supposed to protect are the ones that are adversely affected.

Government meddling in the trade of labour by imposing price fixing only distorts the market that can more efficiently set a price if left alone.

The numbers of relatively low skilled workforce working for motels can be severally affected by impositions on employment freedoms including minimum wage requirements. Employment legislation is an important advocacy cornerstone for any trade association."
The whole discussion on Minimum Wage provisions have been escalated by unions and given a new softer, politically correct tagline "Living Wage".

I see that the Tourism Industry Association (TIA) are "consulting" with their membership on the left-wing driven concept of a "Living Wage" with the preposterous proposition that tourism businesses should lead they way and unilaterally increase wages.

I must admit that I can see why Trade Associations go through the process of consultation. It's a frustrating process, especially when you already know the correct answer. Judging by the bias, I suspect the TIA are starting this consultation process with the wrong answer!

What is interesting about the way TIA have presented their poll on the front page of their website (ignoring the fact that it's a silly proposition) is that the only "discussion" appears to be a hotlink to the left-leaning, shrill Living Wage website (Google it - I'm not providing a link).

If the TIA are unable to think sensibly on-their-feet and come-up with mainstream business friendly policies for the businesses they allegedly represent, surely they are obliged to provide a balanced debate during the charade of a consultation process?

Why not provide a link to a website that points out that raising the business costs for the businesses they represent during a continued stagnant time of economic growth is.....well, crazy!

Their membership may also wish to be informed that by imposing an unrealistic "price floor" you are ensuring that the most vulnerable will get hurt (Unions don’t care because they don’t represent the unemployed).

Why not point out that in order to increase wages, an environment of higher productivity is required?

The TIA may also wish to add some basic economics to the debate that dictates that by increasing wages without increasing productivity would in fact decrease employment.

It's about time tourism trade associations start hardening up, stop pandering to the left and start advocating a bit more smarter .

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