Monday, March 03, 2008

Which Party Promises Minimum Wage?

My previous article on minimum wage was on the letter section on Malaysiakini some time ago.

Look at the case of Brazil, a basket case Latin American under IMF supervision back in the mid 90's. Now Brazil's economy is booming, and their Govt is taking steps to distribute income equitably.

My question:
Do we have a Govt that have 'fair income distribution' amongst it policies?

Brazil raises minimum wage by 9 per cent

RIO DE JANEIRO, Brazil (AP): Brazil raised its minimum wage by 9.2 percent Saturday to 415 reals (US$248; euro163) a month, boosting millions of salaries and pensions based on multiples of the base salary.

The increase from 380 reals (US$226.80; euro149.30) was more than twice the 2007 rate of inflation, a traditional index for pay raises in Brazil. Inflation last year was 4.5 percent.

The impact is greatest on lower-class families, with pensioners and salaried workers who earn little more than the minimum wage, economists said.

"It improves the income of more than 12 million pensioners and government retirees (and) heats up the local economy,'' economist Marcelo Neri, of the respected Getulio Vargas Foundation, told government news agency Agencia Brasil.

But the Union Statistics Department, or Dieese, said the raise was still insufficient to cover a family's basic needs, as stipulated in the constitution. An adequate minimum wage for a family of four is 1,924.59 reals ($1,149; euro756), Dieese said.

"That's an estimate of how much the minimum wage should be to adequately compensate labor,'' said economist Jose Mauricio Soares.

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