Tim Worstall

Interesting Wages Example

So, some clothing workers in Mauritius are paid less than the local average wage. Horrors, I hope you will agree.


Once in Mauritius they receive as little as 22p to 40p an hour, about 40%
below the local average wage.

Leave aside that that range cannot actually be 40% below the local average wage: if 22 p is, then 40 p is over it.

The average wage for full time workers in the UK in 2005 was £13.11 per hour (median, the mean was £10.77). 40% below that is £ 7.87. Thus, everyone who in 2005 in the UK who earned less than £7.87 an hour was as exploited as a textiles worker in Mauritius.

So, just as none of us should buy anything at all from any of the clothing stores owned by Sir Phillip Green until this heinous crime is corrected, so should none of us buy anything from any company that pays less than 150% of the minimum wage.

That’ll be interesting, won’t it?

In

6 responses

  1. fidothedog Avatar
    fidothedog

    Blatant profiteering, Tesco and Asda should then reduce the cost of their clothes if that is all the workers are being paid.

    Reply
  2. jameshigham Avatar
    jameshigham

    25, 564 pounds a year, at 13.11 – enough to jog along with.

    Reply
  3. Mike Power Avatar
    Mike Power

    The important figure is the average wage in the apparel manufacturing sector in Mauritius and that is 6,817 MR a month, or £112.66 (2006 figures). At the lower rate mentioned above (22 pence an hour) clothing workers would need to work 115 hours a week longer than Mr Worstall does to earn the average wage.

    Reply
  4. Alastair Avatar
    Alastair

    The article I read about this (I think it was in the Times) stated that workers were being brought in from Sti Lanka under false pretences. They were told that they would be earning significantly more than this and were loaned the money for the fare to Mauritius. Once they arrived and were earning much lower wages than expected, they were stuck in a debt trap.
    I agree with the basic point, that the very definition of an average wage means that some will earn less than this and that this is not exploitation. However, telling someone that they will earn one wage and then giving them less once they are in your debt is.
    Tim adds: Indeed. I just wanted to make this one point.

    Reply
  5. The_Aardvark Avatar
    The_Aardvark

    But Tim, the argument that many people (including possibly you, though I can’t find an example right now) use to defend the low pay of textile workers in developing countries is precisely that, by local standards, they are doing OK (of course, that’s a bit rich considering that many of the same people reject the very concept of relative poverty).
    If it turns out that, even by local standards, they’re getting screwed, then it’s pretty hard to morally justify their low wages.
    Tim adds: Err, my argument above is more in the form of a joke? Of course people who make 60% of he average wage are not getting screwed.

    Reply
  6. F0ul Avatar
    F0ul

    This has always bugged me about wages in general. There is no such thing as an average job. There is a mean wage – and this is usually confused with the average pay.
    So, what is the average job? Is it working in a sweatshop, or is it working as a teacher or is it working as a nurse?
    The roles have different meanings in different cultures which is why an entertainer can get paid so much more money that someone who can heal you – is that also true in Mauritius?

    Reply

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