Apart from the basic liberal position against minimum wage and against "labour cartels" and the fixing of prices within labour markets; there is, i believe, a strong liberal position in favour of minimum wage; where this minimum wage is specifically designed to improve over the short term the working conditions of workers, over the medium term the remuneration of workers and over the medium to long term the living conditions of workers.
***
In the Chinese example it would work on the basis that American and European firms, who are currently exporting manufacturing orders to China, would retain some of their manufacturing work within their own countries or free trade zones and that this would stem the tide of unemployment in these economies.
However European and American firms have fallen into a groove over the last 10 years of only outsourcing old tech manufacturing jobs to China, so that Chinese firms which eventually end up copying EuroAmerican machine designs, are producing machines that are 20 years old in design.
As a result of this, and of the fact that the factories at "home" are geared toward new tech manufacturing, there will still be a large amount of old tech work sent to China. This work will be costed out based on the global minimum wage, and therefore be higher than the current cost.
But since Chinese workers are disempowered, this globa minimum wage will only benefit the factory bosses (in the short term). they will charge out at the higher GMW rate, without paying their staff more; and they will retain their respective domestic competitiveness by discounting off the higher GMW rate.
In the beginning, the factory bosses get paid more. in the short term the factory bosses will use the extra profits to boost worker productivity through better working conditions. however eventually the workers in China will realise that the factory bosses are charging out more than they are paying and will naturally demand more money. this will set in motion labour unrest in China that will see the wage rate in China rise from where it is now to the GMW rate. with this will come better living conditions and the foundations for a labour rights culture.
For the Brand Owning firms, there will be an increase in production costs and a fall in their gross profits... but since a pair of Cross Trainers cost $2 (labour) + $4 (materials) [=$6] to make in China; yet sell for $100... it doesnt really matter.... even if the inpust cost doubles, the brand owners still make superhuge profits.
***
Oh, and if the ILO does this, chances are that the Chinese economy might slow the amount of goods exported from China, which would reduce the amount of shipping through Singapore. and since Singapore is an economy built on Shipping and Middle-Manning - there could very well be a recession in Singapore, which would stimulate a much larger amount of public outcry for economic and social reform.
and if there are conservatives living in abject poverty in Singapore, the govt of Singapore wont be able to ignore them... or charge them... or jail them... in fact Singapore may just have to develop a culture of public debate to deal with all the unemployed Singaporean Mandarins, who had hitherto supported the govt...
Avishkar Govender
eThekwini-Durban
KwaZulu-Natal, South Africa
SADC - AU