Minimum wages now, not policies

While a significant number of workers suffer due to poor wages, the government continues to be pro-employer in its approach.


 
By Syed Shahrir Syed Mohamud

It was a sad day for workers and unions in Malaysia when Prime Minister Najib Tun Razak at the Malaysian Trade Union Congress (MTUC) dinner on June 14 made no firm commitment on the promotion and protection of workers’ rights.

As for the minimum wage issue, his response was that this matter is to be referred to the National Wage Consultative Council. There was also no positive response on the issues of retirement age of 60, increasing maternity leave to 90 days for all workers, and the Cost of Living Allowance (COLA).


Workers in Malaysia are still a very low priority of the current Umno-led Barisan Nasional government that has ruled since independence in 1957. Pleas of workers and their families for decent wages continue to be ignored by a government that has been shown to be pro-employer and pro-business, which, by its actions and omissions, seems to be more interested in maintaining the supply of lowly paid, “problem-free” and “easily used and disposable” workers especially for private sector companies.

Workers’ demand and plea for a basic minimum living wage law that will ensure that workers and their families will be able to live decent lives as human beings continue to be ignored by this government, which has at the same time been very fast in increasing the cost of living. This government has allowed increase in the cost of electricity, water, postal services, phone charges, toll charges, petrol and generally the cost of living.

The introduction of the Goods and Services Tax (GST) saw an overall rise of cost of almost all goods and services. Continuous subsidy removals have also resulted in the increase of prices of basic goods and amenities needed by all persons to sustain life. All these measures that resulted in an increase in the cost of living of workers and their families have been done speedily and systematically, but at the same time this government has not ensured increase in wages, and has been systematically removing the right to secure employment until retirement age.

New workers today are being allowed by the government to be employed as short-term contract workers, and sadly even once permanent workers are made to leave through various schemes, like voluntary separation schemes (VSS) and then re-employed as short-term contract workers. Then, the government has expressed the intention of wanting to deny these now contract workers the right to go to court and claim for reinstatement when they are wrongfully dismissed by employers, but the trade unions and civil society opposed this and the government has yet to make this law.

Now, another disturbing trend is that the government is allowing some companies to avoid employment relationships, and their duties and obligations to the workers who work in their factories, plantations and workplaces. It is doing this by a new illegal entity called outsourcing agents, who are actually contractors for labour that supply workers to principals, and this clearly is not allowed in our Employment Act 1955. The law applies to all, including the government, and action is demanded that injustice and violation of law are aggressively ended.

Workers living below poverty line

On minimum wage, Malaysia always had the Wages Councils Act 1947, which gave the government the means and mechanisms to stipulate minimum wages for workers but, alas, it seems that only four categories of workers have been covered by orders made under this Act, that is, in 1967, 1970, 1972 and 1977. They are catering and hotel workers, shop assistants, cinema workers, and Penang stevedores and cargo handlers respectively. For example, the 1970 order on shop assistants provides that the minimum remuneration for a worker ranges from RM170 to RM250, depending on the age of the worker, location and whether full-time or apprentice.

Now, rather than immediately setting and implementing a minimum wage for all workers in Malaysia, or coming out with a minimum wage law, the BN government is telling us that it is tabling a new Bill called the National Wage Consultative Council Act, and the fear is that this will just be as ineffective as the previous law, and all workers will not enjoy basic minimum wages for some time yet, if at all.

The government can immediately set the basic minimum living wages for workers now, subject to later adjustment. A few months ago, the government set the minimum wages for security guards at RM700 per month, which came into effect at the end of January 2011, and as such, the government also can and should immediately set a floor minimum wage for all workers now. It is proposed that this be at least RM900 and it become effective on July 1, 2011. Further adjustments and annual periodic reviews can be done later but at least workers will get sufficient wages now for themselves and their families when cost of living is already so high.

It is sad that the new president of MTUC, Khalid Atan, saw it fit to shower praises on our prime minister, and pledged that MTUC will be working closely with this government that has a history of being anti-worker and pro-employer. MTUC, trade unions and workers’ groups must always place as priority the fight for workers’ rights and welfare, and not try to curry favour with politicians and the government of the day.

It is also distressing that MTUC has allowed the event to become an Umno event, in particular when Umno Youth used it to launch its workers complaints (aduan pekerja) website. It would have been much better if the money was just donated to MTUC to have its own independent website.

Workers and their unions have been calling for minimum wage for a long time, and this demand intensified in the last six years but, alas, the current government’s response has to date been empty promises only save for the 100,000 plus security guards that got something.

Let us not forget that a study on wages initiated by the Human Resources Ministry has revealed that almost 34% of about 1.3 million workers earn less than RM700 a month, below the poverty line of RM720 per month. And in June 2011, our prime minister is not talking about workers getting minimum wages soon but only that “…he hoped a minimum wage policy can be implemented by year-end…”

Workers demand minimum wages today – not just a policy by end of the year.

Syed Sharir Syed Mohamud is the former Malaysian Trade Union Congress president.

Employers reject minimum wage policy

G Vinod

The Malaysian Employers Federation says wages for workers should be determined by market forces.

PETALING JAYA: The Malaysian Employers Federation (MEF) has rejected calls by unionists and opposition MPs to introduce the decent living wage for workers.

The employers union also rejected calls for a minimum wage policy in the country.

In an email to FMT, its executive director Shamsuddin Bardan said that wages for workers should be determined by market forces as higher wages would not guarantee jobs in Malaysia.

“A minimum wage policy will not spearhead the nation to become a high income economy,” he said.

Several trade unionists from Asean countries and DAP Klang MP Charles Santiago called upon the government to introduce the decent living wage policy instead of a minimum wage policy.

A decent living wage, they said, would take into consideration of cost of living, workers’ dependence such as their immediate family members and savings in their wage consideration.

Santiago also said that the National Wages Consultative Council (NWCC), scheduled to be established at this Parliamentary sitting, should be the decision making body on workers’ wages rather than being a mere advisory council to the Human Resources Ministry.

The government, the unionists added, should stay away from NWCC.

In order to turn Malaysia into a high-income nation, Shamsuddin said, workers needed to enhance their competitive edge by increasing productivity and consistently improving their performance.

“This can be achieved when workers upgrade their skills from time to time and learn to multi-task at work,” he said.

He also said that currently, two-thirds of the Malaysian workforce was considered as unskilled, with about 100, 000 SPM school leavers joining the workforce annually without any proper skills training.

Shamdussin also disagreed that a decent living wage would help the economy to grow due to higher purchasing power by workers.

“The government can consider not taxing employees’ who receive bonuses above a certain quantum. The government will not lose revenue from this as workers’ higher spending power will boost the economy,” he said.

On the NWCC, Shamsuddin welcomed the government’s participation in the council, saying the state was an important unit when it comes to discussing workers’ wages.

“And the council itself should be advisory in nature, as the name suggests. It should also be given the flexibility to advise the government on the yearly wage review.

“For example when the country is facing an economic downturn, the NWCC should be able to advise the government to impose a wage increase moratorium or even a pay cut if the situation warrants,” he said.

Young Professional Adults take-home pay in Sabah were the LOWEST in Malaysia

Sabah Progressive Party (SAPP) has put the entire blame on the Barisan Nasional (BN) government, whereby our young adult especially young graduate take-home pay in Sabah were the LOWEST in Malaysia even though we were blessed with abundance of natural resources like oil & gas, palm oils, timbers and rubbers.

We cannot see the logic why the BN-led government has failed to uplift the standard of living for Sabahans especially the young adults even though with the huge profit gained from the surge of global oil & gas price which obviously except the presence government is totally in-competence and mis-management.

In addition, the cost of living in Sabah was one of the highest in Malaysia.

Please bear in mind that according to World Bank’s report stated that Sabah is the poorest state in Malaysia with 40% of poor Malaysian are from Sabah alone.

We from SAPP is noted our young adults parents who had spent at least more than hundred over thousands RM to send their children to study oversea especially those who cannot enroll into our local university due to quota system. Unfortunately, their children graduated to come home to serve with only less than RM2000.00 per month take home pay in Sabah.

The failure of the BN-led government to uplift the standard of living for Sabahans especially young professional or semi-professional adults will eventually end up they were being pinched or got no choice, have to leave their home town to work in other higher take-home pay country like Singapore, Australia, China, Europe and Middle East.

With referring to DE 9 Mar 2011, PM announced for those young adults (below 35 years old) whose income less than RM3000.00 they will entitle to get a full loan from 25 financial institutions for housing between RM100,000.00 to RM220,000.00 across the country. Please note that this scheme only applicable to employee but not sole-proprietor like stall owner, vegetable seller and what not.

This scheme maybe can help in certain states in West Malaysia with lower cost of living and we need to be realistic here in Sabah. How many landed property like single-terrace or double storey terrace within Kota Kinabalu area would still have a price tag selling less than or equal to RM220,000.00 nowadays? Is the government telling those young adults to stay outside Kota Kinabalu area and drive to come to work in KK with extra petrol expenses?

With referring to my statement on DE 2 Mar 2011, most of the young adult take-home pay was less than RM2000.00 per month in Sabah. After deducted others necessity expenses (this does not include Astro and Streamyx monthly subscriptions) and only left with RM150.00. How can they afford to pay for their housing installment monthly with the current BLR as high as 6.6%?

The most critical issue now is how could the presence government to improve the young adult take-home pay in Sabah especially those working in private sector which is the lowest in Malaysia especially those graduates?

How could the BN-led government to help the private sector in Sabah to reduce their expenses with high inflation cost that affecting them daily and to improve their productivity in order for them to increase the take-home pay for their employees? For example: company tax reduction, subsidy in machinery, staff training subsidy just to name a few.

Where were those profits made from our oils & gas and subsidy cut from petrol money to help to improve our public transport system like a good bus-networking, train or MRT in all the major towns in Sabah?

SAPP CLC Api Api

Organising Secretary

Clement Lee