“Minimum wage: Employers cannot circumvent legislative requirement”

AS soon as the Human Resources Minister Datuk Seri M Saravanan announced that a minimum wage of RM1,500 was likely to be realised by year end, the employer’s bloc went on the offensive to oppose that said possibility.

The Malaysian Employers Federation (MEF), for example, took the position that a minimum wage of RM1,500 would not be sustainable for a wide range of employers.

We, in the Malaysian Trades Union Congress (MTUC), find that argument rather misplaced as that was the same proposition presented when the national minimum wage was introduced in 2013. Paying a minimum wage of RM900 was opposed then, premised upon the inability of employers to absorb the so-called increase in wages.

However, the reality is that employers have continue to prevail in spite of the progressive enhancement of the minimum wage from RM900 to the current RM1,200.

In fact, employers have no reasons to object to a bi-annual revision of the national minimum wage, as it is a requirement under the Minimum Wage Act. Employers and the MEF cannot feign ignorance of the law!

Since the bi-annual revision of the minimum wage is a mandatory requirement, employers cannot attempt to circumvent such legal requirement for whatever reasons. Thus, we in the MTUC, are baffled at the MEF’s resistance against the Government’s obligation on the matter.

While welcoming the Human Resources Minister’s statement that a RM1,500 minimum wage is a possibility, we would like to urge the Government to shift its focus from the minimum wage concept of wage determination to what is propounded as a living wage system.

With cost-of-living constantly out pacing minimum wages, it is our view that the Government ought to embark on a living wage module to ensure that the working population is paid an equitable income – sufficient to provide for themselves and their dependents. – Feb 8 ,2022.

 

K Veeriah is the Penang Malaysian Trades Union Congress secretary.

The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia.

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