INTRODUCE the living wage concept instead of harping on minimum wage as cost of living in Malaysia has shot up exponentially.
“We should review our minimum wage policy as the current threshold is too low. With escalating cost of living, many employees have no choice but to work overtime.
“Everyone needs an adequate sustainable income, which would cover an individual’s cost of living and savings,” Malaysian Trades Union Congress (MTUC) Penang chapter secretary K Veeriah told FocusM.
The minimum wage policy was mooted by former Prime Minister Datuk Seri Najib Tun Razak in 2012, in an attempt to propel Malaysia to become a high-income nation.
At the time, the threshold was a minimum of RM900 for workers in Peninsula Malaysia and RM800 for those in East Malaysia.
When Pakatan Harapan took over federal power in 2018, the new Government reviewed the Minimum Wages Order 2018 to increase the threshold to RM1,200.
Under the 2018 law, the Human Resources Minister is empowered under Section 23 of the National Wages Consultative Council Act 2011 to establish a National Wages Consultative Council.
The council is responsible to conduct studies on all matters concerning minimum wages and make recommendations to the Government to make minimum wage orders accordingly. It shall then review the minimum wage order at least once, every two years.
Elaborating on the issue, Veeriah said that the Bank Negara Malaysia (BNM) report in 2018 have indicated that for one to live decently in the Klang Valley, the individual needs to earn a minimum of RM2,700 monthly.
“Based on BNM’s assessment, employees are far off in terms of wages because our current system is modelled based on the minimum wage policy.
“The fundamental flaw here is our existing employment system suppresses wages, affecting both local and migrant workforce,” he said.
A tripartite body to address employment system
Offering solutions, Veeriah said the formation of a tripartite body; represented by those from the Government, employers’ group and employees’ union would help address the situation.
He added that the tripartite group would also help find a solution to another problem; the dehumanising treatment received by migrant workers.
“Let’s face facts. If it was not for COVID-19, many would have remained oblivious on the pathetic conditions our migrant workers live in.
“So, we need to recalibrate the way we treat our migrant workers and get our enforcement officers to throw the book on employers who mistreat their migrant workers.
“And the enforcement process must be consistent and employers should not wait for authorities to tell them how to treat their workers with care,” Veeriah added.
Recently, the Labour Department announced that it has opened 19 investigation papers against glove maker, Top Glove Bhd on allegations of flouting the Workers’ Minimum Standards of Housing and Amenities Act 1990 (Act 446).
The company also landed in hot soup after one of its employees, Yam Narayan Chaudhray, a 29-year-old Nepali security guard died due to complications from COVID-19 On Dec 12. He was stationed at Top Glove’s 13th factory in Meru, Klang. – Dec 27, 2020.
