PSM: Address wage suppression among workers, enact “social wage” concept

PARTI Sosialis Malaysia (PSM) urged the Government to address wage suppression issue prevalent among the workforce in Malaysia, which is pushing employees to the brink of poverty.

“That’s why we have suggested that the Government introduce a ‘social wage concept’, where those above the age of 65 gets a pension from the state.

“We also call upon the Government to build more public housing schemes (PPR) and collect low rental from the B40 group, while increasing budget for public healthcare to reduce crowding at our health facilities,” it said in a memorandum sent to Minister in the Prime Minister’s Department Datuk Seri Mustapa Mohamed.

Elaborating on its proposal, PSM said that last year, the median income for Malaysian household was at RM2,062, which hovers near the recently amended poverty threshold of RM2,208.

“It means that over 50% of our workers are receiving less that RM2,062 a month. In 2018, when the Malaysian Trades Union Congress (MTUC) and our party recommended for the minimum age to be increased from RM1,000 to RM1,500, the Malaysian Employers Federation (MEF) opposed it.

“They claimed that the such an increase would have adverse effect on the economy and trigger capital outflow to other countries. As a result, the Government merely increased the minimum wage to RM1,050,” it noted.

While PSM agreed that MEF did have a valid point in its argument, the party said that the Government failed to address the problem in the 12th Malaysia Plan.

Same work, for lesser salary

“Malaysia is a signatory to the ASEAN Free Trade Agreement, where 99% of the region’s goods are not levied when transacted within the region.

“It means that if the cost of producing goods like clothing, shoes and bags increase in Malaysia, there is a possibility that local manufacturers may lose out to their competitors in the region,” it mentioned.

However, PSM argued that the setback cannot be used as a justification to continue suppressing wages in Malaysia, where local factory workers earn about one eighth to one sixth of the pay their counterparts in developed nations such as Germany and the US earn.

It added that wage suppression also allowed giant companies to monopolise certain areas of the global supply chain.

“But if the Government insists on Malaysians getting lower pay for the sake of national interest, then it’s fair for the Government to introduce a ‘social wage’ for them as many in the B40 and M40 communities are struggling to put on the table,” it remarked. – Oct 25, 2021.

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