KULIM – The Penang Malaysian Trade Union Congress (MTUC) has expressed shock over the paltry annual RM5 increment for employees dished out by broadcast equipment manufacturer Yokowo Electronics (M) Sdn Bhd here, describing it as treating its workers as mere means to an end.
State MTUC division secretary K. Veeriah said in his entire labour union career he has not heard of companies offering RM5 as an annual increment.
“It is really shocking news to me. I have never heard of companies offering a RM5 salary increment to their employees. It is an insult to the employer as well as to the employees.
“Such pittance is not only disgusting but immoral, and it may well attract the argument that it is akin to modern-day slavery. I also find it unacceptable that this company is continuing to deny its workers a proper scheme of employment through negotiation with the Metal Industry Employees Union.”
Veeriah was responding to The Vibes’ report earlier today that mentioned more than 600 employees have been picketing outside the Yokowo Electronics premises at Kulim Industrial Park since December 27.
“From what has been reported, it is obvious that the company did not settle its first collective agreement (CA) on fair terms as proposed by the union.
“Being an MNC (multinational corporation), the company ought to be guided by its obligations to provide equitable wages and terms and conditions of employment and therefore, ought to endeavour to settle the first CA amicably.”
The unionised workers – from operators to technicians – staged pickets after dialogues with the management of the CA ended in a deadlock on December 12.
The union informed the management on December 12 of its plan to picket on December 27.
The Vibes reported that the management has been paid a meagre salary increment of RM5 annually over the last 33 years, and new employees have been getting the same wages from the day they joined.
Before the year was out, more than 600 workers of Yokowo Electronics (M) Sdn Bhd started picketing against their employers, demanding a salary increment, contractual bonuses, and other benefits.
Metal Industry Employees Union’s senior industrial relations officer for the northern region V. Vijayan said the union only focused on four points to conclude CA discussions – a CA revision every three years, a contractual bonus of 1.5 months, a yearly salary increment of 6%, and salary adjustments every three years.
“The discussion between the management and union on December 8 ended in a deadlock when the management refused to come to a compromise. The management only offered to adjust the CA every four years, a 0.7% contractual bonus and 2% salary increments and adjustments.”
Vijayan said the manufacturer has been operating since 1987 and paying RM1,321 in basic salary for workers with 33 years of service, and a similar pay scale for those who joined after January 2020.
He added the company marked revenue of more than RM200 million in 2020, with RM15 million in profit.
A company director has yet to respond to calls for comments on the issue.
Attempts to reach Human Resources Minister Datuk Seri M. Saravanan have been unsuccessful. – The Vibes, January 6, 2022
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