Malaysia

Why so quick to oppose RM1,500 minimum wage, MTUC asks MEF

Secretary notes federation made same argument against RM900 figure in 2013

Updated 4 years ago · Published on 08 Feb 2022 12:00PM

Why so quick to oppose RM1,500 minimum wage, MTUC asks MEF
Penang Malaysian Trade Union Congress secretary K. Veeriah says employers have no reason to object to a bi-annual revision of the national minimum wage, as it is a requirement under the Minimum Wages Act. – The Vibes file pic, February 8, 2022

by Ian McIntyre

GEORGE TOWN – The Penang Malaysian Trade Union Congress (MTUC) has taken offence to the reluctance of the Malaysian Employers Federation (MEF) to accept the new minimum wage structure of RM1,500, which is needed to address the increasing cost of living.

Its secretary K. Veeriah said the employers’ bloc was very quick to oppose the move as soon as Human Resources Minister Datuk Seri M. Saravanan announced that a minimum wage of RM1,500 was likely to be realised by year-end.

MEF took the position that a minimum wage of RM1,500 would not be sustainable for a wide range of employers.

“We in MTUC find that argument rather misplaced as that was the same proposition that was 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 continued to prevail despite the progressive enhancement of the minimum wage from RM900 to the current RM1,200.”

In fact, he said, employers have no reason to object to a bi-annual revision of the national minimum wage, as it is a requirement under the Minimum Wages Act. 

“Employers and MEF cannot feign ignorance of the law. Since bi-annual revision of the minimum wage is a mandatory requirement, employers cannot attempt to circumvent such legal requirements for whatever reasons,” said Veeriah in a statement today. 

“Thus, we in MTUC are baffled by MEF’s resistance to the government’s mandatory obligation in the matter. 

“While welcoming the human resources minister’s statement that a RM1,500 minimum wage is a possibility we would 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 factors constantly outpacing 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 ‘living wage’ – sufficient income to provide for themselves and their dependents,” he added. – The Vibes, February 8, 2022

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