8/8/2019 Paper by MTUC

1/13

BENGKEL GAJI MINIMUM KEBANGSAANKEMENTERIAN SUMBER MANUSIA

PUTRAJAYA 4 OGOS, 2010

IMPAK KENAIKAN KOS TERHADAP KUALITIHIDUP PEKERJA

OLEHG. RAJASEKARAN

SETIAUSAHA AGUNG

KONGRES KESATUAN SEKERJA MALAYSIA

8/8/2019 Paper by MTUC

2/13

Is it necessary to implement a minimum

wage?

Current situation

-Market forces determine wage levels

-Wages remain as low as RM350

-Even in Industrial Estates in Selangor

workers are paid as low as RM450 to RM500

-In Kulim, Sg Petani, Muar large

corporations keep wage levels at RM380 to

RM400

1

8/8/2019 Paper by MTUC

3/13

Evergreen Heavy Industrial Corp MNC located in

Pasir Gudang, Johor

-General Worker

SRP 400

SPM/SPMV 450

ITI/IKM 540

-Technician

SRP 420

SPM/SPMV 475

ITI/IKM 535

Dongwha MDF Sdn. Bhd. Kedah

-Production Operation 550

-Quality Management Operators 550

2

8/8/2019 Paper by MTUC

4/13

Lack of a clear policy on recruitment of migrant

workers has screwed up the market forces shall

determine theory

-Initial policy that only employers who can

convince the labour department that they

genuinely require migrant workers and agree to

comply with terms and conditions stipulated

-Was changed 3 years ago to allow trafficking in

persons which further suppressed wage levels.

-Failure to legislate a minimum wage will

perpetuate our dependence on Migrant Labour

3

8/8/2019 Paper by MTUC

5/13

Impact of subsidy on government

-In recent months government has been

lamenting on the cost impact of subsidies

-And taken the first step to ultimately

remove all subsidies

-Government has repeatedly stated that

the low income groups will not be

burdened.

-We dont need handouts because aftersome years the same government will lash

out at people who depend on handouts for

their survival. 4

8/8/2019 Paper by MTUC

6/13

Impact of rising cost on quality of

Impact of rising cost on quality of life of

workers

-With or without subsidy rising costs

seriously effect quality of life the impact

is worse on the low income group.

-We do not trust the CPI figures

-Malaysian wages have fallen behind partly

due to the gross divergence between thesuppressed Malaysia CPI and that of the

World(Tan Seri Dr Fong Chan Onn)

5

8/8/2019 Paper by MTUC

7/13

The reported CPI in Malaysia has been

increasing by about 3% per annum for thelast three decades, while the world CPI

has gone up 3,000 times over the same

period. So much so that housewives scoff

when they are told that prices of goods

and services are only increasing at 3% a

year.

(Tan Seri Dr Fong Chan Onn)

6

8/8/2019 Paper by MTUC

8/13

Implementation of a minimum wage

- issues and challenges

-Since 1998 MTUC attempts were turned down citing MEFs

objections

-Investors would be distracted

-Investors who are unwilling to comply with a decent minimum

wage need not be invited They are probably labour intensive

industries who would be demanding for migrant workers.

-Individually most employers are not against a minimum wage

so long the rate applied to all

-Malaysia has first class infrastructure but third world salaries

(Tan Sri G. Gnanalingam)

Executive Chairman West Port

7

8/8/2019 Paper by MTUC

9/13

How does the government plan to

achieve high income economy?

Wage is the key element inpromoting decent work. Wages to

an employee, is a crucial factor for

sustaining quality of life(MOHR Statement on definition of decent work)

8

8/8/2019 Paper by MTUC

10/13

Generally, high wages would improve

productivity and quality. Workers will

place high value on their job

-If you look at the world

competitiveness report, countries withhigh wages are consistently listed at the

top.

-Low wage countries remain at the

bottom.

9

8/8/2019 Paper by MTUC

11/13

10

8/8/2019 Paper by MTUC

12/13

What should be the Minimum Wage?

- In 1998 MTUC proposed a National Minimum

Wage of RM900

11

8/8/2019 Paper by MTUC

13/13