Tuesday, September 21, 2010

Employers propose minimum wage of RM700-00 per month

What should the Minimum Wage be? Well, in a recent media report, the Minister mentioned that the poverty line was RM720 monthly, and that about 34% of workers in Malaysia earn less than that.

The Human Resources Ministry's study of 1.3 million Malaysian workers has found that a shocking 34 percent earn below the poverty line of RM720 monthly..
[See also earlier post:-34% of Malaysian Workers (not migrant workers) earning below poverty line]

When we do fix a Minimum Wage, it must apply across the board and there must be no discrimination based on ethnicity, religion, gender, nationality, classes of workers,...

Today, the employers, in the form of the Federation of Malaysian Manufacturers have come out and proposed RM700 as the Minimum Wage - and, I believe that the UMNO-led BN government must no longer delay but implement immediately, at the very least at the policy level first to be followed by the enactment of the relevant legislation.[Of course, the Pakatan Rakyat State governments could act even further and set a Minimum Wage at the different states, but alas they too seem to be dragging their feet...and trying to give the impression that it is up to the Federal Government only, a behavior that we are becoming very familiar with....]

PETALING JAYA: The minimum wage level of RM700 for general workers should be used as the median benchmark, said the Federation of Malaysian Manufacturers (FMM).

The association said it considered the amount as the acceptable minimum wage level based on a survey it did on the manufacturing sector in the period of April/ May this year.

“We propose RM700 as the median scale, which is adjusted according to differences in cost of living based on geographical location (rural-urban areas) and differences in economic sectors,” it said in a statement yesterday.

Yesterday, Human Resources Minister Datuk Dr S. Subramaniam was reported as saying that a proposed minimum wage policy, which will be across the board for all sectors, may be implemented next year.

The minister is expected to table a paper on minimum wage to the Cabinet next month and had urged employers to support the proposed policy.

The FMM, in response, asked the Government to consider several factors prior to implementing the policy.
It said that employers should be given a two-year grace period to adjust to the policy and that the minimum wage should commensurate with productivity gains and skills offered.

“Wages should be for the job, not the person.

“The wage structure should also differ between economic sectors (such as manufacturing, agriculture, construction, and services) and the minimum wage quantum cannot be uniformed across the country but differentiated by geographical location,” FMM said.

It also urged the Government to have in a place a review mechanism to prevent indiscriminate increase in minimum wage.

“The review process should also involve relevant stakeholders, in­­cluding employers, union and the Government,” it said. - Star, 21/10/2010, Manufacturers propose RM700 for minimum wage

Rightly, the Minimum Wage must be RM720 or more, i.e. above the poverty line...

1 comment:

WATCHMEN said...

In today's living encity,the minimum wage for employees should be within the means of supporting the lives of those working group.If a labourer was to be given a minimum wage of RM720.00 or more,then the job should fit the minimum wage line.However,the living condition of such employee should be fixed as a labourer would also deserve a healthy living for himself and his family.

Under today's economic living condition,Malaysia is no longer a third world country which it once used to be.The apex of having to survive within this country or region should be reach highest and survival is key to each individual.

A labourer in the early 50's would be paid RM100 a month as things were so much cheaper then but 50 years down the line, this amount can no longer justify today.In a city like KL, no working man or woman could survive with RM500 salary as everything have skyrocket.Even a glass of warm water now cost RM1.00 in a kopitiam.

Since the Government has lavishly proven itself to have spent trillions of dollars in the past 20 years for city projects and developments, a labourer cannot be paid a meagre salary. The least wage he could survive within a month would be RM1,000 for himself.

Looking at the drastic change of salaries for a CEO of a GLC company, a CEO's monthly salary today could feed a houseful of labourers.

Therefore pushing a minumum wage of RM720.00 by manufacturers and services business, the employers should be able to pay for a minimum wage.

My proposal would be the larger the business is made of, the better wage it should pay to its employees. If a CEO or his top Executives could take home a salary of RM100,00 a month including allowances, then 10% of their salary should feed be able to feed 10 employees.

We dont want those at the top eating steaks while those below them will be eating sardine fish everyday.

be able to feed 10 of his employees.