The Malaysian Trades Union Congress (MTUC) expresses its strong objections to Human Resources Minister Datuk Dr. Fong Chan Onn's recent statement that "the Government will not introduce a minimum wage scale in the country." We are totally disappointed with the Minister's position with regard to the issue of minimum wages, all the more so when the matter has been repeatedly discussed and deliberated during meetings of the tripartite National Labour Advisory Council (NLAC). The MTUC has also discussed the issue with former Prime Minister Tun Dr. Mahathir Mohamad who has agreed in principle that a national minimum wage is indeed necessary to eradicate poverty. Moreover, the NLAC has yet to complete its discussions on the contents of the MTUC Memorandum dated 19 January 2004 which was sent to Prime Minister Datuk Seri Abdullah Ahmad Badawi. The Minister's recent announcement on minimum wages is therefore premature.

The MTUC has been calling for the implementation of a national minimum wage of RM900.00 per month for the past seven years, as we fully realise that a minimum wage policy is an effective means for eradicating poverty in the country. By shifting responsibility over workers' wages to the supply-demand dictates of market forces, the Government, particularly the Ministry of Human Resources, is setting the clock backwards, as it is bound to affect Malaysia's efforts to achieve developed nation status by 2020. It must be remembered that the Creation of a Caring Society, an important constituent of Vision 2020, goes hand in hand with the eradication of poverty brought about by a progressive national minimum wage policy.

Workers are not chattels or factors of production to be used (and often abused) according to the whims and fancies of employers. There are workers being paid as low as RM180.00 per month, and they cannot even afford one meal a day with such a paltry sum, let alone taking care of their families. Many workers cannot be unionised to enjoy collective bargaining rights as our "divide and rule"-type labour laws to not permit the same. We wish to state categorically that workers are not "commodities" like rubber, timber and palm oil to be "sold" in the marketplace according to the dictates of supply and demand.

The Government itself has on many occasions acknowledged that workers are now regarded as "Human Capital" as they provide value-added service and performance in their workplaces as they acquire work experience and on-the-job skills. We are worried that the Minister's refusal to consider a minimum wage policy will set off a vicious "downward wage spiral" which is bound to have serious repercussions on our socio-economic and political stability if left unchecked. A minimum wage will help set off inflationary pressures and allow workers to have reasonable quality of life. The bitter experiences suffered by neighboring countries at the height of the Asian economic and financial crisis need no further explanation. What is even more baffling to us is that while the Government is going head over heels to regulate and protect the entry, recruitment and exit of foreign workers by entering into memoranda of understanding with the governments of major labour-sending countries in the region, we do not see any corresponding efforts on its part to protect and sustain the long-term interests of local workers!

The MTUC has for long confronted employers over their unilateral, unfair and unscrupulous treatment of workers which have led to exploitation and abuse. We are worried that the Government's refusal to consider the MTUC's proposal for national minimum wages will, by default, legitimise and perhaps even reinforce unfair labour practices in the country as there is bound to be a significant reduction in workers' living standards in the near future if their wages are allowed to be dictated solely by market forces.

We reiterate our call to the Government to introduce a national minimum wage policy commencing at RM900.00 per month, as this is the most effective means to achieve industrial harmony and social stability in the country.

Bro. Zainal Rampak
President of MTUC

Wednesday, 23 June 2004