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MTUC urges employers and politicians to stop misleading Malaysians by propagating that productivity is to be used as a yardstick to determine minimum wage.
The recent BN manifesto to fix RM1500 as minimum wage for the next five years does not correspond with RMK11, Vision 2020 and the Bank Negara Malaysia (BNM) Annual Report on living wage.
In relation to productivity and increase in income, BNM has clarified that there is ‘economic’ argument that supports increase in income of workers.
Similarly, the International Labour Organization (ILO) argues that unless lower and middle income workers earn enough, their spending will be restricted. Their inability to spend will stifle the demand for products and limit social spending contribution toward the GDP of the country.
The argument from certain sections of society that wage increase will impact economic growth has no substance and is a convenient political tool for some politicians. Naturally, irresponsible employers relying on this baseless inference take undue advantage to exploit workers. That is why for many years Malaysian workers’ salaries have been stagnant and does not commensurate with the country’s impressive economic growth.
The minimum and living wages are viewed as benchmarks, respectively for workers to survive and the income to secure a minimum acceptable living standard. Therefore, productivity has no relevance to be used as a yardstick for neither, the minimum wage nor the living wage.
Naturally, the above reasons also would have been the justifications for the BNM to reveal in its Annual Report that “Malaysians may not be poor but it is evident that Malaysians are rich in borrowings”. Be that as it may, MTUC appreciates and endorses BNM’s researches and its outcome to reveal such factual position which is the reality that we observe in the country.
In addition, the law that stipulates a review of Minimum wage every two years was not complied when it was due on 1 Jan 2015. Consequently, the workers were deprived of a review on the minimum wage which was delayed for 18 months.
Therefore, workers in Malaysia especially the B40 and M40 are in dire need of a government which will draw up economic policies to facilitate equitable share of wealth to all Malaysian and honour such policies.
In this circumstances, the BN manifesto on minimum wage needs to be reviewed otherwise the said manifesto will be seen to be undermining workers consistently and may have deficit in trust.
Address: Wisma MTUC,10-5, Jalan USJ 9/5T, 47620 Subang Jaya,Selangor | Tel: 03-80242953 | Fax: 03-80243225 | Email: sgmtuc@gmail.com.com