Standardise minimum wage

In Sarawak, the cost of living is 15% to 25% higher than in West Malaysia. Despite Sarawak’s higher cost of living, the minimum wage here is only RM800 compared to RM900 in (the) Peninsular.

KUCHING: The Malaysian Trade Union (MTUC) Sarawak has called for minimum wages in Sarawak and Sabah to be standardised with West Malaysia.

The union said the current wage disparity did not augur well for the country in its drive to become a high income nation.

“Despite Sarawak’s higher cost of living, the minimum wage here is only RM800 compared to RM900 in (the) Peninsular.

“This disparity must be removed at the next minimum wage review session,” said MTUC Sarawak secretary Andrew Lo.

He said businesses in Sarawak have flourished at the expense of consumers.

“Price increases are exorbitant. House ownership is now out of reach for most people.

“In Sarawak, the cost of living is 15% to 25% higher than in West Malaysia.

While government employees have a regional allowance, private sector employees do not,” Lo said.

Citing examples he said the New Straits Times newspaper is sold at RM1.60 in Sarawak as opposed to RM1.20 in West Malaysia.

“Low-cost houses are sold for RM96, 000 here, but only RM32, 000 in Peninsular.

“The Sarawak public sector employees are not paid Cost of Living Allowance (Cola) but their counterparts in the state governments of Penang, Kedah, Selangor and Kelantan enjoy this benefit.

“Even banks in West Malaysia pay Cola, but not in Sarawak,” he said.

Lo said the minimum wage should allow for the lowest paid worker to meet their basic needs and promote wage increases across the board.

Create more liberal trade union laws

He also urged the government not to be swayed by employers’ threat of bankruptcy.

“We urge the authorities to ensure full compliance of the minimum wage order.

“Employers are merely fear mongering when they say they will go bankrupt as a result of the implementation of the Minimum Retirement Age of Sixty (MRA) and minimum wage.

“We are confident that the full implementation of the MRA will lead to better productivity as it enables a larger segment of the work force to remain gainfully employed.

“There will be higher disposable income and it will enhance economic growth,” Lo said in a statement issued today in conjunction with Labour Day.

Lo said MTUC members would also like to see laws that offer greater employee protection.

“The trade union movement needs to be strengthened by adopting a more liberal approach in the areas of union registration, recognition and representation.

“You cannot have a high income nation if wages remain stagnant and by making it easier for employers to sack workers and by reducing the trade union’s influence.

“Collective bargaining is nothing more than collective begging,” Lo said.

FMT Borneo Plus