How can minimum wage be lower than the poverty line?

Tuesday, 10 June 2014

The minimum wage for 2012, in Sabah, Labuan and Sarawak was RM800. In 2009, the poverty level in Sabah and Labuan was RM1048 and the poverty level in Sarawak was RM912.

KUALA LUMPUR: Bagan MP Lim Guan Eng criticised the government’s stipulated minimum wage which is less than the poverty line level.

“This doesn’t make sense at all. The minimum wage should be raised to RM1100 as was recommended by Pakatan Rakyat,” said Lim who is also Penang Chief Minister, in a press conference in parliament this afternoon.

“No country in the world stipulates a minimum wage that is less than the poverty line level. This is truly Malaysia Boleh,” he said.

In a written response to Lim yesterday, Human Resources Minister, Richard Riot said that the minimum wage for 2012, in Sabah, Labuan and Sarawak was RM800.

In 2009, the poverty level in Sabah and Labuan was RM1048 and the poverty level in Sarawak was RM912.

Riot justified the rates based on the grounds that Malaysia had endorsed the International Labour Organisation (ILO) convention number 100 regarding equal remuneration in 1997.

It was also against section 60L, in the 1955 Labour Act, section 118B of the Sabah Labour Ordinance and section 119B of the Sarawak Labour Ordinance, that prevents any discrimination between foreign and local workers.

To overcome the problem, Lim suggested that Malaysia opt to stay out of the ILO.

“After all, Malaysia is also a member of the United Nations but we have not ratified many conventions,” he added.

Lim said that the government should assist the small and medium industries (SMI).

“Give the SMI’s a grace period of five years and it should involve companies with foreign workers. I worry that the SMI’s may lose out.”

“Local workers should be given a minimum pay of RM1100,” he said. - Free Malaysia Today

Sabah Sarawak Want Their Rights Back [Petition Background / Sign Petition]

0 comments:

Post a Comment

Important - The views expressed and the links provided on our comment pages are the personal views of individual contributors and do not necessarily reflect the views of Sabah Report.