Setting minimum wage works for all
THE feature articles on employment, “Keeping jobs” (The Star, March 4), have addressed the issues from various perspectives.
It is good to note that the Employers Federation and the MTUC had some common views on stretching the retirement age for private sector employees to 60 or 65 in line with the practice in other countries, so that we could utilise more local human capital and not be over-dependent on cheap foreign labour. Hopefully they can also agree on other issues, too.
The arguments of MTUC president Syed Shahir Syed Mohamud (“MTUC speaks out for workers”) that national development has been held back because we do not have a minimum wage also merits consideration, although the amount of RM900 in basic and RM300 in COLA suggested by MTUC may be a little unrealistic.
Perhaps the current employment and economic scenario, coupled with the aspirations of the nation to develop its human resources to a more competitive level, should persuade us to re-examine the minimum wage issue.
The Government is retraining thousands of workers, and future workers are expected to have better training and skills. The added value of such competencies in workers should be reflected in decent wages and benefits to maintain high motivation.
But without a floor level there would be no benchmark for proper wage rates, and the free market would continue to encourage competition in engaging cheap labour to provide low-priced goods and services.
Before a minimum wage law came into force in 1999 in UK, the employers and the Conservative Party were strongly against it, but now no longer oppose it.
There were assumptions that minimum wage would cause job losses and unemployment, but the experience in developed countries shows that it reduced redundancies, increased workers’ productivity and made businesses more competitive.
The Low Pay Commission of UK has consistently reviewed the minimum pay since 1999 and has found no evidence of any damaging economic effects. The International Labour Organisation also supports the view that there is no linkage between unemployment and minimum pay.
There are studies suggesting that minimum pay should be in place when more trained workers are available for employment so that there is an equitable basis for providing decent minimum standards.
Otherwise we may be just wasting the money on training and development and placing workers in a low priced job-market.
What is needed is a principle based minimum pay which responds to social and economic needs and would also promote the Government’s strategy.
KAY ARR,
George Town.
It is for all malaysian to protect all malaysian welfares by urging the govt to set up a minimum wage policy in our beloving country, Malaysia. I am so sad to know that our country still not implementing this policy eventhough our country had so long achieved as a developing country. All the trade union should cooperate with all NGO’s and political parties besides all the individuals to share their commitments to make this dream comes through. Do not stop to voice out and urges the ministries untill they really able to enact the policies in this country. I am sure all the citizen will support you whatever it costs.
Comment by HaHs — April 13, 2009 @ 7:28 pm
” RM900 in basic and RM300 in COLA suggested by MTUC may be a little unrealistic”. Actually it is very unrealistic given the fact that not only we face inflation but also we need to pay double tax for almost anything such as (road tax & toll) and (income tax & sales tax). I think the government should set a much higher minimum wage and it should relate to enable a decent living condition.
Comment by Kulo — April 14, 2009 @ 1:08 pm