Employers against any minimum wage
Kevin TanPublished: Apr 23, 2001 1:49 AM | Updated: Jan 29, 2008 10:21 AM
The Malaysian Employers' Federation (MEF) will not agree
to any proposal for a minimum wage "whatever the amount", according to the federation's executive director, Shamsuddin Badan.
He told malaysiakini today that the current wage system works and there is no reason to change it.
"The force of demand and supply is the best way to determine the wage rate. It is flexible enough to cater for the current economic situation," he added.
The Malaysian Trades Unions Congress (MTUC) was reported as working towards achieving a minimum wage law for Malaysian workers by the end of the year. ("[#1]MTUC wants minimum-wage law by year-end[/#]", May 2)
"The unions only bargain for a minimum wage when they have failed to negotiate for a better deal for the workers," Shamsuddin said.
He concurred with Prime Minister Mahathir Mohamad's statement on Sunday that the government could not immediately set the immediate wage at RM1,200 as all workers, including executives would then have to be paid more.
Instead, Mahathir urged workers to increase productivity and not to have a test of strength with employers as a way to better wages.
"There will be a 'snowballing effect'," Shamsuddin said, adding that everyone will start wanting a same proportion of increase in their pay with the increased margin of the minimum wage if it is implemented.
"It's a disincentive to continue to invest in the long run if the wage market is not competitive for the investors," he added, with a reference to the foreign direct investments.
According to him, it is untrue that there is no minimum wage in Malaysia.
Four sectors, namely the hotels, retail trade, cinemas and port services have long implemented the system. He added that the system was redundant because unions in these industries can negotiate better terms with the employers.
Shamsuddin downplayed the importance of wages by saying that "it's not the pay but the attractiveness of the job" that will lure Malaysians.
He said that the foreign workers who are willing that take up the "unattractive jobs" such as those in the plantations are earning good wages.
"Furthermore, the workers in productivity-linked industries such as those in the plantations are provided with free housing, free water and other incentives to a certain quantum," he added.
He stated there was a "misconception" that a minimum wage will benefit everyone.
"It's only applicable to the 'bottomliners' who are mainly the unskilled workers like the cleaners and sweepers," he said, while pointing out that it's a "sad situation" that the country still has many unskilled workers in this information age.
"We should upgrade the skills of these workers so they can offer more of themselves to the market," Shamsuddin said, adding that the wages of the workers will increase when their skills are upgraded.
He told malaysiakini today that the current wage system works and there is no reason to change it.
"The force of demand and supply is the best way to determine the wage rate. It is flexible enough to cater for the current economic situation," he added.
The Malaysian Trades Unions Congress (MTUC) was reported as working towards achieving a minimum wage law for Malaysian workers by the end of the year. ("[#1]MTUC wants minimum-wage law by year-end[/#]", May 2)
"The unions only bargain for a minimum wage when they have failed to negotiate for a better deal for the workers," Shamsuddin said.
He concurred with Prime Minister Mahathir Mohamad's statement on Sunday that the government could not immediately set the immediate wage at RM1,200 as all workers, including executives would then have to be paid more.
Instead, Mahathir urged workers to increase productivity and not to have a test of strength with employers as a way to better wages.
"There will be a 'snowballing effect'," Shamsuddin said, adding that everyone will start wanting a same proportion of increase in their pay with the increased margin of the minimum wage if it is implemented.
"It's a disincentive to continue to invest in the long run if the wage market is not competitive for the investors," he added, with a reference to the foreign direct investments.
According to him, it is untrue that there is no minimum wage in Malaysia.
Four sectors, namely the hotels, retail trade, cinemas and port services have long implemented the system. He added that the system was redundant because unions in these industries can negotiate better terms with the employers.
Shamsuddin downplayed the importance of wages by saying that "it's not the pay but the attractiveness of the job" that will lure Malaysians.
He said that the foreign workers who are willing that take up the "unattractive jobs" such as those in the plantations are earning good wages.
"Furthermore, the workers in productivity-linked industries such as those in the plantations are provided with free housing, free water and other incentives to a certain quantum," he added.
He stated there was a "misconception" that a minimum wage will benefit everyone.
"It's only applicable to the 'bottomliners' who are mainly the unskilled workers like the cleaners and sweepers," he said, while pointing out that it's a "sad situation" that the country still has many unskilled workers in this information age.
"We should upgrade the skills of these workers so they can offer more of themselves to the market," Shamsuddin said, adding that the wages of the workers will increase when their skills are upgraded.
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