Minimum wage deal for estate workers signed
Susan Loone and Leong Kar YenPublished: Feb 7, 2001 2:54 AM | Updated: Jan 29, 2008 10:21 AM
National Union of Plantation Workers today reached a ground-breaking agreement with the Malaysian Agriculture Producers' Association (Mapa) to provide workers in the oil palm sector a minimum monthly wage of RM325 plus other allowances.
However, the deal does not cover the rubber plantation workers.
National Union of Plantation Workers today reached a ground-breaking agreement with the Malaysian Agriculture Producers' Association (Mapa) to provide workers in the oil palm sector a minimum monthly wage of RM325 plus other allowances.
However, the deal does not cover the rubber plantation workers.
The agreement was signed in the presence of Human Resources Minister Fong Chan Onn at his ministry in Jalan Damansara, Kuala Lumpur, after months of negotiation between the two parties although the matter had been referred to the Industrial Court.
The Industrial Court is due to hear the case tomorrow in Kuala Lumpur, and representatives from the two parties will apply for a consent award from the court.
"The biggest success achieved is that this is the first time that the concept of minimum wage for estate workers has been introduced," Fong told reporters today.
"This monthly wage is a kind of safety net for workers. They will be guaranteed a permanent monthly-based income no matter what the situation is as long as they carry out tasks that have been assigned to them," he added.
Asked when the rubber plantation workers would be given the same benefits, Fong said that "it is a different exercise and both the union and Mapa will have take note of it."
Estate workers had been campaigning for monthly wages for over half a century, and last year they staged a number of demonstrations protesting Mapa's delay in implementing the system.
In June last year, a group called the Estate Workers' Support group lodged a police report at the Brickfields police station in Kuala Lumpur to protest the ministry's ineffectiveness in solving their wage problem.
Subsequently, a study on the matter was carried out by Universiti Malaya's economics faculty, resulting in a proposal on minimum wage being submitted to the ministry.
The deal reached today is based on findings of this study.
Three-year deal
Fong thanked both parties for their tolerance and spirit of cooperation while negotiating the terms of the agreement that will be in effect from year 2001 to 2003.
Briefly, the terms of agreement are as follows:
- The piece-rate system currently practised, in which workers are paid for specific tasks done, will continue with a 7.5 percent increase with effect from Jan 1 to Dec 31 this year.
- A new system guaranteeing a monthly minimum wage of RM325 will be implemented as a safety net as long as workers turn up for work daily and carry out duties assigned to them.
- Attendance allowance has been increased from RM70 to RM80 per month for oil palm harvesters and RM32 to RM40 per month for oil palm mill workers.
- Price bonus based on current palm oil price will continue and there will also be consequential increase in other allowances.
- Workers will receive back wages from Jan 1, 2000.
Fong said that the ministry has no power to force either NUPW or Mapa to accept the terms of agreement.
"But our role is that of moral persuasion. This is a beginning of a long process of making the plantation sector relevant," he said, adding that the minimum wage system will be eventually applied to other sectors as well.
'Immense relief'
Chairman of Mapa's negotiating team Ho Dua Tiam remarked that the agreement was "an immense relief" although Mapa will spend some RM210 million within the three-year period of the agreement.
"The average income of workers will come to about RM700 to RM1,000 if productivity incentives are taken into account," he said.
He added that some 45,000 workers will benefit from this agreement although profits in the plantation sector are currently very low.
"We hope with this development, we can maintain and improve productivity of workers in the plantation sector," said Ho, adding that NUPW had pledged their promise to do the same.
He thanked the workers' union for the amicable manner in which the agreement came about and was happy that workers did not have to resort to strikes.
Asked about housing promises for workers who face eviction for refusing to leave land that is being taken over for development, Ho said that the matter is a separate issue and will be handled later.
Agree to disagree
Meanwhile, NUPW executive secretary A Navamukundun said that the union had always been confident that the ministry and Mapa would come to an agreement regarding the minimum wage.
"NUPW and Mapa will always agree to disagree but we will never be disagreeable," said Navamukundun.
"I am giving Mapa three years' notice in advance ... I'll be back to negotiate when it's time to renew the terms,' he added.
Navamukundun said that the government encourages tripartite relationships between the unions, plantation owners and the ministry.
He thanked Works Minister S Samy Vellu, who is also MIC president, and Prime Minister Dr Mahathir Mohamad for helping the representatives reach an agreement.
Related story:
However, the deal does not cover the rubber plantation workers.
The agreement was signed in the presence of Human Resources Minister Fong Chan Onn at his ministry in Jalan Damansara, Kuala Lumpur, after months of negotiation between the two parties although the matter had been referred to the Industrial Court.
The Industrial Court is due to hear the case tomorrow in Kuala Lumpur, and representatives from the two parties will apply for a consent award from the court.
"The biggest success achieved is that this is the first time that the concept of minimum wage for estate workers has been introduced," Fong told reporters today.
"This monthly wage is a kind of safety net for workers. They will be guaranteed a permanent monthly-based income no matter what the situation is as long as they carry out tasks that have been assigned to them," he added.
Asked when the rubber plantation workers would be given the same benefits, Fong said that "it is a different exercise and both the union and Mapa will have take note of it."
Estate workers had been campaigning for monthly wages for over half a century, and last year they staged a number of demonstrations protesting Mapa's delay in implementing the system.
In June last year, a group called the Estate Workers' Support group lodged a police report at the Brickfields police station in Kuala Lumpur to protest the ministry's ineffectiveness in solving their wage problem.
Subsequently, a study on the matter was carried out by Universiti Malaya's economics faculty, resulting in a proposal on minimum wage being submitted to the ministry.
The deal reached today is based on findings of this study.
Three-year deal
Fong thanked both parties for their tolerance and spirit of cooperation while negotiating the terms of the agreement that will be in effect from year 2001 to 2003.
Briefly, the terms of agreement are as follows:
- The piece-rate system currently practised, in which workers are paid for specific tasks done, will continue with a 7.5 percent increase with effect from Jan 1 to Dec 31 this year.
- A new system guaranteeing a monthly minimum wage of RM325 will be implemented as a safety net as long as workers turn up for work daily and carry out duties assigned to them.
- Attendance allowance has been increased from RM70 to RM80 per month for oil palm harvesters and RM32 to RM40 per month for oil palm mill workers.
- Price bonus based on current palm oil price will continue and there will also be consequential increase in other allowances.
- Workers will receive back wages from Jan 1, 2000.
Fong said that the ministry has no power to force either NUPW or Mapa to accept the terms of agreement.
"But our role is that of moral persuasion. This is a beginning of a long process of making the plantation sector relevant," he said, adding that the minimum wage system will be eventually applied to other sectors as well.
'Immense relief'
Chairman of Mapa's negotiating team Ho Dua Tiam remarked that the agreement was "an immense relief" although Mapa will spend some RM210 million within the three-year period of the agreement.
"The average income of workers will come to about RM700 to RM1,000 if productivity incentives are taken into account," he said.
He added that some 45,000 workers will benefit from this agreement although profits in the plantation sector are currently very low.
"We hope with this development, we can maintain and improve productivity of workers in the plantation sector," said Ho, adding that NUPW had pledged their promise to do the same.
He thanked the workers' union for the amicable manner in which the agreement came about and was happy that workers did not have to resort to strikes.
Asked about housing promises for workers who face eviction for refusing to leave land that is being taken over for development, Ho said that the matter is a separate issue and will be handled later.
Agree to disagree
Meanwhile, NUPW executive secretary A Navamukundun said that the union had always been confident that the ministry and Mapa would come to an agreement regarding the minimum wage.
"NUPW and Mapa will always agree to disagree but we will never be disagreeable," said Navamukundun.
"I am giving Mapa three years' notice in advance ... I'll be back to negotiate when it's time to renew the terms,' he added.
Navamukundun said that the government encourages tripartite relationships between the unions, plantation owners and the ministry.
He thanked Works Minister S Samy Vellu, who is also MIC president, and Prime Minister Dr Mahathir Mohamad for helping the representatives reach an agreement.
Related story:
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