THE announcement by Human Resources Minister, V. Sivakumar, that the minimum wage of RM1,500.00 would be retained at that level under the policy framework of the soon to be introduced progressive wage system, is flawed at many levels.
Even without knowing the details of the model or system to be introduced, it is obvious that the Human Resources Ministry has fallen prey to the predatory practices of the business community in the country.
This is despite the government stating on multiple occasions that it recognises the impact of the cost of living crisis on the B40 and M40 communities.
It would seem that the cabal of businesses, and in particular big business, has managed to persuade the government to continue with the exploitative system of employment in the country, which has directly contributed to an unsustainable and growing wealth and income inequality.
The minister’s statement was positioned as though a favour is being done for workers in the country by not lowering the minimum wage. That statement is in itself an insult to workers. Can the minister come out and state as to what the difference between the minimum wage and decent income level in the country is today?
In 2018, Bank Negara stated that the decent income of a single adult to participate meaningfully in society was RM2,700.00 per month. The fact that Bank Negara has not updated and revised their study since 2018 points to government institutions being party to the institutionalised oppression of workers in the country.
The minimum wage has to be set at a decent income level. Any type of productivity bonuses or wages should be in addition to the minimum wage. The right to a decent income is a basic human right, being denied to Malaysian workers.
A system where employees are incentivised to enhance individual and collective productivity is necessary, though it does not negate the basic obligation of an employer to ensure that every worker is assured of a decent income.
As part of a progressive wage mechanism, the government should seek to introduce a wage ceiling as well.
That way, the total compensation of senior executives can be capped to prevent abuses by executives who award themselves huge bonuses and share awards, which is often at the expense of investing profits back into the business for growth.
The government should consider instituting a ratio between the lowest paid and highest paid worker in an organisation, thereby ensuring that the wealth and income gap which is one of the main factors contributing towards the acute cost-of-living crisis in the country is addressed.
Another direct contributing factor towards the issue of disproportionately low wage levels for the B40 community in particular, is the lack of collective bargaining rights of Malaysian workers.
It is estimated that only 6% of Malaysian workers are unionised, and that includes unionised employees in the civil sector whose unions do not have collective bargaining rights.
The first thing which should happen is to eliminate the different forms of anti-union activities which have been allowed to go on for too long. Workers in the country cannot be asked to continue to show patience to a system which has been exploiting them for too long.
The current leadership of the Malaysian Trades Union Congress (MTUC) seem to be engaging in a strategy of being elegantly silent, to the detriment of workers.
The government, which should be of the people, by the people and for the people should look to serve the interests of the people. – August 27, 2023
Callistus Antony D’Angelus is the international labour advisor for the Social Protection Contributors’ Advisory Association Malaysia (SPCAAM)