KUCHING, February 9, 2022- The Labour Law Reform Coalition (LLRC) today urged the Malaysian Employers Federation (MEF) to stop weaponizing Covid-19 to suppress the minimum wage rise.
“We must remind MEF that during the pandemic workers were suffering as much as employers. Many were laid off, forced to take unpaid leave or have substantial wage cuts. MEF should not exaggerate employers’ suffering but neglect the sacrifice of workers,” LLRC co-chairpersons N. Gopal Kishnam and Irene Xavier (picture) said in a statement.
“Since the negative impact of the pandemic was shouldered equally by employers and workers, why can’t employers share economic profit in the form of wage rise with workers when the economy is recovering?” they asked.
They said economic analysts have forecasted that Malaysia’s GDP growth will increase from 3.5 percent in 2021 to 6.2 percent.
“(Therefore) it is unfair to say that the wage rise will kill businesses,” they added.
“When the economy is returning to normal, it is time for employers to compensate workers with a higher wage floor. We must remember that our minimum wages are still below the poverty line.
“The market must recognize that there is a human element in determining labour cost, please treat workers as human beings who need decent living, rather than as a commodity that generates profits for capital owners.
“We urge the government to immediately announce the new minimum wage,” adding that the delay in implementing the new minimum wage has again violated the purpose of the National Wage Consultative Council Act that requires the minimum wage to be revised every two years.
In a recent statement, MEF claimed that the increasing the minimum wage to RM1,500 per month before the year end would kill businesses that were still reeling from the economic shock of the Covid-19 pandemic and the devastating effects of the recent major floods.
MEF president Datuk Dr Syed Hussain Syed Husman said, instead of raising the minimum wage, efforts should be directed towards business recovery of the private sector and controlling the rising cost of products and services, the MEF said.
“We must remember that most Malaysian businesses are micro, small and medium enterprises (MSMEs), 98.9% are in this group.
“So, when we talk about wages and cost, we must think of their survival and sustainability. MSMEs are suffering and even [with] a small increase in their cost, they will suffer and close down, what more an increase of RM300/400 per month on top of existing national minimum wages,” he had said.
He also expects the move to result in higher unemployment and business debts, as companies would be unable to service their loans.
The MEF's statement came a day after Human Resources Minister Datuk Seri Saravanan Murugan said a new minimum wage of “around RM1,500 a month” was expected to be implemented before the end of this year.
He said the new rate had yet to be finalised, as the ministry was awaiting Cabinet approval. In February 2020, Malaysia’s minimum wage was raised to the current RM1,200 per month from RM1,100 per month previously.
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