Ramasamy: Why minimum wage double-standard, MEF?

 

Penang Deputy Chief Minister II P Ramasamy has criticised the Malaysian Employers Federation (MEF) for opposing a raise in the minimum wage, which was said would affect business recovery.

“It was argued that the private sector will need some time to recover from the deleterious impact of the Covid-19 pandemic. The imposition of minimum wage might be harmful to industries that are struggling to recover.

“This is (a) strange argument on the part of the MEF - supposedly protector of firms in the private sector.

“Even if this is a valid argument, I find it strange that MEF never defended the minimum wage during good economic times especially before the onset of the pandemic. Why this double-standard on the part of MEF?” said Ramasamy (above) in a statement today.

He also said the government is more interested in procuring cheap foreign labour than paying attention to the plight of local labour.

“If the ministry pays sufficient interest (to) the state of trade unions and workers, there is no need for the introduction of the miserable minimum wage.

“It (is) about time the government thinks about workers as human beings and what material requirements are necessary to have a decent living in the country,” he added.

Yesterday, the MEF said it is not the time to implement the proposed new minimum wage of RM1,500.

Its president Syed Hussain Syed Husman said the majority of businesses are not prepared as many are still reeling from the Covid-19 pandemic and the recent flood crisis.

Worker freedoms restricted

Ramasamy, in his statement, said employers have never been happy with compulsory legislation on minimum wage - with many believing wages should be determined by supply and demand.

He said such an argument by the employers can be accepted only if unions are free to organise, engage in collective bargaining, and if there is hardly any government intervention.

“But in Malaysia, there is (a) preponderant role of the government when it comes to the labour sector. The government restricts the freedom of workers and unions by passing and strengthening legislation.

“How can the interaction of supply and demand take place if the hands of unions are tied and employers are given a free hand?

“The minimum wage suggested by the government is the greatest disservice to workers in the country,” he said.

He added that a minimum wage fails to address the question of a decent living wage.

“I am not saying there is no need for (a) bare minimum wage, it is something better than nothing.

“It's passage is (a) sad indication that something is seriously lacking in addressing the welfare and well-being of workers in the country,” he said. - Mkini