The Malaysian Trades Union Congress has welcomed Economy Minister Mohd Rafizi Ramli’s proposal for a progressive wage policy, saying that it would close the gap between wage growth and the rising cost of living.
It also said government intervention is necessary because the current minimum wage policy does not require employers to periodically raise salaries, causing the wages of some workers to become stagnant at the minimum wage level even after 25 years on the job.
“The government needs to intervene with annual (wage) increments because of the stubbornness and greed of companies that block wage increases.
“Market forces cannot determine the cost of labour because workers have family and social responsibilities. They are not machines or commodities that can be traded,” MTUC secretary-general Kamarul Baharin Mansor said in a statement today.
During a forum on Tuesday, Rafizi said he will present a policy paper to the government in early August for a progressive wage model.
He said it is impossible for the government the tackle the rising cost of living without ensuring wage growth.
“And it’s the most unpopular thing I have undertaken in my job as a minister,” he added. - Mkini
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