THE Malaysian Employers Federation (MEF) must stop “weaponising” Covid-19 to suppress the minimum wage rise, the Labour Law Reform Coalition (LLRC) said today.

In a statement, its co-chairmen N. Gopal Kishnam and Irene Xavier chastised the MEF for hindering the rise of the minimum wage by claiming it would increase the cost of small and medium enterprises (SMEs) during the economic recovery and lead to their closure. 

“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 had substantial wage cuts. MEF should not exaggerate employers’ suffering but neglect the sacrifice of workers,” the coalition said. 

“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?”

Three days ago, MEF said it wanted the government to scrap any proposal to increase the country’s minimum wage to RM1,500, saying such a move “will kill businesses”.

Its president Syed Hussain Syed Husman said with many still reeling from the economic shock of Covid-19 and the recent floods, they would not be ready or in a position to implement the increased salary hike.

The coalition said it was unfair to say that an increment in the minimum wage will kill businesses since that economic analysts have forecast that Malaysia’s gross domestic product growth will increase from 3.5% in 2021 to 6.2%. 

The coalition said it was time employers compensated their workers with a higher wage floor as the economy returns to normal. 

“We must remember that our minimum wages are still below the poverty line,” they said. 

LLRC also called upon the job market to recognise the human element in determining labour cost and called upon industry players to treat employees humanely. 

“Please treat workers as human beings who need decent living, rather than a commodity that generates profits for capital owners,” it said. 

LLRC further urged Putrajaya to immediately announce the new minimum wage and reminded that the delay in implementing the policy has again violated the purpose of the National Wage Consultative Council Act, which requires the minimum wage to be revised every two years.

Malaysia last raised the minimum wage in February 2020, from RM1,100 to RM 1,200 per month. The hourly rate also increased from RM5.29 to RM5.77. – February 9, 2022.