We asked for new minimum wage but got higher electricity tariffs, says MTUC


Raising electricity tariffs for industrial and commercial users will cause the prices of goods to rise, says the Malaysian Trades Union Congress. – The Malaysian Insight file pic, January 31, 2022.

THE Malaysian Trades Union Congress (MTUC) has urged Putrajaya to raise the minimum wage as it should have done on January 1 in line with the Minimum Wage Act, which requires a review every two years.

In a statement, the union said it was shocked to learn that instead of announcing a new minimum wage, the government instead introduced higher electricity tariffs for non-domestic accounts.

“An increase in electricity tariffs for non-domestic consumers due to surcharge will cause (an increase in the prices) of other items,” it said.

“The industry will transfer the cost of tariff increases to consumers and eventually consumers will be affected.”

Last week Energy and Natural Resources Minister Takiyuddin Hassan announced that new domestic electricity tariffs for 2022-2024 would be introduced on February 1.

However, a few days later, Prime Minister Ismail Sabri Yaakob said electricity tariffs would remain unchanged.

MTUC said an increase in the minimum wage will help workers but an increase in electricity tariffs will burden them.

“How can the government curb the rise (in the price) of goods to come while controlled items such as cooking oil have been sold above the ceiling price?” it said.

MTUC said the government should look at neighbour Singapore, where it is reported that a janitor is paid up to S$3,000 (RM10,000) per month.

“MTUC will liaise with the union in Singapore to discuss the best methods for the implementation of the new minimum wage,” it said.

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.

MTUC said it was also concerned about other workers’ issues such as forced labour, amendments to the Employment Act, and the fact that the National Labour Advisory Council meeting has been delayed for a year.

It said it has sent a letter to the PM asking for a meeting to discuss the pressing matters. – January 31, 2022.


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