THE new minimum wage of RM1,500 is insufficient in the face of rising inflation and will not change the lives of workers overnight for their betterment, P. Ramasamy said today.

The Penang deputy chief minister said the new amount – up from RM1,200 to RM1,500 – does not reflect the hard work and sacrifice of the workers. 

“It is actually aimed at cushioning employers against the worst effect of the recent economic slowdown and to insulate them from labour agitation and others,” he said in a statement. 

“It makes no sense for the government to come with a minimum wage of RM1,500, considered a pittance to years of labour sacrifice and the general rise in productivity.”

He also said the basis for the government to announce RM1,500 as the new minimum wage is shrouded in mystery and confusion.

“There is a need for wage flexibility where employers and unions can determine on the basis of market forces of supply and demand,” he said. 

“What is the point of introducing a miserable and shameful wage when conditions are not in favour of labour to make demands on employers.”  

Ramasamy also hit out at unions for being more comfortable in seeking compromises with the government and employers. 

“If unions are strong and vigorous in the country, there would be no necessity for the minimum wage as the matter could be negotiated in the interest of labour,” he said. 

“The government takes a lead in introducing the minimum wage because the unions are weak and their leaders or dealers have become accustomed to the culture of compromise to the extent the rights of their members have been sacrificed.”  

Putrajaya has introduced the new minimum wage of RM1,500 nationwide to take effect from May 1. – April 29, 2022.