THE national labour centre has slammed the minimum wage announced by Putrajaya, saying it falls far short of Pakatan Harapan’s promises and “shortchanges” the country’s working class.

Malaysian Trades Union Congress secretary-general J. Solomon said the hike was too low and that the human rights of low-wage earners were “blatantly violated even by the new government”.

“The new Malaysian government is insensitive and indifferent to the continuous sufferings of B40 workers.

“An increase of RM50 from RM1000 is a pittance dumped on labour while an increase of RM130 for Sabah and Sarawak still stands below the poverty line of RM1180 in Sabah.

“The previous government did not take any steps to ensure equitable share distribution of wealth amongst Malaysians. It appears that the new government’s attitude towards the poor is no different,” he said in a statement today.

MTUC has half a million members in major industries and sectors.

Yesterday, the Prime Minister’s Department announced that the country’s minimum wage had been raised, with workers nationwide getting a uniform minimum wage of RM1,050 per month, or RM5.05 per hour, effective January 1 next year.

Recommendations by the National Wage Consultative Council had called for a raise to the minimum monthly salary of RM1,000 for workers in peninsular Malaysia and RM920 for Bornean states. 

Solomon said despite Malaysia being the only country in Southeast Asia that has ratified the United Nations’ International Labour Organisation Convention 138 Minimum Wage Fixing in June last year, it has failed to comply with the basic requirement in fixing a minimum wage.

“After 18 months’ delay for the first review, another six months’ delay for the second review totaling the full delay to 24 months demonstrates the utter disregard for poor workers who are treated with a mean minimum wage increase,” Solomon said, referring to the delay by the previous Barisan Nasional government for the 2015 review of the minimum wage.

“We voted out the former government with the hope of having a (new) government that would understand the predicament of the B40 population.   

“They cannot afford a decent life with low wages and the high cost of living, continuously being shortchanged from a decent share of the wealth generated with their commitment and contribution.   

Solomon said that workers “survive day-to-day on borrowed income with no savings for the future, while the top management continues to draw salaries beyond one’s imagination”.

Solomon also said migrant workers in the construction sector will not work for less than RM70 per day while the proposed minimum wage of RM35 per day is “forced on to local workers”.

“It looks like after 61 years of independence, the current government is still promoting cheap labour to make Malaysia a paradise for foreign investment at the expense of local workers so that expatriates can buy properties while Malaysians run to Singapore, Australia, and other developed countries for greener pastures.”

Between 2000 and 2008, wage growth was only 2.6% while labour productivity growth was 6.7%.

Human Resources Minister M. Kulasegaran said last month that the minimum wage of RM1,500, as promised in Pakatan Harapan’s election manifesto, will be done in stages due to complaints from local firms, who said the country risks raising its unemployment rate from its current 3.4%, particularly among younger workers. – September 6, 2018.