Pay wages in USD since ‘Malaysia’s cost of living is lowest’
MTUC Sarawak says the cost of living in the state is 15% to 25% higher than in the peninsula, but the minimum wage for its people is lower.
“Since the prime minister has claimed that the cost of living in Malaysia is the lowest in Asean as measured in USD, MTUC demands that wages in Malaysia must be paid in USD as well,” its secretary Andrew Lo said in a statement today
Prime Minister Najib Razak had on April 21 cited a survey by the Economist Intelligence Unit that compared prices of goods and services in 133 cities worldwide.
He said Malaysia’s achievement in having the lowest costs in the Asean region was the result of various efforts undertaken by the government to reduce the people’s burden in dealing with the cost of living.
Lo said the MTUC regretted the government’s delay of a review in the minimum wage by 18 months.
“This has dashed our aspirations that it will spur wage increases across the board which would have led to higher economic growth and more business for companies and spur the drive to increase productivity,” he said.
The minimum wage is now set at RM1,000 per month or RM4.81 per hour for the peninsula, and RM920 per month or RM4.42 per hour for Sabah, Sarawak and Labuan.
Lo said the minimum wage in East Malaysia is lower despite the fact that in Sarawak the cost of living is 15% to 25% higher compared to that in peninsular Malaysia.
“Cost of living has shot through the roof mainly due to the weak ringgit, GST (goods and services tax) and a controlled economy, especially in Sarawak.
“Businesses have flourished at the expense of consumers. Price increases are exorbitant. Houses have become out of reach for most people,” he added.
Lo said the government must compel private sector employers to pay cost of living allowance (Cola) to their workers in tandem with adjustments due to the changing cost of living.
He said private sector employees do not enjoy “regional allowances” that government employees benefited from.
He said wages should be high enough to benefit both foreign and local workers.
“It simply makes no sense to push for economic growth and investment that create low-paying jobs for more than 3 million foreign workers,” he said.
“Up to 75% of workers in timber and plantations are foreign workers while tens of thousands of Sarawakians have to leave their families to work in Singapore, Johore, KL and Penang,” he added.
Lo also called for amendments to labour laws to offer greater protection to workers and their unions.
“We must strengthen the trade union movement by adopting a more liberal approach to the whole issue of trade union registration, recognition and representation.”
He said countries where unions are “strong, effective, representative and independent” have seen their industries flourishing with high profitability and productivity.
“Yet in Sarawak, state government-linked companies continue to deny trade union representation.”
https://www.freemalaysiatoday.com/category/nation/2015/05/20/raise-minimum-wage-now-says-mtuc/
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