Malaysia is one of Asia's biggest employers of foreign labour. But recently, cases of deaths, abuse and forced labour have come to light. What is going on? Who is protecting these migrant workers?
The government needs to consider the various factors that have made a minimum
wage scheme necessary for the continued industrial harmony and economic growth
of the country.
<p>Since the 1990s, most of the industries have automated or mechanised their
manufacturing and production processes, leading to employers needing only a
minimum number of workers.</p>
<p>Wages now form a smaller portion of production costs than before.</p>
<p>Only the agriculture sector is labour-intensive but even here the sky-high
prices of commodities have made a minimum wage scheme feasible for workers.</p>
<p>Considering the high cost of living and other factors, the minimum wage for
the workers should be RM1,000 per month.</p>
<p>The government’s agreement to a minimum wage scheme would be the best
affirmative action for all lower-end workers.</p>
<p>The lack of a minimum wage has led to the large scale employment of foreigners
in ares where locals could be used such as shops, SMEs and transport service
sector.</p>
<p>Many locals have also taken up self-employment instead of working for low wages.
A minimum wage scheme could release a few thousand of these locals into various
industries and reduce the need for foreigners.</p>
<p>Whereas large firms and multinationals offer attractive pay schemes in line
with international standards, this is not the case with SMEs, which make up
about 90 per cent of local industries.</p>
<p>This mainly non-unionised sector has long been deprived of not only reasonable
wages but also of medical benefits, paid leave and bonus.</p>
<p>Frequent reports of ill-treatment and exploitation of foreigners are an indication
of the urgent need to opt for a minimum wage for Malaysian workers as well as
foreigners to make sure that employers prefer local workers.</p>
<p>Salary schemes are much skewed in favour of middle and upper management, and
are unfavourable to workers at the bottom tiers.</p>
<p>The government should not wash its hands and say that it is the prerogative
of employers to decide on the salary of workers.</p>
<p>The government needs to recognise that private sector workers, too, work hard
to boost productivity and are second to none in nation-building and creating
a strong and resilient economy.</p>
<p>Malaysia has a per capita income of RM40,000 per annum but lower-end workers
can hardly expect a quarter of this amount per year.</p>
<p>Need there be a better illustration of the fact that something is amiss in
our wage structure and socio-economic system?</p>
<p>The government needs to consider creating a viable social security system to
help low-paid workers, retirees, the retrenched, single parents, the widowed
and the sick.</p>
<p>It was recently reported that most retirees use up their EPF money by the age
of 65.</p>
<p>The MTUC should not opt for a confrontational stance with the government as
any minimum wage scheme can only become a success with the support and co-operation
of the government.</p>
<p>It should interact positively with the government to make sure that millions
of Malaysian workers will get the minimum wage scheme implemented, as well as
see the creation of a strong social security system-cum-welfare state in Malaysia.</p>
<p><i>Source: http://www.nst.com.my/Current_News/NST/Monday/Letters/20070611081937/Article</i>
Address: Wisma MTUC,10-5, Jalan USJ 9/5T, 47620 Subang Jaya,Selangor | Tel: 03-80242953 | Fax: 03-80243225 | Email: sgmtuc@gmail.com.com