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?
Accurate information is essential to smoothen the path of transformation
LOOSE talk makes for much trouble. Close to 1,000 complaints were reportedly made against employers since the implementation of the minimum wage scheme, which came into force last month. Obviously, almost every worker thinks that the RM900 minimum monthly wage (RM800 for Sabah and Sarawak), as recommended by the National Wage Consultative Council (NWCC), is due to them irrespective. However, as the human resources minister pointed out, the quantum was not one with a blanket application; skills, productivity and other factors make for a finer definition. For example, domestic workers are exempted given that the job includes accommodation and food. Additionally, if the money is not paying for better skills, then why not keep labour cheap?
It is a mistake to think that minimum wage, like the poverty line, say, is a universal cut-off point. In fact, NWCC will review and recommend the minimum wage to the government every two years, taking into account changes in labour market conditions and productivity growth. Of course, it is a consideration of social justice. At the same time, however, this move is expected to compel Malaysian employers to technologically upgrade their production activities. The logic is simple. Why pay more for unskilled labour when technology is a more reliable solution? In the drive for transformation to free the economy from the middle-income trap, industries cannot be allowed to stay outmoded and act as millstones, retarding the country’s progress to post-industrial modernity. Better wages should arguably boost productivity, which is positive for employers. Malaysia’s minimum wage scheme is expected to benefit 3.2 million private-sector workers. In Britain, considerations of age (skill) and accommodation, plus other perks of the job, are part and parcel of how the minimum wage is calculated on a per hour basis. According to this reckoning, an older person is worth more than a younger person, which infers that experience, hence skill, counts for a lot. And, when there are perks involved, it must be seen as part of the overall wage.
The upshot of it all is that broadcasted information must be accurate. And, if employees have been properly briefed on what the minimum wage implies, dissatisfaction would have been avoided. The rules governing the policy is mandatory upon every employer, which means abuse opens the path to prosecution. Employers who do not comply risk a maximum fine of RM10,000 per worker. Continuous offenders can be fined RM1,000 per day and repeat offenders would face a RM20,000 fine or five years’ jail, or both. Only the very foolish will risk causing the ire of employees, who will seek recourse when aggrieved.
Source: NST
Address: Wisma MTUC,10-5, Jalan USJ 9/5T, 47620 Subang Jaya,Selangor | Tel: 03-80242953 | Fax: 03-80243225 | Email: sgmtuc@gmail.com.com