The government must implement a minimum wage mechanism as an immediate measure to help the working class weather the impending hike in living costs due to its on-going subsidy rationalisation plan, said Klang MP Charles Santiago.

He said the arguments being aired on what the government should do, following the likely hike in the price of RON95 petrol next month, remain political rhetoric as they do not address the bread and butter issues faced by the “man on the street”.

mtuc syabas pc 091007 charles santiago Charles ( right ) pointed out that the working class has been burdened with stagnant wages for at least the past decade, with wages going up by just 2.6 percent between 2000 and 2010.

“This means when you compare their salaries in 2000 and now, they are nominally the same but in real terms there is a big difference due to inflation. What could buy 10 loaves of bread in 2000 can now only get five,” he said.

“We need to bring the discussion back to the key issues affecting the man on the street, because we are not addressing the fundamental problems (that come with increasing living costs).”

Charles said there are several key issues that the government needs to tackle in its bid to reduce the country’s burgeoning debt - which currently stands at around 78 percent of its gross domestic product.

He echoed his party DAP’s stand on removing subsidies for major companies such as independent power producers, and also advocated cutting corruption and reducing illegal outflow of funds from the country.

But with the exception of removing subsidies for companies, Charles stressed that these are mostly long-term goals that will do little to help the working class and the poor manage rising living costs.

Corruption: A middle class argument

“Corruption is a middle class argument, but for the man on the street they are thinking of how to pay their bills. They need a solution tonight, so that they can put food on the table for their children in the morning.

budget 2006 goverment workers “As it is, company profits are increasing but the workers’ quality of life is not improving... If there is no minimum wage, the subsidy cuts will only victimise the poor,” he said.

Charles, repeating a recent proposal made by a recent roundtable on minimum wage, called for Malaysia to have a “reasonable” minimum wage of between RM1,500 and RM2,000 to prop up the working class.

The government should also think of a cash-adjustment programme where targeted cash aid is handed out to families earning RM1,500 and below to help them settle in with the increased cost of living, he added.

Charles noted that with the eventually total removal of subsidies, the government must also put in place social protection for all Malaysians, especially since many services are moving towards or have already adopted privatisation.

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