We members of the NGO Jaringan Rakyat Tertindas (Jerit) would like to express its disappointment over the statement made by the Malaysian Employer’s Federation (MEF) in the local newspapers today regarding the minimum wage policy.

The news quoted that MEF would accept the government’s decision to go ahead with its minimum wage policy; but MEF’s executive director Shamsuddin Bardan and vice-president Michael Chiam said that the workers could lose their additional incentives and allowances.

Jerit condemns MEF’s statement which is a threat to the poor workers whose basic salary is below the poverty line of RM720. MEF should be ashamed to give such a statement and they should start thinking rationally. MEF should be aware the whole proposal to implement minimum wage is to protect under-paid workers and enable them to live decently.

MEF admits that the workers’ basic salary may only be between RM500 - RM600 and the take-home salary in some sectors is above RM1,000 after including other allowances and additional benefits such as transport, meal and overtime payments.

Since it is expected the government would announce a  minimum wage ranging between RM800 – RM1,000, the workers’ living conditions will go back to square one if the employers choose to remove additional benefits enjoyed by the workers.

So, what then is the rationale in implementing minimum wage?

It is also against the labour policy to withdraw benefits enjoyed by workers unnecessarily. MEF should realise that increase in the workers' salary would have a positive impact on workers as employees will be encouraged to strive harder to secure employment, thereby increasing productivity levels.

The news also quoted that MEF echoed concerns raised by former prime minister Dr Mahathir Mohamad over the negative impact of minimum wage on Malaysia’s economy.

Jerit would like to remind everyone of a statement made by Mahathir in 1998 during a dialogue with MTUC that was campaigning for a minimum wage of RM900. Mahathir remarked that a minimum wage of RM1,200 should be implemented. Sadly, MEF did not echo to support Mahathir’s statement then.

MEF should realise that without the workers the employers wouldn’t maximise their companies’ profits. Workers are their indirect ‘share-partners’. Jerit calls on MEF to be more sincere and to stop all kinds of threats on the implementation of the minimum wage policy.  Implement a  minumum wage of RM1,500 now!