The Plantation Workers Support Committee (PWSC) has rejected the 'historic deal' between plantation owners and unionised workers o­n a minimum monthly wage.

After negotiations that spanned 40 years, the National Union of Plantation Workers (NUPW) and Malaysian Agricultural Producers Association (Mapa) signed the agreement yesterday.

Commenting o­n this today in a press statement, PWSC representative Y Kohila described the terms of the agreement as an insult to plantation workers.

'Marginal increase'

Under the deal - backdated from Jan 1 this year and which will remain in effect until 2005 - about 58,000 plantation workers will be assured of a minimum salary of RM350 if their earnings for the month fall below this quantum.

The deal also provides for an increase in other benefits, such as housing and shift allowance.

"This wage is a rip-off as it will not increase the living standards of plantation workers and will further push them into poverty," said Kohila.

She said the quantum of RM350 was well below the current poverty line of RM1,200 a month for a household in Malaysia.

"What kind of wage is this? Can a family survive with these wages?," asked Kohila, who pointed out that the minimum wage was a marginal increase from daily wage of RM11.50 set under the last collective agreement.

Kohila also dismissed the union's claim that, if the yield is good and the workers go to work as scheduled, they could earn up to RM1,000 per month.

"All these are mere lies as the same thing was said when the palm oil collective agreement was signed in Feb 2001, with a guaranteed wage of RM325," she said.

"But when the palm oil harvesters received their wages, there was not much difference. There are estates where their wages dropped due to the new system."

Workers 'exploited'

Kohila said excuses such as the economic slowdown should not be cited as an excuse for not paying workers a decent monthly salary.

She said that, even during such slowdowns, the plantation industry has been doing well as seen by their recent profits ( see chart) .

"It is shameful that the country is not able to provide a decent wage for plantation workers who have been the backbone of the country's development (force)," Kohila added.

"They are continuously exploited and oppressed for the sake of profit. The government, plantation union and Mapa have not taken concrete steps to improve the standard of living of these workers."

The media today quoted Human Resources Minister Dr Fong Chan o­nn ( photo ) as saying that Mapa would fork out about RM145 million to workers over the duration of the agreement.

Mapa will also pay RM140 ex-gratia per month to every worker for the period from Jan 1 to Dec 31 last year.

On the minimum wage, Fong said the amount was o­nly a basic monthly guarantee . This would be paid o­nly if the workers' salary falls below the quantum due to circumstances beyond their control, like bad weather or low yield.