Groups representing blue collar workers today urged the government to introduce incentives for their small and medium enterprise (SME) employers so the companies can afford to pay the workers the minimum wage next year.

In the memorandum submitted to the government and parliamentarians today, PSM and Jaringan Rakyat Tertindas (Jerit) said this includes offering tax breaks for SMEs.

They also proposed that assistance to SMEs include the government paying the employers’ contribution to the Employees Provident Fund for a temporary period and subsidised electricity.

“Such support will ensure that small companies can comply with the minimum wage scheme,” the memorandum reads.

They also urged the government to pay higher fees to its contractors so that the contractors can afford to pay the minimum wage.

The memorandum was submitted to an aide of Human Resources Minister Richard Riot by PSM secretary-general S Arutchelvam at the Parliament gates.

NONE A copy was also submitted to PAS’ Kota Baru MP Takiyuddin Hassan, PAS’ Kuala Nerus MP Mohd Khairuddin Aman Razali and PKR’s Sungai Petani MP Johari Abdul by Jerit representative M Sivaranjani and PSM central committee member M Sugumaran ( right ).

A group of 60 from PSM and Jerit also held a peaceful demonstration in front of the Parliament building, to demand a more responsible approach to minimum wage.

Under the watch of about 20 police officers, the group chanted slogans urging the government to not make any more U-turns on the minimum wage.

“We want the government to take the implementation of the minimum wage seriously, and that such provisions (to assist the implementation) are included in Budget 2014,” they said in the memorandum.

They also reminded the government that while the RM900 minimum wage for peninsula Malaysia is a start, RM1,800 for a double-income household can hardly make ends meet.

“Workers are doubtful about the scheme as it appears that there are difficulties even to implement this low band,” they said.

They added that the implementation of minimum wage not only alleviates poverty but also increases worker productivity and in turn, SME returns.

Other demands include:

  • Minimum wage across the board, including for foreign workers;
  • All foreign worker levy to be borne by employers; and
  • Pay cuts for housing be monitored to ensure that it is not too high.