Human Resources Deputy Minister Abdul Latiff Ahmad told the Dewan Rakyat this morning that the government will hold informal discussions with Malaysian Agricultural Producers Association (Mapa) and the National Union of Plantation Workers (NUPW) to help both parties come to a compromise to extend the minimum wage system to rubber tappers as well.

He added, however, that at the moment, the government would not interfere with talks between the two as their two-year collective agreement would expire in December this year.

"Their last collective agreement for rubber plantation workers was signed in Dec 1999 and is due in December this year. Normally, Mapa and NUPW will hold intensive discussions three months prior to the expiry date.

"The ministry would prefer them to come to a compromise on their own. However, if the matter is not solved after December, then we will interfere through the persuasion and encouragement method," he said during House question time.

On Feb 7 this year, Mapa reached an agreement with NUPW to provide workers in the oil palm sector a minimum monthly wage of RM325 plus other allowances.

Minimum wage rate

Abdul Latiff also explained why the minimum monthly wage amounting to RM325 for oil palm estate workers was below the domestic poverty line peg of RM425.

"The poverty line is based on a family unit but the minimum monthly wage is an individual's income," Abdul Latiff said.

"Furthermore, the oil palm workers are given other incentives such as free housing, water and electricity utilities. With overtime payment, the laziest worker should be able to earn RM600 a month while the hardworking ones could earn up to RM1,500 a month," he added.

Meanwhile, NUPW executive secretary A Navamukundun, when contacted by malaysiakini , said that the union had already had a meeting with the Human Resources ministry on its upcoming talks with Mapa.

He said Human Resources minister Fong Chan Onn wanted an update on the negotiations adding, "The negotiations will only commence in October and the minister wanted a feel of the ground."

Asked if NUPW is satisfied with the RM325 minimum wage rate that was agreed between the union and Mapa in the Feb 7's collective agreement, Navamukundun said the workers now have a 'safety net' that ensured them an income of at least RM325 every month.

A 'sham'

"Previously, there's no safety net at all," he said, adding that the workers' income can dip below RM325 even if they worked everyday. (Under the previous system, oil palm plantation workers were paid a daily rate of RM12.50 per day with no payment for absent days.)

Navamukundun also said the the RM325 minimum wage rate currently in place was 'not static'.

"It will improve in years to come," he assured.

In a related development, the Estate Workers Support Group (EWSG) today announced their research into the 2001 collective agreement for oil palm plantation workers and denounced it as a 'sham'.

According to the group, the minimum wage rate of RM325 was 'not enough to sustain a decent standard of living for plantation workers'.