The allegation that the RM325 minimum wage is perpetuating poverty among palm oil plantation workers is unfair, said Human Resources Minister Dr Fong Chan Onn today.

The minister was commenting on the claim made by The Estate Workers' Support Group (EWSG) when announcing the findings of its study of the new collective agreement (CA) for palm oil plantation workers.

The leading plantation workers group had denounced the CA which was agreed to between the National Union of Plantation Workers (NUPW) and the Malaysian Agriculture Producers' Association (Mapa) in Feb 7 this year as "a sham that did not bring meaningful changes into the lives of the workers affected."

Fong said the allegations made by EWSG were especially unfair to the NUPW as the latter is the legitimate representative of plantation workers.

"We listen to their (NUPW) suggestions as they truly represent the workers unlike other NGOs (non-governmental organisations). They're chosen by the workers and they face the workers every day," he said.

Fong added that his ministry will assist NUPW in obtaining a satisfactory collective agreement (CA) for the rubber estate workers in the coming negotiations with Mapa. The CA for rubber estate workers is due to end this December.

"If NUPW is satisfied (with the terms of the CA), the government is also satisfied. If the NUPW is not satisfied, then the government will struggle (for them) until they are satisfied," he explained.

Secure minimum income

Fong further elaborated that the RM325 minimum wage is only a basic pay which would ensure a secure minimum income for the workers.

"In practice, with allowance and other incentives, their pay is much more than just RM325. That is just a guaranteed income," he said.

He added that such practices are normal, citing the example of insurance salesmen who also receive low basic pay but can have a higher income if they worked hard for commissions.

"We must not interpret [the basic pay to mean] that the workers only receive RM325," Fong stressed.

Earlier, he witnessed the signing of a memorandum of understanding (MOU) between Multimedia University (MMU) and the Technical University of Munich (TUM) at the MMU campus in Cyberjaya.

Four demands

EWSG has been consistently fighting for the implementation of four of its demands which it feels would help elevate the living standards of these workers. They are:

- minimum wage of RM750;

- minimum annual wage increase of RM50;

- minimum annual bonus of one month's wage; and

- minimum retirement benefit of RM1,000 for every year of service.

Prior to the general elections in November 1999, Works Minister S Samy Vellu was reported to have said that the minimum wage for plantation workers will be between RM900 and RM1,000.