The government today announced a joint tripartite committee to study the impact of the recent fuel price hike on workers and industries.

The 90-minute meeting in Putrajaya was chaired by Human Resources Minister Dr Fong Chan Onn and attended by representatives from the Malaysian Trades Union Congress (MTUC) and the Malaysian Employers' Federation (MEF).

The task force conciliatory committee will study issues that affect the cost of living and of doing business with a one month deadline to finalise its findings.

Last week, the MTUC proposed a minimum RM150 cost of living allowance (Cola) to cushion the spiral effect of the price increase of petrol, diesel and liquefied petroleum gas.

MTUC president Syed Shahir Syed Mohamud said although the Cola proposal has not been accepted by Fong and the MEF - both agreed that the joint committee will study it.

"Our Cola proposal remains, we've not backed out on it. We are neither happy nor satisfied but at least the parties are willing to listen to workers' voices," he said in a telephone interview.

"We did stress that this problem is very real and as the labour centre we feel compelled to do something.

"In recognising the impact of the fuel price hike on workers, the parties should work towards a special relief allowance which was first introduced some 30 years ago."

He was accompanied by deputy secretary-general Abdul Halim Mansor.

Halting inflation

On March 27, a memorandum backed by civil society organisations will be handed over to Prime Minister Abdullah Ahmad Badawi in Parliament. The MTUC has planned a people's gathering at the KLCC on March 26.

The MEF's concern stems from the anticipated inflationary effect which will be triggered by a RM150 increase in salary.

In explaining this, MEF president Md Jafar Abdul Carrim said the tripartite representation in the joint committee will ensure that all concerns and proposals are duly considered.

"Whatever proposals by the MTUC or any other parties will be studied by the joint committee as this is an issue that affects the whole country and which is not of our doing.

"Nonetheless, we need to look at affected employees as well as study the impact on enterprises, some of whom have been hit very badly. Nothing will be left unturned (in the deliberations)," he said when contacted later today.

He was accompanied by MEF vice-president VT Nathan.

Improving productivity

Md Jafar also noted that the dynamic and fluid wage management system in the private sector enabled some industries to give an assessment following the rise in costs.

"The committee would include experts from the relevant government agencies for a more thorough review of the situation once all the proposals are in," said Md Jafar.

"The MEF will submit a proposal to look at productivity improvements that can help businesses in this very critical of times."

He said costs will keep increasing with the impending announcement of a tariff hike in electricity rates.

"We all know and expect Tenaga (Nasional Bhd) to raise the rates. All this is still in the pipeline but I think the government is being sensitive to the rakyat by not allowing it now.

In a statement dated Feb 28, the MEF declared its support for the reduction in fuel subsidy which is expected to save the government RM4.4 billion to be used for other developments.

Petrol, diesel and liquefied petroleum gas costs 30 sen per litre/kilogramme effective Feb 28.