The government wants employers to find ways to help their workers cope with the 30 increase in fuel prices.

Human Resources Minister Dr Fong Chan Onn said this can be done by increasing the workers transport allowance and implementing salary adjustments.

He said the request by the Malaysian Trades Union Congress (MTUC) for a Cost Of Living Allowance (Cola) of RM150 per month across the board for all workers might be difficult to meet but employers could help cushion the impact by adjusting the salary or transport allowance for their workers under the collective agreement (CA).

"On my part, I'm willing to talk to the other companies if the collective agreement has already been signed (before the fuel increase), to look into the ways and means," he was quoted as saying by Bernama.

Fong was speaking to reporters after witnessing the signing of the 12th Collective Agreement (CA) between Guinness Anchor Berhad (GAB) and the Union of Beverage Industry Workers, Federation of Malaya here.

The CA allowed the 300 employees of GAB to enjoy a nine per cent salary revision, mileage rate increase to 60 sen, salary maximum range of nine per cent and a variable performance bonus scheme for good performers.

Task force

Fong said this suggestion did not mean that the MTUC's request for the Cola would not be looked into as the union and Malaysian Employers Federation (MEF) had jointly set up a task force to study the request.

The task force was set up two days ago after a meeting between the MTUC and MEF and the Human Resources Ministry.

However, Fong cautioned that the implementation of a Cola in the private sector would contribute to a substantial economic cost as there were about 10 million workers in the country.

The implementation of a RM150 Cola would run into billions of ringgit.

"There are many ways in which the employers can be help. For example, subsidise their meal allowances, transportation allowances and some unions have even suggested that employers offer assistance in purchasing insurance cover and so on," he added.

He hoped that both sides could find a better solution to this issue by working together to find the alternatives instead of turning the fuel hike issue into a "trade issue", which could lead to continuous confrontation.