Unionist: 'Cry babies' that can't afford minimum wage should close shop

A banking union leader has labelled businesses resisting the minimum wage hike a “bunch of cry babies”.

Sarawak Bank Employees’ Union (SBEU) chief executive officer Andrew Lo said such businesses should close shop.

“Businesses that cannot even pay a minimum wage that is below the poverty line have no business to be in business. They should close shop.

“The government cannot continue to subsidise such inefficient businesses by keeping wages low so much that the low income of Malaysians forces the government to spend billions to subsidise everything from petrol to chickens.

“SMEs on the other hand are among the most protected and assisted business communities with so many initiatives to assist them,” he said in a statement today.

Prime Minister Anwar Ibrahim announced on Friday that the minimum wage rate will be increased to RM1,700 effective Feb 1, 2025.

However, companies with fewer than five employees will get a deferment of six months.

Lo (above) was responding to complaints from the SME Association of Malaysia - whose president Chin Chee Seong - claimed that the higher wages, as well as EPF contributions for migrant workers - would lead to a sharp rise in operation costs.

In his statement, Lo - who is also the Labour Law Reform Coalition deputy president - challenged the group to prove such a scenario would happen.

“If it is indeed true, we will petition the government to reduce the minimum wage.

“(But) we wish to point out that employers in the past even made the now-debunked claim that minimum wage will cause 300,000 businesses to close. It’s blatant misrepresentation,” he said.

Teresa moots lower EPF contributions for employers of migrant workers

Delay migrant workers' EPF contribution plan by 2 years - group

Minimum wage not benchmark for all starting salaries: Sim

LETTER | Low pay and its impact on workers' mental health

Even Ismail Sabri gave us better minimum wage rise, PSM fumes

MTUC president lauds minimum wage move, ex-official calls for more

New RM1,700 minimum wage also applies to foreign workers