Economy Ministry To Engage Stakeholders On Progressive Wage Policy


 
Economy minister Rafizi Ramli said consultations will be held with key stakeholders, including the government, employers and workers, in coming up with a progressive wage policy.PETALING JAYA: The economy ministry will engage with all relevant parties in the implementation of a progressive wage policy, says its minister, Rafizi Ramli.
Rafizi said consultations with key stakeholders, including the government, employers and workers, will be conducted to gather input and perspectives.
“The final details and mechanisms of the policy will be decided based on comprehensive considerations,” he said. “They include the ability and cost implications for the private sector, phased implementation, and reaching a tripartite agreement among the government, employers and workers.”
Rafizi’s statement comes after the Malaysian Employers Federation (MEF) said market forces should be allowed to determine the right price of labour, and that the minister should not make salary increments mandatory.
“Industries all over the world have always relied on market data to determine compensation and benefits. The government should not dictate what should be done in terms of rewarding employees,” MEF president Syed Hussain Syed Husman said.
Syed Hussain also said handling wage-related policies does not fall under the purview of the economy ministry, but the human resources ministry.
He said Rafizi should instead “be sharing with businesses and the rakyat plans to improve the economy, thereby raising the standard of living”.
On Tuesday, Rafizi had hinted that Putrajaya’s plan for progressive wages could entail making annual salary increments mandatory.
In his statement today, Rafizi also gave an assurance that his ministry is committed to ensuring fair wage increases for all parties while simultaneously working on improving other aspects of the economic structure.
“The mandate of the ministry is to address structural economic issues that may impede the country’s economic growth.
“Wage growth is one of the main focuses for structural reform to achieve the country’s targets for compensation of employees, as outlined in the 12th Malaysia Plan,” he said. - FMT


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