Workers Group Submits 8 Proposals For Progressive Wage Pilot Project

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The Network of Government Contract Workers (JPKK) has submitted eight recommendations for the progressive wage policy pilot project to the Economy Ministry, calling for a clearer framework and a holistic approach to minimum wage.
JPKK secretary M Sivarajani submitted the suggestions to the ministry’s human capital development unit director, Che Rahim Daud, at Putrajaya today.
“The report is based on concerns we had regarding the project during a roundtable discussion held on Jan 31,” she said.
Among the suggestions made was to establish a framework for those who would be covered by the policies, based on all types of labour including small and medium business owners, foreign workers, and unpaid workers.
“The framework for the policy should be comprehensive and include the unique challenges faced by all types of labourers and how to tackle them,” it said.
Collaborate with stakeholders
The report also suggested the ministry work with the Statistics Department to check and measure the inflation rate as it would provide a better understanding of how inflation affects people.
“By creating trusted metric inflation measurement, the information from the metric can be used to synchronise the salary. It should also be done with consumer bodies and workers’ unions,” it added.
JPKK handing over its memorandum to the Economy Ministry’s Che Rahim DaudIt also proposed that the ministry set up a channel to work with other parties such as employers and workers’ representatives in the pilot project.
The channel will serve as a platform providing clearer communication and understanding of the policy objective and its implementation strategy, the report added.
Other suggestions include synchronising salary using a dynamic approach, having an inclusive policy that covers all workers’ spectrum, setting up monitoring and evaluation mechanisms, and getting the workers’ unions involved in the formulation of progressive wages.
The roundtable was attended by representatives from several parties including the Malaysian Employers Federation, International Labour Organisation, Parti Sosialis Malaysia, workers’ unions, and other academicians.
Malaysia not ready for policy
However, Sivarajani believes that the country is still not ready for the pilot project as long as it struggles to implement the minimum wage.
“A lot of employers are already against the RM1,500 minimum salary and JPKK had received many complaints from workers about it,” she said.
The government should opt for a holistic approach rather than rely on ad hoc policies to increase the minimum wage, she added.
JPKK secretary M SivarajaniThe pilot project started after the government tabled a white paper outlining the plan last year.The proposal targets workers who earn less than RM5,000 a month and is expected to be implemented in June involving 1,000 companies with a focus on micro, small, and medium enterprises.
It came as the Statistics Department said the median wage for those in formal employment, making up two-thirds of citizens, is RM2,600 a month.
Economy Minister Rafizi Ramli said that enrolment in the programme is voluntary but it would come with financial incentives for participating employers.
As a start, he proposed that employers can get a fixed incentive of up to RM200 per month for entry-level workers and up to RM300 per month for workers for 12 months from the government.
Thus, companies that enrol in the programme are required to send eligible employees to attend training and upskilling courses and workers in turn must ensure this translates into higher productivity in line with their higher pay.
On Jan 10, Rafizi assured the policy is not being implemented arbitrarily as the government will take into account the employers’ ability and the country’s economic state. - Mkini

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