IT is disappointing to read that the Malaysian Employers’ Federation (MEF) is opposed to the proposal for a national minimum wage and has instead said that enhancing skills and skills certification will cause wage improvements (“At odds over minimum wage” – The Star, Feb 16).
The purpose of minimum wage is to provide a safety net and to protect workers from exploitation, as envisaged by the International Labour Organisation (ILO).
There is a need for a national minimum wage as about 95% of private sector workers in the country are not regulated by any wage fixing machinery such as collective agreements.
Even those workers who have collective agreements find that the competition from cheaper labour engaged through contracts and other employment systems diminishes the effectiveness of their bargaining power.
If employers are left to be the sole determinant of wages, the problem of low wages will continue forever.
The ILO convention on minimum wage has been ratified by over 100 countries and has not adversely affected any of them.
It is not proper to link minimum wages to skills and certifications. A national minimum wage sets a floor level to protect all workers from being paid unduly low wages and also takes into account the requirements of economic development.
In addition, there are separate ILO Conventions that enable the setting up of wage boards for specific trades and industries where added competencies and skills can be taken into account to fix wages. An example of this is the recent wage board that determined the rates for security guards.
A minimum wage is imperative to national development and to address poverty levels. If we delay or reverse it, we may be inviting political and social repercussions.
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