SIBU: Private sector employers in Sarawak have been slammed for always making excuses when it comes to the implementation of minimum wage.
The Malaysian Trade Union Congress (MTUC) Sarawak secretary Andrew Lo said those employers who claimed that they could not afford to pay the new minimum wage of RM1,500 starting May 1 should close shop.
“If we look at the record, even before the Minimum Wages Order was put forward (in 2012 and enforced on Jan 1, 2013), the employers will always claim that they are never ever ready. This shows that businesses in Sarawak are very backward and cannot manage their workforce properly,” said Lo.
The minimum wage rates for west Malaysians in 2013 were RM900/month and RM4.33/hour, whereas for east Malaysians, they were RM800/month and RM3.85/hour.
Lo said it would be a joke if employers continue to claim they could not afford the minimum wage which is below the National Poverty Line 2020 to their employees.
“If employers cannot pay their employees below the National Poverty Line 2020, then they have no business to be in business. Close shop and move out,” he said.
According to Lo, employers in the oil palm sector especially had been harping against the implementation of the minimum wage.
There are between 700,000 to 800,000 formally employed in the private sector in the state.
Former president of Associated Chinese Chamber of Commerce and Industry, Sibu, Dr Hii Sui Cheng disagreed with Lo.
Dr Hii said private sector employers were not ready for the new minimum wage as it would have an adverse impact on their operational costs.
“Many operators, small, medium and large are already facing cost issues at the tail-end of this pandemic. They hope that the government will understand their situation,” said Hii
He added that private sector employers in the state were sympathetic to wage increase but prefer increase in stages.
“Personally, an increase of RM100 per year for 3 years to achieve a minimum wage of RM1,500 by 2025 is preferred,” he said.
A cafe operator who wished to be identified only as Wong said as he was still experiencing poor business due to the strong impact of the Covid-19 pandemic, he would pay his workers by hourly rate.
“The pandemic is still in our midst with daily new infections. As my business has not recovered yet, I will pay my workers by hourly rate based on the RM1,500 minimum wage,” he said.