PETALING JAYA: The minimum wage order should be amended to address the plight of senior workers who have been left behind by stagnant wages despite years of dedicated service, say trade unions.
They said senior workers, who began their careers decades ago and earning as little as RM500 or RM600 a month, now find their salaries barely above the current minimum wage of RM1,500.
“After serving a company for 20 or 30 years, their salary now may be only RM1,600, about the same as new workers with the current minimum salary of RM1,500.
“These senior workers are very disappointed that there is no wage adjustment after the implementation of the minimum wage.
“Employers refused to increase their salaries on grounds that the companies do not have sufficient financial resources,” said 17 trade unions in a joint statement.
This weakness, they highlighted, must be addressed by reforming the minimum wage policy and ensuring justice for senior workers.
They said such a move is in line with the Madani government’s goal of increasing the labour income share from 32% to 45% by 2033.
The group proposed that the government add a new section of “wage adjustment” to the minimum wage order.
“For example, the existing minimum wage of RM1,500 will be increased by RM200, or 13.3%, to RM1,700 in 2025.
“By implementing the wage adjustment section, workers earning between RM1,500 and RM5,250 are also entitled to a 13.3% wage increase. After the wage adjustment, a senior worker earning RM1,600 will receive RM1,813.
“In our view, this minimum wage reform is the most straightforward method to help senior workers who are facing the problem of stagnant wages.
“This move will provide a major relief to families below the absolute poverty line and within the category of B40,” they said.
The statement was signed by the National Union of Transport and Allied Equipment Workers; Electronics Industry Employees Union Northern Region; Electronics Industry Employees Union Southern Region; Electronics Industry Employees Union Western Region; Sabah Plantation Industry Employees Union; Sabah Timber Industry Employees Union; Sabah Hotel, Resort and Restaurant Employees Union; Malayan Nurses Union; Penang Textile and Garment Workers’ Union, as well as the Paper and Paper Products Manufacturing Employees’ Union.
Other signatories were the Printing Industry Employees Union; Union of Employees in Trade Unions; National Union of Seafarers Peninsular Malaysia; National Union of Employees in Companies Manufacturing Rubber Products; National Union of Telecommunication Employees; Metal Industry Employees Union and Timber Employees Union Peninsular Malaysia.
Persatuan Pembela Wanita Pulau Pinang and Tenaganita were non-governmental organisation signatories to the statement.
The minimum wage order was enacted on May 1, 2022 with a monthly minimum wage of RM1,500 for all sectors, regardless of region, for employers with five or more workers.
The new minimum wage of RM1,700, which will take effect from February 2025, applies to all workers, including non-citizens in the private sector, except for domestic workers and apprenticeship contracts.
