Labour Law Reform Coalition calls on the government to increase the minimum wage to RM1,400 in February 2022, and to RM1,500 in February 2023.

 Press Statement by Labour Law Reform Coalition on 17 January 2022 in Shah Alam

*LLRC calls on the government honours “wage contract” signed with workers in the GE14*

Labour Law Reform Coalition calls on the government to increase the minimum wage to RM1,400 in February 2022, and to RM1,500 in February 2023. 

Given that both Pakatan Harapan (PH) and Barisan Nasional (BN) made promises in their 14th general election manifesto to increase the minimum wage to RM1,500 by the end of the five-year term, the Perikatan Nasional government, which consists of former component parties of PH and BN component parties, should materialize the election promises.

We see the election promise as a “wage contract” in between the political parties and Malaysian workers in the 14th general election, they voted for political parties with the hope that the proposed minimum wage would be implemented. Therefore, politicians should honour their promises and announce the new minimum wage order in accordance with their manifesto text. 

In addition, the government should not delay the implementation of the new minimum wage, which should come into force on 1 February 2022. The previous minimum wage rate took effect on 1 February 2020.

It is important to note that the Act 732 does not prohibit the council to review the order before the two-year period. The government can actually announce the new minimum wage order every year. 

According to article 25 of the National Wages Consultative Council Act 2011 (Act 732), the council shall, at least once in every two years, review the minimum wages order. It is the responsibility of the cabinet to conclude and announce the new minimum wage before the two-year expiration of the previous minimum rate. 

Previously, Malaysian workers were short-changed because the government failed to strictly observe the two-year review period, particularly during 2013 to 2018. We urge the government to insert a new section in the Act 732, requiring the government to announce the revised minimum wage order at least every two years. 

That means, the council shall conduct the studies much earlier, in order for the government to announce the new order before the expiration of the two-year period. The proposed reform can close the loophole that gives the government leeway to delay the implementation of new minimum order without accountability.

Moreover, the average statutory minimum wage increment in the past 8 years is only RM37.5 per year for 56 council and municipal areas, and only RM25 per year for non-council and municipal areas. 

The minimum wage in the rural areas has been stagnant since January 2019, which is unfair because the people in rural areas too suffer from inflation. Thus, the new minimum wage rate should be standardized across Malaysia.

N. Gopal Kishnam & Irene Xavier

Co-Chairpersons

Labour Law Reform Coalition

LLRC lambasts Malaysian Employers Federation for its inhuman statement on migrant workers’ right to change employment in the event of abuse

 Press Statement by Labour Law Reform Coalition on 15 January 2022 in Shah Alam

*LLRC lambasts Malaysian Employers Federation for its inhuman statement on migrant workers’ right to change employment in the event of abuse*

Labour Law Reform Coalition is appalled by Malaysian Employers Federation’s (MEF) opposition to a proposal that called for allowing migrant workers to change employment as a means to end forced labour. MEF claimed it was unfair because employers would have spent a lot of money during the recruitment process.

We criticize MEF for its inhuman and money-minded statement. The employer association clearly turned a blind eye to abundant evidence of forced labour incidents in Malaysia as a result of the rigid employment system for migrant workers.

Trade unions and migrant worker organizations in Malaysia have observed a repetitive pattern of rights abuse – errant employers hold the wages of migrant workers, confiscate their passport to restrict their movement, terminate and repatriate them without pay, non-renewal of work permit and turn migrant into undocumented status. 

The root cause of these problems is the power imbalance between the migrant workers and their employers. The employers can misuse the rigid employment system to threaten migrant workers to work as forced labour.

In a gap analysis on Malaysian legislation and the ILO Forced Labour Convention, International Labour Organization (ILO) recommends the Malaysian government to address the power imbalance by allowing termination of contracts and labour market mobility for migrant workers in the event of legal rights violations.

The ILO's proposal argues that the proposed change will enable migrant workers to engage with the process of renewal of work permits and retain their own passports. It states that such measures can overcome the problem of migrant workers’ dependency on employers, they can voice out the forced labour situation with officials during the engagements.

Therefore, we call on MEF to willingly accept the proposal to allow migrant workers to change their employment in the event of rights violations. The employers’ expenses during the recruitment process should not be an excuse to condone violation of workers’ rights and criminal activities. 

Please put people before the profit!              

N. Gopal Kishnam & Irene Xavier

Co-Chairpersons

Labour Law Reform Coalition

The Reported Strike By Gig Workers Involving Lazada

 The Reported Strike By Gig Workers Involving Lazada - Press Release By MTUC Penang Division 

It is reported, that, hundreds of gig workers working for Lazada have decided to withhold their services pursuant to the said company's unilateral decision to revise their terms of contract. It is alleged that, such a unilateral revision, would result in a substantial reduction in the earnings of the workers concerned.

Whlist MTUC Penang Division applauds the action of the workers involved, we are of the view that the plight of the gig workers will continue to prevail as long as the government fails to address the employment inequalities in the said sector.

As a point of reference, we believe that, all gig workers ought to be protected by existing labour legislations be it the Employment Act,  1955, the Industrial Relation Act, 1967, the Minimum Wage Act etc. In the absence of, such legislative protection, the gig community is left at the mercy of the employers who, creatively, exploit their vulnerability in their pursuit to maximise profits! 

Under such circumstances MTUC Penang Division demands that the government embarks on a reallingment of the existing labour laws so as to ensure that the gig workers are adequately protected.

K. Veeriah 

Secretary MTUC Penang  Division 

0164184520

3.12.2022