PKR calls for commission to set fairer wage hikes

PKR calls for commission to set fairer wage hikes

PKR vice-president Rafizi Ramli says current National Wage Consultative Council unable to correct wage distortions which keep Malaysia’s net increases among the lowest in the region.

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PETALING JAYA:
PKR vice-president Rafizi Ramli has called for the National Wage Consultative Council (NWCC) to be upgraded to an independent commission with wider powers to determine wage increases.

He said the NWCC was set up to tackle the minimum wage issue and, due to this limitation, it had been unable to resolve the wage distortions in the country.

“To ensure equitable wage increases that match the cost of living, we have to correct the distortions which are suppressing wages,” he said today at a media conference at Invoke Malaysia which was also carried live on Facebook.

He said he had forwarded his proposal to labour unions throughout the country and would discuss their feedback at a seminar which he would organise.

Rafizi quoted a report from international management consultancy Korn Ferry Hay Group which showed that Malaysia’s net wage hikes, after deducting rate of inflation, were among the lowest in Southeast Asia at 2%.

In contrast, the rate in Thailand was 5.9% and in Vietnam, 4.5%.

Rafizi said the present method of determining wage rises was ineffective because labour unions were viewed as below employers in status, resulting in the interests of employees not being prioritised.

“The employers have greater negotiating power in a situation where the unions’ influence is limited.

“If the negotiations had been effective, surely our wage increases would have been comparable to other countries in the region with economic standing equal to ours,” he said.

He referred to Cuepacs’ recent call to the government to give public employees a 3% salary hike in the 2018 Budget.

“Because of the unequal status, every year public employees are forced to beg the prime minister for a little salary increase, when it is actually their right,” he said.

Rafizi suggested the introduction of a policy to fix the rate of salary increases each year jointly by the government, employers and workers to ensure fairness for all parties.

Under this policy, he said, the net salary increases would be announced by all three parties who must abide by the decision.

“If it is made a law, then no worker will be left behind, whether in the public or private sectors,” he said.

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