The Labour Law Reform Coalition said employees had suffered as much as employers during the pandemic.

MEF had said the proposed increase of the minimum wage to RM1,500 by year-end would kill businesses, which were still in economic recovery mode.

In a statement today, the coalition’s co-chairmen, N Gopal Kishnam and Irene Xavier, said many workers had been laid off, forced to take unpaid leave or suffered substantial wage cuts during the pandemic.

“MEF should not exaggerate the employers’ suffering and neglect the sacrifices of their workers,” they said.

“Since the negative impact of the pandemic had been shouldered equally by employers and workers, why can’t employers share their economic profit in the form of a wage rise with their workers when the economy is recovering?”

They said that with the GDP predicted to rise from 3.5% in 2021 to 6.2% this year, it was “unfair to say that the wage increase will kill businesses”.

“When the economy is returning to normal, it is time for employers to compensate workers with a higher wage floor. We must remember that our minimum wages are still below the poverty line,” they said.

Gopal and Irene also urged the government to immediately announce the new minimum wage, saying the delay in its implementation violated the National Wage Consultative Council Act that stipulated that the minimum wage should be revised every two years.

MEF president Syed Hussain Syed Husman was recently reported as saying that most businesses were not in a position to implement the proposed new minimum wage because they were still reeling from the economic shock brought about by the pandemic and the recent floods.

He said most small and medium-sized businesses were suffering, and even a small increase in costs could cause them to shut down.