Minimum wage: Private sector wants more time
THE private sector wants the government to delay the
implementation of the minimum wage policy and has appealed to the International
Trade and Industry Ministry to extend the the transition period.
The Federation of Malaysian Manufacturers (FMM) is seeking a two-year grace period to adjust to the minimum wage and is also seeking a review mechanism to prevent any indiscriminate increase.
But International Trade and Industry Minister Datuk Seri Mustapa Mohamed yesterday appealed to the private sector to understand the need for the changes.
The recently gazetted Minimum Wage Act is part of six policy reform initiatives under the Strategic Reform Initiatives (SRIs) of the New Economic Model to propel Malaysia towards becoming a high-income economy.
"We are prepared
to have dialogue sessions with regard to the retirement age for the private
sector, although the bill is already in Parliament for the first reading," he
said at a briefing yesterday.
The annual dialogue session to discuss non-tax related issues was attended by the FMM, Malaysian International Chamber of Commerce and Industry (MICCI), Associated Chinese Chambers of Commerce and Industry of Malaysia and the Malaysian Employers Federation (MEF).
Among the issues raised were energy (gas, electricity, petrochemical and renewable energy industrial estates), halal certification, transportation (container yard charges) and concessionaire agreements by the government with companies providing the services.
MICCI, in its recommendations on the minimum wage policy, said wages should be determined by market forces and without political interference.
Setting up a national minimum wage policy as means to achieve high-income economy status without regard for matching productivity improvement would only "damage" the economy, it said.
On the retirement age, the MEF has called for a five year transition period to allow for some flexibility in implementation.
It also felt that certain employees should be exempted, such as those doing heavy manual work and in the construction, plantation, airline, electronics, textile and transportation sectors.
It, however, expressed concern about the proposed unemployment insurance for the private sector by the Human Resources Ministry.
The setting up of the unemployment insurance would increase the cost of doing business as well as bail out "recalcitrant" employers at the expense of well-managed employers, it said.
MEF added that current provisions were adequate in protecting the rights and obligations of both the employees and the employers.
Source : New Straits Times
The Federation of Malaysian Manufacturers (FMM) is seeking a two-year grace period to adjust to the minimum wage and is also seeking a review mechanism to prevent any indiscriminate increase.
But International Trade and Industry Minister Datuk Seri Mustapa Mohamed yesterday appealed to the private sector to understand the need for the changes.
The recently gazetted Minimum Wage Act is part of six policy reform initiatives under the Strategic Reform Initiatives (SRIs) of the New Economic Model to propel Malaysia towards becoming a high-income economy.
The annual dialogue session to discuss non-tax related issues was attended by the FMM, Malaysian International Chamber of Commerce and Industry (MICCI), Associated Chinese Chambers of Commerce and Industry of Malaysia and the Malaysian Employers Federation (MEF).
Among the issues raised were energy (gas, electricity, petrochemical and renewable energy industrial estates), halal certification, transportation (container yard charges) and concessionaire agreements by the government with companies providing the services.
MICCI, in its recommendations on the minimum wage policy, said wages should be determined by market forces and without political interference.
Setting up a national minimum wage policy as means to achieve high-income economy status without regard for matching productivity improvement would only "damage" the economy, it said.
On the retirement age, the MEF has called for a five year transition period to allow for some flexibility in implementation.
It also felt that certain employees should be exempted, such as those doing heavy manual work and in the construction, plantation, airline, electronics, textile and transportation sectors.
It, however, expressed concern about the proposed unemployment insurance for the private sector by the Human Resources Ministry.
The setting up of the unemployment insurance would increase the cost of doing business as well as bail out "recalcitrant" employers at the expense of well-managed employers, it said.
MEF added that current provisions were adequate in protecting the rights and obligations of both the employees and the employers.
Source : New Straits Times
Date
: 22 June 2012
afternoon highlight (25/06/12/112/586)
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