Addressing issue

Sunday September 30, 2012

Addressing issue of minimum wage

THE article “Minimum wage saga continues” (The Star, Sept 27) raised some issues in anticipation of the implementation of the Minimum Wages Order that will come into effect on Jan 1, 2013.

Currently, there are not many employees who are being paid monthly total wages of less than RM900.

Nevertheless, there are some employers in certain industries that pay low “basic wage” that would be supplemented by various cash allowances and cash incentives with the intention of enhancing the employee’s productivity and performance.

It is these employers who are mostly affected by the Minimum Wages Order which makes it mandatory for employees to be paid no less than RM900 of basic wage per month beginning next year.

In recognising these issues, the Minimum Wages Order 2012 has allowed employers to restructure wages before the date of implementation of the national minimum wages by converting some of the cash allowances and cash incentives as part of the basic wages.

Furthermore, should the employers face difficulties in completing the restructuring exercise prior to the deadline, the Minimum Wages Order 2012 has made provisions to allow employers to apply for a deferral of the implementation date.

Employers intending to apply for a deferral should either submit their applications by post to: The Secretary, National Wages Consultative Council, Human Resources Ministry, Level 7, Block D3, Complex D, Federal Government Administrative Centre, 62530 Putrajaya; or fax to 03-8889 2377 or e-mail mpgn@mohr.gov.my.

The documents required to be submitted with the application are: Company information form issued by the Companies Commission of Malaysia; audited financial statement for the past three years; and information on the number of local and foreign workers together with the amount of their last drawn monthly wages.

The deadline for submission of the application is Oct 2.

The National Wages Consultative Council (NWCC) formed a sub-committee to handle applications for deferral of implementation date from employers. For further queries, employers should call 03-8886 5156/ 5162.

In addressing this issue, the Malaysian Employers Federation (MEF) conducted a series of seminars on National Minimum Wages nationwide to provide guidance to employers on the steps to be taken to meet the requirements of the Minimum Wages Order 2012.

The concerns of employers over the provisions of the Minimum Wages Order and the subsequent guidelines for implementation that were issued by the NWCC were discussed and explained in the well-attended seminars.

In a unionised environment, among the strategies that the MEF propagates would be to renegotiate a restructuring of wages before the Minimum Wages Order comes into effect.

In this instance, MEF provides its members consultancy services should the need arise.

However, should the negotiations end in a deadlock, for unionised company the trade dispute would be quickly referred to the Industrial Relations Department for conciliation, and if not resolved, the trade dispute would be referred to the Industrial Court.

With every new law that is being introduced, there is bound to be teething problems that would need to be sorted out.

MEF is alert to the issues and challenges being faced by the business community and MEF is actively engaged with the relevant ministries and agencies to ensure that the implementation of the Minimum Wages Order 2012 will not negatively impact the productivity and competitiveness of employers.

SHAMSUDDIN BARDAN

Executive Director

Malaysian Employers Federation

Summary & Opinion

Guidance of addressing issue at  minimun wage had been provided in a series of seminar by Malaysian Employers Federation so that the employers had guidelines about it .

It is important for the employers to have guidelines at minimum wage.