The Malaysian Employer Federation (MEF) had issued a statement advising the government to postpone the implementation of new minimum wage which was scheduled on 1 July because it is estimated 30,000 workers could face retrenchment.
However the Congress of Union of Employees in the Public and Civil Services Malaysia (CUEPACS) has responded to the employer's federation 'threat' as scare-mongering. Its president, Datuk Azih Muda said, MEF’s statement sounds like a threat designed to put pressure on the government’s effort to raise workers’ productivity and quality of life.
They (MEF) should have supported the government’s effort to help making sure the country prospers and the people are prevented from falling into poverty.“It is as if they want the workers to stay poor. Is this how MEF handles employees’ issues? Is this what they want to give to employees for Labour’s Day? We couldn't see MEF’s sincerity to help low-income wage earners to escape poverty.
Yesterday, the executive director of MEF Datuk Shamsuddin Bardan estimated 30,000 workers especially those in low income level could face retrenchment before this July as employers have to bear the rising costs following the implementation of the pay hike legislated in the 2016 Minimum Salary Order (PGM 2016).
“To reduce operation costs, there is a high probability they will make retrenchment before July because if they do so after July, they would definitely have to bear bigger costs like severance pay,” he said as reported in Bernama.
Source: MalaysianDigest
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