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Tuesday, May 06, 2008

The government use inflation as a lame excuse not to raise minimum wage

It's time for government to define the new minimum wage as the consumer products are getting to soar, especially rice.

Inflation should not be used as the reason to deny workers a minimum wage of RM900 as the people are suffering, given their low purchasing power, said Malaysian Trade Union Congress (MTUC) president Syed Shahir Syed Mohamud.

The price has doubles these days compared to 20 years back. A kueh price at RM 0.20 in 1988, is RM 0.40 in 2008.

Our concern is not whether the pay increases or decreases but the purchasing power. A person who earned RM800 some 20 years ago and a person who earns RM1,600 now has the same purchasing power,” he added. He said they were not just seeking a RM900 minimum wage across the board but also a RM300 living allowance for all workers and an amendment to the Industrial Relations Act, which he claims was unfair to workers.

What will happen if the wage increment approved? Will the inflation rise?

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