Minimum Wage Not Sole Measure Of Worker Welfare, Says Minister

Samuel Chua

21st May 2025 - 2 min read

Human Resources Minister Steven Sim has underscored that the minimum wage should not be viewed as the sole indicator of worker welfare, arguing instead for broader, more adaptable mechanisms such as collective agreements (CAs).

In a statement, Sim described CAs as legal instruments under the Industrial Relations Act 1967 (Act 177) that provide robust protections for both employers and employees.

“It also provides legal protection for both workers and employers, forming the foundation for harmonious and productive industrial relations,” he said.

Sim made the remarks following a visit to the National Automotive Industry Workers Union (PONSB), part of the government’s wider efforts to build stronger relationships with industry workers at the grassroots level. The meeting included discussions on working conditions in the automotive sector, current challenges faced by employees, union membership growth strategies, digitalisation of union operations, and leadership development.

Meanwhile, the Human Resources Ministry noted that Sim had also outlined several key initiatives introduced by the government. These include the roll-out of the Progressive Wage Policy (Dasar Gaji Progresif, or DGP) and the MADANI Workers’ Card, which now counts over 58,000 union members among its registrants. The card provides various benefits, such as discounts on essential goods, healthcare services, and access to skills training programmes.

In support of union modernisation, the ministry also allocated RM25,000 to PONSB this year under the Trade Union Affairs Programme (PHEKS), aimed at enhancing training opportunities and upgrading ICT capabilities.

Looking ahead, PONSB president Mohd Azmi Abu Bakar said the union is planning to submit an initial proposal that includes a 15 per cent salary increase to secure better benefits for its 4,938 members, with talks expected to begin in June.

(Source: Bernama)

0 0 votes

Article Rating