KUCHING: The Sarawak Bank Employees Union (SBEU) has urged the Malaysia Employers Federation (MEF) to act responsibly and stop spreading fear and false information.
The union expressed its disappointment with the employer’s organisation, which is seeking a permanent exemption from minimum wage requirements for businesses with 10 or fewer employees, citing a similar law in South Korea.
SBEU chief executive officer (CEO) Andrew Lo pointed out that South Korea actually abandoned this exemption in 2002 because it was found to be counterproductive.
Lo also highlighted that MEF conveniently failed to mention that the minimum wage in South Korea is currently 2,010,590 Korean Won per month, equivalent to RM7,100.
“This clearly demonstrates South Korea’s progressiveness, while MEF wants us to regress by 20 years,” Lo said in a press release today (June 30).
Lo also argued that it would be discriminatory to pay lower wages to workers at micro companies.
“MEF’s misguided stance will make it difficult for micro employers to attract workers who prefer higher wages in larger companies. It may also encourage unethical practices, as companies could split their businesses into separate legal entities with 10 or fewer employees each,” he explained.
In addition, the union has dealt with MEF’s usual tactics and fear-mongering about minimum wage, such as the claim that “300,000 businesses would go bankrupt if minimum wage was implemented in 2011.”
“Other employers and groups have already debunked this claim. They have vehemently opposed the implementation of minimum wage. We deeply regret this ideological stance,” Lo said.
“More recently, in December 2022, they claimed that the new minimum wage of RM1,500 would cost businesses RM111 billion per year.”
Lo highlighted the gross inaccuracy of this claim, noting that there are approximately 10 million workers in formal employment. The median wage in Malaysia is around RM2,250, meaning half of all workers earn less than RM2,250.
“Even if all five million workers were on minimum wage, the increase of RM300 per employee per month would only amount to RM18 billion per year, not RM111 billion,” he clarified.
