Government’s proposal to reduce employees rate of contribution to the KWSP from 11% to 9% in order to improve workers’ purchasing power, in our view will not be of much help.
If Government’s proposal is implemented, workers earning RM 1000 will have a paltry sum of RM 20.00 per month. Whereas transportation cost alone has gone up by 40%.
Secondly, workers savings in the KWSP for old age benefit remains low. Therefore, we do not think it is proper to further reduce their savings.
UNIONS TO DEMAND COLA TO ALLEVIATE HARDSHIP CAUSED BY 41% FUEL PRICE HIKE
Most employers in the private sector have ignored workers’ request for a cost of living allowance submitted two years ago. Following the hefty 41% fuel price hike announced on the 4th of June 2008, trade unions are insisting that employers and Government can no longer remain indifferent to the extreme hardship imposed on millions of workers in the country.
Government has also approved TNB’ request to raise electricity tariffs from 1st July. This will not only burden the individual consumers but all the industries in the country. To recoup their cost, industries will raise the price of their products.
Government expects the people to understand the necessity to raise fuel price based on global price increase. Similarly government should take definite steps to ensure that employers raise workers income level to keep up with the substantial increase in cost of living.
Trade unions are convinced that aside from making public statements, Government will not be able to control the price hike on food and other essential services.
Government should intervene and facilitate negotiations at national level to get private sector employers to pay a Cost of Living Allowance. MTUC has requested the Human Resource Minister to initiate discussion.
MTUC Labour Bulletin
June 2008
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