KUALA LUMPUR: It has been almost a year since the day the new minimum wage of RM1,500 was implemented.
Yet, more than 50,000 workers nationwide are still forced to settle for less.
Malaysian Trades Union Congress secretary-general Kamarul Baharin Mansor claimed that the largest culprits were firms which carry out government contracts, namely in the cleaning and servicing industries.
These companies, he said, claimed that they could not meet the minimum wage as the government had yet to renew and review their contracts.
He said the companies claimed that they could only afford to pay the staff the previous minimum wage of RM1,200, as per the terms of the old contract.
The implementation of the Minimum Wage Order (PMG) for employers took effect on May 1, with a minimum wage of RM1,500 per month for employers with five or more workers in all sectors regardless of region.
However, employers with less than five workers were exempted, with the implementation of the PGM postponed to July this year.
Kamarul said the problem would persist each time the minimum wage was raised, as seen in 2019.
He said some employers fled from their responsibilities and "disappeared", owing their staff wages.
"We have a case in Seremban, Negri Sembilan, whereby an employer has yet to pay their workers arrears since 2019 (when the minimum wage was RM1,100).
"We can't trace the employers because they are from an enterprise, so they can just give any address.
"When enforcement officers went to the address, they couldn't find the company. So action couldn't be taken against them."
Kamarul urged the government to only award government contracts to concession companies so that action could be taken against them for any breach.
"Concession companies are larger and they have their own board of directors. The company 'exists', so they are detectable."