WAGE DETERMINATION AND GOVERNMENT INTERVENTION ON PRIVATE SECTORS.

INDUSTRIAL RELATION (ADS 465)

ABSTRACT considered to be more on private

sectors and how the intervention and interpretation by comparing and contrasting the different implications of various government on changes for the corporate governance.

rapid growth of the Malaysian economy in recent years has attracted considerable attention by the local workers and labors.

the determination mechanism of the minimum wage fixed by an authority.

criteria used to introduce the level of minimum wage.

control mechanisms frequency of adjustment rates

INTRODUCTION

Wages is complex and defined as return to labor

They consider wages as a means for an acceptable quality of life in the context of the standard of living in country

Includes direct wages, fringe benefits, social security benefits paid to the employees

COMPARISONS

Employers define wages as all costs incurred for

the recruitment and use of labor in their enterprises.

Workers usually define wages as the direct

payments received for work done

Right now, in our private sectors normally will receive only subsistence wage.

that mean they are only received the wage provides for basic subsistence needs

compare to the public sectors who received the living wage and fair wage

Wages also classified into 3 categories that is subsistence, living and fair.

Poor rating wage system also affected the poverty income.

Its mean that the impact of poverty can gives more difficulty to the workers

especially who have the big family and the earning for the month is not stable and capable for them.

WAGE CLASSIFIED

Determination

Workers are concerned with the immediate quantum of disposable income,

Although they recognize that fringe benefits associated with terms and conditions of employment

All other benefits in cash or kind are also part of wages

PROBLEM ARISE

With had not paid the salary to the workers for the last 2 months

Example: 250 Paycomm Workers picketing after 2 month had not paid the wages by the employers.

the company failed to delivered the promises to paid the wage payment to workers

the long term rewarding to the staff

OVERVIEW CURRENT SITUATION The government introduced the

new wage council, National Wage Consultation Council, announced in October 2010

The negative side with Ministry slowly setting it up to implement the council

Slow implementation Affected the poverty lines although

still in consideration from the government

The Government intervention is the ways to produce a good quality of productivity to the workers in private sectors

The Government also can measures modified and adapted to the company

As we know that productivity must be evaluated in the context of realities of working conditions especially technology and human capital of workers

OTHERS

Private sectors also demanded and warned the Government to be more opened to the private companies

Government can handle the planned about Private Pension Fund(PPF) and the intervention also gives the Government to control 2 sectors which is public and private

Same with U.S, Latin America and Other European Countries(EU).

Example from scheme in the U.S, government takes over the scheme rightly after workers feels that they needs helpers

To help and produce good distributor and contributors to the private sectors

ARGUMENT

Some quarters called it the negative consequences

With wage determination come the hot topic and affected the minimum wage issues

could cause the job losses in lower occupation

Certain economists feel that raising the minimum wage and the way of determination it will only help a small wage worker

and it doesn’t guarantee jobs. It destroys jobs

Based on the research by the American economists the minimum wage and determination can increases

increased purchasing power job gain, not losses the job

EVALUATION AND SOLUTION Implementation new minimum wages change the subsistence wages to fair

wages The special incentive not the daily

allowance Government Intervention in wage

determination by engage the unions and collective bargaining.

Establish National Wage Consultation Council

to promote a market friendly approach in the determination of wages through the encouragement of establishment of new wage consultation council and promoting of collective bargaining.

SPECIAL BENEFITS

CONCLUSION

Wage determination will always be influenced by pre-determined policies of the government

the intervention by the government, the private sectors can be revamping and redeem industries to produce more sufficient quality and quantity workers

economic development must ensure both sustained economic growth and equitable distribution of incomes