PETALING JAYA: For the progressive wage model (PWM) to be implemented successfully, it needs to be premised on clear parameters and conditions for all stakeholders, says Datuk Dr Syed Hussain Syed Husman.
The Malaysian Employers Federation (MEF) president said that in planning the PWM, the government should hold discussions with stakeholders as it will shape the future of the country’s economy.
“The government needs to provide a clear pathway for employee wages that can be linked to training and upskilling as well as improvements in productivity and standards,” he said when contacted recently.
PWM is a wage structure to uplift workers’ low wages through upgrading skills and improving productivity.
Asked about the benefits of the PWM, he said employees would acquire certified skills, gain more experience and show improved job performance, allowing them to be eligible for higher wages and progress along a wage matrix for particular jobs.
“Employees will also be encouraged to continuously go for certified upskilling and reskilling to ensure that their skills are always relevant to the needs of the employers,” said Syed Hussain.
He added that the increased pool of certified skilled employees will increase the percentage of certified skilled employees to the targeted level to at least 35% in 2025. Currently, the percentage of skilled employees is about 29%, he said.
At the same time, if implemented, it will create better performance for businesses, enhancing the nation’s international competitiveness ranking, he added.
He also proposed that the PWM be implemented carefully and in stages so that the country can learn from the shortfalls, if any, in the selected sectors.
“PWM coverage should be limited to local employees only, and as such, it is important to run a pilot programme in a sector that has a high percentage of local employee participation,” he said.
Asked if the government had consulted MEF on the matter, he said initial discussions had been done on PWM.
“MEF hopes that a national council on PWM will be established, consisting of tripartite representatives from the unions, employers and the government.
“Sectoral tripartite committees should also be formed to monitor the implementation of PWM for each sector,” he said.
Kuala Lumpur and Selangor Indian Chamber of Commerce and Industry president Nivas Ragavan said the government should look at a (PWM) model that is a form of job-specific minimum wage where salaries rise progressively on a controlled salary scale based on skills training, career development, and strategies to increase productivity.
“The nation’s transition to a high-income economy is hampered due to our wages that do not match the cost of living.
“Before implementing the PWM, the government should first look at the affordability and cost implications for the private sector. A consultative study and engagement has to be done with the private sector and industry before implementing this PWM, which requires mutual agreement between the government, employers and employees,” he said.Among others, he suggested setting appropriate wage benchmarks for different industries and job roles and a comprehensive skill development training programme.
Malay Economic Action Council (MTEM) senior fellow Ahmad Yazid Othman questioned which parties will be involved in paying the cost of the PWM.
“If employers are the ones to bear the cost of PWM, then it’s no different from the current practised model,” he said, adding that the implementation needs further scrutiny.
