Standardization of public-private sector wage irrational – SBA

Lee

KOTA KINABALU: The standardization of minimum wage between the government and the private sector would prove to be irrational, said Sabah Backpacker Operators Association (SBA) president Richie Lee.

Lee stated some SBA members have struggled to persevere with the implementation of past government policies such as the minimum wage and the Goods and Services Tax (GST).

He added that at least two of their members were forced to fold their businesses since last year.

“Standardization of wages between government and the private sector is ridiculous and unfair,” he emphasized.

“How can it be standardized? The government has more resources to receive bigger revenue. Does the private sector have that privilege?

“A simpler explanation would be bigger companies can afford to likely do so compared to smaller companies,” he asserted.

Lee emphasized that every deserving staff should be rewarded with higher wages and the minimum wage is a good policy.

“However, it has to be done with good timing. We all know that the current economic situation is very bad and many of our members have been suffering for at least two years,” said Lee.

“Already many of our members are struggling to stay afloat day to day with the increased cost of almost 30% since three years ago.

“With the rising cost , it’s not only the staff’s problem anymore but also the employers. Employers and employees would just have to tighten their belts to meet the challenging times,” he added.

Lee said the volatile economic climate had even affected giant companies like Petronas and many others have announced steps to lay off workers.

“Under the current economic condition, our members’ priority is to keep their workers and make sure the business survives, not retrench them due to another round of higher minimum wage policy,” he said.

“If implemented, I foresee more retrenchment and business operators shutting down, creating more economic and social problems in our country.

“Employers and employees should work together to focus on survival than being penny wise and pound foolish,” he concluded.

Another local tourism player echoed similar sentiments on the strain of further minimum wage implementation in the challenging global economic times.

“The cost of doing business has skyrocketed over the last three years with the increase in minimum wage, increased cost of ingredients and 30% increase in imported supplies due to the decline of RM against USD. Consumers have less spending power due to GST,” said the senior tourism player.

“The government is making it difficult for small businesses to survive. We have to freeze hiring and reduce employee overtime to control costs.

“When costs go up for businesses, they recoup their costs by increasing prices and controlling costs. Salaries go up, prices go up. It is like a dog chasing its tail, it is a never ending scenario,” he lamented.

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