The poor remain poorer

September 18th, 2009 by poobalan | View blog reactions Leave a reply »
 Subscribe in a reader | Subscribe by Email



Low wage earners will be looking forward to the festive season(s) with dread. With meager income in the ever-escalating cost of living cities, its hard to make ends meet. And the alternatives are practically non-existent. Those working as cleaners, security guards, drivers, cashiers, sales persons, etc, especially in small establishments or those that don’t really bother about employee welfare will be hard pressed to celebrate festivals with pomp.

I was surprised to hear that at some organization, the lower level staff ‘s overtime payments were held back.  The workers don’t have much choice as jobs are not easy to find. Make some noise, and you’ll find a foreign worker taking your place.  Not sure if in these kind of  cases, the top management or owners are aware of the predicament of their staff in the lowest rungs. Maybe its some mid-level management or even contract manager who is doing all this. I’m also wondering how much the top management and directors take home, as comparison to the executives and workers in an organization. What’s the point of winning awards and plaudits when own backyard tells a stinking story.

I hope the Human Resource Ministry will conduct spot checks on companies (hint: try the  dozens of IPTS, private  healthcare facilities, etc in Klang Valley) and check their payrolls. Need to be proactive instead of waiting for complaints to fall on their laps.

Or perhaps these acts are condoned in the name of “greater good”? So what if people are exploited and paid pittance, as long as we can attract FDIs and cash from foreign countries, as well local markets? After all, these workers don’t even pay income tax with their meagre salary right? We should strive to reduce production costs by all means.

Would the setting up of minimum wage or an union solve these problems? Or how about periodic visits to organizations  by the relevant authorities?

Or is the “tidak apa” solution the way to go? Didn’t affect me, so I need not be bothered.

Its easy to say that the people in the lower category of income should try supplement their salaries with part-time businesses, blah blah blah. Well, try doing so. Easier said than done. Work 12 hours a day. 7 days a week. Salary based on daily rate. Little or no savings. How to start business? Can’t take leave in case lose job. Even those professionals and middle income category find it difficult to start and sustain a business, what more of the groups in the under-served categories.

In conclusion, the “good business environment” in the country seems to be artificially created.  Low salaries hide the actual problem – increased cost of living and lax of enforcement/inexistence  of labor laws.

Advertisement

2 comments

  1. Bro, this is plain simple economics.
    Firms exist with the long term goal of expected value maximization.

    Yes, the goverment plays a vital role in this… this effects the business environment.

    Question should be on how our goverment acts on this… and yep, this has been going on since the dawn of capitilism… and it is evolutionary in progress.

    Revolution are only spikes in human history.