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Wage increase for plantation workers
PUTRAJAYA: Thousands of plantation workers will now be earning wages above the poverty line, following a 9% increase in their basic salary and other incentives.
The monthly wage increase will see a field worker, who previously earned RM450, taking home a minimum of RM500 to RM600, excluding other incentives and perks, with the signing of two Collective Agreements.
The agreements – Rubber Tappers Agreement and Field and General Employees Fringe Benefit Agreement – were signed by the Malaysian Agricultural Producers Association (Mapa) and the National Union of Plantation Workers (NUPW).
NUPW executive secretary A. Navamukundan said that after 15 months of negotiations, both parties had come to an agreement on matters pertaining to salary, incentives and fringe benefits.
He said the increase would benefit 5,000 rubber tappers and 25,000 field and general employees working in 384 plantations and 115 factories throughout Peninsular Malaysia.
“Claims that rubber tappers can earn up to RM1,500 a month is true, more so now with higher basic salary, incentives and productivity incentives given to us under the new CA.
“Matters that have not been resolved with rubber plantations will be discussed separately,” he said after the signing of the CAs, witnessed by Human Resources Minister Datuk Seri Dr Fong Chan Onn. The agreements will go into effect from June 1 to May 31, 2010 and employers are expected to fork out about RM130mil in wages over the next three years.
Under the Field and General Employees Fringe Benefits Agreement, he said the workers, among others, would receive a 19% increase in additional payment and 25% increase in productivity incentive per month.
New deal for plantation workers
They will also receive 17 months in back wages as the last agreement expired in 2005.
Under the new agreement between the National Union for Plantation Workers (NUPW) and the Malaysian Agriculture Producers Association (MAPA), effective June 1, 2007 till May 31, 2010, rubber tappers and field workers will also enjoy higher rates for productivity incentives and other payments like shift and housing allowances.
These increments will allow a rubber tapper to earn up to RM1,500 a month and the lowest-paid field worker a basic wage of between RM500 and RM600 a month, instead of RM450 previously.
NUPW and MAPA signed two agreements yesterday – the Rubber Tappers Agreement which covers some 5,000 tappers and the Field and General Employees and Fringe Benefits Agreement (for oil palm plantation workers) which covers some 25,000 workers.
The signatories for NUPW were its executive secretary A. Navamukundan and secretary-general Datuk G. Sankaran while MAPA was represented by director Mohamad Audong and council member Ibrahim Abdul Majid.
The signing was witnessed by Human Resources Minister Datuk Seri Dr Fong Chan Onn at the ministry, here.
The agreements would cost plantations an additional RM54 million over the three years, with back wages costing some RM26 million.
Navamukundan said the agreements were "well thought out" and would improve the income of workers according to the productivity-linked wage system..
"As they say in Bahasa, ‘Tak ada kerja, tak ada hasil. Tak ada hasil, tak ada upah’. (No work, no yields. No yields, no wages.)
"As long as workers work hard they can earn up to RM1,500 because there are several income opportunities besides their basic wages," he said after the signing ceremony.
Navamukundan said the productivity-linked wage system used in the collective agreements were implemented together with the minimum monthly wage guarantee of RM350 per month for each rubber tapper, and according to certain provisions for field and general workers.
The minimum wage guarantee is meant to be a safety net which is paid out regardless of work done, only when bad weather makes work or tapping impossible, and when there is low crop yield.
Fong praised both sides for managing to avert industrial court action.
"It is an achievement, unlike the previous collective agreement which was reached upon the directive of the industrial court," he said.
On the RM900 minimum wage for the private sector requested by the Malaysian Trades’ Union Congress following the civil servants salary hike, Fong said that he would discuss the matter with the MTUC and the Malaysian Employers’ Federation.
He said although the government had not enforced a minimum wage, most workers were generally earning above the poverty line of RM691 in the peninsula, RM888 in Sabah and RM765 in Sarawak.
