Wednesday, February 06, 2008

I Demand for Minimum Wage Laws, Pak Lah !

Pak Lah, the time has come. Under the current administration, we always hear the "inevitable" word spoken by Ministers and some "experts" that prices HAVE TO INCREASE ! Hurray , all cheers to you guys !!

"oooh .... this is unavoidable..... oil prices naik .... our prices have to go up ... our inflation also climb the stairs of numbers"

As a person studying Business and Economics, I do not deny the inflationary pressure on prices caused by the doubling of oil prices per barrel. However, as Tun once said, we do have enough funds from Petronas and EPF to ease the burden on the people.

I even forced myself to accept the current administration's proposal to raise fuel prices to pay for reform in the public transportation sector. But my patience was tested and brought to the limits when the reported RM 4 billion was once again eroded to "higher oil prices". That again, is legally disgraceful as a promise was shredded just like that with a few words.

Nevertheless, we see a better Rapid KL transportation system with timetables patched at walls of certain bus stands ( I think these schedules are only for KL Sentral busses ). These schedules, although they are 80 % inaccurate in timing, it is a minor step and symbolic of improvements in our public transportation.

But Datuk Seri Abdullah, Datuk Seri Najib, my honorable Ministers in the Cabinet, MTEN economists and civil servants, would it not be advisable for us to have a minimum wage law also? Long ago I have said this before. Yesterday, Penang transportation felt it. RapidKL bus drivers demand higher wages. 2- 3 weeks ago, we had a tragic bus crash involving young people.

If we do not fix better wages for bus drivers and ensure quality drivers, when then will Malaysians not die in road accidents and bus crashes? With better wages, the drivers need not rush their busses in inter city routes just to earn more trips and dollars. With better wages, the drivers are happier and can concentrate on driving skills, safety on the road and passengers comfort.

According to the reports, the bus drivers have successfully increased their daily allowances to RM 30 but wage rates maintain at RM 200 instead of the RM 900 they requested for. Now according to my calculations, if the bus driver drives the bus the complete 30 days in a month, they will earn a total income of RM 1100 monthly.

Given that a plate of Char Koay Teow in Penang ranges from RM 3.50 - RM 7, milo ais ranging from RM 1.40 - RM 2, we can then come up with a Char Koay Teow - Milo Ais Index. Economists use PPP per capita for comparisons and some use the Big Mac Index. Today, I will be different. Assumptions made here are firstly char koay teow can also be koayteow goreng or mee goreng mamak i.e. halal food, and secondly milo ais is the most common drink among Malaysians.

The total expenditure of a bus driver here for 3 meals a day eating Mee Goreng Mamak and drinking milo ais for each meal will cost RM 441. That is just for meals per person and this portion of budget is of 40.091 % of total income !

My dear Ministers, politicians. You guys earn a basic of RM 10,000 from Ministerial Duties. If we chuck in foreign travel allowances, domestic daily allowances or whatever allowances you guys have, that amount could be more than RM 10,000. Again, politicians normally have strong financial standings because they have business opportunities, directorships, and other source of income. What is a mere RM 441 to you guys ? It could be just a day's spending or it might not be able to buy anything in Pavilion or KLCC.

It is high time we set minimum wage laws and industrial standards for certain classes of employees. These people need the Government's help ! They are not even thinking of getting rich ! They need money for survival and to support their family ... Malaysia surely do not promote malnutrition among kids and adults. But it might be inevitable because parents cant afford much nutritious food that are costing more and more these days !

Although there will be a distortion in labour economics when minimum wage laws are introduced, we should also think of the positive aspects and effects that minimum wage laws have on people's wallets.

A note to my readers, visit http://www.buscrashnomore.blogspot.com/ to support the petition and the goals of some young bloggers who are campaigning for road safety!

Also, all the way from Canberra, Australia, Gong Xi Fa Cai and a happy Chinese New Year to all my readers and to those enjoying their holidays , Happy Holidays !!

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