Wage determination and government intervention on private sectors


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Wage determination and government intervention on private sectors

  2. 2. ABSTRACT considered to be more on private sectors and how the intervention and interpretation by comparing and contrasting the different implications of various government on changes for the corporate governance. rapid growth of the Malaysian economy in recent years has attracted considerable attention by the local workers and labors.
  3. 3.  the determination mechanism of the minimum wage fixed by an authority. criteria used to introduce the level of minimum wage. control mechanisms frequency of adjustment rates
  4. 4. INTRODUCTION Wages is complex and defined as return to labor They consider wages as a means for an acceptable quality of life in the context of the standard of living in country Includes direct wages, fringe benefits, social security benefits paid to the employees
  5. 5. COMPARISONS Employers define wages as all costs incurred for the recruitment and use of labor in their enterprises. Workers usually define wages as the direct payments received for work done
  6. 6.  Right now, in our private sectors normally will receive only subsistence wage. that mean they are only received the wage provides for basic subsistence needs compare to the public sectors who received the living wage and fair wage
  7. 7.  Wages also classified into 3 categories that is subsistence, living and fair. Poor rating wage system also affected the poverty income. Its mean that the impact of poverty can gives more difficulty to the workers especially who have the big family and the earning for the month is not stable and capable for them.
  9. 9. Determination Workers are concerned with the immediate quantum of disposable income, Although they recognize that fringe benefits associated with terms and conditions of employment All other benefits in cash or kind are also part of wages
  10. 10. PROBLEM ARISE With had not paid the salary to the workers for the last 2 months Example: 250 Paycomm Workers picketing after 2 month had not paid the wages by the employers. the company failed to delivered the promises to paid the wage payment to workers the long term rewarding to the staff
  11. 11. OVERVIEW CURRENTSITUATION The government introduced the new wage council, National Wage Consultation Council, announced in October 2010 The negative side with Ministry slowly setting it up to implement the council Slow implementation Affected the poverty lines although still in consideration from the government
  12. 12.  The Government intervention is the ways to produce a good quality of productivity to the workers in private sectors The Government also can measures modified and adapted to the company As we know that productivity must be evaluated in the context of realities of working conditions especially technology and human capital of workers
  13. 13. OTHERS Private sectors also demanded and warned the Government to be more opened to the private companies Government can handle the planned about Private Pension Fund(PPF) and the intervention also gives the Government to control 2 sectors which is public and private Same with U.S, Latin America and Other European Countries(EU).
  14. 14.  Example from scheme in the U.S, government takes over the scheme rightly after workers feels that they needs helpers To help and produce good distributor and contributors to the private sectors
  15. 15. ARGUMENT Some quarters called it the negative consequences With wage determination come the hot topic and affected the minimum wage issues could cause the job losses in lower occupation Certain economists feel that raising the minimum wage and the way of determination it will only help a small wage worker
  16. 16.  and it doesn’t guarantee jobs. It destroys jobs Based on the research by the American economists the minimum wage and determination can increases increased purchasing power job gain, not losses the job
  17. 17. EVALUATION ANDSOLUTION Implementation new minimum wages change the subsistence wages to fair wages The special incentive not the daily allowance Government Intervention in wage determination by engage the unions and collective bargaining. Establish National Wage Consultation Council
  18. 18.  to promote a market friendly approach in the determination of wages through the encouragement of establishment of new wage consultation council and promoting of collective bargaining.
  20. 20. CONCLUSION Wage determination will always be influenced by pre-determined policies of the government the intervention by the government, the private sectors can be revamping and redeem industries to produce more sufficient quality and quantity workers economic development must ensure both sustained economic growth and equitable distribution of incomes