SHAH ALAM: The minimum wage should not be seen as the only measure of worker welfare, said Human Resources Minister Steven Sim.
He said the collective agreement (CA) is a more comprehensive and flexible mechanism for negotiating fair wages and benefits tailored to specific industry contexts.
"A CA carries legal weight under the Industrial Relations Act 1967 (Act 177), and employers who fail to comply can face legal action.
"It also provides legal protection for both workers and employers, forming the foundation for harmonious and productive industrial relations,” he said in a statement on Wednesday (May 21).
Earlier, Sim visited the National Automotive Industry Workers Union (PONSB) as part of ongoing efforts to strengthen strategic collaboration between the government and industry workers at the grassroots level.
In the same statement, the Human Resources Ministry said the visit involved discussions on various issues in the automotive sector, including terms of service, current challenges, strategies to boost union membership, digitalisation of union management, and leadership training.
"The minister also highlighted several key government initiatives, including the implementation of the Progressive Wage Policy (DGP) and the launch of the Madani Workers’ Card, which has registered over 58,000 union members to date.
"This card offers a range of benefits, such as discounts on essential goods, healthcare services, and access to skills training,” the ministry added.
To support union modernisation, the ministry also provided a RM25,000 grant to PONSB this year under the Trade Union Affairs Programme (PHEKS) for training and ICT equipment.
Meanwhile, PONSB president Mohd Azmi Abu Bakar expressed appreciation to Sim, Proton non-executive chairman Tan Sri Syed Faisal Albar Syed Rethza Albar, and its management team for engaging directly with workers during the visit.
During the dialogue session, Sim reiterated the crucial role of trade unions as a collective voice in protecting workers' rights and welfare. He also encouraged greater participation in unions to foster solidarity and expand negotiation channels with employers.
Mohd Azmi said the ministry expressed its support for PONSB and Proton management in the upcoming negotiations for the 13th Collective Agreement (CA) for the 2025-2027 period, expected to begin in June.
"PONSB will submit its initial proposal, which includes a 15 per cent salary adjustment, to ensure improved benefits for its 4,938 members,” he said. - Bernama
