Resolve arrears first before minimum wage, PIKM tells govt

There is some RM54m arrears of minimum wage adjustment still outstanding from 2016 to 2020


THE Malaysian Security Industry Association (PIKM) has asked the government to expedite all arrears of minimum wage adjustment and service invoice arrears for the security services sector.

Its president Datuk Seri Ramli Yusuff said a total of RM54 million arrears of minimum wage adjustment were still outstanding from 2016 to 2020 while an estimated RM190 million covered arrears of service invoice payments from 2021, according to records by his party until March 2022.

He said his party was not willing to pay the difference in salary adjustment when the government implements RM1,500 next month and the difference would be borne by his party by giving advance salary to employees.

“We have sent a letter to the government and still no response has been received but, this afternoon, Human Resources Minister Datuk Seri M Saravanan (picture) called to discuss and will bring this matter to the Parliament in the near future.

“We hope the government delays the implementation of the minimum wage until the government starts paying the price based on the price rate after adjustment and maintains the basic salary of RM1,200 while the difference between the RM300 minimum wage increase is used as cost-of-living allowance and overtime pay is based on salary RM1,200 base,” he said in a press conference on Monday.

At the same time, Ramli also appealed to the government to expedite the automatic price adjustment for ongoing contracts when the government implements the minimum wage next month and uses a reasonable rate calculation mechanism for the provision of security control services.

He also requested the government to allow it to propose to its members a reasonable price to negotiate with private customers because it would affect the company’s cashflow and have a negative impact on the company and employees if members had to absorb the cost increase.

Recently, PIKM urged the government not to proceed with the implementation of the new minimum wage of RM1,500 in the near future as the industry is still gripped by various issues as a result of the economic downturn apart from the government’s failure to settle outstanding debts to about 450 security companies.

The association has previously presented the cost structure issue to the Human Resources Ministry, who recently promised to look into it, but no feedback or treatment has been provided.

“The impact of failing to pay the previous minimum wage adjustment to some PIKM members has not been fully resolved.

“Of course, the security companies involved have cashflow problems because they rely on timely payments,” Ramli added.

PIKM is confident that the increase in the minimum wage is not conducive and will create a bad atmosphere for the private security industry.

“Therefore, PIKM appeals to the government to postpone the proposed increase in the minimum age and review the implications for security companies which also belong to the small and medium enterprises,” he further said.

Moreover, he said the government should involve PIKM to look at the operating cost structure of the security company.