1. Workers in Sarawak celebrated Labour Day on May 1 with some hope. We are hopeful that the prime minister’s vision of a high income nation as announced under the New Economic Model will result in a brighter future for workers and unions.

2. For years the government has bowed to employers and sought to suppress wages especially amongst the lower ranks of private sector employees. As a result, income disparity in Malaysia between the rich and the poor has widened. Real wages have fallen and the purchasing power of ordinary Malaysians has dropped significantly- weakening domestic demand and stifling economic growth.

3. This has led to a huge influx of foreign labour- both legal and illegal which in turn further suppress wages for Malaysians. Employers employ foreign workers not because Malaysian shuns such jobs, but because employers through their economic might and close links with the government have managed to suppress wages.

4. The NEM has accepted that the old economic model of low wages in the name of competitiveness has driven Malaysians down the value chain and has caused us to fall behind our competitors. We used to be competing with Singapore, Hong Kong, Taiwan and Korea. Now we are competing with Thailand, Indonesia Vietnam and Cambodia.

5. We want to be a high income nation. To do so we must move up the value chain and ensure decent wages. To ensure decent wages, collective bargaining and trade unions rights must be enhanced so employers will have incentives to seek real productivity enhancement through modern production methods and human resources management, as they cannot rely on cheap labour anymore.

6. There is strong evidence in high income countries where unions are strong, effective, representative and independent, real wages have increased and what is more important is that the industry/enterprise they exist in, has flourished with profitability and productivity amongst the highest leading to a high-income nation.

7. In Malaysia, the banking Industry is a shining example. Salaries of the lower categories of bank employees are amongst the highest in the country. Yet the banks’ productivity and profits are also amongst the highest. Banks in Malaysian lead in terms of technological advances, investment and human resources development.

8. The banking industry has shown that by providing attractive wages, investing in technology and more important with effective human resources, we do not need any foreign worker in what was once a very labour-intensive industry.

9. With the launch of the NEM, we hope that the human resources ministry will adopt employment policies that are in line with the NEM. The New Economic Model calls for the creation of a high income nation.

10. You cannot have a high income nation if wages remain stagnant by making it easier for employers to sack workers and reducing the influence of trade unions.

11. The human resources ministry simply cannot cling on to the antiquated policy of giving more and more flexibility and power to employers to sack workers and replacing them with foreign workers on contract, as evidenced by their recent proposal for a review of the labour laws.

12. If workers fear for their jobs and unions are unable to protect them, their ability to negotiate for higher pay is diminished. This, in turn, will discourage employers to move up the value chain and our dream of a high-income nation will remain a dream.

13. The review must strengthen the trade union movement by adopting a more liberal approach to the whole issue of trade union registration, recognition and representation.

14. There is no point in talking about a high income nation if there are no meaningful and concrete action plans and labour policies continue to stifle unions.

15. We call on the government to once and for all banish the antiquated policy to keep wages low by stifling the trade union movement and giving in to the fancies of those employers who only know how to lobby for more foreign workers but do not spend anything on research and development.

16. MTUC calls on the government to do the decent thing before it is too late. We call on our elected members of Parliament of all political parties to put the interest of Malaysian workers (voters) first if we are ever to be a high-income nation.