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UNION YES NEWSLETTER

March 1999
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SBEU/MTUC VIEWS

MTUC Statement on Trienekens 2
MTUC Statement on Trienekens 1
MTUC position paper on 2009 Budget
Petrol Price Increase
MTUC position paper summary issues Affecting Workers in Sarawak
WHY MEF is not a credible organisation ?
MTUC Position Paper On Exemption STA
MTUC position paper on IRA & TUA
Retirement Age
High Crime, Low Wages
- Who Gains?
Sarawak Labor Ordinance
Merger of Banks & Financial Institution
Increase Retirement Age
Customer First ?
Adapt or Die

 

PRESS STATEMENT           

MTUC & BANK UNION  VERY ANGRY AT FUEL PRICES INCREASE 

MAY CALL FOR STRIKE 

AS USUAL, CONSUMERS PAYS THE PRICE 

PETROL PRICES IN Singapore still Cheaper  

Current Government not entirely to be blamed. 

As expected, consumers are made to pay the price of decades of failed economic policies and mismanagement.  The 78 sen increase in the price of petrol now means that the price has increase by more than 300% compare to 87 sen in May 2005.    

Failed economic policies include a suppressing of exchange rate to make our country competitive (to favour exporters which are mainly oil & gas, timber and oil palm. The government also suppresses wages by encouraging the influx foreign workers 

This fuel increase will surely lead to another round of price increase from anything and everything from Taxi fares to Bus fares, from cooking oil to a packet of nasi lemak.

Our experience point to the fact that in Malaysia, prices increase in commodities and basic items always benefit businesses, not ordinary workers.  A classic example is that when the price of sugar increased by 10 sen a kilo, a cup of kopi also increased by 10 sen - as if you need a kilo of sugar for one cup of kopi. 

As a result ordinary Malaysians simply cannot afford to pay market prices for petrol. Already the prices of our cars and toll (due to one sided deals signed with toll concessionaires) is among highest in the world. Public transport is hopeless in cities and non existent in the rural areas. People have no choice but to own cars.  Many owners have to take a nine-year loan just to pay off a basic car and their car value is now less than the loan outstanding 

This is a result of economic mismanagement that has marginalized the poor, created billionaires and has income disparity that is the second highest in Asia, behind only Papua New Guinea. 

PETROL CHEAPER IN SINGAPORE 

Contrary to government claims, Petrol is actually cheaper in Singapore, Japan or even the US when we take into account one of the fundamental principles when comparing prices across different countries - PPP - Purchasing power parity. 

Put it simply, Singaporeans still pay much less for their petrol because Singaporean workers earn Singapore dollars not Malaysian Ringgit.  Even in absolute terms, for example, a typical clerical employee in Singapore earns SGD1200 per month compared to RM900 in Malaysia and 600 in Sarawak. And Singaporeans only pay about SGD2.00 per litre 

Per capital of income of Spore is RM100,000.00. Malaysia is only $20,000.00. Singapore does not produce a drip of its own crude oil.  

Even in Japan & US (even with their high cost and standard of living), you will find the petrol price is relatively cheaper. Please note that minimum wage in US is about USD4 per hour and a high school teacher makes at least USD40, 000 a year. And petrol price there is only about 1.20 per litre. 

We should ask question as to why the production cost, plus distribution cost, plus profit amount to 20% of the pump price.  Malaysia is a net exporter of crude oil. And Petronas is rich enough to sponsor one of the most expensive sports – Formula 1 

We also call on the government to give a full transparent and detailed disclosure of the fuel subsidy. As well as the billions of profits of Petronas, independent power producers and other oil companies, oil palm and timber companies makes every year.

The government has forced the public to own cars by mismanaging the public transport sector, inflicted a high prices for cars, burdened the motorists with extensive toll roads and suppressed wages, now wants market price for petrol.

UNIONS WANT SALARY TO GO UP BY 50%

Unions now have no choice but to demand for salary increase of at least 50%. Unfortunately employers are going to use the higher cost of business as an excuse to NOT grant salary increases.

 

ANDREW LO
SECRETARY, MTUC 
CHIEF EXECUTIVE OFFICER, SBEU 

5 June 2008

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