Excluding foreign workers from minimum wage hike could hurt local jobs, says union chief

Andrew Lo

KUCHING (Oct 2): Excluding foreign workers from any increase in the minimum wage could encourage employers to replace local workers with cheaper foreign labour, says Sarawak Bank Employees’ Union (SBEU) chief executive officer Andrew Lo.

Lo, who is also Labour Solidarity and Learning Resources Association (LLRC) deputy president, said the proposal, recently praised by Democratic Action Party (DAP) national adviser Lim Guan Eng, could have the opposite effect of protecting local employment.

“It will mean that employers will stop employing locals and employ lower-paid foreigners,” he said in a statement.

Instead of maintaining a low-wage economic model, Lo the government should encourage higher wages to spur businesses to invest in technology and improve productivity.