medcom.id, Jakarta: Vice President Jusuf Kalla proposed minimum wage standards in ASEAN. He first mentioned the idea during World Economic Forum in Kuala Lumpur, Malaysia recently.
Kalla stated there should not be competition between ASEAN countries on wage. "Multinational companies pit us against each other," he said at his office, Jakarta, Friday (6/3/2016).
Kalla believes the competition only makes workers in ASEAN countries suffer. Moreover, low wage will lead to low public purchasing power. "If the public purchasing power is low, we cannot develop the economy well," he elaborated.
He took several international garment and footwear companies in the region as example. The companies will easily relocate to other ASEAN countries for lower wage
He took several international garment and footwear companies in the region as example. The companies will easily relocate to other ASEAN countries for lower wage
According to him, Vietnam and Cambodia support the proposal. The idea will be further discussed by manpower ministers from ASEAN countries in a meeting.
"They will discuss the detail. That is not my authority," he concluded.
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