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KUALA LUMPUR: In an unprecedented move, Sime Darby Plantation Sdn Bhd (SDP) has increased the salaries of 37,000 of its estate and mill workers throughout the country, with each of them expected to earn an extra RM200 in basic salary effective July 1.
SDP has allocated RM120 million to RM130 million per year for this purpose, including the increases in Employees Provident Fund and Social Security Organisation contributions, Datuk Mohd Bakke Salleh, Sime Darby Bhd president and group CEO, told a news conference on Monday, June 6.
With the new salary scheme in place, a rubber tapper to a clerk, including auxiliary police personnel, employed in the estates and mills will enjoy a basic salary of RM1,050 to RM1,100 per month.
He said Sime Darby decided to improve the quality of life of its plantation workers to recognise their contributions, especially in an environment of high crude palm oil prices.
"If you look at the CPO price trend over the years, we have been very lucky to ride on the increase in the average price. If you go back to 2001, the average CPO price was just RM890 per tonne, and this year we expect the average CPO price for us to be in the region of RM2,800 per tonne.
"We are confident the additional earnings will enhance the productivity of our employees. The benefits coming out of this exercise will far outweigh the costs," he said.
SDP will also gradually upgrade housing and other amenities for its plantation workers, with each estate allocated RM30 million to RM35 million.
Mohd Bakke said the new wage structure would have an impact on the group's production cost per tonne of CPO.
Human Resource Minister Datuk Dr S Subramaniam told the news conference that the significant increase in earnings for plantation workers would enable them to have savings, provide better education for their children and increase their purchasing power.
The government hopes other government-linked companies and organisations will follow suit, he said. — Bernama
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