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.
However, this is subject to the company’s internal guidelines.
SDP has allocated between RM120 million and RM130 million per annum for this purpose including the increase in EPF and Socso contribution, said Sime Darby’s president and group chief executive Datuk Mohd Bakke Salleh at a press conference here yesterday to announce the initiative.
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 between RM1,050 and RM1,100 per month.
He said Sime Darby decided to improve the quality of life of plantation workers to recognise their contributions, especially in the environment of high crude palm oil prices.
“If you look at the CPO prices 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 feel the additional earnings will also enhance the productivity of our employees and we are very confident it will translate into that. The benefits coming out of this exercise will far outweigh the cost,” he said.
Meanwhile, SDP will also be upgrading housing and other amenities, called the Central Housing Complex, for its plantation workers’ gradually with each estate allocated between RM30 million and 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 was also present at the announcement. — Bernama