10/08/2011 (Bernama) - The Malayan Agricultural Producers Association (MAPA), which has 140 plantation companies under its umbrella, will guarantee and pay all plantation employees not less than RM850 per month, effective September.

President Tan Sri Dr Mohd Noor Ismail said the total sum would cover a guaranteed minimum earnings of RM650 and a special/additional remuneration payment scheme of RM200, per month.

"With the implementation of the special remuneration payment scheme, the additional cost to the sector under the membership of MAPA is approximately RM380 million per year," he told a press conference, here today.

The association has also increased wages for all plantation employees by 10 per cent and this will cost the plantation sector an additional RM300 million per year.

This will benefit some 157,270 employees under the association's coverage including rubber tappers, oil palm harvesters, field as well as other employees.

The RM200 incentive will be received by the employees in their October pay.

"We are currently in discussion with the Ministry of Finance and Ministry of Human Resources to exempt the additional remuneration cash from Employees Provident Fund (EPF) and SOCSO's deduction," Mohd Noor added.

On plantation employers outside MAPA, he said, the players will usually voluntarily follow the payment scheme implemented or adopted by MAPA.

"Thus it is expected that this scheme would further benefit, either directly or indirectly, approximately another 70,000 plantation employees.

"This method will be one of the ways for the sector to be more vibrant and attractive to Malaysians, especially the younger ones, to reduce the employers dependency on foreign workers," Mohd Noor said, adding that productivity growth should not lag behind wage increase and also should take into consideration the company's profitability and the performance of the individual employee.

MAPA is the single largest employers' trade union representing plantation companies, comprising of 359 estates covering some 700,000 hectares and 108 factories and mills operated by the 140 participating members/companies.

Member companies of MAPA are currently producing a total of 12.6 million tonnes of fresh fruit bunches (FFB) per year, which is valued at RM8 billion.