On May 19th, 1999, the Malaysian Trades Union Congress held the Second Symposium on the Economic Crisis. The Symposium was attended by 80 trade unionist from 60 trade unions and was addressed by Y. Bhg Dr Sulaiman Mahbob, Ketua Urusetia Majlis Tindakan Ekonomi Negara and Dr Awang Adek Hussin, Assistant Govenor, Bank Negara Malaysia.

Pointing to various economic indicators, including the KL stock market index, positive GNP growth in the first quarter of the year and the increase in automobile purchases, both the speakers emphasised that the economy is well on the path of recovery.

MTUC positively responded to YAB Perdana Menteri’s call to support government’s efforts and plan to effectively address the economic crisis. We are pleased to report that despite mounting pressure from union members, MTUC affiliates heeded our call to adopt restraint and maintained industrial peace. We are indeed pleased that the measures taken by the government has helped to turn around the economy within a short time. We therefore urge the government to take positive steps to address the issues affecting working people.

WAGES

Malaysian workers endured a reduction in real wages during the recent economic crisis. While inflation and the cost of living generally increased, workers faced pay cuts and wage freezes. YAB rightly pointed out during our meeting with your good self on August 6th 1998 that a reduction of wages will result in a decrease in domestic demand and a detriment to full economic recovery. We therefore call on the government to pursue a wage policy that increases domestic demand and rewards workers, especially those in the lower income group. This includes:

Revising the salary of civil servants every 3 years, in line with the private sector

Supporting a monthly wage scheme in the plantation sector

Calling on employers not to deny or delay collective bargaining negotiations

Implementing the Prime Minister’s pledge of introducing a minimum wage of RM 1,200 for all workers in Malaysia.

While noting the recent pay revisions of five corporatised government agencies that were outstanding since 1995, MTUC calls for the setting up of a proper bipartite regulatory mechanism with the mandate to discuss and decide on labour matters in the corporatised agencies. Proper negotiating machinery must be set up to implement salary revision every three years.

STEPS TO STRENGTHEN TRADE UNIONS

We are indeed pleased that in recent months YAB Datuk Seri has publicly acknowledged the role of Malaysian trade union in promoting and maintaining industrial peace. Trade Unions in Malaysia play a crucial role in improving and safeguarding wages, working conditions, occupational safety and health, ensure implementation of statutory benefits, minimum standards, legislation and prevent victimisation and discriminatory practices.

Trade Unions indeed compliment the work of a caring government and in order to further enhance this, our legislation should be encourage and facilitate trade union organising efforts. It is time that government seriously study and take measures to ratify ILO Convention 87 on the Freedom of Association and Protection of the Right to Organise and bringing all laws and government practices into line of ILO Conventions 87 and 98

This would enable hundreds of thousands of workers to join independent trade unions and negotiate for better wages and working conditions. The government should also consider ratifying the remaining ILO core labour conventions, which are the Convention 105 on the Abolishment of Forced Labour and Convention 111 on Discrimination in Employment and Occupation.

HOUSING

Housing is a basic need. The government has a responsibility to ensure that there is an adequate supply of decent and affordable housing to meet the demand. In terms of low-cost housing, demand continues to exceed supply. The current policy of relying on the private sector to provide low-cost housing as a compulsory part of housing development projects does not seem to have solved the problem of under-supply. In many cases, private developers have delayed or not built the designated quota of low-cost houses. Often we hear complaints that the low-cost houses, especially flats, have been poorly built rendering them inadequate and most unsatisfactory.

We call on the government to pledge that every Malaysian is housed in a decent home, with adequate facilities and infrastructure, by the year 2010. The government should use its entire means to make sure the private sector fulfills its low-cost housing quota in a responsible manner. The government, through the SEDCs, should also play a leading and direct role in providing appropriate housing.

The EPF should also play a more direct role in funding the purchases and monthly repayments in support of home ownership, especially allowing retrenched workers to use their savings for monthly repayments. Government should take steps to ensure that developers finance their project so that the concept of build and sell can be implemented.

SOCIAL SECURITY

The Economic crisis has clearly shown the need to correct, upgrade and broaden the scope of the Malaysian social security system. There are few areas of critical concern.

The social security system should be broadened to include security against loss of employment. Workers who loss their employment due to redundancy or company bankruptcy should be guaranteed retrenchment benefits. Such a scheme would be comparable to Danaharta’a role in relieving banks of NPLs. To this end, MTUC has proposed the National Retrenchment Fund be implemented. We urge the government to hasten the implementation of such a scheme.

The government should also introduce regulations on Voluntary Separation Schemes introduced by the private sector as a response to redundancy and restructuring. Some companies have forced employees to accept voluntary redundancy by issuing notices that if such schemes are not taken up, the company will be forced to introduce compulsory retrenchment with lower benefits. Such "forced" separation schemes should not be allowed.

In order to protect workers retirement savings held in the Employees’ Provident Fund, the government should amend the EPF Act to make the institutions responsible to its members. This includes ensuring the Investment Board is accountable to the Board of Directors, the Board of Directors should be accountable to members and separating the position of Executive Director from the Chairman of the Board. Through such measures, the EPF will operate with greater transparency and accountability. In particular, the EPF should not be used to provide huge loans to the private sector at below market rates, which in the long run will negatively effect the returns to members. Government is urged to take note of the significant improvement in the life expectancy age of average Malaysians and raise the retirement age to 60 years for workers in the public and private sector. This would also help eliminate our dependency on foreign labour.

PRIVATISATION

Privatisation of government services should first and foremost benefit consumers. If indeed, as a result of privatisation, private monopolies are created which further burden the consumer, than the purpose of the exercise is defeated. This seems to be occurring of late, especially with the privatisation of roads, water, sewerage, education and health. The government should take immediate steps to ease burden on consumer. MTUC calls for greater transparency and accountability in privatisation activities. Government interference has often obstructed and frustrated union-management negotiations on wages and conditions.

MTUC is particularly concerned with the government’s proposal to privatise health care. Over the years, the government has been transferring its health burden to the private sector by requiring employers to foot basic health costs of their employees. Government facilities now tend to deal with more serious health problems requiring admission and that too catering towards public servants, lower income workers and the unemployed. We believe, in the spirit of social solidarity, public funds should be used to maintain a quality and affordable health service targeted especially to those who cannot afford the luxury of private health care. Requiring private hospitals to set aside special wings for the low-income group is not a viable alternative to a properly run and funded public health care system. Indeed the government should seriously consider building more hospitals in more locations.

EFFICIENCY, TRANSPARENCY AND ACCOUNTABILITY

The economic downturn has issued a clear warning that inefficiency and weak business practices in the private and public sector will pull the economy down. Both the government and the private sector have to promote transparency and accountability in order to encourage competitiveness, sound business practices and weed out cost-increasing corrupt practices. The government should take the lead in this issue and return to practicing "Bersih, Cekap and Amanah". In particular the government should:

Fully disclose in Parliament the debtors involved in Non-Performing Loans bought over by Danaharta.

Close negotiations should be completely abolished

Introduce open tender system for all government contracts and privatisation schemes

Implement stringent banking regulations without interference to avoid a repeat of the large volume of NPLs during an economic downturn.

Recently, there were various statements in the media regarding the lack of efficient implementation of development projects. MTUC believes that part of the problem remains bottlenecks at the Treasury. Such bottlenecks should be addressed as a matter of priority.

FOOD & PRICES

The economic crisis also saw the price of goods multiply, especially imported foods. The price of chicken became a hot issue as poultry farmers increased the price of their produce in the face of the rising cost of imported chicken feed. It seems that in the rush to industrialise, the government has neglected agriculture and thus today we face a situation where a large number of basic necessities are imported.

MTUC calls on the government to formulate sound food policy based on food security and health. The country should be highly self-reliant in terms of food and the government should take steps to safeguard against unhealthy and unproven food products including genetically modified products. Government should study and implement appropriate policies that allow extensive subsidy in order to encourage more investment and involvement in the agricultural sector. Government should urgently identify abandoned and idle land as a matter of priority and put them to productive use. Efforts must also be made to modernise the sector to improve quality and output.

The government should strive to reduce the prices of basic necessities. Government should only fix the upper limit to the price of petrol and allow the market competition to lower prices whenever possible.

AUTOMATION AND IT TECHNOLOGY

While the government’s initiative to fast track the introduction of Information and Communication Technologies (ICTs) is commendable, MTUC is concerned of the employment repercussions. We request the government undertake a detailed study on the labour market implications of ICTs and identify areas where jobs will be lost and created. In areas where jobs will be lost, the government should begin preparations to introduce retraining for workers made redundant by new technologies.

FOREIGN LABOUR

Despite the various statements and assurances, the practice indicates that the government is not seriously addressing this issue to eliminate our dependence on foreign labour. Government must put into effect their plan to establish childcare centres at every workplace or at convenient locations to encourage more women to enter the labour force.

CONCLUSION

The NEAC like consultative machinery should be set up at all levels to get feedback from the public.