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Memorandum To Yab Datuk Seri Abdullah Ahmad Badawii

Perdana Menteri Malaysia

On Serious Problems Facing Trade Unions And Workers  

In the wake of 1998 economic crisis MTUC and the Trade Unions played a major role in containing the numerous problems and issues resulting from company closures, merger of banks, loss of thousands of jobs, wage cuts, unfair dismissals and even maintained a moratorium on collective agreements in a number of companies. Subsequent events show that many employers do not seem to appreciate these concession and cooperation.

 CLAIM FOR RECOGNITION

There seem to be a serious lack of urgency in settling unions’ claim for recognition. The Human Resources Ministry fails to comprehend the numerous problems faced by workers at workplaces.

We are witnessing increasing anti union activities by employers and the situation is worsening. Under Section 9 of the Industrial Relations Act, union recognition claims should be settled within 21 days but in practice it is taking as long as 12 to 18 months. Employers openly defy the labour laws and often refuse to cooperate with the Industrial Relations Department.

The Human Resources Ministry must accept responsibility for perpetuating this sad state of affairs: We say this because 7 years ago suitable amendments were drafted and endorsed by employers, workers, government and adopted by the National Labour Advisory Council: But up to now no action have been taken. The amendments intended to empower the Director General of Industrial Relations and the Human Resource Minister to act against recalcitrant employers.

The delay in the settlement of recognition claims is further worsened by the YB Minister’s reluctance to invoke the powers vested in him under Section 9 (5) of the Industrial Relations Act 1967. If an employer fail to accord recognition within 14 days of notification by DGIR, YB Menteri should make a final decision.

1.

RESOLUTION ON TRADE UNION RECOGNITION

 

 

 

We the delegates attending the MTUC Special Labour Convention on 10 January 2004 :

 

 

·         

Express our deep concern over the ever increasing delay in settlement of union recognition claims: Since 1999 the situation has further worsened;

·         

Note with regret  Human Resources Ministry’s failure to enforce the provisions of the Industrial Relations Act 1967 to resolve disputes speedily;

 

·         

Stress the serious implications on workers and trade unions;

 

 

·         

Urge YAB Perdana Menteri to direct the Human Resources Ministry to take firm and positive steps to ensure compliance of the specific provisions under Industrial Relations Act 1967.

INORDINATE DELAY ON SETTLEMENT OF DISMISSAL CASES

Whilst unions are urged to avoid all forms of industrial action and utilise the conciliation machinery, the Human Resources Ministry failed to ensure that the process functioned smoothly and efficiently. As a result a massive backlog amounting to more than 5000 cases have built up. In the past four years MTUC repeatedly highlighted the heavy workload imposed on the conciliation officers, especially at the Industrial Relations Department in Selangor and Federal Territory. The undue pressure and burden on the officers resulted in shoddy conciliation. Reports are not done even after a year of conclusion of conciliation proceedings, files were misplaced and some cases were reopened because new officers assigned could not read the notes left by the previous officer.

Last year YB Menteri Sumber Manusia referred 42 dismissal cases to the Industrial Court Sarawak, more than 5 years after the dismissal.

COLLECTIVE AGREEMENT DISPUTES

Due to lack of time and workload the Industrial Relations Department is not able to play an efficient and meaningful role to facilitate amicable settlements. Unions are under tremendous pressure to avoid going to the Industrial Relations Department and resort to industrial action.

INDUSTRIAL COURT

According to our survey it takes 12 to 24 months for a dispute to reach the Industrial Court and it takes another 12 to 24 months for the court to hear and hand down an award. Pending this frustratingly slow process, some companies change their name, close down, and cease operation. In such event the court cannot even serve the award. In some cases, employers are still carrying on business under different name in the same premises and location but refuse to accept courts notices.

In Sarawak, the Industrial Court Chairman has heard cases but has not made a single award since he was appointed 3 years ago. Whatever awards handed down relate to consent agreements and cases struck off.

2.

RESOLUTION ON INORDINATE DELAY IN SETTLEMENT OF DISMISSAL CASES

 

 

 

We the delegates attending the MTUC Special Labour Convention on 10 January 2004 :

 

 

·         

Are perturbed by Human Resource Ministry’s indifference towards the sufferings of thousands of workers who are dismissed each year;

 

 

·         

Human Resource Ministry has failed to take cognizance of the code of conduct for industrial harmony.

 

 

·         

We urge YAB Perdana Menteri to take urgent measures to rectify this long standing pressing problem involving thousands of working families.

CONSPIRACY TO CREATE INDUSTRIAL UNREST

MTUC highlighted to the Human Resources Ministry that retired Human Resources Ministry officials are suspected to be involved in conspiracy with serving officers to create industrial unrest in the country.

These former officers mainly from the Department of Trade Unions and Department of Industrial Relations have linked up with certain serving officials in the Department of Trade Unions to obtain latest information on companies and unions involved in recognition claims and collective bargaining. With relevant information they approach the employers with a proposal and offer to remove the union. They advise the employers to adopt a series of actions which effectively prolong the settlement process.

The group’s action directly undermines, the efforts of the Industrial Relations department to resolve issues amicably and help build a more harmonies relations. There is enough evidence to expose the bad intentions of these so-called consultants. These vultures make their move only after the DGIR confirm that union represent a majority and advise the company to recognise the union.

Despite MTUC’s efforts to expose attempts to sabotage Ministry’s efforts, no action has been taken to address this serious complain.

In the case of NSG (M) Sdn. Bhd the Department of Trade Unions carried out a membership check on 8 January 2002 but it took 17 months to notify the results to the employer.

In the case of  Ching Ah Liong membership check was carried out on 18 May 2001 and confirmed that the union represents 73.33% of their employees: Company has failed to accord recognition and the YB Menteri has not made a decision on this 4 years old claim.

YB Human Resources Minister’s reluctance to invoke the provisions of Section 9 (4C) of the Industrial Relations Act is making the situation worse and is encouraging these anti union employers to increase union busting activities.

3.

RESOLUTION ON ANTIUNION ACTIVITIES

 

 

 

We the delegates attending the MTUC Special Labour Convention on 10 January 2004 :

 

 

·         

Wish to draw YAB Perdana Menteri’s attention to increasing number of anti union and union busting activities by employers;

 

 

·         

Many employers flagrantly violate the provisions Section 4 and 5 of the Industrial Relations Act 1967;

 

 

·         

HR Ministry’s failure to enforce the provisions guaranteeing worker’s rights has encouraged more employers to contravene the legal safeguards with impunity. We are disappointed by HR Ministry’s refusal to act on specific complaints of collaboration by HR Ministry’s officers to facilitate union busting activities;

 

 

·         

Urge YAB Perdana Menteri to direct the HR Ministry to give effect to the provisions stipulated in the Industrial Relations Act 1967.

DENIAL OF TRADE UNION RIGHTS

Complaint of denial of trade union rights and union busting is increasing. Apart from the 30 year old ban on formation of an independent industrial union for electronics industry workers, thousands of workers in other industries are also denied their right to join a union.

The provisions of Section 2 (2) of the Trade Union Act is interpreted at the whim and fancy of the Director General of Department of Trade Unions. Classification and or categorisation of products change with the person holding the post – eg:

The DGTU ruled that the Metal Industry Employees’ Union (MIEU) cannot represent the employees of Kobe Precision Sdn. Bhd, Horishige Sdn. Bhd, Soritsu Technology Sdn Bhd, UEDA Plating Sdn. Bhd, Diamet Klang Sdn Bhd, NSK Microprecision Sdn Bhd, and Kawamura Sdn. Bhd.

The previous DGTU had allowed several companies producing exactly the same products to be represented by the MIEU.

DGTU ruled that NUPCIW cannot represent employees of Shinetsu Polymer Sdn. Bhd whereas the previous DGTU has ruled that another company producing exactly same products can be represented by NUPCIW.

DGTU ruled that Non-Metallic Mineral Products Manufacturing Employees Union (NMEU) cannot represent employees of Syarikat Premier Bleaching Earth Sdn Bhd whereas the previous DGTU has allowed NMEU to represent employees of Taiko Bleaching Earth Sdn Bhd which produces same products. Infact Premier Bleaching is owned by Taiko Bleaching.

This restrictive provision is increasingly used by employers to challenge Minister’s decision on recognition claims. In view of Ministry’s failure to effectively address this problem, MTUC has now submitted a complaint to the ILO Committee on Freedom of Association.

Suspicious and unethical activities by certain officers of the Department of Trade Unions

At meetings with the Human Resources Ministry, workers from Gebeng Industrial area complained of unethical conduct of certain officers of the Department of Trade Unions. They reiterated their complain at least twice direct to the KSU of Human Resources Ministry, but no action was taken. These workers even offered to produce tape recording to prove their complaint. Department of Trade Unions decision to register in-house unions during the pendency of claim for recognition by the National Union of Petroleum and Chemical Industry Workers in Poly Plastic Asia Pacific Sdn. Bhd in Gebeng is questionable and unethical.

4.

RESOLUTION ON DENIAL OF FREEDOM OF ASSOCIATION

 

 

 

We the delegates attending the MTUC Special Labour Convention on 10 January 2004 :

 

·         

Highlight that in the last 4 years, with the collusion of the HR Ministry, many employers have denied workers the right to join a union and collectively bargain for better terms and conditions:

 

 

·         

Disappointed that after 47 years of Merdeka, workers are not given the freedom to join a union of their choice as guaranteed under article 10 of the Federal Constitution;

·         

Reiterate that in the last 3 years HR Ministry has denied freedom of association to more than 8,000 workers

 

 

·         

We deplore HR Ministry’s action in direct contradiction of the Federal Constitution; and

 

 

·         

Urge YAB Perdana Menteri to direct the HR Ministry to ensure that actions and policies are in compliance with the provisions of the Federal Constitution.

SOCSO – UNSYMPATHETIC AND INCONSIDERATE

Since the appointment of inhouse Doctor two years ago, Socso has become increasingly unsympathetic and inconsiderate. They seem to have endless list of reasons to deny assistance to injured workers.

Socso administrators, including the CEO, treat every application for assistance with contempt; often they don’t accept conclusion of their own panel doctors.

MTUC has reports that Socso has rejected close to 100 decisions of medical Boards and Socso  appellate boards.

In the last 12 months Socso has denied compensation payments to workers disabled due to accidents and occupational diseases. Instead Socso seem to be happy to spend large sums of money on legal fees. Whereas disabled Socso members helplessly watch highly paid Socso lawyers persuade the High Court to reject their appeal for sympathy and assistance.

MTUC urge YAB Perdana Menteri to appoint a more sympathetic and caring person to head the Socso.

In a recent case involving a workman who sustained serious injuries while traveling home on motorcycle after work, Socso rejected the workman’s claim for compensation, on the grounds that he did not take a direct route.

He appealed to the Social Security Appellate Board and the Board ruled in his favour. Socso however rejected Socso Appellate Boards decision and appealed to the High Court, Johore Bahru.

Decision of the High Court, Johore Bahru

In rejecting Socso’s appeal the High Court ruled

·        In my view a worker unlucky enough to meet with an accident while going to or returning from work should be able to make a claim under S. 24 even if he had interrupted or deviated from his journey for any reason whatsoever if the objective of his travel is to reach his place of work or to return home from work, provided the deviation or interruption was not made in furtherance of some other economic pursuit distinct and unrelated to his obligation under the contract of employment he had entered into with the employer as for instance he had in the course of the journey made a deviation or interruption to undertake another remunerative part-time work for here it is clear that the worker was under the circumstances undertaking a distinct and unrelated pursuit that could not have served the interest of his employer to whom he was committed to work for and who in turn had provided for his insurance under the Act.

·        On the other side of the coin he should be held covered even if he had interrupted his journey home from work to visit a sick relative at the hospital or if he had stopped at the market to purchase provisions for it cannot be gainsaid that the main objective of his journey was to reach home and was not made in furtherance of any other economic pursuit other than the one which he was already committed to with his employer.

·        Now to revert to the issue in the instant appeal. It would not have mattered that the worker had made a detour to send a co-worker home. He should be able to make the claim given that the objective of his travel was to return home and the deviation or interruption of the journey was not made in furtherance of some other economic pursuit distinct and unrelated to the employment he had committed himself to with the employer.

5.

RESOLUTION ON SOCSO’S UNCARING APPROACH

 

 

 

We the delegates attending the MTUC Special Labour Convention on 10 January 2004 :

 

 

·         

Highlight that the social security organization has become increasingly unsympathetic and inconsiderate: Its administrators, including the CEO treat applications for assistance with contempt; often they challenge certifications of their own panel doctors;

 

 

·         

MTUC is disturbed by ever increasing reports on Socso’s denial of compensation to injured and disabled Socso members;

 

 

·         

Express our deep concern over Socso’s eagerness to spend considerable sums of contributors money on legal proceedings to challenge their own Socso Appellate Boards awards infavour of contributors

 

 

·         

Urge YAB Perdana Menteri to direct the HR Ministry to appoint a more sympathetic and caring person to head the Socso.

CONTRACT WORKERS

In the name of globalization an ever increasing number of employers, including large multinational corporations, are turning to contract labour, comprising of domestic and foreign workers. Even municipalities, local authorities and statutory bodies are employing contractors. Our finding shows that contract workers (more than 70% of total construction workers) have no security of tenure or social protection. Contributions to SOCSO and EPF in particular, are unheard of and are therefore more vulnerable in the event of injury, disease or death. In case of job loss they have no avenue for assistance, as most contracts are mere verbal agreements. Accompanying growth must be a comprehensive program for social development that puts people first, unfortunately the opposite is taking place.

6.

RESOLUTION ON CONTRACT WORKERS

 

 

 

We the delegates attending the MTUC Special Labour Convention on 10 January 2004 :

 

 

·         

Stress the need to ensure that all workers enjoy security of tenure of employment,

 

 

·         

Point out that the current contracting system and practice has completely removed security of tenure and employees earnings each day has become uncertain;

 

·         

Such practice spreading throughout the country, involving tens of thousands of workers is threatening employees and their family of their livelihood;

 

 

·         

Highlight that even the limited safeguards under the Employment Act are not enforced;

 

·         

Urge YAB Perdana Menteri to direct the Human Resources Ministry to urgently review the Employment Act so as to provide adequate safeguards, eliminate room for abuse and ensure that contract workers are accorded healthcare, social security and old age retirement benefits.

ABUSE OF VOLUNTARY SEPERATION SCHEME (VSS)

There was extensive debate from delegates participating in the Special Labour Convention on 10 January 2004. Delegates cited series of examples where companies and banks have intimidated employees to accept the so called voluntary separation scheme. MTUC do not oppose genuine manpower reduction but we are concerned by the increasing and widespread abuse of the system.

Companies recruit contract workers or foreign workers soon after getting rid of long serving employees under VSS exercise. We learn that VSS applications, which are recorded as resignations, are cited as proof of labour turnover to substantiate their request for work permits to recruit foreign workers.

We urge YAB Perdana Menteri to direct the Human Resources Ministry to carry out a special study and draw up a policy guideline to address this serious problem.

7.

RESOLUTION ON VOLUNTARY SEPARATION SCHEME (VSS)

 

 

 

We the delegates attending the MTUC Special Labour Convention on 10 January 2004 :

 

 

·         

Note that an increasing number of companies, including major banks are abusing the so called VSS to get rid of employees, especially long serving employees;

 

 

·         

Regret that the Human Resources Ministry is unwilling to act on complaints of victimizations;

 

 

·         

Stress the need to take firm measures to stop powerful employers from abusing this system;

 

 

·         

Urge YAB Perdana Menteri to direct the Human Resources Ministry address this issue urgently.

EPF’s DEATH AND INCAPACITATION BENEFIT

Effective 1st July 2000 EPF has reduced the death and incapacitation benefits from a minimum of RM1000 and maximum of RM30,000 to a flat rate of RM2000 without any logical reason.

EPF’s reasoning that only the rich benefited from the higher maximum and whereas the poor only received the minimum, is most ridiculous and unsubstantiated.

Example 1: Death / Incapacitation Occurs at age 35 years        

(Age on  becoming EPF Member 18 years)  

EPF Credit

Amount of entitlement prior to

1/07/2000

 

 

On death

On Incapacitation

 Present Entitlement

RM20,000

RM9,434

RM27,778

RM2000

RM10,000

RM4,716

RM13,889

RM2000

RM5,000

RM2,358

RM6,944

RM2000

Example 2 :Death / Incapacitation Occurs at age 35 years      

(Age on  becoming EPF Member 22 years)          

 

EPF Credit

Amount of entitlement prior to

1/07/2000

 

 

On death

On Incapacitation

 Present Entitlement

 

RM85,000

     RM51,829

   (max RM30,000)

RM151,78570

 (max RM30.000)

RM2000

RM50,000

     RM30,488

   (max RM30,000)

RM  89,2286 

 (max RM30.000)

RM2000

RM30,000

     RM18,293

RM  53,571    

(max RM30,000)

RM2000

RM10,000

     RM6,098

RM17,857

RM2000

 

Example 3 :Death / Incapacitation Occurs at age 25 years   

(Age on  becoming EPF Member 18 years)  

EPF Credit

                Amount of entitlement prior to

1/07/2000

 

 

 

On death

On Incapacitation

Present Entitlement

RM10,000

     RM15,217

RM43,750 

(max RM30,000)

RM2000

RM5,000

     RM7,608

RM21,875

RM2000

RM3,000

     RM4,565

RM13,125

RM2000

RM2,000

     RM3,043

RM8,750

RM2000

 Funds for this scheme comes out of the earnings from contributors funds and it does not in anyway burden the EPF or the Government. The reduction demonstrates EPF’s uncaring and inconsiderate attitude.

Even contributors who died or became incapacitated prior to 1st July 2000, the effective date of the reduced benefits, EPF has refused to pay them compensation basedon enhanced rate that existed.

MTUC propose that EPF restore the benefits that existed prior to 1st July 2000. The amendment must be back dated to 1st July 2000 in order to ensure that no one is deprived of this compensation.

8.

RESOLUTION ON THE EPF’S DEATH AND INCAPACITATION BENEFITS

 

 

 

We the delegates attending the MTUC Special Labour Convention on 10 January 2004 :

 

 

·         

Reiterate that responding protests and appeal the former Prime Minister gave a written assurance letter dated 8 May 2001 that the quantum of compensation to EPF contributors or their dependants in the event of Death and Incapacitation will be restored to a minimum of RM1000 to a maximum of RM30,000.

 

 

·         

Regret that YAB Perdana Menteri’s promise remain unfulfilled;

 

 

·         

Urge YAB Perdana Menteri to initiate steps to reinstate the rate of compensation that was in practice prior to 1 July 2001.

FOREIGN WORKERS

LIMIT RECRUITMENT OF FOREIGN WORKERS

In the light of increasing retrenchment we urge Government to limit recruitment of foreign workers.

Employment opportunities for Malaysians are becoming scarce.

Factory closures due to relocation is increasing. Other than the 15,000 reported cases of retrenchment, a substantial number of termination, through so called voluntary separation scheme and loss of employment through fixed term contracts are not reported.

MTUC is deeply concerned by the increasing unemployment and HR Minister’s announcement that tens of thousands of foreign workers will be brought in, shows that he is oblivious of the actual situation on the ground.

Instead of flooding the country with more foreign workers Government should find ways to utilise the foreigners who are already in the country. There are many who were brought in to work for a 2 to 3 year duration but were prematurely terminated without adequate compensation: In some cases even wages earned were not paid for months.

MTUC wish to drew the attention of YAB Datuk Seri’, to the case of 90 Vietnamese who were abandoned and forced to eat cats and dogs. They were subsequently sent back at Government’s expense.

Another case of 30 Vietnamese workers, camping outside the Vietnamese embassy under deplorable conditions for more  than 6 months remained hidden until highlighted by the media.

We are perturbed by Government’s lack of policy despite countless reports of exploitation and mistreatment of foreign workers by Malaysian employers and recruiting agents.

MTUC’S PROPOSAL 

At the 35th MTUC Triennial Delegates Conference held on 5 – 6 March 2002 this matter was debated at length and we respectfully submit the following proposals:

Malaysians workers must be given priority.

Dependence on foreign labour should be phased out and appropriate strategies must be drawn up and implemented with commitment.

Unlike the current practice Government must ensure that foreign labour is recruited as a last resort and must always be economically justifiable. We strongly object Governments’ proposal to allow one-for-one, which would mean 50% of work force will be foreign workers.

Importing cheap labour is often the main cause of distortion between the relative price of capital and labour. The demand for foreign workers is not due to genuine shortage but due to the desire of employers to pay lower wages.

In the last decade Government has repeatedly suggested that competitiveness should rightly be derived from technology and capital intensity. Unless government ban recruitment of foreign workers, this call will not be heeded. Continued issuance of work permits leads us to conclude that either government is blind to the plight of local workers or bending backwards to please employers.

A minimum wage (living wage) should be established without delay to attract the tens of thousands of Malaysians, especially women, who are distracted by low wages. Workers have a right to expect Government to ensure a decent wage and working conditions.

Widespread contracting system in the construction sector has eliminated security of tenure and casualised employment status. This has understandably compelled locals to shun such insecure jobs. There is complete lack of coordination which leave thousands without work in some work sites and labour shortage elsewhere.

Government must promote efficient utilisation of manpower in the construction sector by registering all construction workers. This must be carried out by the manpower Department, so that government can efficiently monitor and coordinate labour availability and needs.

Government should eliminate recruiting agents and henceforth all recruitment of foreign workers must be on a government to government basis.

In order to ensure fair treatment, government should stipulate wages and working conditions for foreign workers as well.

Foreign workers who are unfairly terminated prior to expiry of their contract, must be allowed to follow the due process of law to seek justice and pending a settlement such workers should be permitted to seek employment through the labour department. The current practice is cruel and unfair to workers victimised by unscrupulous employers.

In the interest of the nation and Malaysian working families, we urge YAB Perdana Menteri  to give due consideration to our proposal and take urgent measures to effectively address and solve the problem.

9.

RESOLUTION ON FOREIGN WORKERS

 

 

 

We the delegates attending the MTUC Special Labour Convention on 10 January 2004 :

 

 

·         

Express our deep concern over Human Resources Minister’s series of public announcements in the past four months, stating his actions to bring in more than 300,000 foreign workers;

 

 

·         

Point out that factory closures and relocation has eliminated thousands of jobs and severely restricted job opportunities;

 

 

·         

Disappointed that the Human Resources Minister is oblivious to the sufferings of unemployed Malaysians;

 

 

·         

Highlight the increasing complaints from Malaysian workers of discriminatory policies and practices enforced by companies, including major multinational corporations;

 

·         

Urge YAB Perdana Menteri to limit recruitment of foreign workers and direct the Human Resources Ministry to carry out a detailed study to ascertain employment situation and determine needs and requirement of foreign labour.

APPOINTMENT OF RAJASEGARAN A/L V.N. RAJAH AS CHAIRMAN OF INDUSTRIAL COURT

The qualifications for appointment as a Chairman of the Industrial Court are set out in Section 23 A of the Industrial Relations Act 1967. Under the said section a person is qualified for appointment as a Chairman if for the seven years preceding his appointment, he has been an Advocate and Solicitor within the meaning of the Legal Profession Act 1976 or a member of the judicial and legal service of the Federation or of the legal service of a state.

To our knowledge Encik Rajasegaran has never served as an advocate and solicitor for seven years preceding his appointment. Therefore we see his appointment as clearly in breach of the Industrial Relations Act. The requirements are very specific and unambiguous: Any other interpretation to justify the appointment will lead to legal challenges causing further delay and disruption of the proceedings.

We appreciate the steps taken by YB Menteri Sumber Manusia to fill the vacancies but we urge YAB Perdana Menteri to ensure that legal requirements are duly complied: Otherwise Minister’s efforts to speed settlement of cases will go to waste.

We pointed out to YB Menteri Sumber Manusia that either party appearing before the Court chaired by Encik Rajasegaran can go through the entire proceedings and later file a challenge simply questioning the constitution and legality of the court.

We learn that Encik Rajasegaran was called to the Bar seven years ago, but we are advised that mere admission to the Bar cannot be interpreted to mean that “he has been an advocate and solicitor within the meaning of Legal Profession Act 1976 unless he has fulfilled all requirements under the Act.

Taking into consideration mere admission and not experience as a practicing advocate and solicitor will defeat the intention and specific objective of Section 23 A (1) of the Industrial Relations Act 1967.

YB Menteri Sumber Manusia has said that before making the appointment, the matter was referred to the Penasihat Undang-Undang Kementerian.

On an important matter like this, we feel the question should be referred to the Attorney General himself.

Meanwhile, we appeal to YAB Perdana Menteri to suspend the appointment until the Attorney General give a clear interpretation.

10.

RESOLUTION ON APPOINTMENT OF INDUSTRIAL COURT CHAIRMAN IN BREACH OF SECTION 23A OF THE INDUSTRIAL RELATIONS ACT

 

 

 

We the delegates attending the MTUC Special Labour Convention on 10 January 2004 :

 

 

·         

Disappointed over Human Resource Minister’s decision to ignore trade unions’ and Bar Council’s call to review his decision to appoint a corporate figure as a Chairman of Industrial Court.

 

 

·         

Point Out that the new appointment to take effect from 15 January 2004 is clearly in breach of the provisions of Section 23A of the Industrial Relations Act 1967.

 

 

·         

Reiterate that the Minister has not only failed to ensure compliance of the legal requirements he has also let down workers by ignoring the track record of the new appointee who has spent most of his working life advocating employers interests at the expense of workers and trade unions.

 

 

·         

We urge YAB Perdana Menteri to review the appointment in order to ensure that court proceedings are not disrupted by legal challenges.

11.

RESOLUTION ON NUBE INTERNAL DISPUTE

 

 

 

We the delegates attending the MTUC Special Labour Convention on 10 January 2004 :

 

 

·         

Deeply concerned by the protracted dispute and its serious implications on the 28,000 NUBE members.

 

 

·         

Unanimously support the request by NUBE members to convene a special general meeting of members to elect a caretaker committee to conduct a fresh election of Executive Council; and

 

 

·         

Direct MTUC General Council to take urgent measures to facilitate the convening of a Special General Meeting of NUBE members;

 

 

·         

Urge the Human Resources Minister not to deregister the union but to direct the Director General of Trade Unions to guide and assist the members in their effort to find a conclusive solution.

GENDER DISCRIMINATION

-                     FEDERAL COUNSTITUTION – PART 8 (2)

-                     INDUSTRIAL RELATIONS ACT SECTION  14 & 16

 

The Malaysian Parliament in its wisdom has passed an Act of Parliament to amend Article 8 – Equality under Part I of our Federal Constitution.  The said amendment brought into effect vide Amendment Act A1130 introduced inter alia into Article 8 (2) of the Federal Constitution the word “gender” and the amended article 8 (2) reads as follows with the word “gender” in italics.

“Except as expressly authorized by this Constitution there shall be no discrimination against citizens on the ground only on religion, race, descent, place of birth or gender in any law or in the appointment to any office or employment under a public authority or in the administration of any law relating to the acquisition, holding or disposition of property or the establishing or carrying on of any trade, business, profession, vocation or employment”.

This amendment which is already long overdue is in essence a vindication for the long struggle of Malaysia’s, women’s movement, NGO organizations in support of women rights and MTUC Women’s Committee, all of whom, have over the years have ceaselessly lobbied and demanded for Equality for Women.

The hall mark of the amendment is that no discrimination can now be made on the grounds of ‘gender’ between male, female citizens of Malaysia.  The ramifications of the amendment to women is as follow :-

“Save and except as authorized by the Federal Constitution, women in Malaysia shall not be discriminated on grounds of their gender:-

(i)                by any law; or

(ii)             in appointment to any office

(iii)           employment under a public authority; or

(iv)            in admin of any law relating to the acquisition, holding or disposition of property; or

(v)               the establishment of carrying out of any trade, business profession, vocation or employment.

The significance of this amendment is beyond measure because by inclusion of the word “gender” in Article 8 of the Federal Constitution, the supreme law of the country. Parliament has endowed the widest section of Malaysian society i.e. all Malaysia women to stand on equal footing with Malaysian men.

But having said the above, the question that now must be addressed is, how best, can the said amendment be given effect or brought into practice in our Malaysian reality? Otherwise this very laudable amendment shall merely remain an illusion and remain a paper victory hibernating in the legal archives.

Last August MTUC urged the Industrial Court to take cognizance of the amendment to the Federal Constitution, and pursuant to its powers, under Section 16 of the Industrial Relations Act can, either refuse to take cognizance or amend terms of the Collective Agreement now before the Industrial Court for cognizance that are contrary to Section 14 of the Industrial Relations Act on the basis that the terms are a violation of the amended Article 8 (2) of the Federal Constitution.

Many companies including large multinational corporations compel female employees to retire on attaining the age of 50 whereas male employees are allowed to work until 55 years.

In the Malaysian Airlines System (MAS) female members of the cabin crew are required to retire on attaining the age of 40 years and for senior staff at 45 years whereas male members of the cabin crew are allowed to work until 55.

By virtue of the aforesaid amendment such discriminatory practice can no longer be practiced. We therefore urge YAB Perdana Menteri to direct the Human Resources Ministry to ensure compliance of Article 8(2) of the Federal Constitution.

12.

RESOLUTION AGAINST DISCRIMINATORY PRACTICES AGAINST WOMEN

 

 

 

We the delegates attending the MTUC Special Labour Convention on 10 January 2004 :

 

 

·         

Note with concern the Malaysian Airlines’ discriminatory policies against women employees.

 

 

·         

Express dissatisfaction against Human Resources Ministry’s reluctance to act against MAS;

 

 

·         

We urge YAB Perdana Menteri to direct MAS to stop all discriminatory practices against women employees.

 

 

13.

RESOLUTION ON NATIONAL LABOUR ADVISORY COUNCIL (NLAC)

 

 

 

We the delegates attending the MTUC Special Labour Convention on 10 January 2004 :

 

 

·         

Concerned that the National Labour Advisory Council (NLAC) has been functioning as a mere window dressing in Malaysia all these years and the Government uses the NLAC as a living excuse to claim that it has abided by the requirements of ILO Convention 144 (Tripartite Consultation).

 

 

·         

Pointing Out that Article 5 of the NLAC Constitution (adopted in 1995) merely states that:

"The Council is responsible for discussing and providing advice to the Government on all issues pertaining to policy, law and employment practices.  Its functions include providing ideas and experiences of the workers, employers and the Government with the view to resolving labour issues and to also improve the conditions of employment practices and at the same time increase productivity."

While Clause 3.2 of the Ministry's proposal states that:

"The Council generally discusses all issues pertaining to policy, law and administrative practices of the Human Resources Ministry. The Council should also specifically draw the attention of and advise the Minister accordingly."

Aware that both Article 5 of the NLAC Constitution and Clause 3.2 of the Ministry's proposal are obviously silent on the following:

-         Whether the Minister will be required to consider and accept the findings and recommendations of the NLAC;

-         If accepted, whether the Minister will forward the same to the Cabinet for subsequent decision-making, and then on to Parliament to be debated and signed into law;

-         Upon being signed into law, whether the Council's findings and recommendations are effectively enforceable.

Reiterates that the decisions of the NLAC should be binding and legally enforceable. 

Proposes that to effectively show the improved legal status of the Council, the term "National Labour Advisory Council" be appropriately re-phrased as "National Labour Council" to correctly reflect the purpose and spirit of tripartite consultation as contained in ILO Convention 144.  Towards this purpose, Article 2(1) of the Council's Constitution be amended accordingly.

Urges the Council to be proactive in its functions and not wait for events to happen before taking action;

Observing that while Article 14(1) of the NLAC Constitution states that:

"The Council should meet as often as possible, not less than two times in a year, on a date and at a place to be determined by the Chairman."        

Concerned that the NLAC rarely meets even once a year and that it should preferably meet at least once every three months to resolve labour issues expeditiously.

Proposes that apart from the full composition of the Council, a smaller tripartite Technical Committee also be formed, and that it meet whenever necessary to consider and resolve labour issues at the shortest possible time.

 

 

14.

RESOLUTION ON CODE OF CONDUCT FOR INDUSTRIAL HARMONY

 

 

 

We the delegates attending the MTUC Special Labour Convention on 10 January 2004 :

 

 

 

Pointing Out that the Code, though adopted as early as 9 February 1975, has not been complied with by the employers and is gradually being forgotten. For instance, Article 19 (Security of Employment) and Article 20 (Redundancy and Retrenchment) have been breached in several cases; 

Reiterates that retrenchment should be the last resort after exhausting all possible avenues of settlement in consultation with the workers or their unions;

Aware that in many cases, retrenchment appears to be the first option rather than the last option, of the employers.  The conventional practice of "Last in, first out" has also not been implemented, with employers adopting discretionary approaches, irrespective of seniority, when making decisions to retrench their workers. 

In addition, many employers have also breached Section 63 of the Employment Act, which states that they should give adequate written notice in advance to the Labour Department and to their workers before embarking on retrenchment exercises. There have been many cases of certain companies "closing shop" overnight, leaving workers in the lurch;

Stating that employers have also resorted to other alternatives such as outsourcing, voluntary separation schemes (VSS), special separation packages (SSP), job-sharing, contracting and employing part-time workers to get around the Code; 

Worried that all these, and more, have caused irreparable damage to job security and has to be arrested immediately;

Calls upon the organised labour movement to strongly resist any effort that aims to undermine job security and by extension, social stability.

 

 

15.

RESOLUTION ON MINIMUM WAGES

 

 

 

We the delegates attending the MTUC Special Labour Convention on 10 January 2004 :

 

 

 

Urges the organised labour movement to continue with its efforts to establish minimum wages  in Malaysia to ensure that workers are able to live in reasonable comfort and enjoy quality of life;

Noting that the MTUC has identified RM900 as the prevailing benchmark for minimum wages in the country;

Reiterates that the organised labour movement’s initiatives to establish a minimum wage that is consistent with the prevailing cost of living should go ahead unabated, despite employers’ frequent calls for wages to be determined by market forces.

 

 

16.

RESOLUTION ON NATIONAL RETRENCHMENT SCHEME

 

 

 

We the delegates attending the MTUC Special Labour Convention on 10 January 2004 :

 

 

 

Recalling that the MTUC's efforts to set up a National Retrenchment Scheme (NRS), though agreed to in principle by the former Prime Minister, has been thwarted by the employers who claim that it would increase operating costs and render them less competitive in the market-place;

Recapitulating that the establishment of social safety nets has been adopted by the Asia Pacific Cooperation (APEC) Summit which met in Malaysia in 1998 (paragraph 24 of the APEC Declaration);

Emphasises that the organised labour movement should continue with its efforts to establish a National Retrenchment Scheme (NRS) as a viable social social safety net for our workers who have been retrenched from employment with little opportunity for new employment;

Proposes that the Scheme, to be set up with joint contributions from employers and workers each contributing 50 cents per worker per month, be managed by the Social Security Organisation (SOCSO).

(G. Rajasekaran)

Senator Zainal Rampak

Secretary General

President

19 January 2004

 


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