Malaysia is one of Asia's biggest employers of foreign labour. But recently, cases of deaths, abuse and forced labour have come to light. What is going on? Who is protecting these migrant workers?
By G. Rajasekaran, Secretary General MTUC
We have briefly recorded important events and issues facing MTUC affiliates and the labour movement. We have entered the new millenium with many issues and priorities to be tackled. Workers’ standard of living has not kept pace with the economic growth of the country. Labour legislations on minimum standards has remained stagnant for two decades.
The events of last decade of the century has been most disturbing; workers saw the gains achieved through years of collective bargaining wiped out by inflation. The east Asian economic crisis left tens of thousands jobless and resulted in wage cuts, slashing of bonus, denial of bonus, severe reduction in take home pay and withdrawal of annual increments.
For more than two decades, MTUC, trade unions and the international trade union movement have repeatedly highlighted the power and influence exerted by Multinational Corporations (MNCs) and called on the ILO to introduce standards to regulate their behaviour.
A glaring example of MNC’s influence in Malaysia is the Government’s promulgation of a policy which contradict the Trade Union Act and deny the 150,000 electronics workers the right to establish an industrial union. Most American MNC’s have demonstrated a strong anti union stance since the early 70’s and our Government has condoned such unfair labour practices for a variety of reasons.
In the name of globalisation and competition, powerful corporations, both foreign and national, have restricted growth and influence of trade unions, removed well established minimum standards, blocked minimum wage legislations, weakened collective bargaining and played prominent role in flooding the country with foreign workers.
In the name of globalisation Malaysian Banks have decided to outsource a number of activities to their subsidiary companies. Despite strong objections against the move, banks are insistent that employees accept or face retrenchment. Banks have ignored union’s demand to justify the drastic action.
Prior to this, resulting from Government’s directive to merge, banks and financial institutions removed thousands of employees under so-called “Voluntary Seperation Scheme (VSS)”. Subsequently VSS spread like wildfire to all sectors and reports from workers and affiliates showed that many were indeed compelled to sign up VSS applications or face retrenchment with inferior compensation.
The last decade also saw a tremendous increase in the importation of foreign workers which encouraged employers to practice discrimination and suppress wages to locals. Cruelty and sometime savage treatment accorded to foreign workers by certain unscrupulous employers severely tarnished the image of Malaysia in the eyes of foreigners. Despite widespread retrenchments Government failed to heed MTUC’s call to freeze recruitment of foreign workers.
In the last decade EPF progressively reduced the annual dividend to contributors from 8.5% to 6%, the lowest in 27 years. EPF’s poor performance will seriously affect the contributors living conditions on retirement. From July 1, 2000 EPF slashed the Death and Incapacitation benefits from a maximum of RM30,000 to a flat rate of RM2000. EPF also shirked their responsibility by passing on the newly introduced Annuity Scheme to private insurance companies. Only the Prime Minister’s directive ended the scheme which was seen by insurance companies as a huge profit making venture.
The conciliation machinery which forms an essential and integral part of the Malaysian Industrial Relations System is in need of urgent and serious attention. The system has become shockingly ineffective. Steps taken by the Ministry since November 2000 has not significantly improved the serious backlog.
There is great deal of discussion about the effect of Globalisation but very little is said about AFTA.
Governments involved in the negotiations have focused their energy to ensure free trade and services and removal of tariffs. So far there is no indication that member countries have shown any concern or even slight interest to address the wide disparity in wages and working conditions that exist within ASEAN. We need to discuss the implications of AFTA and the steps to be taken to ensure that the intense competition amongst corporations do not accelerate the race to the bottom.
MTUC together with the ICFTU carried out an intensive campaign to demand fair trade that would benefit working families and not just multinational corporations.
We believe WTO, APEC, ASEAN, World Bank, Asian Development Bank and the IMF should address issues of Social Development and Social Safety Nets.
There is an urgent need to establish a fund to assist workers who are retrenched and remain unemployed. In the last 3 years at least 10,000 workers did not get any compensation as stipulated in the Employment Act because the employers had absconded or have been declared bankrupt.
Government should no longer remain indifferent to MTUC’s appeals to legislate a minimum wage of RM900. Government’s reluctance to intervene has encouraged employers to underpay workers. The full force of the globalisation process will add further pressure to lower wages in the name of competitiveness.
Government must give effect to the provisions of article 10 of the federal
Constitution and remove all barriers obstructing workers right to join a trade union of their choice. It is untenable for the Government to continue denying the workers in the electronics industry to establish an industrial union. Such practice is encouraging more employers to call themselves as electronics manufacturers. MTUC repeatedly stressed the need to ratify ILO Convention 87 on Freedom to organise.
We place on record our deep appreciation to JILAF, ACILS, LO-FTF, LO-NORWAY, CTUC, ILO, ICFTU and ICFTU-APRO for their valuable advise and assistance.
We wish to place on record our deep appreciation to all affiliates, its leaders and members for their support and active participation in MTUC programme and activities.
We thank all the officials, members of the committees and Divisions for their assistance. We also wish to record our sincere appreciation to MTUC staff for their dedication, support and cooperation.
by G. Rajasekaran
Address: Wisma MTUC,10-5, Jalan USJ 9/5T, 47620 Subang Jaya,Selangor | Tel: 03-80242953 | Fax: 03-80243225 | Email: sgmtuc@gmail.com.com