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?
Instead of helping the workers, it may do more harm than good in its campaign.
It is in fact fighting for a lost cause since noisy demonstrations have little
effect on either the Government or private sector employers.
<p>The congress says it has no choice but to continue with its protest since it
did not get the appropriate response from the Government. </p>
<p>And what is the response it wants? A commitment on a minimum wage of RM900
and RM300-a-month COLA. If this is the case, then its leaders will have a long
wait. </p>
<p>No responsible Government is going to force the private sector to meet this
mind-boggling demand because of the serious economic implications on the nation.
</p>
<p>The congress should stop its wishful thinking. While it is running on empty,
its leaders are intelligent enough to realise the scale of its request. </p>
<p>If their claim that the majority of those in the low-income group are getting
RM600 a month, then the employers would need to pay an additional RM600 or a
100% increase to meet their needs. </p>
<p>And that is not all. Employers will have to fork out another 12% in compulsory
EPF contributions to each worker, thus bringing the total to 112%. </p>
<p>Even an illiterate can compute this figure and can determine whether the workers
can expect to receive such a financial bonanza without a commensurate increase
in productivity. </p>
<p>Employers will also have to review the salary scale of those higher-paid employees
who will not be ready to lose out on this windfall. </p>
<p>It is worth reminding congress leaders that granting their asking price will
have two unpleasant endings – not that they are unaware of the consequences.
</p>
<p>First, those employers without the financial muscle to pay the new wages will
have to shed workers, thus leading to people losing jobs. Or companies will
close because they can no longer survive, due to the high cost of doing business.
</p>
<p>Others will recruit fewer workers to reduce expenditure and school leavers
will find it harder to look for jobs, thus adding to the unemployment situation.
</p>
<p>Businessmen are practical and if they are forced into a corner, they will either
close their companies and factories or relocate to areas where labour is cheaper,
such as Vietnam, Indonesia and, for the time being, China. </p>
<p>These are serious issues that the Government and union leaders have to consider.
Instead of indulging in wishful thinking of a starting salary of RM1,200, unions
should desist in asking for the moon. </p>
<p>The only way to justify a higher starting salary is for workers to be equipped
with skills to make value-added products that can fetch higher prices locally
and overseas. </p>
<p>Union leaders too should encourage workers to upgrade their skills so that
they can compete. Employers will only be prepared to pay more if they are convinced
that they can still make a profit.</p>
<p><i>Source: http://thestar.com.my/columnists/story.asp?file=/2007/8/10/columnists/vkchin/18469685&sec=VKChin</i>
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