the blogging syed shahir

There have been many issues pertaining to a lack of understanding of a Malaysian worker’s rights.

Citizen Journalists Christine Chan and R. Vijay Kumar met Syed Shahir bin Syed Mohamud, President of Malaysian Trades Union Congress to seek explanations and advice.

This video clip is Part 2 of our first video on our Legal Rights Awareness Campaign on the Malaysian Employment Laws.

Video by R.Vijay Kumar and Christine Chan, Citizen Journalist.

See the video at http://www.malaysiakini.tv/video/17684/malaysian-employment-laws-part-1.html (Part 1)

and http://www.malaysiakini.tv/video/17691.html. (Part 2).

Pengumuman yang bakal dibuat oleh Menteri Sumber Manusia berhubung dengan penetapan gaji minimum untuk 4 sektor tertentu bukanlah sesuatu yang memeranjatkan. Hal ini sudahpun disebut berkali-kali sebelum ini. Penetapan untuk 4 sektor tertentu bukanlah sepertimana yang dihajatkan oleh MTUC. Perjuangan untuk mendapatkan gaji minimum untuk seluruh pekerja di Malaysia adalah merupakan suatu hal yang belum dicapai sepenuhnya. Sesungguhnya perjuangan untuk mendapatkannya tetapkan akan diteruskan!

Apakah yang bakal diumum oleh Menteri Sumber Manusia mengenai gaji minimum untuk 4 sektor tersebut? Berapakah kadar yang akan ditetapkan? Bila ianya akan dikuatkuasakan? Tentunya sebahagian daripada kita berminat untuk mengetahuinya. Sama-samalah kita tunggu walaupun kita tidak bersetuju dengan keputusan yang dibuat oleh pemerintah mengenai gaji minimum ini.

THE feature articles on employment, “Keeping jobs” (The Star, March 4), have addressed the issues from various perspectives.

It is good to note that the Employers Federation and the MTUC had some common views on stretching the retirement age for private sector employees to 60 or 65 in line with the practice in other countries, so that we could utilise more local human capital and not be over-dependent on cheap foreign labour. Hopefully they can also agree on other issues, too.

The arguments of MTUC president Syed Shahir Syed Mohamud (“MTUC speaks out for workers”) that national development has been held back because we do not have a minimum wage also merits consideration, although the amount of RM900 in basic and RM300 in COLA suggested by MTUC may be a little unrealistic.

Perhaps the current employment and economic scenario, coupled with the aspirations of the nation to develop its human resources to a more competitive level, should persuade us to re-examine the minimum wage issue.

The Government is retraining thousands of workers, and future workers are expected to have better training and skills. The added value of such competencies in workers should be reflected in decent wages and benefits to maintain high motivation.

But without a floor level there would be no benchmark for proper wage rates, and the free market would continue to encourage competition in engaging cheap labour to provide low-priced goods and services.

Before a minimum wage law came into force in 1999 in UK, the employers and the Conservative Party were strongly against it, but now no longer oppose it.

There were assumptions that minimum wage would cause job losses and unemployment, but the experience in developed countries shows that it reduced redundancies, increased workers’ productivity and made businesses more competitive.

The Low Pay Commission of UK has consistently reviewed the minimum pay since 1999 and has found no evidence of any damaging economic effects. The International Labour Organisation also supports the view that there is no linkage between unemployment and minimum pay.

There are studies suggesting that minimum pay should be in place when more trained workers are available for employment so that there is an equitable basis for providing decent minimum standards.

Otherwise we may be just wasting the money on training and development and placing workers in a low priced job-market.

What is needed is a principle based minimum pay which responds to social and economic needs and would also promote the Government’s strategy.

KAY ARR,
George Town.

PUTRAJAYA, April 2 (Bernama)- The Malaysian Trades Union Congress (MTUC) today called on the government to beef up the enforcement unit of the Manpower Department to ensure the successful implementation of its new policy on levy for foreign workers.

Its president, Syed Shahir Syed Mohamud, said the department had only about 500 officers now and this was not enough to keep tabs on the thousands of employers throughout the country.

“We do not expect them to visit all employers, as it would be impossible, but at least they should do a systematic random check so that the policy is adhered to,” he told Bernama.

Under the new policy which came into effect yesterday, employers in all sectors will now have to pay the levy, following the revocation of the earlier policy which allowed them to deduct the levy from the monthly wages of their employees.

This means that from this month onwards employers would have to fork out the levy even for their existing workers, thus increasing their operational costs.

The Malaysian Federation of Employers (MEF) had described the new policy as unfair because it was implemented in mid-stream with little notice from the government.

MEF executive director Shamsuddin Bardan said it was understandable for new recruits, but to extend the policy to existing workers was not proper and and would upset the budget and planning of companies, particularly those with thousands of foreign workers.

Meanwhile, Manpower Department Director-General Datuk Ismail Abdul Rahim gave an assurance that the department would carry out effective implementation of the new policy with its existing staff.

“The staff have been told to carry out thorough checks and take firm action against employers who refuse to accept the new directive,” he said.

Those found guilty of flouting the regulations could be fined up to RM10,000.

He said the government had also doubled the levy for workers in the manufacturing and services sectors from RM1,800 to RM 3,600 effective yesterday.

– BERNAMA

By : Audrey Dermawan

GEORGE TOWN, Fri: The Malaysian Trades Union Congress has proposed that all Cabinet ministers take a pay cut if the economic situation in the country warranted it.

To start the ball rolling, MTUC president Syed Shahir Syed Mohamud said companies which intend to lay off their workers, should first have the salaries of their bosses, including that of their chief executive officers, general managers and directors slashed.

Even the Penang state government has indicated that it would consider the proposal if the situation warrants.

Syed Syahir, however, did not specify the quantum to be deducted.

He said workers should not be the only ones victimised following the current global economic slowdown.
“All ministers and bosses should walk the talk and jointly share in the workers’ burden. This is only fair,” he told reporters after a meeting between MTUC and deputy chief minister Professor P. Ramasamy here yesterday.

It was the first official meeting between MTUC and the state government.

It was reported late last year that ministers and top civil servants in Singapore were subjected to a pay cut of up to 19 per cent this year in view of the clouded economic outlook.

Syed Shahir said from October, last year, to January, this year, MTUC has received reports of some 13,000 people, mainly from the manufacturing sector, retrenched nationwide.

Asked if there were more retrenchments in the state, Ramasamy said he has received news of some 600 foreign workers laid off at a factory in Bayan Lepas recently. It is learnt that the workers are from Globetronics Technology Bhd.

Ramasamy was, however, quick to point out that the situation in the state was still under control and that the state government was monitoring it.

Syed Shahir also expressed the hope that the federal government would expedite the implementation of the retrenchment fund.

“We have been advocating for the fund for the last 10 years but until now it has yet to be implemented. We hope the government will seriously look into this,” he added.

PENANG (Feb 13, 2009): The Malaysian Trade Union Congress (MTUC) has urged Cabinet ministers and top executives to take a salary cut to offset the impact of the economic slowdown.

Its president Syed Shahir Syed Mohamud said it would be unfair to ask workers to go on unpaid leave to save faltering companies while top executives did not make any sacrifices.

The austerity drive should start at the top and not the other way round, he told reporters after calling on Penang Deputy Chief Minister P.Ramasamy here today.

“We should emulate Singapore president and prime minister, who would be taking a salary cut next year, leading a civil-service-wide downward salary adjustment,” he said.

Syed Shahir said the MTUC deplored a statement from a former deputy minister who asked workers to take unpaid leave to save their companies from collapsing.

“Why only the workers who have to make the sacrifices? Cabinet ministers and employers should also do likewise. With their meagre income, the workers would be in dire straits if they were to take unpaid leave, especially those with large families,” he said.

Syed Shahir also called on the federal government to implement the retrenchment fund, which was mooted by MTUC 10 years ago, to help 13,000 workers who were already jobless since October last year.

Commenting on Chief Minister Lim Guan Eng’s remarks that only 1,313 workers from 31 companies in Penang were retrenched in January, he said the MTUC took a serious view on the matter.

The MTUC and the state government has agreed to work out a mechanism in dealing with workers retrenchment, he said, adding that the meeting also touched on the proposed MTUC workers complex in Penang.

Meanwhile, Ramasamy said Penang was prepared to consider a salary cut for state executive councillors should the economic situation worsened. — Bernama

By Carolyn Hong, Malaysia Bureau Chief

KUALA LUMPUR, MALAYSIA: Malaysian university graduates this year may be offered loans without the need for guarantors or collateral.

Easy credit? No, just the government’s way of preparing for an expected shrinkage of jobs as the full impact of the global economic crisis makes itself felt in Malaysia.

Entrepreneur and Cooperatives Development Minister Noh Omar said on Dec 17 last year that the government was considering giving unsecured loans to graduates who want to start small businesses.

On top of that, the government has also set up a RM70 million (S$29 million) fund to retrain unemployed graduates. Human Resources Minister S. Subramaniam said recently that they will be taught skills such as communication, English language and creative thinking.

The government is gearing up for hard times this year, and hurrying to get safety nets in place as the economy shrinks. The political fallout from joblessness can be huge, as Malaysians are unused to high unemployment rates.

The government took a big hit last year when voters punished it for its apparent ineptitude in handling spiralling inflation at that time.

This year, unemployment will be its big test.

Malaysia’s 52 public and private universities and colleges produce 145,000 graduates and diploma holders annually, while several thousands more come back with overseas qualifications.

Even in good years, thousands of graduates struggle to get the white-collar jobs that they want.

For some like Ms Hajahfarhana Tarnudi, 23, starting a business could be the very thing she needs, having given up looking for a suitable job.

The journalism graduate from Universiti Teknologi Mara gave up her dream of working as a reporter after her parents objected, but could not find any alternative career. She now plans to plant chillies on a big scale.

‘My parents don’t like me being a journalist, so I thought why not start a business?’ she said. ‘Chillies are expensive these days and not many young people are willing to go into agriculture, which can be big business.’

Ms Hajahfarhana, however, does not plan to take up a government loan, as she can get help from her parents.

But while some graduates may grab the easy business loans that the government is planning to offer, others are still determined to find more traditional employment.

‘The programme is good for those who want to be young entrepreneurs but personally, I think it is better to work first before starting a business,’ said Universiti Tunku Abdul Rahman graduate Renu Gnana Pragasam, 24, who knew about the unsecured government loans but was not interested in starting a business.

Likewise, Ms Sri Shalini Devi Veeraya, 24, said she would still look for the ‘right’ job.

Her job-hunting experience was similar to that of many fresh graduates around Malaysia.

The industrial chemistry graduate from local Universiti Malaysia Sabah spent no less than four months hunting for the right job, sending her resume to at least 100 companies.

Only about 10 per cent responded, she lamented.

‘I went through a very difficult time and it is not easy to look for the ideal job that suits my degree,’ she said.

Fortunately, she managed to find a job recently in an oil and gas company in Kuala Lumpur.

But graduates are only one part of the picture. Millions more Malaysians are employed in lower-level jobs, and these are the jobs that are now at the highest risk.

The manufacturing sector, which employs 10 per cent of Malaysia’s 11 million workers, is expected to be hard-hit this year, as its biggest markets are the United States and Europe.

So far, job losses have been minimal, but the figures could spike in the first quarter. There are already reports of lower manufacturing output, fewer orders and factories cutting back on production.

Workers in Penang factories - the hub of Malaysia’s electronics industry - have already been asked to take long vacations or work fewer days as production lines shut down.

‘So far, retrenchments are low, but we should not be complacent,’ Malaysian Trade Union Congress (MTUC) president Syed Shahir Syed Mohamud told The Straits Times.

Mr Subramaniam, the Human Resources Minister, said last month that more than 4,700 workers will be retrenched in the next three months. These include 1,500 workers from Western Digital, an American hard disk manufacturer that closed down its plant in Kuching.

In the 1998 downturn, about 80,000 Malaysians were retrenched.

The Malaysian Institute of Economic Research recently warned that the unemployment rate may rise to 4.5 per cent, compared to 3.5 per cent last year.

‘The electrical and electronics sector in particular is very vulnerable,’ its executive director Mohamed Ariff Abdul Kareem said recently.

Malaysia is hoping to save jobs for its citizens by sending home foreign workers who comprise a third of its workforce. It has also allocated RM300 million to upgrade workers’ skills.

Mr Syed Shahir is, however, pushing the government to do more to meet retrenched workers’ pressing needs. He said the retrenchment benefits stipulated by law are inadequate.

‘We are asking the government to expedite a retrenchment fund. It’s not dole, but support for them until they can find a job,’ he said.

The MTUC has been pushing for this for years, though without much success as the government is strenuously opposed to what may appear to be dole.

But this year, the job imbalance is likely to become more stark: While Malaysia employs three million foreign workers, thousands of its graduates struggle to find a job.

The only survey available was done about three years ago, and it found that about 25,000 graduates were jobless as they lacked both technical and soft skills, and had a poor command of the English language. As they were mostly Malay, the situation was exacerbated by job seekers’ claims of discrimination by the largely non-Malay private sector.

This could put greater pressure on the government as an employer. Every year, thousands flock to the civil service for jobs. At one time - when the government still provided this data - figures showed that sometimes, there were more than 10,000 applicants for a single white-collar civil service position.

Over the years, the government has absorbed so many workers that its staff strength grew from 800,000 to 1.2 million. It may not be able to hire more people in a downturn.

For some graduates, the dearth of jobs has meant giving up their dream jobs.

Universiti Teknologi Mara graduate Nuraingnee Ya, 24, from Kelantan, for instance, found herself taking up odd jobs, working in fast-food outlets and customer service centres.

Instead of putting her journalism degree to use, she had to resort to using her Form Five qualification - equivalent to a Secondary 4 education in Singapore - to land a job.

‘Several employers told me they would rather hire me on Form Five qualification so they don’t have to pay me a graduate’s salary,’ she recalled. ‘So I had no choice because if I were to be picky, I would be jobless.’

By RASHVINJEET S.BEDI

Retrenchments and shutdowns are expected to be the norm over the next few months as the manufacturing sector faces cutbacks in production in the wake of the global economic slowdown.

SEVERAL workers at a semiconductor company got a rude shock when they were not allowed into their workplace recently.

When they complained, they were told of their retrenchment and escorted by security guards to collect their compensation and belongings.

This might sound cruel and inhumane, but it happened, says Harenthren (not his real name), an engineer in a semiconductor company in Seremban.

“They definitely have to be worried. Even if they try their luck at nearby companies, they are unlikely to get a job at this moment. Many of them have commitments,” he says.

Harenthren, 27, has been spared the chop but several of his senior colleagues have been laid-off.

Over the next few months, the scenario might be the norm as many companies, especially those in the manufacturing sector, are expected to face production slow-downs.

When Western Digital closes its plant in the Sama Jaya Free Industrial Zone, Kuching in March, 1,500 employees will lose their jobs. The company is also closing down its plant in Thailand.

This phenomenon is not limited to Malaysia. Everywhere in the world companies are cutting down on their work force to deal with the economic slowdown.

Sony Corp, the world’s second-biggest consumer-electronics maker, plans to eliminate 16,000 jobs in the largest reduction announced by a Japanese company.

Even Toyota Motor Corp, the world’s second-largest automaker, expects its first operating loss in 71 years because of plunging North American and European car sales and the surging yen.

In Southern China, at least 2.7 million factory workers are expected to lose their jobs.

The situation in Malaysia is still unclear for now, with the full extent of the crisis to be known in the next few months, say industry experts.

Datuk Wong Siew Hai, the Malaysian-American Electronics Industry (MAEI) chairman says that it is not only the electronics sector which is affected by the economic crisis. Other industries said to be facing difficulties include those dealing with textiles and building materials.

“We are still uncertain about the future, other than the fact that there is going to be a slowdown. Different people have different forecasts but ours would depend on measures taken by the governments (American and Malaysian),” he says.

“Unemployment will go up and people will only spend money on the essentials,” adds Wong.

M. Vivekanandan, the Malaysian Employers Federation (MEF) general manager of industrial relations, says as it is, the figures of those retrenched are relatively low.

He however expects the effects to show up in a few months, and slams those who are still singing the praises of the local economy.

“We are in dreamland if we think nothing is going to happen. We are an export-driven economy and are not insulated from the global economy,” he says.

Currently, the manufacturing sector employs about 1.1 million people or 10% of the country’s labour force.

One thing that is certain though is, in Malaysia the electronics and electrical sectors are the hardest hit, with possible far-reaching implications on the economy.

According to the Malaysian Industrial Development Authority (Mida), export sales of electronics in 2007 amounted to RM266.3 billion or 58.9% of Malaysia’s manufactured exports and 44% of Malaysia’s total exports.

G. Rajasekaran, secretary-general of the MTUC says overall demand in the manufacturing sector has gone down by about 40%. This caused factories to shut down for extended periods during the Christmas season.

“During recent shutdowns, companies told workers to take annual leave on non-public holidays. Those who didn’t have any leave left were forced to take advanced leave,” he says.

According to an AP report, financially struggling American universities, factories and even hospitals are asking employees to take unpaid “furloughs” — temporary layoffs that amount to one-time pay cuts for workers and a cost savings for employers. The report said the number of temporarily laid-off workers hit a 17-year high this year.

“One local semiconductor company is badly affected because GM (General Motors) is the main client and it is not buying anything from them. This company has cut the number of working days,” says Vivekanandan.

GM and Chrysler were on the brink of shutting down until the American Government bailed them out with federal loans amounting to US$13.4bil (RM46.2bil).

In a typical manufacturing factory, the cost of labour is 15-20% of operational cost says Vivekanandan.

“In the long run, it is not beneficial to lose skilled workers, especially when there is a turnaround. Companies will lose out after training them. Retrenchment should always be the last resort,” he says.

Vivekanandan says that some companies have cut expenditure by cancelling dinners, company travels, publications, using less energy and even less stationery.

The Human Resources Ministry has told companies who are facing difficulties to stop hiring new workers, restrict overtime and work on public holidays, reduce number of working hours, temporary layoffs, providing alternate employment, transfers to other departments, pay cuts and terminating employees who have exceeded the retirement age. If all else fails, retrenchment is the last resort.

Under the Employment (Termination And Lay-off Benefits) Regulations, workers would be compensated a part of their salary for each year of service.

For workers who have been with a company for two years or less, compensation would be 10 days of salary per year of work. For those who clocked in between two and five years, it would be 15 days of salary per year and for those above five years, 20 days.

Syed Shahir Syed Mohamud, the president of the Malaysian Trade Union Congress (MTUC) says that if cuts are made, it should be across the board.

Rajasekaran says the Government should make a serious effort to restrict the hiring of foreign workers. The MTUC, he says has urged companies to lay-off migrant workers when their contracts end.

“After that, they should not bring in any more workers even if they have the permits.”

Another area which should be looked into is the area of retraining, says Rajasekaran. The Cabinet had approved RM100mil to help re-train retrenched workers and RM70mil to provide skills training for single mothers and unemployed graduates.

“Usually the training is for unemployed graduates. How about the people who have worked for 10 years and have commitments such as mortgages. They won’t be able to survive without a job,” says Rajasekaran.

Vivekanandan says Malaysia must move from sunset industries such as producing textiles to sunrise industries.

“We are not a low-cost labour centre. We should go into the hi-technology industries such as biotechnology. The future is in these areas,” he says.

He cites the example of the Singapore Wages Council which increased wages by 35% in 1979 to force all labour-intensive industries to move out.

Wong also stresses the importance of skills upgrade for workers but would ultimately like to see the Government being more competitive. He says, the current economic climate might be the best opportunity to start doing so.

“The Government should improve the delivery system and the ease of doing business. It is an opportunity for everyone to buck up. If a similar decision has to be made next time (to shut down factories), companies won’t pull out of here. We can’t stop unemployment but we can minimise it,” he says.

Syed Jaymal Zahiid (Malaysiakini)

A memorandum drafted by the Malaysian Trades Union Congress (MTUC) protesting against the RM5 billion loan from the Employees Provident Fund (EPF) to ValueCap Sdn Bhd to invest in the stock market, was handed over to Pakatan Rakyat MPs in Parliament today.

MTUC president Syed Shahir Syed Mohamud who handed over the memorandum said the body was concerned with the government’s decision to use workers’ money to invest in the stock market, given the current climate of economic uncertainties.

“Each ringgit from the EPF is a result of the hard work by workers in this country.

“In recent volatile conditions of the stock market, using workers’ money to invest is unfair for them,” he told a press conference today.

Two months ago, the government came under heavy attack when it announced that RM5 billion from the EPF would be used to invest in companies with low share prices but strong potential.

Many quarters, however, alleged that the government had actually intended to bail out ValueCap from debts that are due in Feb 2009.

On Nov 11, Second Finance Minister Nor Mohamed Yakcop dismissed the claims in Parliament, stressing that the money would be used to invest in underperforming stocks.

He further echoed Deputy Prime Minister and Finance Minister Najib Abdul Razak’s assurance to EPF contributors that the amount is “100 percent guaranteed” by the government.

Anwar: Unfair to gamble away workers’ money

Shahir, however, said although the government had assured the people that investments would only be made on secure shares, workers were worried that their money would actually be spent to save crony shareholders.

“Who will be benefitting from these investments? We don’t want the RM5 billion taken from our savings to be wasted by going to shareholders with vested interests,” stressed Shahir.

He said it was better for the government to invest in sectors that would promise a secure income.

Opposition Leader Anwar Ibrahim, PAS’ Dr Hatta Ramli, DAP’s
P Ramasamy and PKR’s Abdullah Sani received the memorandum today.

Shahir said the memorandum was also handed over to a representative of the Finance Ministry this morning in Putrajaya.

Anwar, commenting on the matter, said the Pakatan coalition had already issued a statement protesting against the government’s move.

“Workers money is being gambled for the interests of certain selected and crony companies. This is unjust when we know the global economic scenario.

“In the current condition, to take EPF money to save a few crony companies is so unjust as it would be the workers that would be most pressed by economic pressure (given the global economic slowdown),” he said.

By LEE YUK PENG and LOH FOON FONG (The Star)

KUALA LUMPUR: Opposition Leader Datuk Seri Anwar Ibrahim (PKR - Permatang Pauh) says former de facto Law Minister Datuk Zaid Ibrahim is welcome to join PKR.

Despite admitting that he spoke to Zaid after the latter tendered his resignation as a minister, Anwar said he would give Zaid the space and time to reflect instead of pushing him to join the party.

“He is an asset to the nation.

“This is his choice. We are comfortable with him. We have seen him firmly defending human rights.

“He is committed to his principle against the draconian law,” said Anwar referring to Zaid’s stand against the use of the Internal Security Act (ISA).

Zaid resigned as a minister and senator on Sept 17 after he disagreed with the Government’s decision to detain a journalist, a blogger and a Pakatan MP under the ISA.

Anwar on Wednesday said Umno’s move to sack Zaid for attending the PKR function was intolerant and harsh.

He said this to reporters after meeting with Malaysian Trade Union Congress (MTUC) president Syed Shahir Syed Mohamud at the Parliament Lobby.

Syed Shahir said MTUC had presented a memorandum to the Finance Ministry against the use of RM5bil from the Employees Provident Fund for Valuecap Sdn Bhd.

Syed Shahir said MTUC was concerned with the usage of funds from workers’ hard earned money.

DAP Parliamentary Leader and Ipoh Timor MP Lim Kit Siang said the DAP is prepared to receive Zaid if he wants to join the party.

“Our doors are open,” he said.

Umno sacked Zaid on Tuesday for attending events organised by several opposition parties.

Utusan Online

KUALA LUMPUR 21 Okt. - Kebanyakan pekerja tempatan tidak berminat bekerja di beberapa sektor seperti pembinaan ataupun perladangan kerana gaji yang dibayar oleh majikan adalah tidak munasabah iaitu kurang RM500 sebulan.

Presiden Kongres Kesatuan Sekerja Malaysia (MTUC), Syed Shahir Syed Mohamud berkata, selain itu, majikan pula memberi alasan bahawa pekerja tempatan tidak berminat dan mengamalkan sikap terlalu memilih pekerjaan.

Menurut beliau, pihaknya mendapati isu gaji adalah masalah utama yang mendorong warga asing ‘mencuri’ peluang pekerjaan di negara ini.

‘’Ini kerana golongan itu tidak mengambil berat pasal upah ataupun kemudahan yang ditawarkan kepada mereka, manakala pekerja tempatan terpaksa menjadi ‘penganggur’ ekoran tindakan segelintir majikan yang tidak prihatin dalam masalah gaji.

‘’Warga tempatan terpaksa mengambil kira masalah gaji ekoran kos sara hidup yang terlalu tinggi sejak kebelakangan ini,'’ katanya ketika dihubungi Utusan Malaysia di sini hari ini.

Star Online

BUTTERWORTH: Employers should not use the global economic crisis as an excuse to deprive workers of their rights, said MTUC president Syed Shahir Syed Mohd.

He said employers should find ways to deal with any impending economic problems instead of taking advantage of their workers.

So far, the movement had not received any complaints from workers deprived of their rights caused by the global economic crisis.

“We hope employers will come out with contingency plans to protect their workers instead of instituting retrenchment or depriving workers of their rights.

“Unfortunately, the Government has not stated what is in store for the people other than repeating that our fundamentals are strong,” Syed Shahir told reporters during a visit to the MTUC Penang office yesterday.

He said it was clear the crisis was the result of governments pursuing a free market policy in support of big capital and big businesses.

Syed Shahir said MTUC was concerned that employers would ask workers to make sacrifices, adding that the union was not prepared to accept any unfair burden imposed on workers.

“The Government should closely monitor the situation and prepare for contingencies. It should also take urgent pro-active measures to protect the interests of workers,” he said.

MTUC has some 500,000 members under 240 affiliations nationwide.

By SIM LEOI LEOI (Star Online)

PUTRAJAYA: The days of low wages for workers in the electronics and textile sectors may soon be over.

The Human Resources Ministry has given a directive for a wage council to be set up to look into the salaries of workers in both these sectors after receiving complaints that they “consistently received low wages.”

Its minister Datuk Dr S. Subramaniam said several commission of inquiries and wage councils had been formed previously to look into issues of minimum wages for workers in several sectors, such as security guards, clinic assistants, hotel and catering and general workers in small holdings.

“The ministry is currently undertaking steps to look into wages in the electronics and textile sectors. The wage council will conduct a nationwide inquiry by interviewing workers in these two industries and come up with recommendations.

“We hope they will be able to finish their work by the end of next year,” he told reporters Tuesday after receiving a memorandum on minimum wage from MTUC at his office here in conjunction of the World Day for Decent Work.

A similar wage council had recently approved a minimum wage for private security guards of between RM250 to RM700 to help ease their burden.

Subramaniam said while the Government did not agree on the implementation of a minimum wage for all workers, it recognised that it was necessary to offer decent salaries as the country was losing its skilled employees to its competitors.

“We are losing our skilled workers to Singapore and the Middle East. We may end up losing even more so we must come up with attractive salaries as a way of persuading them to stay on.

“I have requested the Malaysian Employers’ Federation to come up with guidelines on what is the appropriate salary for workers in the different areas in the private sector and how to implement them,” he said, adding that the ministry would also continue to hold dialogues with both employers and workers in sectors, which were not covered by the work of such councils.

He said the ministry was also taking steps to reduce the presence of foreign workers in the country, adding that the Cabinet had agreed on reducing the numbers by at least 500,000 persons and was thinking of ways and means of accomplishing this without it affecting businesses and the economy.

MTUC president Syed Shahir Syed Mohamud said the union would continue to pressure the Government on the issue of minimum wage of RM900 monthly for all workers despite the setting up of the wage councils.

“The wage councils are a separate issue for us and we are not against it. However, last year’s increase in salaries for civil servants have had a positive impact.

“So, we hope it’s time to give those working in the private sector a similar increase as well,” he said, adding that the memorandum also touched on the possible spillover effects of the financial crisis in United States and Europe on the workers here.

Besides minimum wage, the memorandum touched on issues such as unions and productivity-linked wage systems.

Star Online

PUTRAJAYA: A wage council has been set up to look into the low salaries of workers from the electronics and textile sectors.

“The wage council will conduct a nationwide inquiry by interviewing workers in these two industries and come up with recommendations on improving their wages,” said Human Resources Minister Datuk Dr S. Subrama­niam.

He said the ministry had been receiving complaints that workers in the two sectors “consistently received low wages.”

“We hope the wage council will be able to finish its work by the end of next year,” he told reporters after receiving a memorandum on minimum wage from MTUC at his office yesterday. The MTUC’s memoramdum was submitted in conjunction with World Day for Decent Work yesterday.

Dr Subramaniam said several commission of inquiries and wage councils had been formed previously to look into minimum wages of security guards, clinic assistants, hotel and catering staff and general workers from small holdings.

The wage council on security guards recently approved a minimum wage for private security guards of between RM250 and RM700 to help ease their burden.

Subramaniam said while the Government did not agree on the implementation of a minimum wage scheme for all workers, it recognised that it was necessary to offer decent salaries as the coun­try was losing its skilled employees to its competitors.

“I have requested the Malaysian Employers’ Federation to come up with guidelines on what is the appropriate salary for workers in the different areas in the private sector and how to implement them,” he said, adding that the ministry would continue to hold dialogues with both employers and workers from sectors not covered by the wage councils.

MTUC president Syed Shahir Syed Mohamud said the union would continue to pressure the Government to compel employers to pay a monthly minimum wage of RM900 for all workers despite the setting up of wage councils.

By SIM LEOI LEOI (The Star)

PUTRAJAYA: The days of low wages for workers in the electronics and textile sectors may soon be over.

The Human Resources Ministry has given a directive for a wage council to be set up to look into the salaries of workers in both these sectors after receiving complaints that they “consistently received low wages.”

Its minister Datuk Dr S. Subramaniam said several commission of inquiries and wage councils had been formed previously to look into issues of minimum wages for workers in several sectors, such as security guards, clinic assistants, hotel and catering and general workers in small holdings.

“The ministry is currently undertaking steps to look into wages in the electronics and textile sectors. The wage council will conduct a nationwide inquiry by interviewing workers in these two industries and come up with recommendations.

“We hope they will be able to finish their work by the end of next year,” he told reporters Tuesday after receiving a memorandum on minimum wage from MTUC at his office here in conjunction of the World Day for Decent Work.

A similar wage council had recently approved a minimum wage for private security guards of between RM250 to RM700 to help ease their burden.

Subramaniam said while the Government did not agree on the implementation of a minimum wage for all workers, it recognised that it was necessary to offer decent salaries as the country was losing its skilled employees to its competitors.

“We are losing our skilled workers to Singapore and the Middle East. We may end up losing even more so we must come up with attractive salaries as a way of persuading them to stay on.

“I have requested the Malaysian Employers’ Federation to come up with guidelines on what is the appropriate salary for workers in the different areas in the private sector and how to implement them,” he said, adding that the ministry would also continue to hold dialogues with both employers and workers in sectors, which were not covered by the work of such councils.

He said the ministry was also taking steps to reduce the presence of foreign workers in the country, adding that the Cabinet had agreed on reducing the numbers by at least 500,000 persons and was thinking of ways and means of accomplishing this without it affecting businesses and the economy.

MTUC president Syed Shahir Syed Mohamud said the union would continue to pressure the Government on the issue of minimum wage of RM900 monthly for all workers despite the setting up of the wage councils.

“The wage councils are a separate issue for us and we are not against it. However, last year’s increase in salaries for civil servants have had a positive impact.

“So, we hope it’s time to give those working in the private sector a similar increase as well,” he said, adding that the memorandum also touched on the possible spillover effects of the financial crisis in United States and Europe on the workers here.

Besides minimum wage, the memorandum touched on issues such as unions and productivity-linked wage systems.

Star Online

THE proposed higher tax rebate for the lower middle-income group will save some 100,000 taxpayers from paying taxes and income from interest on savings will be tax exempted.

The tax rebate for those with taxable income of RM35,000 and below will be raised from RM350 to RM400 per person and there will be full import exemption on several food items, currently with taxes ranging from 2% to 20%, as well as a reduction in import duties of between 5% and 30% on home kitchen appliances.

Malaysian Employers Federation executive director Shamsuddin Bardan said the tax relief on perquisites provided by employers to employees would not encourage productivity.

“Such benefits should not be taxed at all, the exemption should be 100% and not RM2,400 per year and so on,” he said, adding that some employers want to reward their workers RM10,000 but the tax relief was only RM2,000.

Shrugging off the RM2,400 childcare allowance as too little, Shamsuddin proposed that the Government instead set up more childcare centres so that more women could enter the workforce and Malaysia could reduce its dependence on foreign workers.

He noted though that the Government’s incentive for training and enhancement of skills was a move in the right direction.

MTUC president Syed Shahir Syed Mohamud said the Government had not met its main request for private sector employees to get a cost of living allowance of at least RM300 as well as a minimum wage.

On the exemption of import duty on certain foodstuff and consumer durables, he said it would be better if it were for non-luxury items.

By M. KRISHNAMOORTHY (Star Online)

KUALA LUMPUR: The days of middlemen who charged up to 30% commission to help Social Security Organisation (Socso) contributors to make claims are numbered.

Socso now wants contributors to deal with it directly through counsellors who have been placed at its head office here and branches in Petaling Jaya, Ipoh, Penang, Seremban and Johor Baru.

It has also set up the Anti-Fraud Unit to check on false claims, particularly the abuse of its disability pension schemes.

The counsellors, who are fluent in Bahasa Malaysia, Tamil and several Chinese dialects, will tell contributors how to apply for social protection via Socso’s Employment Injury Insurance and Invalidity Pension Schemes.

Socso had previously detected about 500 fraudulent claims by contributors and third parties using false identity cards.

In some of the cases, workers and employers colluded to make the claims.

Socso also discovered that about 300 invalidity pension beneficiaries were working again, which is a violation of the Socso Act.

Two years ago, the Human Resources Ministry warned contributors not to use a company in Shah Alam, claiming to act on behalf of Socso, which offered to act as a middleman to obtain payments.

Contributors were asked to pay RM50 to become members.

The middlemen or agents would charge up to 30% in commission by making claims on behalf of the contributors, mostly from the lower income group who are not well versed with procedures.

There have also been complaints that they filed false claims for Socso members and used fake medical reports to get invalidity pensions approved.

The middlemen would pick illiterate accident victims at hospitals or wait outside Socso offices to offer their “help” to those not conversant with the laws.

Human Resources Minister Datuk Dr S. Subramaniam urged those applying for Socso claims to go direct to the department.

MTUC president Syed Shahir Syed Mohamud said the unit would definitely improve Socso’s delivery system and reduce or eliminate the abuse of the pension schemes.

May 3, 2008

KUALA LUMPUR (AFP) — Malaysia’s prime minister is not yet prepared to introduce a minimum monthly wage despite mounting pressure from trade unions amid inflationary fears, reports said Sunday.

The country’s top union chief on Thursday called for pay of at least 1,200 ringgit (379 dollars) to help workers cope with soaring food and fuel prices.

Malaysian Trades Union Congress president Syed Shahir Syed Mohamud said unionists would picket outside Parliament this Wednesday to pressure the Government to implement the plan.

But Priime Minister Abdullah Ahmad Badawi hit back Sunday.

“They can have 100 demonstrations but if we can’t, we can’t,” he told state news agency Bernama, referring to demands for the minimum wage.

“If it is good, of course we will do it. But if we have some doubt about introducing it now, we cannot do it. What is the meaning of giving additional pay if tomorrow we have to use our extra money to pay for higher priced goods?” he said.

Earlier this week, Abdullah said Malaysia could no longer rely on its cheap labour to attract investors and should focus instead on creating a higher quality and better educated local workforce to fight off regional competition.

However, soaring global oil and food prices have caused major inflationary pressures in the country while severely affecting the cost of living for lower-income groups.

Syed said using inflation was a poor reason for refusing the minimum wage.

“This is a weak argument. Are you saying that it doesn’t matter that people are suffering as long as it doesn’t affect inflation?” he told the Star daily.

“If they say higher salaries will cause inflation, what about last year when civil servants received a pay rise between 7.5 and 40 percent?” he was quoted as saying by the paper.

Radio Australia

Pressure is mounting on Malaysia’s prime minister to introduce a minimum monthly wage.

The country’s top union chief has called for the minimum wage to be set at $US379 to help workers cope with soaring food and fuel prices.

The Malaysian Trades Union Congress president, Syed Shahir Syed Mohamud, says unionists will picket outside parliament this Wednesday to pressure the Government to implement the plan.

Premier Abdullah Ahmad Badawi is resisting the pressure, saying he still has doubts about introducing a minimum wage system in the current climate.

Malaysia is one of Asia’s largest importers of cheap foreign labour and has about 2.3 million workers from Indonesia, Bangladesh, India and elsewhere to clean homes, construct buildings and gather crops.

KUALA LUMPUR (AP): Malaysia’s largest labour union staged a rally Wednesday outside Parliament to call for the introduction of a minimum wage to help low-paid workers cope with rising living costs.

Some 150 members of the Malaysian Trades Union Congress chanted “Long live workers'’ as they demanded a minimum wage of 900 ringgit (US$285; euro184) a month and an additional 300 ringgit (US$95; euro61) as a “cost of living allowance,'’ a benefit currently reserved for public sector workers.

“It’s very important. The cost of living is hiking up,'’ said MTUC Vice President Mustafar Maarof. “The people cannot cope.'’

The MTUC estimates that 40 percent of Malaysia’s nearly 10 million private-sector employees earn less than 700 ringgit (US$222; euro143) a month. Most work at plantations or factories.

It says plantation workers are among the worst paid, with some earning monthly salaries of less than 400 ringgit (US$126; euro81).

Last week, Prime Minister Abdullah Ahmad Badawi rejected calls for a minimum wage system, saying his government would need to study it amid inflationary pressure and a slowing economy.

Mustafar said the MTUC, which represents some 500,000 workers, was disappointed with the government’s stance but would not give up its campaign. The protesters delivered a statement to a member of Parliament and dispersed after 90 minutes.

Complaints over the rising cost of living contributed to the ruling coalition’s poor performance in March elections, when it lost its two-thirds majority in Parliament.

KUALA LUMPUR, May 7 (ES) - The government should seriously consider the workers’ demand for minimum wages to be legislated in view of the rising costs of living including the rising price of staple foodstuff.

Islamic Party of Malaysia (PAS) information chief Mahfuz Omar said it was “unreasonable” for anyone to have a salary lower than the RM900 proposed by the Malaysian Trade Union Congress (MTUC) especially in high profit sectors.

“Workers have to face increasing costs of living and it is unacceptable to oppress the working class at a time when even the price of rice is on the rise,” Mahfuz who is also Pokok Sena parliamentary member said.

He said this when met at the parliamentary lobby today. He was asked to comment on the move taken by some 200 MTUC leaders to hold a peaceful assembly at the parliament entrance here.

They were demanding for the legislation of a Minimum Wage Act, including RM900 minimum salary and a RM300 allowance for cost of living (COLA). In addition, they were also expressing their dissatisfaction with the amendments to the labour law during the last parliamentary sitting that they said eroded the rights of workers.

No excuse not to have Minimum Wage Act

Wangsa Maju parliamentary member (MP) Wee Chee Keong, Padang Serai MP N. Gobalakrishnan and Kota Damansara state assemblyman Dr. Nasir Hashim were among those present to lend moral support to the protesting workers.

MTUC president Syed Shahir Syed Mohamud said there should be no excuse for the government not to legislate the Minimum Wage Act.

He noted that most countries in the region had legislated the Act and the government’s move to increase the salary of civil servants twice in recent years did not cause adverse side effects to the country.

“The minimum wage (Act) is important to the workers in Malaysia,” he told journalists in a press conference at the parliamentary lobby after he handing in a memorandum to Parliamentary Opposition Leader Dr Wan Azizah Ismail.

Syed Shahir said several parliamentary members from the ruling coalition had also expressed support for the Act but he did not name them . Pakatan Rakyat leaders were also supportive of the Act in particular former Parliamentary Opposition Leader Lim Kit Siang, and PAS treasurer Dr Mohd Hatta Ramli.

Syed Shahir said that MTUC had planned to hand the memorandum to Prime Minister Datuk Seri Abdullah Badawi after the premier failed to respond to a similar memorandum sent in 2007 but was told that Abdullah is currently out of the country.

Abdullah had earlier pre-empted the peaceful assembly by saying that the government simply could not afford to legislate the Minimum Wages Act which would trigger further inflation.- Saadon Aksah/ES

Wan Nordin Wan Yaacob

KUALA LUMPUR, 8 Mei (Hrkh) - Kerajaan pimpinan Dato’ Seri Abdullah Ahmad Badawi digesa agar melihat secara serius tuntutan gaji minimum yang dibuat oleh Kongres Kesatuan Sekerja Malaysia (MTUC) dalam satu himpunan di hadapan Parlimen semalam.

Ketua Penerangan PAS, Mahfuz Omar dalam respon awalnya berkata, pihak berkuasa tidak boleh menghalang kelompok MTUC ini dari menyuarakan tuntutan mereka di Parlimen.

ImageIni kerana Parlimen adalah tempat dimana dewan tertinggi yang membincangkan semua hal mengenia polisi negara yang membabitkan kepentingan seluruh rakyat, katanya semasa ditemui di Parlimen bagi mengulas himpunan yang diadakan kira-kira 200 anggota MTUC di hadapan Parlimen semalam.

“Tuntutan MTUC wajar untuk dipertimbangkan dalam keadaan kos sara hidup meningkat.

“mereka tuntut gaji minima.Tak wajar kini ada orang yang bekerja Imagedalam sektor-sektor yang mempunyai saiz yang besar tiba-tiba mereka diberi gaji rendah bawah RM900

“Dan dalam masa sama pelabur-pelabur yang besar ini mengaut keuntungan hasil dari menggunakan tenaga kerja yang murah di kalangan pekerja tempatan,” kata Mahfuz.

Dalam keadaan mereka meraih untung besar itu, kelompok pekerja pula berhadapan dengan beban hidup yang meningkat yang terpaksa ditanggung, kata Mahfuz.

“Tak wajar bila kerajaan nak menyekat golongan ini dari mendapat Imagepembelaan sewajarnya di Dewan Rakyat yang akan disuarakan samada melalui kerajaan mahupun pembangkang, ” katanya.

Sementara itu Presiden MTUC, Syed Shahir Syed MOhamood yang mengulas mengenai memorandum tuntutan badan itu yang diserah kepada Menteri di Jabatan Perdana Menteri, Dato’ Seri Mohamed Nazri Aziz Nazri berkata, menteri itu berjanji akan memberikan memorandum terbabit kepada Perdana Menteri, Dato’ Seri Abdullah Ahmad Badawi dan anggota kabinet lain.

Memorandum serupa diserahkan kepada semua ahli Parlimen baik kerajaan mahu pun pembangkang, ujarnya.

Menurut Syed Shahir lagi, kandungan memorandum tersebut sama dengan yang diberikan kepada Perdana Menteri pada 18 Jun lalu.

Katanya, memorandum kedua itu dihantar kerana pihaknya tidak mendapat respons positif dari kerajaan mengenai tuntutan tersebut.

Menurut Syed Shahir di kalangan negara-negara Asean hanya Malaysia yang tidak mengamalkan pembayaran gaji minima.

Hujah bahawa pelaksanaan pembayaran gaji minima dan Cola akan menyebabkan kenaikan harga barangan adalah hujah yang dangkal, katanya.

Sedangkan katanya dalam hal ini bukan kerajaan yang membayar gaji sebaliknya majikan.

Menurutnya, ketika ini kira-kira 1.67 juta pekerja mendapat pendapatan bulanan kurang daripada RM700 sebulan (lebih rendah daripada paras kemiskinan iaitu RM900).

“Sama ada kami (MTUC) akan buat lagi atau tidak perhimpunan aman yang sama, ia bergantung kepada respons kerajaan. Ini bukan hobi tetapi merupakan satu tanggungjawab.

“Ini bukan mencari kepentingan politik tetapi satu komitmen kepada kaum pekerja di negara ini,” katanya lagi.

Kandungan memorandum tersebut turut membantah pindaan akta perhubungan dan akta kesatuan sekerja yang boleh menjejaskan kepentingan pekerja dan kesatuan sekerja.

THE MTUC staged a peaceful gathering outside Parliament before handing over a 14-page memorandum to the Prime Minister, calling for a RM900 minimum wage and provision of a RM300 cost of living allowance.

Its members gathered as early as 9am yesterday but were unable to hand the memorandum to Datuk Seri Abdullah Ahmad Badawi as he was overseas on official business.

MTUC president Syed Shahir Syed Mohamud, who met newsmen at the Parliament lobby later, said they would not stop until their goal was achieved.

He said the Government’s explanation that a RM900 minimum wage could not be met due to various reasons, including inflation, was unacceptable.

“This is a national issue that affects everyone, and the Government should not delay it any further,” he said.

Minister in the Prime Minister’s Department Datuk Seri Nazri Abd Aziz, who received the memorandum on Abdullah’s behalf, said he sympathised with MTUC’s plight and would hand over the document to the Prime Minister when he returned from Dubai.

“And I will ensure that this matter is brought up for discussion in the Cabinet later,” he said.

Muda Mohd Noor | May 7, 08 (Malaysiakini)

Some 100 unionists gathered at Parliament gate this morning in support of Malaysian Trade Union Congress (MTUC) leaders who were there to hand a memorandum on their demand for minimum wage.

mtuc parliament protest 070508 05The crowd gathered for two hours under the watchful eyes of the police before dispersing peacefully on their own after the memorandum had been submitted.

Several Pakatan Rakyat MPs took time out from the Parliament sitting and came to support the MTUC’s demand for RM900 minimum wage and RM300 cost-of-living allowances (Cola).

Amtuc parliament protest 070508 02ccording to MTUC president Syed Shahrir Syed Mahmud, the memorandum was handed over to Minister in the Prime Minister’s Department Mohd Nazri Abdul Aziz and Opposition Leader Dr Wan Azizah Wan Ismail.

Syed Shahrir said that Nazri promised to hand the memorandum to Prime Minister Abdullah Ahmad Badawi and other members of the cabinet.

“The memorandum was also distributed to all MPs regardless of their political leanings,” he said.

No response

He said the memorandum was the same as the one submitted to Abdullah in June last year.

Syed Shahrir said that a second memorandum was submitted because there was no response from the government regarding their claims.

“Among Asean countries, only Malaysia does not have a minimum wage policy, while others do,” he said.

He said that the government’s excuse of not having a minimum wage policy and an equitable Cola policy to prevent inflation was lame one.

Elaborating, he said it was the employers and not the government that was footing a higher salary.

He said that at present, 1.67 million workers are making less than RM700 a month which is lower than the poverty rate of RM900.

More protests

Syed Shahrir stressed that the gathering outside Parliament house was not a picket but a gathering of unionists who were keen on knowing first hand the government’s attitude towards the working class. mtuc parliament protest 070508 10

“Whether MTUC will hold more of such gatherings depends on the government’s response. This (holding protests) is not a hobby but a responsibility.

“We’re not out to score political points. We’re out to fulfil our commitment to the workers of this country,” he added.

Among others, the memorandum also opposed amendments to the Industrial Relations Act and the Trade Union Act which MTUC claims are detrimental to workers.

mtuc parliament protest 070508 11The memorandum also states MTUC’s eagerness to hold discussions with the prime minister regarding issues affecting workers.

Since taking over as prime minister in 2003, Abdullah has never dialogued with MTUC which is the largest umbrella body for trade unions.

The Star, 2 May 2008

SHAH ALAM: MTUC leaders will visit Parliament on Monday to seek MPs’ support for their RM900 minimum wage demand.

Its secretary-general G. Rajasekaran said the congress was already assured of support from Pakatan Rakyat MPs and would try to get as many Barisan Nasional members as it could to support the demand.

He said MTUC decided on the move after failing to get a response from Prime Minister Datuk Seri Abdullah Ahmad Badawi, following a memorandum on the matter sent to him in February.

Nice to meet you: Khalid shaking hands with foreign workers who took part in the Labour Day celebration organised by MTUC at Dataran Kemerdekaan in Shah Alam Thursday.

“We have not even received an acknowledgement from the Prime Minister’s office that they received the memorandum,” Rajasekaran said in his speech at the Labour Day gathering, which was attended by about 3,000 people, at Dataran Kemerdekaan here yesterday.

MTUC president Syed Shahir Syed Mohamud said the call for better wages was made in view of the burden many low-wage earners faced because of the rising cost of living.

Selangor Mentri Besar Tan Sri Khalid Ibrahim said the state would start discussions with companies soon on how to implement the minimum wage scheme for workers.

A rally, organised by Jaringan Rakyat Tertindas (Jerit) or Oppressed People’s Network, was held in Dataran Merdeka in Kuala Lumpur, where several hundred people held up banners calling for a minimum wage to be implemented. Other non-governmental organisations were present to give support.

There were other rallies in other cities as well.

Dang Wangi OCPD Asst Comm Mohamad Zulkarnain Abdul Rahman said the May Satu gathering at Dataran Merdeka was illegal, as its organisers did not have a police permit.

He said police had to move in to disperse the crowd that had gathered at 9.30am.

“We only received a letter from Parti Sosialis Malaysia (PSM) pro tem secretary-general S. Arutchelvan early yesterday morning requesting permission to hold the gathering, which we cannot entertain,” he said.

Meanwhile, MTUC Sarawak wants the Government to improve the well-being of private sector workers through better wages and to ensure their fundamental rights are protected.