For a local worker earning RM900 per month, the amount of EPF contribution per year is RM1,404.For a migrant worker - NO need to make EPF contribution.
In Singapore, one rationalle for levy is 'As an employer, you don't have to pay Central Provident Fund (CPF) contributions for foreign workers. However, you must a pay monthly levy for Work Permit holders.'
Worker solidarity will be broken if Local Workers start also having an anti-migrant worker position - and this will ultimately weaker the power of unions and 'worker solidarity action' struggling for better worker rights, including working conditions.
The attempt to divide and weaken worker movements and/or unions is not NEW... employers and even pro-employer pro-business governments and politicians have been known to do this.
Of late, Najib and the BN government, decided that public sector workers minimum wages will be RM1,200 - and private sector minimum wages will only be raised later on in 2016 to RM1,000. Why did they do this? Was it an attempt to divide Malaysian workers into two - public sector and private sector workers?
Well, Malaysia went and signed a MOU with Bangladesh to bring in 1.5 million migrant workers over the next 3 years.
This also goes against the previous Malaysian policy....whereby Employers in Malaysia were supposed try their best to first get Local Workers...failing which, they had to apply for permission to bring in migrant workers (the requirement required to clearly state for what position/job, and the numbers required) - but when an MOU for 1.5 million are signed - What is this? Last time, when you needed a welder, you went found a welder and brought in a migrant worker who can weld and who is suitable for that position...but now, it seems just numbers, and will that satisfy the need of the employer.
Employers want workers with a specific skill to satisfy their needs - In the past, employers(and/or their agents) also went to the country of origin to conduct interviews and tests to ensure that the migrant worker they employ has the required skills to do the work that they could not find a local worker to do despite their best efforts..
The old way was best - because it satisfied the employer's specific needs. It also was good for the migrant worker because there was employment security...
But, when you just bring in migrant workers in bulk - it is bad all around > both for the migrant worker and the employer at the workplace..
Ah...but it is 'business' for others...???