'IMMORAL' MALAYSIA GETS A TICKING OFF: Bosses should pay the levy – NOT the migrant workers
Written by Charles Hector
We the 97 undersigned civil society
organisations, trade unions and groups are shocked by the news that the
Malaysian government is increasing the migrant worker (foreign worker)
levy to more than double the current rate, which since January 2013, had
to be paid by the migrant workers themselves. Prior to that, it was
paid by the employer of migrant workers, whereby the introduction of the
levy then was to deter employers employing migrant workers, rather than
local Malaysian workers. This was also stated by the then Malaysian
Labour Director-General Datuk Ismail Abdul Rahim who was quoted saying
that, “…The rationale behind getting employers to bear the levy was to discourage them from employing foreigners…” [Star, 16/4/2009]
The Malaysian government recently announced that, as of
1/2/2016, annual levy payable for each migrant worker is increased to
RM2,500 (manufacturing, construction and service sectors) and RM1,500
(plantation and agriculture). Before this, the annual levy
payable for a Migrant Worker in the Manufacturing sector (RM1,250),
Construction sector (RM 1,250), Plantation sector (RM590), Agricultural
sector (RM410) and Services sector (RM1,250 – RM1,850) which was so much
lower.
This new rates in comparison greatly burden the migrant worker in
that the annual levy payable per migrant worker will now be doubled, or
even tripled.
For example, a migrant worker in an electronic factory, classified
under the manufacturing sector, who paid a levy of RM1,250 before, will
now have to pay double, RM2,500. A worker earning a monthly minimum wage
of RM900, which is the wage many migrants are paid, will now have to
pay more than RM200 for levy, leaving them with only less than RM700 as
their monthly wage, not taking into account all other wage deductions.
This is most unjust.
It is unconscionable for the Malaysian government to target migrant
workers in the hope of making extra income of RM2.5 billion for the
country from the 2.1 million documented migrant workers in Malaysia to
rescue Malaysia from its current financial woes.
Easily Exploited With Almost No Access to Justice Makes Migrant Workers Vulnerable to Employer
When Malaysia, introduced Minimum Wage, employers and employer groups
complained that their labour cost had gone up, and they could not
afford it. In response, the Malaysian government decided that employers
no longer need to pay the migrant worker levy, thus the obligation to
pay the levy fell on migrant workers themselves.
Contract substitution remains a problem. Migrant workers agree to
come to work in Malaysia, but when they start working, the migrant
workers complain that they are now paid lower than what they had agreed
to in their country of origin with the employer and/or his agent. Many
employers have also used the Minimum Wage of RM900, as the standard
wages they pay migrant workers.
Because of the debt incurred by migrant workers in coming to Malaysia
to work, which is about RM5,000 and the practice of employers and/or
agents holding on to their passports and work permits, migrant workers
find themselves in a form of bonded labour, and not able to do anything
else but just survive.
With the very low wages, they receive; many are forced into doing
overtime sometimes 4 hours per day, working on rest days and even public
holidays to make ends meet. Malaysian law stipulates a draconian
overtime limit of 104 hours every month. This means, in effect migrant
workers can be forced to work for 12 hours a day because in many
workplaces doing overtime is no longer an option that workers can
refuse. As such, migrant workers and even local workers can be
considered to be engaged in some form of ‘forced labour’.
For migrant workers, access to justice remains a myth for many. When
they complain about rights violations, what happens in many cases is
that they are terminated, and their permit to work and/or remain in
Malaysia is also terminated. This causes migrant workers to be easily
controlled and exploited cheaply. They do not even have the option to
claim justice.
Employers Contribute Less to Migrant Workers Income
Under the Malaysian law, employers are required to contribute 13% of
the monthly income, inclusive of overtime earnings, to the Employees
Provident Fund, this requirement is not applicable to the migrant
workers. This makes migrant workers cheaper.
Further, since many employers do not take in migrant workers directly
as their own employees, but take and use them as workers who are
supplied by the labour suppliers - legally known as the contractors for
labour - it effectively prevents these supplied migrant workers the
right to join in-house trade unions. Even if they do join
national/regional unions, they simply will not be able to enjoy the
extra rights and benefits that come by reason of a Collective Bargaining
Agreement between Union and Employer, simply by reason that they are
not recognised as employees. Calls for the abolition of the ‘contractor
for labour system’ by trade unions and civil society have gone unheeded
by the government.
Malaysia recognizes that households earning less than RM4,000 a month
requires financial assistance, and local workers do get a small
assistance from the government through the BR1M program – but migrant
workers are excluded from this benefit.
Weakening Ringgit Causes Migrants to earn 20-40% less.
Whilst, the financial problems Malaysia is facing, coupled with the
increased cost of living - new taxes, increased transportation costs,
and the weakening of the Malaysian Ringgit in relation to currency of
the country of origins of migrants – it is the migrant worker who
suffers the most.
The weakening ringgit also means that the money migrant workers send
back home to their families is now much less and this has a serious
impact on their families/dependents and the ability to settle their
debts back home. It was recently reported, that "For instance, employees
from Bangladesh used to make 44 taka for every RM1, but now it is about
17 taka. The drop is very drastic, more than 40%."Even the ringgit to
the Indonesian rupiah has seen a drop in value by 20%," (Malaysian Insider, 5/2/2016)
Unjust to impose New Financial Obligations On Migrant Workers Already In Malaysia
It is totally unjust for Malaysia to impose new financial obligations
by law on migrant workers, which did not exist when they agreed with
their employers to come and work in Malaysia for 3-5 years. Any new
obligations especially of payment by migrant workers should only apply
to new migrant workers who have yet to agree to come to Malaysia to work
– certainly not to those who are already here and working.
The Malaysian Trade Union Congress(MTUC) and employer groups have
been informed that employers will now have to pay migrant worker levy.
This was also mentioned in a media report, which stated, ‘The FMM[Federation of Malaysian Manufacturers] said the government recently informed employers that the levy burden would be shifted back to them. (Star, 2/2/2016).
However, employer groups have started a campaign lobbying the
Malaysian government to re-consider, and the Malaysian government has
been reported as saying that they may re-consider. There is concern that
this re-consideration may not just be about the amount of levy payable,
but also the question as to who will have to pay the levy – migrant
workers or their employer?
Therefore, we the undersigned
Call on the Malaysian government in the name of justice, to
ensure that it must be the employers of migrant workers that should be
paying this Migrant Worker levy – not the migrant workers;
Call on the Malaysian government to also reconsider the
increase of the levy rate, at this time whilst Malaysia, and especially
small Malaysian businesses, are affected by the economic crisis and the
effect of the falling Malaysian ringgit.
Call on the Malaysian government to increase the Minimum Wage
of all workers in Malaysia to RM1,200 – RM1,500, to compensate for the
increased cost of living in Malaysia, and the falling value of the
Malaysian ringgit with reference to the currency in migrant worker’s
countries of origin.
Call on the Malaysian government to abolish the ‘contractor
for labour’ system, and ensure that all workers that are working in a
workplace are all recognised employees of the said workplace, and are
treated equally as workers.
Charles Hector
Mohd Roszeli bin Majid
Pranom Somwong
For and on behalf of the 97 organisations, trade unions and groups listed below
ALIRAN
Alternative ASEAN Network on Burma (ALTSEAN-Burma)
Asia Monitor Resource Centre(AMRC)
Asia Floor Wage Alliance
Asia Pacific Forum on Women Law and Development (APWLD)
Association of Human Rights Defenders and Promoters- Myanmar
Asociación de trabajadoras del Hogar a Domicilio y de Maquila, ATRAHDOM, Guatemala, Centro Amercia.
Bangladesh Groep Nederland (Bangladesh Group The Netherlands)
Bangladesh Institute of Labour Studies- BILS
BLAST, Bangladesh
Boat People SOS (BPSOS)
Building and Wood Workers International (BWI) Asia Pacific Region
Campagna Abiti Puliti – Italy
CARAM Asia
Clean Clothes Campaign International Office(CCC)
Club Employees Union Peninsular Malaysia(CEUPM)
Coalition to Abolish Modern-day Slavery in Asia (CAMSA)
Crispin B. Beltran Resource Center (CBBRC),Philippines
CWI Malaysia (Committee for Workers International)
Defend Job Philippines
Fair – Italy
FAIR ACTION, Sweden
Foundation For Women, Thailand
Garment and Allied Workers Union, India
German Clean Clothes Campaign
Homeworkers Worldwide, United Kingdom
IDEAL (Institute for Development of Alternative Living）
IndustriALL Bangladesh Council (IBC)
Institut Rakyat
International Labor Rights Forum
Jaringan Rakyat Tertindas (JERIT)
Jatio Shromik Federation (JSF), Bangladesh
Karmojibi Nari (KN), Bangladesh
Kesatuan Pekerja-Pekerja Perodua
Kesatuan Sekerja Industri Elektronik Wilayah Selatan, Semenanjung Malaysia (KSIEWSSM)
Knowledge and Rights with Young people through Safer Spaces (KRYSS)
Labour Behind the Label
Labour Studies and Action Centre (CEREAL), Mexico
Legal support for Children and Women (LSCW), Cambodia
MADPET (Malaysians Against Death Penalty and Torture)
Malaysian Election Observers Network
Malaysian Trades Union Congress (MTUC)
MAP Foundation (Thailand)
MHS Aviation Employees Union
Migrante International
Mission for Migrant Workers
Myanmar Migrants Rights Centre
NAMM (Network of Action for Migrants in Malaysia)
National Garment Workers Federation (NGWF), Bangladesh
National Union Employees in Companies Manufacturing Rubber Products (NUECMRP)
National Union of Transport Equipment & Allied Industries Workers (NUTEAW), Malaysia
NLD LA Malaysia
North South Initiative
Oriental Hearts and Mind Study Institute(OHMSI)
Panggau Sarawak
Paper Products Manufacturing Employees’ Union of Malaysia (PPMEU)
Parti Rakyat Malaysia(PRM)
Parti Sosialis Malaysia (PSM)
Pax Romana ICMICA
Peoples Service Organisation (PSO)
Persatuan Sahabat Wanita Selangor (PSWS)
Pertubuhan Angkatan Bahaman, Temerloh, Pahang, Malaysia
PROHAM -Persatuan Promosi Hak Asasi Manusia
Radanar Ayar Rural Development Association, Myanmar
Repórter Brasil
Safety and Rights Society, Bangladesh
Sahabat Rakyat
Schone Kleren Campagne (CCC Netherlands)
SEA Women's Caucus on ASEAN
Solidarity of Cavite Workers (SCW), Philippines
Sramik Nirapotta Forum, Bangladesh
SUARAM
Tenaga National Berhad Junior Officers Union (TNBJOU)
TENAGANITA Women’s Force, Malaysia
Textile Clothing and Footwear Union of Australia
The Collectif Ethique sur létiquette, Clean Clothes Campaign French
Think Centre, Singapore
UNI Global Union
War on Want
WARBE Development Foundation, Bangladesh
WH4C (Workers Hub For Change)
Women Peace Network-Arakan, Myanmar
Women Rehabilitation Center (WOREC), Nepal
Workers Assistance Center, Inc (WAC) , Philippines
Vietnamese Women for Human Rights
Yaung Chi Oo Workers Association-YCOWA
Yayasan Lintas Nusa, Indonesia
IMA Research Foundation, Bangladesh
International Trade Union Confederation(ITUC)
Women's Aid Organisation(WAO), Malaysia
PINAY (The Filipino Women's Organization in Quebec), Canada
Cividep India
Kesatuan Sekerja Industri Elektronik Wilayah Utara Semenanjung Malaysia
Centro Nuovo Modello di Sviluppo – Italy
National Union of Flight Attendants Malaysia (NUFAM)
Pusat KOMAS
Perak Women for Women Society (PWW)
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