67 kumpulan mahu gaji minima untuk semua pekerja - Majikan tidak boleh memotong gaji menebus belanja

*This is a Bahasa Malaysia translation of the Joint Media Statement in English that was issued. See the original statement in English by following this link

Penterjemahan Bahasa Malaysia

Joint Statement/Kenyataan Bersama – 5/2/2013

GAJI MINIMA UNTUK SEMUA TERMASUK PEKERJA MIGRAN

- Tidak harus berlaku pemotongan gaji pekerja untuk majikan menebus bayaran levi –

MINIMUM WAGES FOR ALL WORKERS, INCLUDING MIGRANT WORKERS

- No to Wage Deduction to recover Levy Payable By Employers -

Kami, 67 pertubuhan masyarakat umum, kesatuan sekerja dan kumpulan adalah terkejut dengan keputusan terkini cabinet Malaysia pada 30/1/2013 untuk membenarkan majikan pekerja migrant menebus kembali wang levi,  yang terpaksa majikan membayar kerajaan Malaysia untuk  mengambil pekerja migran kerja, daripada pekerja migrant melalui pemotongan gaji.

Berasaskan undang-undang, pekerja di Malaysia seharusnya menerima gaji minima RM900[USD291] (Semenanjung Malaysia) dan RM800[USD259] (Sabah dan Sarawak) mulai 1/1/2013.Khalid Atan, Presiden Malaysian Trade Union Congress(MTUC) menyatakan bahawa jika kini pekerja migran diperlukan membayar levi, maka polisi gaji minima akan tidak memberikan mereka apa-apa faedah, kerana apa kelebihan yang akan dinikmati penambahan gaji akan hilang begitu sahaja untuk levi [“…if workers were asked to pay the levy, the minimum wages policy would not benefit them at all, as whatever little increase in salary they enjoyed, would be wiped out with the levy payment…” [Star, 10/1/2013, MTUC: Don't give in to employers' demand on foreign workers levy]]

Setengah majikan  cuba mengelak obligasi membayar gaji minima, yang merupakan gaji pokok tidak termasauk kerja lebih masa, elaun sedia ada dan faedah kerja yang lain. Mereka cuba mengatur semula pembayaran kepada pekerja dengan memasukkan semua elaun lain, insentif dan faedah untuk sampai kepada angka RM900, di mana ini adalah salah. Setengah majikan cuba mendapatkan pekerja mereka menandatangani dokumen mempersetujui pindaan kepada pembayaran, di mana ini lebih mudah apabila tidak wujud kesatuan sekerja. Pekerja, secara umum, tidak ada tempat untuk mengadu, atau pilihan dalam hal perkara ini khususnya apabila kini ramai pekerja yang telah diambil kerja berasaskan kontrak pekerjaan jangka pendek. Keengganan pekerja bererti tidak ada pembaharuan/perlanjutan kontrak sedia ada atau tidak ada kontrak pekerjaan baru apabila kontrak sedia ada tamat.

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Untuk mengelak obligasi membayar gaji minima,  kerajaan Malaysia juga telah membenarkan majikan hak untuk memohon untuk penangguhan pembayaran gaji minima, dan melalui Perintah Gaji Minima(Pindaan) 2012 bertarikh 29/12/2012, nyata kerajaan telah mengizinkan lebih daripada 500 majikan penangguhan untuk mula membayar gaji minima. Apa yang salah dalam proses ini adalah bahawa pekerja yang akan terima padah keputusan ini (‘aggrieved’) dan/atau kesatuan sekerja mereka tidak diberikan sebarang hak untuk didengar sebelum permohonan majikan untuk menafikan hak pekerja ini untuk mendapatkan gaji minima ditangguhkan diputuskan.

Kerajaan Malaysia, dahulu, berasaskan permohonan setengah majikan, telah membenarkan majikan membuat potongan gaji dan/atau pendahuluan kepada pekerja bercanggah dengan peruntukan umum undang-undang, di mana ini dilakukan dengan niat membenarkan majikan mendapat kembali daripada pekerja migran segala belanja majikan membawa pekerja migrant tersebut untuk kerja untuk mereka di Malaysia. Kadang-kadang, ini bukan sahaja untuk majikan mendapatkan kembali levi yang telah dibayar sahaja, tetapi juga kesemua kos majikan untuk merekrut dan membawa masuk pekerja migran. Kebenaran ini juga telah diberikan tanpa konsultasi atau persetujuan pekerja atau kesatuan sekerja. Mulai 1/4/2009, kerajaan Malaysia menghentikan amalan ini, dan menjelaskan bahawa majikan yang sepatutnya membayar levi, dan majikan dihalang mendapatkan kembali wang ini daripada pekerja migran.

Labour Director-General Datuk Ismail Abdul Rahim dilapurkan menyatakan bahawa,”Rational disebalik tindakan memerlukan  majikan membayar levi adalah untuk tidak mengallakkan(‘discourage’) mereka  mendapatkan pekerja migrant[“…The rationale behind getting employers to bear the levy was to discourage them from employing foreigners…” [Star, 16/4/2009, Employers can deduct levy from wages, again]]. Maka, keputusan kini memerlukan pekerja migrant sendiri bayar levi sememangnya membatalkan niat kerajaan mengenakan levi , iaitu untuk tidak mangalakkan majikan mengambil pekerja migran.  

Keputusan baru kerajaan ini adalah untuk mengurangkan kos pengambillan pekerja majikan, kata Menteri Kewangan II Datuk Seri Ahmad Husni Hanadzlah [ ‘… is to alleviate the hiring cost for employers, said Finance Minister II Datuk Seri Ahmad Husni Hanadzlah...’ [Star, 30/1/2013, Cabinet: Foreign workers to pay levy instead of employers with immediate effect]. Jika kerajaan Malaysia mahu mengurangkan masalah kewangan majikan yang mengambil pekerja migrant, secara wajar apa yang patut dilakukan oleh kerajaan adalah mengurangkan atau membatalkan levi tersebut – bukan sama sekali mengalihkan beban dari majikan kepada pekerja.

Pekerja migrant banyak berkorban apabila memilih datang ke Malaysia untuk bekerja dengan majikan. Mereka terpaksa meninggalkan suami/isteri, anak, keluarga dan kawan kerana undang-undang Malaysia hanya membenarkan pekerja migran sendiri masuk dan bekerja di Malaysia, di mana pekerja migrant juga dihalang jatuh cinta dan kahwin semasa tempoh pekerjaan di Malaysia, di mana ini kebiasaannya adalah untuk 5 tahun. Pekerja migrant juga biasa menghadapi kehutangan besar bila mereka ke Malaysia, kerana mereka terpaksa membayar, antara lain, ejen rekruitmen, di mana ini termasuk bayaran sah dan tidak sah. Semasa di Malaysia, mereka diikat kepada satu majikan – tidak ada hak menukar majikan. 

Bila mereka menuntut hak, walaupun melalui proses dan laluan yang sah, mereka biasanya diberhentikan kerja – di mana ini juga bermakna pembatalan visa/pas kerja mereka justeru hak untuk terus berada(atau bekerja) di Malaysia. Pembatalan pas/permit kerja dilakukan oleh kerajaan Malaysia tanpa mengambil kira sama ada terdapat aduan, tuntutan atau kes yang masih tertunggak yang belum selesai berkenaan hak pekerja.

Hakikat tidak tentu dan bahaya (‘precarious’) pekerja migrant menjadikan mereka terbuka dan senang dieksploitasi oleh majikan, yang sedar bahawa amat senang menafikan hak pekerja dan juga terlepas daripada undang-undang dengan mudah. Sehingga undang-undang dan polisi dipinda untuk menjamin hak pekerja migran,  secara wajar pekerja migrant menjadi pekerja pilihan berbanding dengan pekerka tempatan kerana senang sekali mengeksploitasi pekerja migrant.

Kami menuntut kerajaan Malaysia segera menarik balik atau membatalkan keputusan kabinet Malaysia yang dibuat pada 30/1/2013(Rabu) membenarkan majikan pekerja migran mengambil kembali(recover) duit levi yang mereka bayar kerajaan melalui pemotongan gaji pekerja migran

Kami mangambil pendirian bahawa semua pekerja, termasuk pekerja migrant, berhak menerima giji minima, di mana ini adalah gaji pokok dan tidak harus termasuk elaun, faedah dan insentif kerja  yang lain. Majikan tidak harus dibenarkan mengeluarkan apa-apa hak dan faedah yang wujud sebelum April 2012, iaitu tarikh Perintah Gaji Minima 2012 berkuatkuasa, daripada kontrak pekerjaan sedia ada dan yang akan datang.

Kami juga menuntut kerajaan Malaysia untuk mansuhkan segala bentuk diskriminasi terhadap pekerja, berkenaan termasuk, diskriminasi berasaskan kewarganegaraan, jantina dan tempuh perjanjian kerja mereka. 

Charles Hector

Pranom Somwong

Syed Shahir Syed Mohamud

Bagi pihak 67 kumpulan yang dinyatakan:

ALIRAN

Angkatan Rakyat Muda Parti Rakyat Malaysia (ARM-PRM)

Asian Migrant Centre (AMC), Hong Kong 

Asian Migrants Coordinating Body (AMCB) Hong Kong

Asia Monitor Resource Centre, Hong Kong

Asia Pacific Forum on Women, Law And Development (APWLD)

Asia Pacific Mission For Migrants (APMM ), Hong Kong

Association of Indonesian Migrant Worker in Hong Kong (ATKI-HK)

Bangladeshi Ovibashi Mohila Sramik Association (BOMSA)

Burma Campaign Malaysia

BWI (Building and Wood Worker's International)

CAW (Committee for Asian Women)

Centre for Human Rights and Development-Sri Lanka

Center for Orang  Asli Concerns (COAC), Malaysia

CEREAL - Centro de Reflexión y Acción Laboral – Guadalajara, Mexico

Clean Clothes Campaign( CCC )

Community Action Network (CAN), Malaysia

Community Development Services, Sri Lanka

COVA (Confederation of Voluntary Associations), India

Electronic Industry Employees Union Western Region (EIEUWR), Malaysia

Far East Overseas Nepalese Association (FEONA), Hong Kong

Filipino Migrant Workers Union (FMWU)

GoodElectronics Network

Human Rights Ambassador for Salem-News.com

IMA Research Foundation, Bangladesh

International Domestic Workers Network

Kesatuan Pekerja-Pekerja Polyplastics Asia Pacific Sdn Bhd.

Kesatuan Pekerja-Pekerja MHS Aviation Berhad

Kesatuan Sekerja Industri Elektronik Wilayah Selatan (EIEUSR), Malaysia

LSCW (Legal Support for Children and Women), Cambodia

MADPET (Malaysians Against Death Penalty and Torture)

Malaysia Youth & Students Democratic Movement (DEMA)

MAP Foundation, Thailand

Migrant Domestic Workers Trust, India

Migrant Forum, India

Migrant Health Association in Korea

MIGRANTE International

Mindanao Migrants Center for Empowering Actions, Inc. (MMCEAI)

Mission For Migrant Workers - Hong Kong

MTUC (Malaysian Trade Union Congress)

Myanmar Ethnic Rohingyas Human Rights Organization Malaysia (MERHROM)

National Domestic Workers Movement, India

National Union of Transport Equipment & Allied Industries Workers (NUTEAIW)

Network of Action for Migrants in Malaysia (NAMM)

NLD-LA (National League for Democracy-Liberated Areas), Malaysia

NUBE (National Union of Banking Employees), Malaysia

OKUP (Ovibashi Karmi Unnayan Program) in Bangladesh

Parti Rakyat Malaysia(PRM)

Paper & Paper Products Manufacturing Employees' Union Of Malaysia (PPPMEU)

 Persatuan  Sahabat  Wanita, Selangor

Persatuan  Kesedaran Komuniti Selangor

Persatuan Masyarakat Selangor & Wilayah Persekutuan (PERMAS)

PILAR (United Indonesians in Hong Kong against Overcharging) , Hong Kong

Pusat KOMAS (KOMAS)

Saya Anak Bangsa Malaysia {SABM}

SUARAM, Malaysia

Tamilnadu Domestic Workers Union, India

Tamilnadu Domestic Workers Welfare Trust, India

Tenaganita, Malaysia

Transient Workers Count Too (TWC2), Singapore

United for Foreign Domestic Workers' Rights (UFDWR )

WAC, Philippines

WARBE Development Foundation-Bangladesh

Women Workers Lead

WH4C – Workers Hub For Change

Yayasan LINTAS NUSA - Batam – Indonesia

67 groups say Minimum Wage for All - No wage deduction to recover Levy

Joint Statement- 5/2/2013

MINIMUM WAGES FOR ALL WORKERS, INCLUDING MIGRANT WORKERS

- No to Wage Deduction to recover Levy Payable By Employers -

We, the undersigned 67 civil society organizations, trade unions and groups are shocked with the recent decision of the Malaysian cabinet on 30/1/2013 to allow employers of migrant workers to recover levy that they paid the government to employ foreign workers from migrant workers through wage deductions. 

According to the law, workers in Malaysia were to receive minimum wages of RM900[USD291](for Peninsular Malaysia) and RM800[USD259] (for Sabah and Sarawak) as of 1/1/2013. Khalid Atan, the President of the Malaysian Trade Union Congress(MTUC) said, “…if workers were asked to pay the levy, the minimum wages policy would not benefit them at all, as whatever little increase in salary they enjoyed, would be wiped out with the levy payment…” [Star, 10/1/2013, MTUC: Don't give in to employers' demand on foreign workers levy]

Some employers have also been trying to avoid this obligation to pay minimum wages, which is basic wages not inclusive overtime, existing allowances and other benefits. Some do it by re-structuring worker remuneration by including all other allowances, incentives and benefits to make up the RM900, which is very wrong. Some employers are making employees to sign documents agreeing to these changes, whereby this is made easier when there are no worker unions. Workers generally have no avenue of complaint, or even choice in the matter especially when many now are employed based on short-term employment contract. A refusal by the worker means a non-renewal or no new employment contracts when their contracts expire. 

To avoid paying workers minimum wages, the Malaysian government also allowed employers the right to apply for a delay in paying workers minimum wages, and vide Minimum Wages(Amendment) Order 2012 dated 28/12/2012, the government allowed more than 500 employers to delay paying workers minimum wages. What was blatantly wrong in this process was that the aggrieved workers and/or their unions were not given any right to be heard before the employer’s application to deny them their entitlement to minimum wages was approved.

The Malaysian government, in the past, on the application of certain employers, allowed them to make wage deductions and/or wage advances, contrary to the general provisions in law with the intention to allow employers to recover from migrant workers monies expended by employers to get migrant workers to Malaysia to work for them. This included sometimes not just a means to recover levy paid, but also all other costs incurred by employers to recruit and bring in migrant workers. Approvals were given by the government with no consultation or agreement of the worker or their unions. As of 1/4/2009, the Malaysian government stopped this practice, and made it clear that it is employers that have to pay the levy and they cannot recover the said sum from migrant workers.

Labour Director-General Datuk Ismail Abdul Rahim was reported saying that, “…The rationale behind getting employers to bear the levy was to discourage them from employing foreigners…” [Star, 16/4/2009, Employers can deduct levy from wages, again]. As such, this current move to make migrant workers pay the levy removes the very intention of levy, i.e. to discourage employers from employing foreign workers. 

The reason for the new decision ‘… is to alleviate the hiring cost for employers, said Finance Minister II Datuk Seri Ahmad Husni Hanadzlah...’ [Star, 30/1/2013, Cabinet: Foreign workers to pay levy instead of employers with immediate effect]. If the Malaysian government now wants to reduce the financial burden of employers who hire migrant workers, then rightfully the government should reduce or remove the levy – not shift the burden to workers. 

Migrant workers sacrifice a lot when they elect to come to Malaysia to work. They have to leave behind the spouses, children, family and friends for Malaysian law allows them to only come alone and work in Malaysia, and they also are barred from falling in love and getting married during their employment period  which is usually for at least 5 years. They also end up incurring substantial debt when they come, for they have to pay, amongst others recruitment agents, most times these payments include both legal and ‘illegal’ payments. Whilst in Malaysia, they are bound to just one employer – having no right to change employers. 

When they claim rights, even through existing legal avenues, they generally are terminated and their employment pass/permits are also cancelled depriving them the right to stay (or work) legally in Malaysia until their claims are resolved. The termination of these passes/permits is done by the Malaysian government irrespective of whether there are outstanding claims or pending cases concerning the said worker’s rights. This precarious reality of migrant workers makes them vulnerable to exploitation by some employers, knowing that it is most easy to violate worker rights and then get off scot free. Until laws and policies are amended to protect migrant’s worker rights, naturally migrant workers become the preferred choice over local workers as they are certainly a more easily exploited class of workers.

We call on the Malaysian government to immediately rescind the decision made by the Malaysian cabinet on Wednesday(30/1/2013) to allow employers of migrant workers to recover the levy they pay the government by deduction of wages of migrant workers.

We take the position that all workers, including migrant workers, are entitled to receive minimum wages, whereby this is the basic wage and should not include allowances, benefits and other work incentives. Employers should not be permitted to remove pre-April 2012 worker entitlements and benefits, being the date the Minimum Wage Order 2012 came into force, from existing and subsequent employment contracts.

We call on the Malaysian government to end all forms of discrimination against workers, with regard to, amongst others, their nationality, gender, duration of their employment contracts.

Charles Hector

Pranom Somwong

Syed Shahir Syed Mohamud

For and on behalf the 67 groups listed:

ALIRAN

Angkatan Rakyat Muda Parti Rakyat Malaysia (ARM-PRM)

Asian Migrant Centre (AMC), Hong Kong 

Asian Migrants Coordinating Body (AMCB) Hong Kong

Asia Monitor Resource Centre, Hong Kong

Asia Pacific Forum on Women, Law And Development (APWLD)

Asia Pacific Mission For Migrants (APMM ), Hong Kong

Association of Indonesian Migrant Worker in Hong Kong (ATKI-HK)

Bangladeshi Ovibashi Mohila Sramik Association (BOMSA)

Burma Campaign Malaysia

BWI (Building and Wood Worker's International)

CAW (Committee for Asian Women)

Centre for Human Rights and Development-Sri Lanka

Center for Orang  Asli Concerns (COAC), Malaysia

CEREAL - Centro de Reflexión y Acción Laboral – Guadalajara, Mexico

Clean Clothes Campaign( CCC )

Community Action Network (CAN), Malaysia

Community Development Services, Sri Lanka

COVA (Confederation of Voluntary Associations), India

Electronic Industry Employees Union Western Region (EIEUWR), Malaysia

Far East Overseas Nepalese Association (FEONA), Hong Kong

Filipino Migrant Workers Union (FMWU)

GoodElectronics Network

Human Rights Ambassador for Salem-News.com

IMA Research Foundation, Bangladesh

International Domestic Workers Network

Kesatuan Pekerja-Pekerja Polyplastics Asia Pacific Sdn Bhd.

Kesatuan Pekerja-Pekerja MHS Aviation Berhad

Kesatuan Sekerja Industri Elektronik Wilayah Selatan (EIEUSR), Malaysia

LSCW (Legal Support for Children and Women), Cambodia

MADPET (Malaysians Against Death Penalty and Torture)

Malaysia Youth & Students Democratic Movement (DEMA)

MAP Foundation, Thailand

Migrant Domestic Workers Trust, India

Migrant Forum, India

Migrant Health Association in Korea

MIGRANTE International

Mindanao Migrants Center for Empowering Actions, Inc. (MMCEAI)

Mission For Migrant Workers - Hong Kong

MTUC (Malaysian Trade Union Congress)

Myanmar Ethnic Rohingyas Human Rights Organization Malaysia (MERHROM)

National Domestic Workers Movement, India

National Union of Transport Equipment & Allied Industries Workers (NUTEAIW)

Network of Action for Migrants in Malaysia (NAMM)

NLD-LA (National League for Democracy-Liberated Areas), Malaysia

NUBE (National Union of Banking Employees), Malaysia

OKUP (Ovibashi Karmi Unnayan Program) in Bangladesh

Parti Rakyat Malaysia(PRM)

Paper & Paper Products Manufacturing Employees' Union Of Malaysia (PPPMEU)

 Persatuan  Sahabat  Wanita, Selangor

Persatuan  Kesedaran Komuniti Selangor

Persatuan Masyarakat Selangor & Wilayah Persekutuan (PERMAS)

PILAR (United Indonesians in Hong Kong against Overcharging) , Hong Kong

Pusat KOMAS (KOMAS)

Saya Anak Bangsa Malaysia {SABM}

SUARAM, Malaysia

Tamilnadu Domestic Workers Union, India

Tamilnadu Domestic Workers Welfare Trust, India

Tenaganita, Malaysia

Transient Workers Count Too (TWC2), Singapore

United for Foreign Domestic Workers' Rights (UFDWR )

WAC, Philippines

WARBE Development Foundation-Bangladesh

Women Workers Lead

WH4C – Workers Hub For Change

Yayasan LINTAS NUSA - Batam – Indonesia

NOT TRUE "under the minimum wage policy, the company has to pay an additional RM753,130 to foreign workers and RM483,990 to local employers."

NOT TRUE  "under the minimum wage policy, the company has to pay an additional RM753,130 to foreign workers and RM483,990 to local employers.". The key word is 'additional' - so you do not add in what extra you are paying for your migrant workers now....

"According to an imitative financial statement calculated by the Malacca Chinese Chamber of Commerce and Industry, if a small and medium-sized enterprise (SME) has 100 local employees and 100 foreign workers, under the minimum wage policy, the company has to pay an additional RM753,130 to foreign workers and RM483,990 to local employers. In other words, a foreign worker earns RM1,853 per month, including basic salary and overtime allowances, which is higher than the RM1,515 monthly salary of local employee. In view of this, the minimum wage policy is going to benefit foreign workers instead of local employees, while increasing the expenses of employers. It seems like the policy is good for nothing." - Malaysian Insider, 31/1/2013, Are foreign workers the beneficiaries of minimum wage policy? — Lim Sue Goan

"...a foreign worker earns RM1,853 per month, including basic salary and overtime allowances, which is higher than the RM1,515 monthly salary of local employee..."

This makes no sense at all - for any worker, earning a basic salary of RM900 will be able to work overtime, and the rate is the same for both migrant or local worker, so how can this 'Malacca Chinese Chamber of Commerce and Industry' say that the foreign worker will earn more... they will earn the same. 

Remember, that the maximum number of hours that a worker is to work, and that is including overtime, is 48 hours a week. [I wonder whether the salary + overtime being paid to migrants are higher because they are making these migrant workers work more than 48 hours a week, on week-ends, public holidays, etc.... Maybe the Human Resource Minister or Department must really look at the state of affairs in Malacca with SMEs]

"...(SME) has 100 local employees and 100 foreign workers, under the minimum wage policy, the company has to pay an additional RM753,130 to foreign workers and RM483,990 to local employers...." 

This again makes no sense - why the additional payment for foreign workers... compared to local workers. Have you been paying your migrant worker so much lower than a local worker for the same work, and if this so, then  that employer is breaking the law that is clear that there should be NO discrimination of worker - no discrimination between migrant and local worker as far as wages, working condition, etc are concerned - so where is this extra expenditure coming from. This is in no way 'additional' expense - you cannot include cost of levy and other already now incurred cost for bring in migrant workers --- hello, this is not 'additional cost.

In fact, additional cost will come when it comes to LOCAL workers - Why? An increased wage, means a higher KWSP/EPF contribution by employers, and maybe also a higher SOCSO/PERKESO contribution - not applicable to Migrant Workers... Migrant workers do not have KWSP?EPF and their social security scheme is under the Workmen Compensation Act, where I do not believe increasing salary to minimum wage will increase employer's obligation at all.

Thus, additional cost for now paying the MINIMUM Wage will be with regard LOCAL workers not migrant workers...

SHAME on you employers who were paying your workers less that a poverty line income....

REMEMBER that is is the government that makes it 'more expensive' or 'tougher' to employ migrant workers compared to local workers. 

REMEMBER also that it is cheaper if you directly employ workers - and if you use workers supplied by some 'contractor for labour', you are paying additional fees/profit for the said contractor - it is not workers that get the benefit of your additional payments...

Nowadays, thanks to our Malaysian government of trying to get employers to get workers through outsourcing agents (or contractor for labour), who really now is the one responsible for paying their migrant workers minimum wages... so, really is this new cabinet decision to help SMEs or really that select class, privileged enough to have the required permits/license to be 'contractors for labour'?

I welcome the author,  Lim Sue Goan to respond - and correct me, if I am wrong.

13th PRU Demands of Candidates and Parties with regard Worker Rights

Fundamental for workers is right to regular employment until retirement age, and a direct employment relationship with the principal who owns/control the business/factory

Hence, 

ABOLISH SHORT TERM EMPLOYMENT CONTRACTS 

ABOLISH THE CONTRACTOR FOR LABOUR SYSTEM (Labour Outsourcing)

Suaram has come out with a good proposal of what should be the clear demands with regard to worker rights for the upcoming GE/PRU.

MINIMUM WAGE & MEANS TESTING FOR SOCIAL JUSTICE

By Dr Kua Kia Soong, SUARAM Adviser, 2 Feb 2013

 

The current outcry, expressed by some in the business sector, to the minimum wage for local and foreign workers brings to  mind the demand for means testing (among other demands) by the major Malaysian Chinese organisations when they launched The Joint Declaration 1985 just before the 1986 general election. At the time, the Chinese associations were calling for means testing as a way to ensure social justice in the award of scholarships and loans and other “special privileges” given to the Bumiputera.

Means testing has been instituted in developed countries for years and the simple humanist and distributive logic is that on a sliding scale based on need, the poor are entitled to more than those with less need, i.e. the rich. In the countries with some elements of a welfare system, social benefits are dispensed based on means testing. Likewise, grants for tertiary education are also given out through means testing – you get a full grant if your parents’ incomes fall below a certain threshold, but the grant is proportionately reduced the higher your parents’ incomes. This is an example of a social policy designed to ensure social justice and parity for all. This point is particularly relevant to the current demand for free tertiary education in Malaysia.

When we look at other sectors in the Malaysian economy, such as housing and property, the recent decision by the Selangor State government to rescind the discounts for bumiputeras who are buying houses costing more than RM2.5 million is itself some form of means testing, although the threshold is more than a little mind-boggling – Does a bumiputera who can afford a RM1 million or RM2 million house still need and want a discount? Clearly this is a step in the right direction but it falls short of extending the criteria of means to other categories of house prices relevant to those most in need of social justice.

Social Justice for ALL Workers

Following the recent outcry by business against the minimum wage policy of RM900 for both local and foreign workers, the government has hastily reacted by creating a new levy to be borne by foreign workers. This blatantly reneges on an arrangement with foreign workers before they came to this country and SUARAM calls for the restitution of their rights and just returns. The workers’ organisations in this country have demanded a minimum wage of RM1500 for all workers because it is closer to a decent wage at this day and age.

Now, among the measures suggested for helping struggling small and medium enterprises is some form of subsidy by the government for the most deserving businesses. Here’s is where means testing can easily determine which businesses qualify for such subsidies by utilizing information furnished from the annual tax returns. Thus, with means testing we can ensure our precious national resources are invested wisely in the enterprises where they can make the biggest difference.  

Clearly, to meet the democratic goal of social justice, means testing is relevant to all sectors, wherever there are claims for scholarships, discounts, subsidies and other such entitlements.

Defend All Workers’ Rights

For the 13^th general election, Malaysian civil society demands that parties and candidates show a commitment social justice by defending ALL workers’ rights, whether they are Malaysian or foreign. These demands include:

1. Respecting workers’ rights and solidarity, including those of informal workers such as domestic workers by reviewing labour laws to ensure they are compatible with the International Labour Organisation (ILO) Convention;

2. Encouraging and promoting the right of workers to unionise;

3. Legislating a progressive guaranteed minimum wage for all workers, including foreign workers;

4. Ensuring the policy on the import of migrant workers into the country does not threaten / affect the job opportunities of our local workers;

5. Abolishing the Contractor for Labour System, and restoring direct two-party employment relationship between principal/owners of workplaces and the workers that work therein;

6. Ensuring all workers are employed as regular permanent employees and enjoy all benefits including maternity rights and extended retirement age;

7. Extending equality and non-discrimination to all workers in the private sector;

8. Including workers and their trade unions as part of economic influence and decision-making, especially control of their pension funds;

9. Diverting company stock ownership and profits into employee share funds to enable workers to have a controlling stake in these companies;

10. Electing workers’ representatives to be equally represented in the management and to decide corporate decisions, including investments, technology, wages and prices.

It’s time for each and every one of us to reject any form of modern day slavery and/or discrimination, whether with maids in our homes, or employees at work and treat all workers with the respect that they deserve as partners in creating a progressive and socially just Malaysia of which we can all be truly proud to be a part of. Let us have the courage to call for means testing as a tried and proven approach in creating that future.  

Comments:-

The listed demands 1 to 8 are straight forward simple demands that covers the most basic of worker rights, and very easily could be implemented - but judging from past experience, there is a need to stipulate a TIME FRAME - for if not, even when the BN loses, the new government may procrastinate as what had happened with Local Council Elections, etc ... so the commitment need to provide for time frames.

For 1 to 7, it is something that very easily can be achieved - TIME FRAME: Max 6 months.

8 may take some time, as even the pension fund for workers is yet to be put in place - so maybe, time frame could be 1 Year

For 9 - 10, whereby maybe, 3 years may be a reasonable time frame

 

MTUC blast government's decision to allow employers to deduct wages to recover levy from migrant workers

See also:

All workers entitled to Minimum Wages, that is Basic Wages - if employers can deduct levy, allowances, etc - Workers lose

Foreign workers will now have to pay levy as in 1992 - a great injustice for workers

Claiming foreign worker levy a discrimination, MTUC to complain to ILO

January 31, 2013

 

KUALA LUMPUR, Jan 31 – Malaysia’s largest labour group lashed out today at the administration for reinstating a 21-year-old levy on foreign workers, a policy it said discriminates against migrant workers and said it will file an official complaint on the move with the International Labour Organisation (ILO).

But separately an employers group backed the Cabinet decision to reinstate the levy, saying it will profit the country by boosting job opportunities for locals and reverse an annual RM2 billion cash outflow.

“Government’s sudden reversal of its policy requiring employers to pay the annual foreign worker levy is a great injustice against migrant workers,” the Malaysian Trades Unions Congress (MTUC) secretary-general Abdul Halim Mansor said in a statement today.

He noted that the federal government had four years ago decided to collect the tax it introduced in 1992 from employers instead of from workers, in a bid to cut dependence on foreign labour.

Abdul Halim said that at every stage of deliberation, the National Wages Council and the Cabinet had intentionally decided that the new floor wage plan, which was supposed to take effect from the start of this year, was to apply to all workers “including two million migrant workers, so as to demonstrate to the world that Malaysia does not practise discrimination against migrant workers”.

He said the human resources minister had also told the ILO that all labour laws and legal safeguards in Malaysia applies to all workers irrespective of their country of origin.

In reality, the policy was not so, Abdul Halim said.

“The new minimum wage rate does not apply to domestic workers. Does the new ruling on levy apply to them as well? he asked.

He claimed that up to 75 per cent of today’s workforce consisted of migrant workers.

“This new policy shows the government’s declaration that they are keen to reduce dependency on migrant workers, is hollow and most insincere.

“MTUC will submit an official complaint to the ILO on this matter,” he said.

Abdul Halim also accused the MCA, the ruling Barisan Nasional (BN) Chinese partner in the coalition, of worsening the situation with its repeated calls to strip away lodging and transport coverage for migrant workers after imposing the levy.

The levy for foreign workers was introduced in 1992 and had been fully paid by the workers until 2009 when the government decided to shift the burden to employers in a bid to stem the flood of foreign labour pouring into the country then.

Malaysia’s workforce is about 13-million strong and over four million foreigners are holding jobs here, Deputy Finance Minister was reported saying today in The Star Online news portal.

Malaysia’s rising unemployment rate fell below the three per cent mark last year but hundreds of thousands of graduates churned out annually from local higher education institutions remained jobless.

A 2011 survey by Southeast Asia’s top online recruitment firm Jobstreet found a whopping 64 per cent of employers said they rejected the fresh graduates because the job seekers had asked for unrealistic remuneration during the interview.

Another 60 per cent of employers polled said they were forced to turn down the graduates due to bad attitude, personality and character.

But the bulk of foreign workers in Malaysia are employed in unskilled jobs such as in the construction and plantation sectors, which are shunned by locals, many whom prefer white-collar positions in line with the government’s pursuit of transforming the nation into a knowledge-based economy and leap into the ranks of the high-income countries.- The Malaysian Insider, 31/1/2013, Claiming foreign worker levy a discrimination, MTUC to complain to ILO