MTUC says NO to Malaysia signing agreements that will stagnate or erode worker rights
Malaysian Trade Union Congress (MTUC) is most concerned about
the serious implication of Investor State Dispute Settlement (ISDS)
clauses and provisions in the Trans-Pacific Partnership Agreement (TPPA)
and other such agreements and treaties that Malaysia signs. There is a
serious concern that once Malaysia is bound by such ISDS clauses, any
foreign investor will have the ability to prevent Malaysia from
improving the rights and conditions of workers in Malaysia.
On 28th March 2015, it was reported that the government had agreed to the Investor-State Dispute Settlement (ISDS) system.(Malaysian Insider, 28/3/2015, Putrajaya okay with investor-state dispute clause in trade pact, says DAP lawmaker)
The ISDS clause empowers foreign investors, which also includes
shareholders, to commence legal action against Malaysia if it does
anything, even by law or policy, that will result in business having to
expend more monies or has an effect on its profits.
The government must guarantee workers that signing agreements with
ISDS clauses will not result in a stagnation of Malaysian minimum wage
rates. The worry is that some foreign investor may take Malaysia to
court in reliance of an ISDS clause if the government increases minimum
wages. This is exactly what happened when the Veolia group, a French
multinational, sued the Egyptian government because of a rise in the
monthly minimum wage. That company used the ISDS provisions in an
investment treaty between France and Egypt.
Will laws and policies in the future that will require employer to
make higher contributions to employment provident funds, social security
or some retirement scheme result in some foreign investor taking action
against Malaysia in reliance of these ISDS clauses? Will the same also
happen if Malaysia requires employers to improve the standard of safety
and health in the workplace – providing better protection for workmen?
Will Malaysia be able to in the future pass a law requiring private
sector employers to also pay Cost of Living Allowances (COLA) to workers
just like what public sector workers are getting now?
MTUC have been struggling so that workers in Malaysia, save migrant
workers, would be able to enjoy secure regular employment until
retirement, and that all forms of precarious employment like short term
contractual employment and the contractor for labour system be
abolished. Regular employment is essential for the long term security,
welfare and wellbeing of the worker and their families. Now, with the
ISDS clauses in place, MTUC is most concerned that the government will
be ‘hand-tied’ with fear of potential million dollar legal action by
some foreign investor if it tries to improve the condition of workers in
Malaysia.
MTUC calls on the government to be transparent and disclose all
agreements before signing for input from an agreement of MTUC, unions
and workers.
MTUC insist on a guarantee from the government that such ISDS
provisions or agreements will not impact the future advancement of
worker and trade union rights, and demand that Malaysia should not sign
agreements that may have the effect of stagnating or eroding further
worker rights in this country.
Regards,
N. Gopal Kishnam
Secretary General
Tel: + 6 019 317 4717
Email:- gopalkishnam@gmail.com
Source: MTUC Website
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