Thursday, May 11, 2017

Malaysia's Embarassingly Poor Worker and Trade Union Rights Reality - Malaysia – United States Labour Consistency Plan?

EMBARRASSING - Malaysia was one of the countries that was found to not have worker and trade union rights and laws, that are consistent with international universal labour standards... 

Now, some countries, by law and policy, cannot enter into agreements with countries that are having poor human rights and labour rights standards and laws, so when Malaysia wanted to be part of the TPPA, Malaysia, Vietnam and Brunei were 'forced' to agree to make significant amendments to their own labour laws and practices. It was most embarrassing ...

United States of America and Malaysia entered into discussion and agreed to an agreement known as the 'Malaysia-United States Labour Consistency Agreement' - This Agreement, sadly was to come into force when the TPP Agreement entered into force (but now, it looks like the TPPA may never enter into force).
This agreement shall enter into force on the date of entry into force of the TPP Agreement between our two governments
It must be pointed out, that Malaysia had already started the process of preparing for the necessary amendments...and, it is hoped that irrespective of whether the TPPA comes into force or not, this UMNO-BN government will continue to make the needed amendments. It must be pointed out that there are many other provisions in worker and trade union law that need to amended. 14 million plus Malaysian workers - should this not be a priority of a caring government?


Many of these other proposed changes(that had previouly been advanced by unions and labour advocates) allegedly have longed been agreed by the Ministry - but sadly, the stumbling block for these much needed labour reforms seem to have been the Prime Minister and the UMNO-BN government. Cabinet approval will be needed prior to the tabling of the requisite Bills to bring about changes in the law...Lack of political will?

One of the biggest problem areas in Malaysia is FREEDOM OF ASSOCIATION - trade unions. There are simply too much obstacles in Malaysia - Registration of Trade Unions is difficult and takes time...then, Trade Unions need to get 'Recognition' from employers before they can start negotiations and enter into a Collective Bargaining Agreement(CBA)...(employers simply refuse, forcing a 'secret ballot', which is itself most just when it comes to determination of outcome...and even if victorious, the Minister's decision is challenged in court...taking years before a union finally can start looking at a CBA

Malaysian Airlines - 99% person voted for NUFAM, but BAD law says still no union recognition?

 ....and then, Malaysian laws places much restrictions of what can be contained in a CBA...Union busting including 'wrongful dismissal of leaders' are common - and the road to justice is very long and cost a lot...and effective at the end by reason of the many years it took...Enforcement of laws seems to be very ineffective...especially in matters concerning worker and trade union rights (only occupational safety and health matters seems to be better)... 

Trade Union - Most Discriminated of Association? Repeal section 26(1A) Trade Unions Act 1959

Worker and Trade Union Rights in BN-ruled Malaysia - A pro-business government that undermined worker rights, welfare and livelihood -

Will DAP/PAS/PKR/PSM/PRM/AMANAH/BERSATU ensure that Workers have Regular Employment - No more Precarious Employment?

Has Malaysian Trade Unions been fighting for improvement of worker and trade union rights? What have they been fighting for exactly? Sadly, a 'Google Search' will not reveal either way. Some say, the unions have been 'struggling' 'secretly' with the government...a bad strategy which would have been more effective if that struggle had been an OPEN and transparent struggle...which would have gotten greater support from Malaysians and other groups, including maybe also Members of Parliament, Senators, political parties, etc...Clear specific demands are always better...than vague demands for justice???



Malaysia – United States Labour Consistency Plan

This Plan shall create rights and obligations only as between the Governments of  Malaysia and the United States.  

I. Preamble

The Governments of Malaysia and the United States:

ACKNOWLEDGING that  each  Party  commits  under  Chapter  19  (Labour)  to  obligations  concerning its labour law and practice, including with regard to its statutes and regulations and the labour rights as stated in the ILO Declaration;

ENDEAVORING  to  co-operate  with  each  other  and,  recognizing  as  members  of  the  ILO  the  governments may utilize the technical resources of the ILO in fulfilling the commitments of this Plan;

UNDERTAKE  through  this  Plan  the  following  specific  commitments  consistent  with  those  obligations.   

II. Legal Reforms Consistent  with  its  obligations  under  Chapter  19 (Labour),  Malaysia  shall  enact  the following legal reforms, and other changes that may be required to ensure consistency across its Acts, regulations and other measures. 

A. Union Organization and Collective Bargaining

Judicial Review 

1.  Malaysia shall:

(a) ensure that trade unions have a right to judicial review of administrative decisions regarding trade union registration; suspension, withdrawal or cancellation of trade union registration; and determinations of strike illegality;

(b) amend  the  relevant  sections  of  the  Trade  Union  Act  1959 (ACT  262)  to  provide  that where a trade union seeks judicial review of an administrative determination to  suspend,  withdraw  or  cancel  trade  union  registration, the  decision  will  be  automatically stayed, pending that judicial review; and

2 (c) amend  relevant sections  of  Act  262 to  clarify  that  decisions  of  the  Minister  are  subject to judicial review (relevant  sections of current law include Sections 18(7) and 71A(4)).

Government discretion in registering trade unions

2. Malaysia shall:

(a) amend relevant sections of Act 262 to remove discretion of the Director General of Trade Unions (DGTU) to refuse to register a trade union when another exists, and to remove the discretion of the DGTU to refuse registration because the trade union is likely to be used for unlawful purposes contrary or inconsistent with its objects and  rules  (relevant  sections  of  current  law  include  Section  12(2)  and  Section  12(3)(a));

(b) amend the implementing regulations to Act 262 to  limit the discretion of the DGTU and  to  clarify  that  “unlawful”  refers  only  to  serious  breaches  of  law  (relevant sections of current law include Section 12(3)(b), Section 12(3)(c), Section 12(3)(d) and  Section 12(3)(e)(i)); and 

(c) amend  relevant  sections  of  Act  262  to  limit  the  DGTU’s  discretion  to  deny  registration  of  a  union  due  to  the  proposed  union’s  name  to  only exceptional circumstances,  such  as  creating  a  threat  to  public  order  or  inflaming sensitivities related  to  race  or  religion (relevant  sections  of  current  law  include  Section 12(3)(e)(ii)).

Government discretion to cancel trade union registration

3. Malaysia shall:

(a) amend relevant sections of Act 262 and its implementing regulations to remove the discretion  of  the  DGTU  to  cancel  a  trade  union’s  registration  and to  clarify  that  “unlawful” refers only to serious breaches of law (relevant sections of current law include Sections 15(1)(b)(ii) and Section 15(1)(b)(iii)); 

(b) amend relevant sections of Act 262 to limit the discretion of the DGTU to cancel a union’s registration (relevant sections of current law include Section 15(1)(b)(iv)); and

(c) amend  the  implementing  regulations to  Act  262  to  limit cancellation  of  a  trade  union’s  registration  only  to  serious  breaches  of  law  (relevant  sections  of  current  law include Section 15(1)(b)(v)).

Cancellation of registration when two or more unions exist

4. Malaysia shall amend relevant sections of Act 262 to remove the discretion of the DGTU to cancel a union’s registration when two or more unions exist, and replace it with a process for determining  representation  of  workers  for  the  purposes  of  collective  bargaining  in  a  particular establishment,  trade,  occupation,  or  industry  (relevant  sections  of  current  law  include Section 15(2)). 

Discretion to suspend a union

5. Malaysia  shall  amend  the  implementing  regulations  to  Act  262 to  clarify  that “purposes prejudicial to or incompatible with...public order” shall not include the exercise of protected trade union activity (relevant sections of current law include Section 18(1)). 

Restrictions on formation of unions in “similar” trades, occupations or industries

6. Malaysia shall amend relevant sections of Act 262, to remove the limitation on forming a union in only a “similar” trade, occupation or industry (relevant sections of current law include Section 2, Section 32 and Section 33). 

Restrictions on formation of, and affiliation with, union federations or confederations in “similar” trades, occupations or industries

7. Malaysia shall amend relevant sections of Act 262 to remove the limitation on forming or affiliating with a union federation or confederation in only a “similar” trade, occupation or industry (relevant sections of current law include Section 72 and Section 74). 

Affiliation with international unions

8. Malaysia  shall  amend  relevant  sections  of  Act  262  to  remove  the  DGTU’s discretion  in  allowing  trade  unions  to  affiliate  with  an  international  union,   and may provide  that  a  union establish member consent through secret ballot vote of its members with a quorum,  as established by the union’s constitution or by-laws,  in order to affiliate with an international union (relevant sections of current law include Section 76A, Section 76B and Section 76C). 

Restrictions on trade union membership and leadership (dismissed, suspended or retired workers) 

9. Malaysia shall amend relevant sections of Act 262 to remove the prohibitions on dismissed, suspended  and  retired  workers  remaining  as union  members  (relevant  sections  of  current  law  include Section 26(1A) and Section 26(1)(a)). 

Trade union leadership

10. Malaysia shall:

 (a) amend relevant sections of Act 262 to allow non-citizens to run for election to union office if they have been legally working in Malaysia for at least three years (relevant sections of current law include Section 28(1)(a)); 

(b)amend relevant sections of Act 262 by deleting the term “employee of a political party” to remove that restriction on membership of the executive of a trade union (relevant sections of current law include Section 28(1)(c1)); 

(c)issue implementing regulations to Act 262 to establish that the meaning of “of any offence” is  limited  only  to  offences  directly  relevant  to  the  integrity  required  to  exercise trade union office, such as a breach of fiduciary duty (relevant sections of current law include Section 28(1)(d)); and 

(d) amend  relevant  sections  of  Act  262  consistent  with  the  above  changes  (relevant  sections of current law include Section 30). 

Collective bargaining 

11. Malaysia shall amend relevant sections of the Industrial Relations Act 1967 (Act 177) to remove broad restrictions on the scope of collective bargaining, including the restrictions on terms and conditions of employment (relevant sections of current law include Section 13(3)).

Strikes

12. Malaysia shall amend relevant sections of  Act 262 to provide for a quorum requirement in an enterprise union strike vote as two-thirds of the members and the consent of 50 percent plus 1 of the member votes cast (relevant sections of current law include Section 25A(1)(a)); 

13. Malaysia may establish after consulting with domestic stakeholders, a reasonable quorum requirement  for  a  strike  vote  for  non-enterprise  unions  and  federations  that  would  not  hinder  industrial level action; and

14. Malaysia shall amend the implementing regulations of Act 262 to limit the discretion of  the DGTU in determining whether a strike would contravene provisions of law (relevant sections of current law include Section 40(6)). 

Limitations on strike issues

15. Malaysia shall amend relevant sections of Act 177 to remove limitations on strikes on any matters covered by Act 177, Section 13(3) (relevant sections of current law include Section 44(e)). 

Penal sanctions for peaceful strikes

16. Malaysia shall amend relevant sections of Act 177 to remove penal sanctions for peaceful strikes, regardless of whether such strikes are inconsistent with IRA provisions (relevant sections of current law include Section 46, Section 47 and Section 48). 

Administrative discretion in dispute resolution

17. Malaysia  shall  amend  relevant  sections  of  Act  177, including  by  deleting  “of  his  own  motion or”, to remove administrative discretion to intervene in a trade dispute  without the request of the parties (relevant sections of current law include Section 19(2) and  Section 26(2)). 

Representation in administrative or judicial hearings

18. Malaysia shall:

(a) amend  relevant  sections  of  Act  177  to  allow  employers,  trade  unions  and  trade unionists  to  choose  their  representatives  in  administrative  hearings,  including  in  proceedings regarding dismissals (relevant sections of current law include Sections 19B(2), Section 20(6) and Section 20(7));

(b) amend  relevant  sections  of  Act  177  to  remove  restrictions  on  representations  in proceedings  involving  trade  disputes  (relevant  sections  of  current  law  include  Section 19B(1)(b)); and

(c) amend  relevant  sections  of  Act  177 to  require  only  that  representatives  meet  minimum  qualifications  essential  to  their  responsibilities  (relevant  sections  of  current law include Section 27(1)). 

Essential services

19. Malaysia shall amend relevant sections of Act 177, including the First Schedule – Essential Services

,   to  limit  the  range  of  industries  in  which  strikes  are  prohibited  on  the  basis  that  the  industries are essential services, consistent with the rights as stated in the ILO Declaration.

Subcontracting and outsourcing 

20. Malaysia shall:

(a) ensure  that the use of subcontracting  or outsourcing  is not used to circumvent the rights of association or collective bargaining;

(b) amend  the  implementing  regulations  to  the  Employment  Act  1955  (Act  265),  Section 2A; Sabah Labour Ordinance (Cap. 67), Section 2A; and Sarawak Labour Ordinance (Cap. 76), Section 2A, to provide guidance for the identification of the appropriate  “employer(s)”  for purposes of ensuring meaningful associational and other  rights  for  workers  who  are  provided  to  a  principal  either  by  a  labour outsourcing company or a contractor-for-labour; and 

(c) require that subcontracting  and outsourcing arrangements be made in writing, and be subject to verification by the Ministry of Human Resources.

B.  Forced Labour

Protections against the withholding of passports

1. Malaysia shall:

(a) amend the implementing regulations to the Passport Act 1966 (Act 150) to  reinforce that retaining a worker’s passport by his or her employer is illegal.  Such regulations shall include requiring that foreign workers are fully informed of their right to retain their own passports and informing workers that they retain the right to access their passports at any time, without delay or approval of any other individual and without consequence  to  their  status  and  relationship  with  their  employer  or  recruitment  agency;

(b) amend the implementing regulations  to Act 150 to require that private employers that utilize foreign workers  in their operations  (either through a direct employment  relationship or through an   employment agency) provide to each foreign worker a notice informing workers of their right to retain their passport and information on how to report violations of this right.  Private employers with more than 10 foreign workers and recruitment agencies also shall post a notice to this effect;

(c) amend the Workers’ Minimum Standards of Housing and Amenities Act 1990 (Act 446) so that it covers all sectors (beyond only plantations) and to require that private employers or recruitment agencies that provide housing to foreign workers provide secure facilities (for example,  personal lockers) for the storage and safekeeping of  workers’  passports  and  other  valuables.    These facilities must  allow  workers  to  access their passports at any time and without prior authorization; and

(d) effectively  enforce  relevant  laws  and  regulations  to  investigate  and  prosecute  employers nd recruitment agencies that retain employee passports.

Foreign worker recruitment practices, contracts and fees

2.  Malaysia shall:

(a) ensure that all entities that recruit foreign workers, whether a recruitment agency or  a  direct  employer,  are  covered  by  the  sections  of  the  Private  Employment  Agencies Act of  1981 (Act 246), including provisions regarding limitations on the recruitment fees charged to a foreign worker;

(b) amend relevant laws and regulations to provide that any government levies charged for employment  of foreign workers are the obligation of the employer,  rather than the foreign worker;

 (c) amend  its  laws  and  regulations  to  provide  that  large-scale,  repeated  or  egregious  violations of labour  law are punishable by a denial of future quota requests of the offending  employer  or  by a  revocation  of  the  license  of  offending  recruitment  agency;

(d) ensure  that any Memorandum  of  Understanding  regarding  the recruitment  of  foreign  workers  between  Malaysia  and  a government  of  a country  that  provides such workers will require that recruitment agencies and employers provide foreign workers  a  valid  written  contract  in  their  own  language,  including  their  terms  of  work, prior to their entrance into Malaysia; and

(e) amend  relevant sections of Act 265 to prohibit contract substitution.

Trafficking and forced labour victim protection services

3.  Malaysia shall:

(a) issue necessary regulations to the Anti-Trafficking in Persons and Anti-Smuggling of Migrants Act 2007 (Act 670) to allow victims of trafficking to move freely to and  from  shelters;  provide  victims  of  trafficking  access  to  legal  counsel  of  their  choice;  allow victims of trafficking to work and find new employment under clearly established procedures;  enable non-governmental organizations to own and operate shelters for trafficking victims; and

(b) waive  any  fees  associated  with  the  required  pass  provided  through  the  Labour Department for foreign workers  who are involved in an investigation of violations of labour  law (other than forced labour  covered above) to remain in Malaysia and  seek alternative employment.  

Foreign worker housing and freedom of movement

4. Malaysia shall:

(a) amend the implementing regulations to Act 446 to require  that private employers or  recruitment  agencies  that  provide  housing  for  foreign  workers  provide notice informing workers, in a language that they understand, of their right to freedom of movement under Malaysian law  and information on how to report violations of this right.    Private  employers  with  more  than  10  foreign  workers  and  recruitment  agencies  shall  also  be  required  to  post  the  notice  on  their  premises  visible  to  workers; and

(b) amend the implementing  regulations to Act 446 to require that private employers or  recruitment  agencies,  which  provide  housing  for  foreign  workers  provide  a notice, in a language the workers understand, informing  those workers of their right to acceptable housing conditions under this Act and information on how to report violations of their right to acceptable housing conditions.   Private employers with more  than  10  foreign  workers  and  recruitment  agencies  shall  also  be  required  to post the notice on their premises visible to workers.

C. Child Labour

Malaysia shall:

(a) issue a list of hazardous  types of work prohibited for persons under 18 years of age.

(b) amend   the   implementing   regulations   to   the   Children   and   Young   Persons (Employment) Act  1966  (Act  350),  Sabah  Labour  Ordinance  (Cap.  67)  and  Sarawak Labour Ordinance (Cap. 76) to ensure that a minimum age of at least 13 is established for admission to light work.

D. Employment Discrimination

Malaysia  shall  amend relevant  sections  of  the Act  265,  Cap.  67  and  Cap.  76  to  prohibit  discrimination, in respect of employment and occupation, including by amending  Act 265, Section 34,  35  and  36,  and  relevant  sections  in  Cap.  67  and  Cap.  76  to  remove  the  prohibitions  on  employment of women in certain occupations.

III.Institutional Reforms and Capacity Building

Malaysia   shall   undertake   necessary   institutional   changes   and   capacity   building   to   implement  the  amended  statutes  and  regulations,  including:  establishing  new  administrative functions, procedures and mechanisms; expanding and adequately training labour inspectors and relevant criminal system authorities to effectively enforce the amended statutes and regulations; and providing the necessary resources to implement these changes. 

A.Enforcement of Labour Laws and Protections

1.Malaysia shall:

(a) allocate  resources  necessary  for  the  effective  enforcement  of  its  labour  laws, including additional  labour  officer  and  dedicated  inspector  positions  needed  to enforce the new laws and practices resulting from this Plan;  

(b) revise  internal  inspection  and  other  enforcement  procedures  for  the  labour inspectorate  to  ensure  effective  enforcement  of  the  new  and  existing  legal  provisions,   including   the   prohibition   on   employers   retaining   passports   of   employees,  and  train  all  relevant  personnel  on  the  reformed  procedures  and  new  provisions;

(c) develop, in coordination with the ILO, a training program for labour  inspectors and plan for increased labour  inspections  targeted  at  addressing  forced labour  and practices that increase workers’ vulnerability to forced labour, including violations of laws governing recruitment fees, recruitment practices, withholding of passports  or other identity documents, contract substitution, wage payments below the legally required  amount  and  unlawful  deductions,  withholding  of  workers’  wages  in  escrow,  and  living  conditions  of  foreign  workers,  including  restrictions  on  movement; and

(d) require the   Enforcement   Agencies   Integrity   Commission   (EAIC)   to report  biannually statistics   on   the   number   of   complaints   received,   investigations   conducted and final disposition or remediation of those investigations that involve foreign workers (broken down by government agency and type of violation). 

IV. Transparency and Sharing of Information

A. Public Comment

Consistent  with  its  existing  procedures,  Malaysia  shall  provide  for  public  comment  the  draft legal instruments that result from this  Plan and publicly post final legal instruments on the applicable agency website.

B. Collaboration

Malaysia and the United States intend to collaborate on the development of the relevant reforms and instruments that result from this Plan.  

C. Outreach and Education

To inform and educate stakeholders, including employers and workers, of their rights and responsibilities under Malaysian law, Malaysia shall launch an outreach program on the legal and institutional changes that result from this Plan, as well as related remedies and courses of action available to enforce those rights.

V. Government to Government Mechanism

1.  The United States and Malaysia shall regularly assess progress in implementing this Plan, including  follow-up  enforcement  and  application  of  the  amended  laws  and  regulations  and  institutional  reforms,  and,  to  this  end,  agree  to  establish  a  standing  bilateral  Senior  Officials  Committee (SOC) comprising senior officials from the Office of the U.S. Trade Representative  and the Department of Labor for the United States and from the Ministry of International Trade and Industry and the Ministry of Human Resources for Malaysia to monitor, assess and facilitate rapid  response  to  any  concerns  about  compliance  with  and  implementation  of  the  legal  and institutional reforms under this Plan.  

2. The  United  States  and  Malaysia  shall  designate  the  responsible  senior  officials  prior  to  entry into force of this Agreement between the United States and Malaysia and promptly inform the other Party of any subsequent changes. 

3. The SOC shall meet, in person or by any technological means available, annually for seven years after the date of entry into force of this Agreement between the United States and Malaysia. 
SOC members shall be supported by technical-level officials, who shall meet as necessary.  At the request of either Malaysia or the United States, the SOC shall continue to meet annually thereafter or as Malaysia and the United States otherwise agree. 

4. At the request of either Malaysia or the United States, the SOC shall convene within 30 days to address any concerns with regard to compliance with or implementation of this Plan.  Either Malaysia or the United States may request an ILO review and report on any such concern, in order  to  inform  the  discussions  of  the  SOC  and  determinations  of  any  actions  necessary  to  address  concerns.

VI. Technical Assistance

Malaysia and the United States shall endeavor to secure funding for technical assistance programming  to  directly  facilitate  implementation  of  the  legal  and  institutional  reforms  in  this  Plan.  Malaysia shall request the cooperation, advice and technical assistance of the ILO to help in such implementation and endeavor to conclude the negotiation of an agreement with the ILO for this purpose.  

VII.  Implementation

1. Malaysia shall enact the legal and institutional reforms in Parts II and III of this Plan prior to the date of entry into force of the TPP Agreement as between the United States and Malaysia, except as otherwise provided for in this Plan.

2. This Plan shall be subject to consultations under Article 19.5 (Labour Consultations) of the Labour Chapter, except that with respect to paragraphs 2 and 3, the requirement to circulate the request and reply, respectively, to the other TPP Parties, shall not apply; and paragraph 4 shall not  apply.

3. This Plan shall be subject to dispute settlement under Chapter 28 (Dispute Settlement) of  the TPP Agreement, except for Article 28.13 (Third Party Participation), which shall not apply. 

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