Monday, December 17, 2018

Minister, Preventing Workers leaving jobs not by 'deducting wages' or delaying payment?

Preventing Workers from leaving their jobs...that seems to be the concern of Malaysia's new Minister of Human Resource, and possibly the new government also...
Now, the Minister is suggesting that 20% of migrant worker wages, be deducted by employer and handed over to a 'fund', to possibly be under the Social Security 
The Ministry of Human Resources has proposed for the employers to deduct 20 percent of their foreign workers’ basic salaries.
Its Minister M. Kula Segaran (pix) said the proposal, among others, aimed at preventing foreign workers from fleeing and to avoid employers from incurring losses on investments to bring the workers in..... Minister M. Kula Segaran (pix) said the proposal, among others, aimed at preventing foreign workers from fleeing and to avoid employers from incurring losses on investments to bring the workers in.He said the issue of foreign workers fleeing was among major problems faced by the employers and the proposal was seen as a relevant method in addressing the situation.....Kula Segaran said the deduction of foreign workers’ wages would be kept in the Social Security Organisation (Socso) and to be handed over to them when they were leaving the country once after their work permit expired.
So, workers earning minimum wage of RM1,000 will now only be able to take home RM800..and, we all know that even minimum wage is not sufficient today for Malaysian workers and their families to live. Do not forget migrant workers also have families/dependents back home, and this money is really needed.

Most people will not become Migrant Workers, unless they are forced to because of poverty and lack of employment/income generating opportunities in their home country. A big sacrifice to leave your family, loved ones and HOME to work in another country with different language/culture and even 'discrimination against the migrant worker'. 

They come 'out of desperation' and how do we treat them? Are we further taking advantage of their situation to further 'exploit' them? Do we treat them as fellow human beings - or simply ...?

As workers, they should be treated just like any other worker in the country - with equal worker rights.

REMEMBER paying LOW WAGES is a means to force workers to need to work OVERTIME to simply earn enough money to survive or live...For example, Top Glove is doing very well financially...what about the workers? Are they being paid well...do they also get high bonusses? Remember the government by law, sets down the MINIMUM wages and rights - a good and just employer will be paying a much higher and just wage...


In the fourth quarter, Top Glove’s revenue rose 34.8% to RM1.21bil – its highest ever revenue attained within a single quarter, compared with RM902.41mil in the same quarter last year - Star, 12/10/2018. Read more at https://www.thestar.com.my/business/business-news/2018/10/12/top-glove-posts-record-revenue-declares-dividend/#43ZlDW1MgXUPAP4R.99
 
 
 
PREVENT EMPLOYEES FROM LEAVING THEIR JOBS...Local Malaysian Workers
Most employment contracts, being the agreement between employer and worker, provides the possibility of workers RESIGNING...and usually, there is a requirement to give notice, usually 1 month's notice. If you want to leave before the notice period, you have to pay the employer 1 month's wages in lieu of the 1 month's notice. Likewise, if the employer, if he wants to terminate or 'sack' the worker, the employer must also give the same notice...and, if he wants 'immediate' termination, he will have to pay you an additional  1 month's wages in lieu of the 1 month's notice. [Many workers, may just leave and not pay the employer 1 month's wages in lieu of the 1 month's notice, and the employer has the right to commence legal action to recover that money]

WHY WOULD A WORKER WANT TO LEAVE HIS/HER JOB? - that is really the question that the government should be looking into. A lot of Malaysian workers have been returning to their 'kampungs' from Klang Valley and other towns ...

- Because wages are too low 
- Because working conditions are bad..(now, this could also mean having to work for more than 8 hours a day)
- Other reasons - getting married, need to save marriage from breaking down when spouse and children remained in the home town, having to return to take care of elderly parents(or family/parent's farm or business undertaking back home)...or maybe simply to get a 'better quality of life') > well these 'other' reasons may not be a concern of the government but the first two mentioned is a concern...

UMNO-BN government 'prevented workers from leaving employers' by allowing the employer to delay paying money workers earned as a result of overtime,work on rest day and/or public holidays. [In the past, work,OT, work on rest day/public holiday done in January get paid with the January pay...today, money due payable for OT/work on restday/public holiday gets paid only when the following month's pay is paid?

(2) Wages for work done on a rest day, gazetted public holiday referred to in paragraphs 60D(1)(a) and (b) and overtime referred to in section 60A shall be paid not later than the last day of the next wage period. (Section 19 of the Employment Act was amended in 2012)

WHY? To 'prevent workers from leaving their jobs' - now, if you leave after you receive your January salary(gaji), the employer still have your money for all the OT and work on public holidays/rest days....[Remember, many workers left their job without paying money for 'in lieu of 1 month's notice' usually is simply because they did not have the money to be able to pay that....How much is your monthly saving...how many months will you have to safe before it is equal to your one month's wage?...yes, not easy to even pay one month's wages in lieu of the '1 month's notice', is it?)
MIGRANT WORKERS 
- Many complaints are that they are promised high wages and good jobs BUT when they come to Malaysia, they end up with much lower wages and sometimes totally different jobs. Lies, low wages and bad working conditions may really be reasons why migrants 'quit' their jobs.
Why do some 'bad' employers hold on to passports(which also contains their work visa)? - Well, to prevent their employees from 'running away'. Remember, in Malaysia, like in many countries, the inability to present proper identification papers(for foreigners, it is the passport with the necessary visa endorsement) can result in police attention, arrest and detention. THUS, employers should NEVER hold on to migrant's passport ever. Just provide migrants to locked boxes,cabinets,lockers that they can freely access(without requiring employer permission) anytime if they want to keep their money and valuables, including passports...
- Now, just like local Malaysian workers, migrant workers also do not get their income for overtime(OT), work on rest day/public holidays, etc at the end of the month - they have to wait for it for another month....and this is a lot of money being held by the employer. Again, to prevent their employees from 'running away'?
- Now, Malaysian Human Resource Minister wants to deduct 20% of wages and retain in under 'Social Security' to be given back to migrants when they leave Malaysia? Yet, another idea to bind them to work on for a current employer, even if the working conditions are Horrible? Again, to prevent their employees from 'running away'?

DISCRIMINATION - how much the Employer contributes for worker?11% of wages/income more for local worker to EPF
What needs to be done justly is to include Migrant Workers in the Employees Provident Fund(EPF) scheme, which applies only to local workers now. Under the EPF scheme, the employer is required to contribute at least 11% of the monthly income, and the worker 8% of the income, which would put into the worker's EPF account - this money is 'invested' carefully aimed at generating income, and every year the amount earned is deposited back into the worker's account, which is usually about 5-6%(so much higher than interest received if one places money in a bank's savings account).

Now, for the local worker, this money can be taken out at the age of 55-60, but for Migrant Workers, it should be for the length of their employment short-term contract, and, if it is extended, for that period.

What is the DURATION of migrant worker employment contract? Well, for many, they come based on an agreement that they will be employed for a period of 3 - 5 years. However, then they are only given 1 year work visa, where before there was a need to provide this one year employment contract - so workers end up signing a  2nd employment contract, not realizing that this cancels out earlier 3-5 year contracts and makes their employment even more precarious(not sure whether there have been changes today). Therefore, important that employment contract shall reflect that they are here in Malaysia for employment for 3-5 years(or more), and the work visa(be this Social Visit(Temporary Employment) Visa/Pas or the Employment Pass) must be given for the entire duration. No need anymore for annual renewals - that will save a lot of money for government, employer and workers. Maybe, annual return by employees confirming employment status of workers could be required. 

The certainty of employment duration will enable to set up the relevant EPF account for migrant workers. Knowledge of how long EPF has the monies for investment, is needed for smoothness of investment...Dividends will also be earned by the employees through such a scheme.

Employers - this has to be the REAL employer (not some Contractor for Labour who has to depend on 'real employers'). Employer must be the   ' (a) the principal or owner of that agricultural or industrial undertaking, constructional work, trade, business or place of work; or (b) that statutory body or that authority.'(section 2A Employment Act).

Employers must have the full responsibility and obligation of choosing and appointing the migrant worker in their home country, before bringing them to Malaysia. That obligation includes the cost of repatriation, including food and board pending repatriation. This obligation shall include food and board pending repatriation until ALL legal claims/complaints/proceedings related to employment of the worker is settled finally in Malaysia. 

With mandatory EPF for migrant workers, it ends discrimination between migrant and local workers. Now the employer has to pay the additional 11% of wages(including overtime, work on rest day/public holidays) into the EPF account also for their migrant workers. [Without this additional 11% Employer contribution, it was 'CHEAPER' to get migrant workers to do overtime and/or work on rest day/public holidays...making migrant workers more attractive than local workers.]
 
Goverment's primary concern should be to the people, including migrant workers. But alas, sometimes, the government is more concerned about corporations and companies. Remember higher wages, also means more spending by workers and certainly an improved quality of life for workers and their families...and also this will help give us a better GDP?






 
 


 

Ministry proposes 20 percent deduction on foreign workers’ salaries

15 Dec 2018 / 17:46 H.
PUTRAJAYA: The Ministry of Human Resources has proposed for the employers to deduct 20 percent of their foreign workers’ basic salaries.

Its Minister M. Kula Segaran (pix) said the proposal, among others, aimed at preventing foreign workers from fleeing and to avoid employers from incurring losses on investments to bring the workers in.

He said the issue of foreign workers fleeing was among major problems faced by the employers and the proposal was seen as a relevant method in addressing the situation.

“The proposal has been submitted to the National Labour Advisory Council (NLAC) last week and it is open to being discussed among the stakeholders before it is finalised.

“If implemented, it is a win-win situation for employers and workers as both parties will benefit from the deduction,” he told a press conference after a dialogue session with 60 employers in the rubber glove industry here today.

Kula Segaran said the deduction of foreign workers’ wages would be kept in the Social Security Organisation (Socso) and to be handed over to them when they were leaving the country once after their work permit expired.

“The issue has also been raised in the meeting and majority of employers welcomed the proposal,” he said, adding that the government did not set any timeframe for the implementation and to leave it to the industry players whether to accept or reject the proposal.

He said the proposal was not new to the industry as it had been implemented in Japan and South Korea and it was successful in addressing the issue of foreign workers fleeing.

Kula Segaran said his ministry had also appointed Klang MP Charles Santiago as the coordinator of an independent auditor to carry out a comprehensive social compliance audit on rubber glove makers in the country.

He said Charles, an experienced activist involved in social audit nationwide before being elected as a people’s representative, was tasked to prepare reports to the ministry pertaining to the country’s rubber glove makers’ compliance to the International Labour Organisation (ILO) Standards on Migrant Workers.

He said among the aspects to be focused on in the report would be the forced labour as well as issue of foreign workers being forced to work excessive overtime as well as several other criteria pertaining to migrant workers as set by the ILO.

“This report can be used by the government to respond to the allegations made by the British government, parliamentarians in Europe and foreign companies in regard to forced migrant labour,” he said.

On Dec 9, the Guardian newspaper in the United Kingdom reported that one the world’s largest rubber glove makers, Top Glove Corp Berhad, exploited thousands of foreign workers including forcing them to work over 160 hours a month, exceeding the legal limit of 104 hours allowed by Malaysian law.

According to the report, among problems faced by foreign workers, apart from excessive overtime, the workers were also exposed to “unsafe” factory conditions, confiscated passports, high recruitment fees that kept them in debt bondage and salaries withheld for months.

However, the claim was refuted by Kula Segaran on Tuesday after inspections carried out by his officers at almost all factories owned by the company here and in Ipoh, Perak, found foreign workers in the company were working overtime voluntarily as they want to earn more to send back to their respective countries. — Bernama - The Sun Daily, 15/12/2018

See related posts:- 

Minister to say 'fake news' or 'actions of rivals' when HR Defenders highlight possible rights violations in Top Glove is wrong?

Malaysians work 40 hours a week and earn a decent income for a good life? Malaysia's Top Glove investigated by Britain?

 


1 comment:

Hakimi Abdul Jabar said...

Sorry Charles, need to digress.

As reported in August 2018, an independent survey by JobStreet Malaysia showed unemployed local graduates were handicapped by their poor command of the English language & bad communication skills. Not because of their religious studies deficiency. SPM school leavers apply for jobs too!

https://www.themalaysianinsight.com/s/120684

https://www.freemalaysiatoday.com/category/nation/2018/08/04/poor-english-still-an-issue-among-local-grads/