Press Statement by Labour Law Reform Coalition on 8 April 2020
in Shah Alam
Salary Deduction and Unpaid Leave Should not be Made an Option
during Lockdown
Labour Law Reform Coalition welcomes the announcement of the
government on 6 April 2020 that an additional RM10 billion stimulus package would
be allocated to support micro, small and medium enterprises, the total amount
of wage subsidy has been substantially increased from RM5.9 billion to RM13.8
billion.
However, we have grave concern that the Prime Minister, during
the announcement, said that the government encouraged “negotiations between
employers and employees on their terms of employment, including an option for
salary deductions and unpaid leave during the MCO.”
This statement will unwittingly open a floodgate for employers
to exploit Malaysian workers by denying paid leave during the lockdown period.
With tremendous financial support by the government at the expense of tax
payers’ hard-earned money, it is unreasonable if companies cut workers’ wages
or ask them to go for unpaid leave.
In addition, given the fact that only 4 per cent of private
sector workers were unionized in the country, most of the workplaces do not
have legally sanctioned bargaining units, that is, trade unions. Hence, the
proposal is unpractical and ineffective as the precondition of collective
bargaining does not exist. The announcement will be easily manipulated by
employers to their advantage.
We urge the government to grab the opportunity to require
companies to establish trade unions as a precondition of receiving government
fund. This measure not only will realize collective bargaining in accordance to
the financial situation of the company, but also encourage industrial harmony
in the post-lockdown period which is full of uncertainty for businesses and
working classes.
Nadesan
Gopalkishnam & Irene Xavier
Co-Chairpersons
Labour
Law Reform Coalition
Note : Labour Law Reform Coalition is
endorsed by 58 Trade Unions from various sectors and worker organisations. The
group started in June 2018 to initiate discussion on labour law reform bases on
ILO’s decent work framework. The coalition had submitted proposals of reforming
Employment Act 1955, Trade Union Act 1959 and Industrial Relations Act 1967 in
January and May 2019 respectively.
Nadesan Gopalkishnam is the General
Secretary of National Union of Transport, Equipment and Allied Industry Workers
(NUTEAIW), he is the immediate past Secretary-General of Malaysian Trade Union
Congress. Irene Xavier is a veteran social activist who founded Persatuan
Sahabat Wanita Selangor, she has been fighting for the rights of women worker
for decades.
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