Steven Sim, are you going to continue to allow the UNJUST to workers 'Kangani System' to exist in Malaysia - where the REAL Employer(being the principal or owner of that agricultural or industrial undertaking, constructional work, trade, business or place of work) is allowed to continue to use workers who are NOT their employees(but employees of another - 'the kangani') to work at their workplaces?
Under the kangani system, the worker no longer had an employment contract with the employer. Instead, employers dealt with the kangani who, in turn, controlled the workers he recruited. The kangani authorized himself to punish labourers and implement methods of social control—ranging from paternalism to brutal arbitrariness (Satyanarayana, 2010). Employers fully embraced the system, ignoring its abuses and irregularities, because the kangani assumed responsibility for the workers (Halim, 1988). -South Indian Labour in Malayan Rubber Estates: Profits over People, 1884–1941 by Professor Suresh Narayanan
Of late,we see the Employment Act being amended to replace the word 'workers' with the word 'employee' - which is good, but for so long that ONLY 'workers'(not the employee of owner/operator of the workplace) is allowed to work at workplaces > then ALL workers at the workplace, are EMPLOYEES of the 'principal or owner of the workplace' and thus protected by the law. IF NOT, the other workers, being 'employees' of the 'Kangani' or some other is NOT PROTECTED by the law equally.
Malaysian EMPLOYMENT ACT does not have a section that deals with the obligation of 'principal or owner of the workplace' to OTHER workers, not their own employees,?
THEN, these 'other workers' are open to EXPLOITATION and even 'Human Trafficking' - for it opens the door to "DISCRIMINATION' at the workplace - different wages and conditions for workers working at the SAME workplace doing the same work > this will happen so long as workers are employed by DIFFERENT employers, other than the SAME owner/operator of the workplace.
The supplied workers by other 'employers' or 'kangani' simply do not have the right to demand better working conditions from the person in control of the workplace - because you are not MY EMPLOYEE - and the real employer(owner/operator of the workplace simply have no employer-employee relationship with these workers, and guess what their current 'kangani' or 'employer' has NO POWER to even determine or cause improvement of working conditions. Non-employee workers can easily be terminated by a phone call asking the 'kangani' to replace the supplied worker - no show cause letter, no Domestic Inquiry, and no right to claim REINSTATEMENT by reason of wrongful dismissal - because their employer('the Kangani') simply have no ability to REINSTATE any worker to the same job and same workplace as they are not the owner/operator of the workplace....The LIST of injustice goes on..
Simple solution exist in the Employment Act 1955 in Section 2A - and all it requires is Minister Steven Sim's ORDER
2A Minister may prohibit employment other than under contract of service
(1) The Minister may by order prohibit the employment, engagement or contracting of any person or class of persons to carry out work in any occupation in any agricultural or industrial undertaking, constructional work, statutory body, local government authority, trade, business or place of work other than under a contract of service entered into with-
(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.
(2) Upon the coming into force of any such order, the person or class of persons employed, engaged or contracted with to carry out the work shall be deemed to be an employee or employees and-
(a) the principal or owner of the agricultural or industrial undertaking, constructional work, trade, business or place of work; or
(b) the statutory body or local government authority,
shall be deemed to be the employer for the purposes of such provisions of this Act and any other written law as may be specified in the order.
YES - Once the MINISTER ORDERS - all who have been working in the workplace IMMEDIATELY become employees of the TRUE Employer(the owner/operator of the workplace.)
STEVEN SIM HAS THE POWER - And he should use it for all palaces of employment > or at the very least first for GLC companies, and for any other company who gets a Government Contracts.
ONLY employees have the right to demand better rights and better conditions of work at their workplace from their EMPLOYERS(But the employer must have the POWER to make changes at the workplaces, which a 'Kangani' does not have).
Workers of other employers(or 'kangani') have no such right to demand anything from the REAL Employers(the owner/operators of work places). These 'kangani', contractors for labour or other employers just SUPPLY workers - no power to deal with any worker demand's for improvement of rights including conditions of work at the workplace.
The REAL Employers(the owner/operators of work places) do not have any employer-employee obligations other than to their very own employees. So NO employer-employee obligations to workers whose employer is some other.
BEFORE - when the 'principal or owner of the workplace' needed workers, they sometimes went to PRIVATE EMPLOYMENT AGENCIES who will help find workers - when then are employed as employees of the 'principal or owner of the workplace', and the PRIVATE EMPLOYMENT agency is paid a one-time FEE for their services of finding workers for employers, and finding employers for workers.
Then, the BN regime introduced the 'Kangani' system - allowing these 'contractor for labour' to continuously profit by allowing them to supply workers, who will no longer end up becoming the employees of the 'principal or owner of the workplace' on supply, but remain the employees of these 'Kangani' - so payment direct to 'kangani' who then will pay their 'employees' wages - The more these 'supplied workers' work, the more the 'Kangani' benefits > hence, giving rise to DISCRIMINATION and different rights for employees and 'other Kangani supplied workers'.
Initially, the contractor for labour or 'kangani system' only affected MIGRANT Workers - but today it affects Local Workers too. The 'contractor for labour' permits were given to certain people - cronies? friends of politicians?
MINISTER - how many workers in Malaysia are direct employees of EMPLOYER who is the 'principal or owner of the workplace'? How many are employees of the 'Kangani' or contractor for labour or others?
ONLY TRUE Employer who have JOBs should be given right to bring in and employ MIGRANT WORKERS
Previously, only TRUE Employers, being the 'principal or owner of the workplace' needed migrant workers because their efforts to get local workers failed, and they had specific jobs that needed workers to be filled, then the government gave them permission to bring in the needed number of qualified migrant workers to fill in these specific vacancies.
Then, the government, around 2006, started giving the 'Contractor for Labour' or 'kangani' permits to bring in migrant workers - but the problem is that they DID NOT HAVE jobs at their OWN workplaces that needed workers - so, this ended up with migrant workers being brought with NO guaranteed assurance of a definite job in Malaysia.
TRUE Employers, being the 'principal or owner of the workplace' found it more difficult to get in their own migrant workers - and were encouraged to use the migrant workers already brought in by these 'kangani' - which sometimes failed to meet the specific worker needs of the 'principal or owner of the workplace' requirement - as in the past, many employers interviewed and 'vetted' workers before offering them a contract for employment - now the TRUE employers had NO CHOICE but to use the 'kangani'-supplied workers.
PREVIOUSLY, when migrant workers enter into a contract of employment with Malaysian Employers - there was CERTAINTY as to where they will work and the kind of work that they will be doing. Hence, the growing complaints from migrant workers of 'DECEPTION", where migrant workers agreed to work in a particular kind of work find themselves being forced in a job, they never before agreed to do.
Now, even when the 'principal or owner of the workplace' finds a 'supplied worker' suitable and they want to make them their OWN employee, they cannot as the 'Kangani' has full control of the workers they supply...
The UNJUST situation can be ENDED by returning the right to EMPLOYER 'principal or owner of the workplace', the right to per-choose suitable migrant workers before they enter into an employment agreement with these migrant workers...END deception and exploitation of WORKERS.
TRADE UNIONS - Weakened to the detriment of workers
The TRADE UNION have only the right to defend and promote worker rights of Employees of the Real Employer - so, even Collective Bargaining Agreements between Union and Employer(real owner and operator of workplace) does not generally benefit workers(employees of some other employer or 'Kangani'). Remember it is that Trade UNION of employees that enter into agreement with EMPLOYERS.
What use is there for for workers or UNIONS to deal with the Kangani who have NO POWER to improve working conditions of the actual workplace where the worker works?
NOW, in Malaysia, there is NO LAW even stating the number of other workers(not employees of owner/operator of the workplace) that is permitted. The trend is that the number of EMPLOYEES of the owner-operator of workplaces are declining - and, indirectly the power of Trade Unions of employees is weakening.
Why worry about a STRIKE or industrial action - when the workforce is made up of 50-90% of workers who are not my own employees?
Hence, TRADE UNIONS have lost their 'POWER' to fight for better rights and against injustices that befalls their members.
Does MINISTER STEVEN SIM support worker and Trade Union RIGHTS? Or is he only concerned about the 'well-being' of Employers - and do not care if workers are exploited, or DENIED the ability to fight for better rights?
Will he USE the Ministerial power in Section 2A of the Employment Act - which can significantly improve worker and trade union rights, or NOT? Maybe, his MINISTRY must have a NAME CHANGE - to a Ministry or Workers and Human Resource to be clear that the government is concerned about WORKERS too - and not just Employer's 'HUMAN RESOURCE' issues.
MINIMUM WAGE - Will Steven SIM ensure that the Minimum WAGE is as Bank Negara Malaysia recommended - RM2,700(for a bachelor worker without family)? Or like UNICEF recently proposed - RM2,100? So, will our MINISTER be concerned more for EMPLOYER companies, or be concerned more for the Malaysian Worker and his/her families? A worker who is UNDERPAID will be forced to work extra - so NO "eight hours labour, eight hours recreation, and eight hours rest." for Malaysian Workers... Work 2nd Job or work OVERTIME
Bank Negara Malaysia (BNM) had stated that for Kuala Lumpur, the living wage for a single adult was RM2,700 (in 2018), and for a childless couple, it would be RM4,500. The living wage for a couple with two children would be RM6,500.
https://www.bnm.gov.my/documents/20124/6432787/ar2017_en_box3.pdf
The re-emergence of this 'Kangani System' happens around 2006, with the introduction of the 'contractor for labour' - and it first involved migrant workers but today also include local employees. Now the REAL Employer(owner/operator of workplace) simply enter into an agreement with these 'new kangani' to supply a certain number of their employees as workers to work at the workplace. Getting rid of a 'supplied worker' is so easy - a phone call to the 'kangani' is sufficient, and no more the need for a show-cause letter, domestic inquiry, and ending up in a wrongful dismissal case at the Industrial Court... no more the obligation of no DISCRIMINATION too ...I treat my EMPLOYEES equally with no discrimination, but I have no obligation to treat ALL workers at the workplace equally...The current law only prohibits DISCRIMINATION amongst my EMPLOYEES - and not covers discrimination of other workers(not my employees)
69F Discrimination in employment
(1) The Director General may inquire into and decide any dispute between an employee and his employer in respect of any matter relating to discrimination in employment, and the Director General may, pursuant to such decision, make an order.
(2) An employer who fails to comply with any order of the Director General issued under subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit; and shall also, in the case of a continuing offence, be liable to a daily fine not exceeding one thousand r inggit for each day the offence continues after conviction.
WORKERS get their RIGHTS from their Employment Agreement With Their Employers.
If they have a Trade Union, they MAY get even better rights from the Collective Bargaining Agreement that the Union signs with the Employer. YES, workers struggling together against their employer have a better chance of getting BETTER RIGHTS - better working conditions, better wages, Higher EPF/KWSP contributions from employer, Higher MINIMUM Wages, etc..
YES, some Unions in Malaysia has managed to get the EMPLOYER to make a HIGHER Contribution to EPF/KWSP higher than what the law provides,...
CONSEQUENCE - The number of EMPLOYEES of the workplace owners is slowly getting reduced - hence, DIRECTLY affecting workers' ability to struggle for better rights with their employers...
WHY? Workers POWER comes from the fact that the Employer NEEDS them to carry on his/her business, and without WORKERS, the business is at RISK. One worker making demands can be easily ignored - but a collective demand of all(or majority) of workers is difficult to IGNORE - and hence workers get the chance and opportunity to negotiate and even get better rights...
REMEMBER - Malaysian workers and their families have the VOTES - the majority of the votes> Not the EMPLOYER COMPANY.
HENCE, if the government, including MINISTER SIM, fails to protect Malaysian Workers and their UNIONS - they will VOTE you and the current government out come next elections...BEWARE WORKER POWER...
MINIMUM WAGE must be more frequently reviewed and changed - when cost of living increases, minimum wage must immediately RISE - if not, the Malaysian worker and their families suffer...
PETALING JAYA: The majority of Malaysians may earn more than the minimum wage, but they still do not earn a “living wage” that would allow them and their families to enjoy a comfortable life, said Universiti Tun Abdul Razak economist Dr Barjoyai Bardai.
He said 50% of Malaysians earn about RM2,000 monthly, which does not reflect the living wage as it would not give them the ability to lead a comfortable life.
He added that Bank Negara Malaysia (BNM) had stated that for Kuala Lumpur, the living wage for a single adult was RM2,700 (in 2018), and for a childless couple, it would be RM4,500. The living wage for a couple with two children would be RM6,500.
The majority of Malaysian families have a single breadwinner who may earn more than the minimum wage. But they do not earn what has been described as the minimum living wage.
Barjoyai said although the poverty line has been set at RM2,208, this just allows a family to meet its very basic needs.
“There is an urgent need to get families to earn a living wage. One way is to encourage families to become entrepreneurs while the breadwinner works at a full-time job. Changing the people’s mindset could take five to six years, but it has to be started as soon as possible.”
Barjoyai also said tough competition for jobs in urban areas has made life difficult for migrants from rural Malaysia, but they will not return to their hometowns, lest they be regarded as a failure. Hence, they do not mind suffering in an urban environment.
“People need to realise the living wage in rural areas or small towns is much lower simply because the cost of living is lower. For example, house rentals are much lower than in the Klang Valley.
“A person can earn RM2,000 in a rural setting and live comfortably while in an urban area, this level of income will not give him a good life.”
He said there needs to be an integrated effort to tackle living wage poverty by ensuring everyone can earn an income that would allow them to lead a decent life.
In 2018, BNM said the concept of a “minimum acceptable” standard of living goes beyond being able to afford food, clothing and shelter, and should include the ability to meaningfully participate in society, the opportunity for personal and family growth, and freedom from severe financial stress.
Sunway University economist Prof Dr Yeah Kim Leng said although the living wage level has been defined by BNM, wages have to be increased in tandem with the rising cost of living.
“People need to live within their means
but they must be able to live life with happiness and satisfaction too. A
living wage also means the ability to have a holiday once in a while,
visit parents when the need arises and have the ability to save for
their retirement.” - Sun, 10/2/2023
Time for minimum wage above RM2,000
- Nation
-
Thursday, 09 May 2024
PETALING JAYA: The minimum wage for Malaysians should be set at RM2,102 as the current RM1,500 is too low for workers to sustain themselves and their families with, according to the latest report by United Nations Children’s Fund (Unicef) Malaysia.
The UN-backed study said its proposal for the new minimum wage was made in light of several current factors, including the high cost of living that is causing many Malaysians to struggle to make ends meet.
“The current level of minimum wage is too low and insufficient for workers.
“Taking into consideration key factors such as cost of living, poverty line income, median wage and productivity, our calculation shows that the minimum wage should be set at RM2,102 per month instead of RM1,500 currently.
“This revised new minimum wage is slightly lower than the living wage of RM2,700 as proposed by the Central Bank of Malaysia,” read the report that was published yesterday.
The study titled Living on the Edge: Longitudinal Study on Post-Covid-19 Impact Assessment Among Low-Income Households in Kuala Lumpur was conducted on 755 households living in 16 low-income flats in the city from Oct 10 to Nov 16 last year. The households had been part of a series of earlier studies in May 2020, September 2020, December 2020 and March 2021, which tracked the impact of the Covid-19 pandemic and its lockdowns on low-income families.
Among the key findings revealed in the report was that although families have recovered in terms of employment and income after the pandemic, poverty persisted with 41% experiencing absolute poverty and 17% facing hardcore poverty.
Hardcore poor refers to households with a monthly income of less than RM1,169, while those in absolute poverty have an income of less than RM2,208.
“This is especially prevalent among female-headed households and households headed by people with disabilities.
“Increasing living costs have exacerbated hardships, with eight out of 10 families struggling to meet basic needs, resulting in extreme choices such as reducing food intake.”
According to the report, one in three heads of households believe that their financial situation would continue to deteriorate as compared to one in four in 2021.
As of October 2023, 30% of the respondents said they believed their financial situation would worsen. 16% said it would stay the same, 31% were unsure and only 24% believed their situation would improve.
Out of the total households surveyed, 46% said their current financial situation was worse than last year, 38% felt it was the same as before and only 16% said things have improved for them this year.
The study, funded by Unicef and the UN Population Fund, revealed that 93% of the total households they spoke to admitted that they were currently affected by the high cost of living. Only 7% said they were not.
With that in mind, the report said it was essential for workers’ social protection to be improved, especially for those working in informal sectors and were not protected by the Employees Provident Fund (EPF) and Social Security Organisation (Socso).
About 40% of workers, according to the report, did not have employment-based social protection.
“As for those who are self-employed, 92% are without such protection, mostly women.
“This lack of social protection exposes them to heightened vulnerability during economic shocks, making it more challenging to withstand financial hardship.
“It must be mandatory for all workers to be covered by EPF and Socso to protect them against injury, unemployment and inadequate or no income during old age.” - Star, - Star, 9/5/2024
PETALING JAYA: The United Nations Children’s Fund (UNICEF)’s recent report, ‘The Living on the Edge Key Findings’ has revealed that the current minimum wage of RM1,500 is “too low and insufficient for the workers”.
UNICEF opines it should be bumped up to RM2,102 monthly, which is more in line with RM2,700 living wage proposed by Bank Negara Malaysia.
According to the report, the calculation takes into consideration key factors such as cost of living, poverty line income, median wage, and productivity.
READ MORE: Malaysia ranks 59th out of 67 countries for minimum wage
Along with a higher minimum wage, UNICEF advocates for universal childcare allowance and universal allowance for PWDs (person with disabilities).
They are suggesting a universal childcare allowance of RM200 per month for moms-to-be until their kids turn two and a universal for all PWDs and their caregivers.
UNICEF also advocates that all workers in Malaysia should have coverage from the Employees Provident Fund (EPF) and the Social Security Organisation (PERKESO), no matter what job they have.
This would ensure their protection against injury, unemployment and inadequate or no income during old age. - Sun, 9/5/2024
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