PUTRAJAYA should introduce an emergency employment regulation to make retrenchment illegal for those earning between RM4,000 and RM8,000 a month for a stipulated period of time, said MTUC

Malaysian Trades Union Congress secretary-general J. Solomon said the group forms between 30% and 40% of the SME workforce and is at “the complete mercy of employers as a priority target for lay-offs or wage cuts to reduce overheads”.

He added they are not covered directly in any of the government rescue plans.

“They risk being laid off by employers, who on the contrary, have now received billions of ringgit in two stimulus packages in less than a month.”

Solomon said while this group is not in the B40 category, they work in urban centres such as Kuala Lumpur, Johor Baru and Penang where cost of living is higher compared to the rest of the country.

“Their salary is hardly enough to sustain their families. Salary cuts or job loss will be catastrophic for them in every aspect.

“If the government does not step in with enforceable laws to prevent layoffs, MTUC is worried workers will pay the ultimate price.”

MTUC has received about 300 complaints of workers being made to go on unpaid leave or take pay cuts while workers whose contracts had expired were told to leave.

Solomon said most complaints involved workers in industries of sole proprietorship and family-owned businesses while others are from the services industry.

“This is happening with utter disregard to the government’s strong warnings that employers must not lay off workers or cut their salaries during the movement control order (MCO) period.

“As such, we implore the government to take strict measures to protect the livelihood of all workers in the private sectors from unscrupulous employers who will pocket the government aid and still victimise workers through loopholes.”

Solomon also criticised Prime Ministe Muhyiddin Yassin’s announcement yesterday to allow employers to renegotiate their employment contract with workers, including an option for salary deductions and unpaid leave during the MCO. 

“The prime minister’s generous gesture to the SMEs is clearly detrimental to the interests of workers who now risk wage cuts to their already reduced salaries due to MCO that has denied them overtime pay and allowances.

“And with the likelihood of the MCO being extended again, these workers will clearly suffer and be hard-pressed to sustain themselves and their families. 

“Giving employers leeway to rewrite job contracts of the workers at this point of time will have dire consequences on the survival of the employees.”

Solomon said employers could use “subtle arm twisting tactics” to force workers into submission, including the threat of retrenchment or voluntary separation, adding that the onus is on the SMEs to keep their businesses afloat and protect the jobs of their workers.

“Claims of being financial unable to pay wages given all the assistance they have received from the government will be construed as fraud.

“If they face any shortfall, they should use part of the various government’s financial packages to sustain the workers and stop making excuses at every turn to lay off workers or cut their salaries.” – April 7, 2020.