Employers taking advantage of govt leniency, says MTUC

The Malaysian Insight The Malaysian Insight Updated 4 years ago · Published on 11 Apr 2020 11:15AM · 4 Comments

MTUC secretary-general J. Solomon says there are unethical employers who receive billions of ringgit in government aid, but have no qualms about shortchanging their workers. – The Malaysian Insight file pic, April 11, 2020.

PUTRAJAYA’S leniency towards employers has opened the floodgates for layoffs and wage cuts, said the Malaysian Trades Union Congress (MTUC), as the country hunkers down for an extended movement-control order (MCO).

MTUC said it has been inundated with phone calls every day since the Perikatan Nasional administration decided on April 6 to allow employers to review employment contracts to cut workers’ pay.

That decision was a reversal of an earlier policy that said bosses must pay their employees’ full salary throughout the MCO.

“With the stroke of a pen, the government allowed employers to renegotiate employment contracts for the purpose of reducing the wages of workers during the MCO and beyond,” said MTUC secretary-general J. Solomon.

“Today, MTUC continues to be inundated with calls from union representatives and workers about unscrupulous employers taking advantage of the government’s leniency to cut salaries or lay off staff altogether.

“These are the early days of the economic gloom, and with another two-week extension of the MCO, we expect there will be many more such cases.

“Sadly, many of these unethical employers will receive or are already recipients of billions of ringgit in government aid, but have no qualms about shortchanging their workers.”

The government’s U-turn on workers’ pay during the MCO was announced just as it unveiled an additional RM10 billion stimulus for businesses to weather the economic impact of the partial lockdown.

The aid comes with the condition that employers must retain staff for at least six months.

During the MCO, only a handful of essential services and businesses are allowed to continue operating.

The restriction order, which took effect on March 18, is aimed at breaking the chain of Covid-19 infections. So far, Malaysia has recorded 4,346 cases with 70 deaths.

MTUC previously urged Putrajaya to criminalise retrenchment for a period during the crisis.

The proposal was made in response to complaints that workers were either being laid off, put on unpaid leave or had their salaries cut after the MCO was enforced.

“Workers were being brazenly victimised as employers completely ignored repeated warnings by the prime minister and human resources minister that workers were entitled to their full salaries during the MCO,” said the congress.

“Employers can sustain themselves and their families with the huge profits stashed away, but workers do not have this luxury or even the capacity to survive if they lose their jobs or have their salaries cut. They lose everything overnight.

“The business community and government must see the wisdom in ensuring workers do not lose their jobs, and their meagre income is not further diminished with unfair pay cuts.

“These workers will play a crucial role in kick-starting the economy post-MCO. Employers will need workers to help them rake in profits like before.

“The government and business community must also not lose sight of the fact that it’s workers’ blood, sweat and tears that allowed (company) owners to enjoy what they have now.” – April 11, 2020.

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Comments

  • Why don't you, for once try to understand the predicament of employers too during this unprecedented times? Things cannot go on as usual. Workers who don't have to come to work have already saved on transport and other expenses which is unavoidable if they work. making sacrifices must come from both sides now and not just the employers. If the employers cannot sustain and close shop, will the Union give them jobs? Stop talking nonsense and wake up to a new reality. You unionist are paid good pay and you should be getting a hefty pay cut yourself. Time for everyone to know that the sacrifice to survive must come from all parties, including the Unions who have to be more responsible and understanding.

    Posted 4 years ago by Mike Mok · Reply

  • Union employees should initiate your pay cut first before u ve a right to comment on this. Everybody has to sacrifice if MCO is extended. Naive and immature comment for u don't know what is losses meant to u, only employers know the pain of suffering unprecedented loss.

    Posted 4 years ago by James Wong · Reply

  • Employer = millions stashed somewhere, if it is so easy why don't you run a business yourself.

    Posted 4 years ago by A Subscriber · Reply

  • MTUC secretary-general. Please think before you open your mouth. To say that workers had benefited bosses when times were good, it is a two way business. When business was good, workers too would have received better pay and benefits. Now that times are bad with no income for most companies and especially SME, workers should be thankful that bosses would still pay them a cut salary. You can't kill the goose that lay the eggs. Do workers want their bosses companies to close for good? Can these retrenched workers be able to find a job easily now? Be realistic!! Think ahead as most businesses would take at least a year to fully recover before they can return to giving back full salaries. In life one must learn to give and take so that everyone will enjoy prosperity together once we have override this current difficult period

    Posted 4 years ago by Witzi Leong · Reply