THE Malaysian Trade Union Congress (MTUC) has condemned warnings of retrenchment made by Malaysian Employers Federation (MEF) as inhumane and an attempt to blackmail the government to keep low-paid paid workers.

MTUC secretary-general J. Solomon said warnings by MEF about retrenchment in the business community and high unemployment rate is an attempt to put pressure and even blackmail the government into giving out more concessions and financial assistance to businesses in exchange for keeping lowly paid workers.

“MEF demands that employers be allowed to lower the EPF contributions from 11% to 5% and for new laws to be enacted to reduce their overheads are blatant attempts to profit from the Covid-19 pandemic and are most inhumane,” he said in a statement today

On Monday, MEF executive director Shamsuddin Bardan warned that a wave of retrenchments may be on the way as companies struggle to stay afloat in the wake of the economic pounding inflicted by Covid-19.

He was quoted as saying that the retrenchments would likely occur just after Raya as bosses would try to keep their staff until then.

He said the MEF expects a little more than 2 million job losses, including fresh graduates and the 610,000 who became unemployed before March this year.

Solomon said the warning is a blatant attempt by employers to shy away from their responsibility of doing what they can to ensure unemployment is kept to a minimum, to push start the economy.

The MTUC also condemns any attempt to force workers into taking pay cuts and reducing their hours.

“Forcing them to do this would greatly impact their livelihood, given that a majority of the workforce is from the B40 and M40 groups, which are already paid poor wages that are unsustainable.”

“The MEF members who are laying off workers and making threats to retrench even more employees after Hari Raya are committing an unconscientious and dishonourable act,” said the secretary-general.

“The government must also hold MEF accountable and demand full transparency for the billions of ringgit they have been handed to ensure that businesses keep afloat and workers keep their jobs,” he said. – May 21, 2020.