Tuesday, October 29, 2019

Press Release - Minimum Wage vs. Living Wage

MTUC Penang Division wishes to record its appreciation to Dr. Yeah Kim Leng of Sunway university for his statement that, a minimum wage of RM1200.00 as announced in the 2020 budget, was inadequate for an individual working in the Klang valley. We also appauld his views that a living wage i.e. sufficient income to meet the basic economic necessities of a worker as opposed to a minimum wage, be an appropriate measurement of wages.

(See FMT 28.10.2019)

We, in MTUC Penang Division had, as early as 8.12.2018, called upon the government to migrant from the minimum wage module to that of a living wage.

(See FMT 8.12.2018 "Have a living wage instead of minimum wage").

When we made that call, then, it was in the context of workers having to work excessive hours, including overtime (upto the legally permitted 104 hours a month!) work on rest days, public holidays and even taking on a second source of income to ensure sufficient earnings to meet the economic pressures of the ever escalting cost of living. Thus, we find it refreshing that our position, in the matter, has been vindicated from an economist consideration in the matter.

Though Dr. Yeah's point of reference was of an individual living, and working in the Klang valley, we are of the view the situation would be about the same outside the Klang valley as well. Cost, of basic essential goods and services  say, rice, cooking oil, petrol, gas, flour, fish, vegetable, lentils, electricity rates, toll etc etc being uniform throughout the country workers, by and large, wallow in the vicious low and middle income trap as a consequence of inequitable wages.

The fact, that, wage adjustments even by the Industrial Court, has been pegged to a distorted Consumer Price Index (CPI) inspite of the glaring mis-match to purchasing power parity, ought to hasten, in our view, a re-constituted approach to wage fixation in the country. We are convinced that the only progressive path is to embark on a living wage, as opposed to a minimum wage, policy.

In conclusion it is our view that, working excessive hours of work and seeking supplementary source of income, would, inevitably, result in the deterioation of workers' physical and mental health - an invisible loss of productivity and higher medical cost for employers and the nation which could be avoided by ensuring workers' a living wage.

Secretary MTUC Penang Division
016 4184520

Tuesday, October 8, 2019

Malaysia:::Ministry tables eight amendments to Industrial Relations Act

KUALA LUMPUR : The Human Resources Ministry today tabled eight amendments to the Industrial Relations Act 1967 for first reading at the Dewan Rakyat.
"The amendments are part of the holistic review and in conformity to international standards in bringing transformation to the industrial relations landscape in the country," the ministry said in a statement.
The amendments, it said, were discussed at length with various stakeholders, and are in line with the Pakatan Harapan government's promise to enhance and improve workers' protection and to ensure workers' rights are at par with international standards.
Representations on Unfair Dismissals
A significant amendment proposed is for the repeal of the human resources minister's power to refer representations on dismissal cases to the Industrial Court. This power will instead be given to the Director-General for Industrial Relations in order to expedite the process.
Another change proposed is for cases that are not resolved through conciliation at the Department of Industrial Relations to be referred to the Industrial Court without further filtering.
Also, the employer or workman may be represented by any person of their choice, except lawyers, during the conciliation process at the Department of Industrial Relations.
Workman being under mental disability and not having a guardian may be represented by the next of kin at conciliation proceedings, subject to the approval of the High Court.
The proposed amendment will also enable the Industrial Court to make an award by not confining to the restrictions in the Second Schedule in the event the dismissal is due to union-busting.
It will also enable the minister to make an order to allow dismissed workman of any statutory authority to file a claim for unfair dismissal at the Department of Industrial Relations.
Appeal against Industrial Court Award to High Court
Another amendment proposed is to allow any person dissatisfied with an award of the Industrial Court to appeal to the High Court within 14 days from the date of the receipt of the award.
Enhancing the Recognition Process
The human resources minister's power to decide on matters relating to capacity and recognition issues involving trade unions is repealed under the amendments, and replaced by the Director-General for Industrial Relations in order to expedite the process.
"Currently, the recognition process involves two departments namely the Department of Industrial Relations and the Department of Trade Unions Affairs. With the proposed amendment, the recognition process will be under the purview of the Department of Industrial Relations only. This would expedite the process of recognition claim," the ministry said.
Sole Bargaining Rights
Another change is that, in line with the spirit of the International Labour Organisation (ILO) Convention 87 on Freedom of Association and Protection of the Right to Organise, 1948, the establishment of trade unions will no longer be confined to trade, industry or occupation.
"This would allow multiplicity of trade unions in an organization. Due to this, the provision on the application for sole bargaining rights is introduced to enable the workmen to choose the preferred trade unions in the event there are more than one recognized trade union representing the workmen.
"This will ensure only one trade union, which has obtained the highest number of votes, to have sole bargaining rights to represent workmen in collective bargaining," the ministry said.
Allowing Trade Union of Workmen to Raise Questions of General Character Relating to Management Prerogatives
The proposed amendment will allow trade union of workmen to raise questions of general character relating to transfers, employment, termination of services due to redundancy, dismissal and reinstatement and assignment or allocation of work. At present, the trade unions can only raise matters of general characters on promotion.
Introducing Exceptions Before Matters Relating to Collective Bargaining Referred to Industrial Court
It is also proposed that trade disputes relating to collective bargaining be only referred to Industrial Court with the consent of the parties.
The exception is that if the trade disputes relate to the first collective agreement or to any essential services specified in the First Schedule, or if the trade disputes would result in acute crisis if not resolved expeditiously, and if the parties to the trade disputes are not acting in the good faith to resolve the trade dispute expeditiously.
Imposition of Interest
A further amendment empowers the Industrial Court to impose interest at the rate of 8% per annum, or lesser rate as the court may direct.
Reducing the List of Essential Services
It is also proposed that the First Schedule of the Essential Services be replaced with the new schedule in line with international labour standards.
"Apart from these proposed amendments, the minister of human resources is also reviewing several other labour legislations including the Employment Act 1955 and Trade Unions Act 1959, which is expected to be tabled soon," the ministry said.

Low Wage And Impact On Workers

Low Wage And Impact On Workers

Except for a minister, the general public does not seem to subscribe to the argument that a family of 4 can survive on RM980.00 a month and yet be categorised as living out of poverty in Malaysia!

On this score let us stand clear of Bank Negara Malaysia's own input that workers of the country ought to be paid a living wage as opposed to the inadequate minimum wage of RM1100.00 a month. According to Bank Negara an individual, living in Kuala Lumpur, ought to be paid RM2700.00 a month to sustain himself. The said report also estimates that for a family of 4 the living wage ought to be about RM6500.00.

However, the reality is, that, the vast majority of workers are wallowing in the low and middle income trap as a consequence of  inequitable wages that does not commensurate with the existing cost of living indices. The polemics, as to why and what has been the undercurrent to such a situation, may well strecth from the issue of promoting Malaysia as a low wage nation to the suppression of decent wage growth on account of an influx of migrant workers and much more.

That, in  a nut-shell, is a manifestation of the weak economic position of the workers of the nation.

Consequentially, their contributions, to the Emplyees Provident Fund (EPF) the only source of a private sector workers' retirement plan, has been so much compromised that they do not have enough savings to sustain themselves after retirement at age 60.

The fact remains that more than 50% of EPF contributors do not have enough savings to sustain themselves after their retirement. Thus, one need not be a rocket scientist to conclude that the bottom 40, and to a large extend the middle 40, of the economically deprived segment of the country will be faced with 2 options upon retirement - one depend on social security, which is almost non-existence in our country, or continue to seek employment albeit at low paying jobs at the dictum of uncaring employers! Sadly, in the second option retired citizens would continue to meet the nation's manpower needs but at subsistence income levels!

Thus, what are the alternatives that can, at the least, mitigate the situation?

It is my view that the following proactive initiatives ought to considered by the government:-

1. that a living wage, as so recommended by Bank Negara, be adpoted as the basis of wage fixation so that workers are paid a decent living wage that would reflect the actual cost of living factors;

2. that employers' contribution, to the  EPF,  be set at a much more appropriate rate so that private sector workers savings would be sufficient to meet their post retirement living expenses;

3. that, having regards to the higher life expectantcy of Malaysians, the retirement age be revised to 65 years at the least so as to keep them in gainful employment; and

4. that, a comprehensive social security net, giving priority to health care protection for treatment of chronic health conditions such as kidney ailments, cancer, Parkinson's, Alzheiner, stroke etc, be formulated as the fact remains that our country is heading towards an ageing soceity.

It is no-gain saying that the working citizenry of the nation are the most margainlised segment of the population. That, sadly, is despite the indisputable reality that the nation's growth, economically or otherwise, was on the back of the blood, sweat and lives lost of the working class!

Thus, it is my contention that the government is under an obligation to commence restitutional reforms to address the plight of the workers - from wage reforms to a holistic reform to the obnoxious labour laws that has impeded the development of a vibrant workers' movement etc, etc. Such reforms, so implicitly assured by the Pakatan Harapan government, ought to be realised without procrastination as the issues, confronting the working population, are real and not an illusion!

Opinion Piece By:-

MTUC Penang Division
016 4184520

Friday, October 4, 2019


4-October 2019


1. Electronic Industry Employees’ Union Western Region, Peninsular Malaysia,
(hereinafter called the “Union”), was registered on 1-December 2009. The first
company the union organised was NEC Semiconductors (Malaysia) Sdn Bhd, which
later came to be known as Renesas Semiconductor KL Sdn. Bhd. (hereinafter called
the “Company”), located at KM 15, Jalan Banting, Telok Panglima Garang, Selangor,
where the union President Wan Noorulazhar bin Mohd Hanafiah was working.
2. Immediately after its first Triennial General Meeting on 8-Jan 2010, the Union
submitted its claim of recognition on 18-Jan 2010 when more than 70% (1,300
employees) enrolled as members of the Union, hoping to enjoy the benefits of a
collective agreement.
3. The Company embarked on a series of actions to avoid union representation of its
employees, as follows:
a. Dodging the receipt of the Union’s letter on its claim for recognition, when finally on
the fourth attempt on 8-Sep 2011, the Company acknowledged receipt of the Union’s
letter delivered through a private courier. The process took nine months.
b. The President of the union Wan Noorulazhar bin Mohd Hanafiah, was dismissed by
Renesas on 26-Aug 2011 on an alleged misconduct that his actions were ‘contrary
to explicit company policies’. He was alleged to have made statements about treatment of workers in a closed Facebook Group, whose members were fellow workers. The wrongful dismissal case went before the Industrial Court and the Company settled by paying compensation in lieu of reinstatement in 2017.
c. The Company challenged the validity of the registration of the Union itself, and the qualification of the Union’s General Secretary, yours truly, the undersigned. When the Minister rejected this objection the Company proceeded to filed for a judicial review of the Minister’s decision to the High Court and on 28-June 2012, the High Court dismissed the Company’s application. The Company then appealed to the Court of Appeal who also unanimously dismissed the appeal on 5-Dec 2012.
d. Only after the Court of Appeal’s decision did the Director General of Industrial
Relations (DGIR) directed the Company to submit the names of employees in the
Company, who are under the scope of the Union, to enable to undertake a secret ballot as provided for under the Industrial Relations Act. Inspite of repeated reminders the Company refused to comply.

e. The DGIR finally acted by filing a case in the Magistrates Court in Putrajaya to prosecute the Company for not complying with the requirement of providing the list of employees and thereby obstructing its public officers from performing their duty.
On the day of hearing the Company provided the list and the DGIR withdrew the
f. The secret ballot was finally conducted and the Union obtained the majority, in a high security and tense atmosphere of harassment and intimidation.
g. The Minister ordered recognition to be accorded to the Union. The Company applied to the High Court for a Judicial Review of the Minister's decision to accord recognition. The High Court dismissed the Company's application on 27-Aug 2015.
The Company filed an Appeal to the Court of Appeal which was also dismissed.
h. At the same period the Union’s case on Union Busting activities by the Company
was referred to the Industrial Court which found the Company guilty on 8-Mar
2016. The Company applied to the High Court for a Judicial Review which dismissed
their case. The Company filed an Appeal to the Court of Appeal which was also
dismissed on 24-Jan 2017.

4. Collective Agreement Negotiations:
The Union’s collective agreement proposal consisting of 58 articles, was forwarded
to the Company on 21-Jun 2018.

5. After 14 months of negotiations we discussed about 25 articles but the parties concluded agreement to only 15 articles. The process is moving at a snail’s pace because the Company allocates only 2 to 3 hours for negotiations in a month.
Union’s repeated request for weekly meeting were rejected. At the current rate the collective agreement perhaps shall be concluded in another year or maybe two!
Also the Company rejected some important articles, listed below, rendering the
negotiation process meaningless.
a Effective date and Duration of Agreement.
b. Language and Copies of the Agreement.
c. Check-Off.

6. As a responsible corporate citizen, RENESAS Semiconductor KL Sdn. Bhd. places the community services as one of its top priorities but it is not reflected in the way the collective agreement negotiation is proceeding.

7. The Company with the history of inherent anti-union behaviour, continues to
stonewall the collective agreement negotiation.

8. Hence the union members picket today.

Bruno Periera
General Secretary
Electronic Industry Employees Union Western Region, Peninsular Malaysia











Untuk pertanyaan, click link dibawah


Wednesday, October 2, 2019

US Sanctions Against A Malaysian Rubber Glove Company.

Press Release - US Sanctions Against A Malaysian Rubber Glove Company.

MTUC Penang Division views, with utmost concern, the decision of the United States to ban imports from a Malaysian rubber glove company. It is even more alarming that the said sanction was on account of an alleged abuse of workers right. We are given to understand such abuse included what has been described as bonded labour on account of the grossly injustice fees imposed on the workers by uncaring recruiting agents.

Though it is stated that the migrant workers, in the case of the company involved WRP Asia Pacific, paid inexorbitant amounts in the range of RM 20,000.00 to secure employment, we believe that migrant workers across  many sector face the same predicament.

In the case of WRP Asia Pacific it is a documented fact that the migrant workers initiated an action to withhold their labour, otherwise called a strike, on account of the company's failure to pay their wages and restriction of their movement etc.

And, it was reported, that, the Ministry of Human Resources, Malaysia had, even as in February, 2019, admitted that the said company was in breach of multiple labour protective laws related to pay-cuts, overtime etc. It was also reported that the Minister Of Human Resources, himself, as stating that action would be instituted against the said company. Sadly, we are yet to hear of any course of action preferred against the said company.

That sad state of affairs brings us to the question of whether there is a true commitment, on the part of the Human Resoucers Ministry, to execute its mandatory obligations to bring errant employers to face the force of the law?

MTUC Penang believes that there are much, much more cases like that of WRP and our concern is whether the government is equally concerned in addressing the issue. Least the government forgets, the glove manufacturing sector contributes substantially to the industrial out-put of the economy.

And, our concern is the impact of the case of WRP on the glove manufacturing sector as a whole. Even more is our concern if the US sanction would escalate to other economic blocks like the European Union and the Uk NHS.

In conclusion MTUC Penang Division wishes to affirm that we support our Secretary-General, Bro. J. Soloman's suggestion (FMT today) that the government engages with MEF and MTUC on the issue.

Secretary MTUC Penang Division
016 4184520