The Malaysian Trades Union Congress (MTUC) has called for the government to take urgent action, as workers are “sitting ducks” as employers warn of soaring unemployment.
MTUC also noted that the initiatives under the Prihatin and Penjana stimulus packages remain insufficient for employers, leading to the possibility of unemployment rising to as much as 12% by mid-2021.
This follows a statement from the Malaysian Employers Federation (MEF) which noted that over two million workers are to lose their jobs after Hari Raya, including fresh graduates and the 610,000 who became unemployed before March.
“The government must not allow local and foreign workers in the country to become sitting ducks as employers ramp up warnings of a double-digit hike in unemployment in the coming months,” said MTUC secretary-general J Solomon.
He noted that MEF had again warned that the 5% unemployment rate as announced by the Department of Statistics on June 15 – the worst in 20 years – would go up as high as 12% before the middle of 2021.
“MEF predicated this on the dire warnings of weak economic sentiments both in the domestic and global fronts due to the fallout from the Covid-19 pandemic. As such, MEF is claiming that employers in Malaysia have no choice but to downsize drastically by laying off workers,” said Solomon.
MTUC calls for the government to protect the livelihood of employees, as most are from the B40 group who are already struggling to sustain themselves and their families.
Solomon also calls to attention the measures by the Ministry of Human Resources, such as its redeployment programme with reskilling and upskilling schemes, along with regulations for employers who wish to retrench workers.
“All these measures are not new, and the non-compliance of many employers and the lackadaisical attitude of the Manpower Department officers in helping retrenched workers remains a major issue,” he said.
As such, Solomon calls for the Ministry of Human Resources to convene a meeting of the National Labour Advisory Council to plug the ongoing retrenchments taking place, and prevent those in the pipeline that the MEF is warning about.
“Clearly, the MEF warnings that the unemployment rate is likely to spike to 12% only shows that all the various initiatives under the Prihatin and Penjana stimulus packages are not enough for employers. The employers’ stark message to the government is that unemployment will continue to soar, despite the billions of ringgit in public funds being spent on various programmes, including the much touted wage subsidy scheme,” said Solomon, adding that a 12% unemployment rate means over two million workers out of jobs.
Noting that this would have a “devastating impact” on the government’s plans to kickstart the economy, Solomon calls for more effective policies. Otherwise, workers will continue to be at the mercy of overzealous employers keen to carry out retrenchments.
“The government clearly needs to think out of the box and formulate new approaches to ensure workers retain their jobs. Some of these new measures may include a carrot-and-stick approach, though the government has to decide on the size of the carrot and the stick, to make sure both are effective enough to minimise job losses and that the economic turnaround is not impeded by massive retrenchments,” said Solomon.
He also added that MTUC is convinced the government had noble objectives in introducing the aid under the stimulus packages, and does not wish to enter a “prolonged quarrel” with MEF over its justifications of the massive retrenchments it claims are inevitable.
Solomon urged the Ministry of Human Resources and the government in general not to make light or trivialise the warnings of unemployment hitting 12% by saying it has the necessary mechanisms in place to deal with it.
“Employers are telling the government that it is not doing enough and remain convinced on the need to let their workers go,” he said, adding that there is valuable input to be obtained from both MEF and MTUC to shape new, more effective policies.
He also noted that MTUC is against the suggestion for the government to continue subsidising salaries for workers, as per the UK and Singapore, calling for proper oversight or enforcement to ensure employers do not victimise workers.
“In the absence of further government intervention, workers, especially lowly paid ones, face the real risk of losing their jobs if they have not already. We urge the government not to let them become easy pickings for employers obsessed with their bottom line,” said Solomon. – June 16, 2020
