1) On Labour Day, 1st May 2005 MTUC Sarawak will launch protest action against the Malaysian Employers Federation ( MEF ) attempts to sabotage the implementation of the amended Sarawak Labour Ordinance ( SLO ).
2) MTUC is utterly shocked that MEF is going against the will of Parliament- the supreme body in the land.
3) After 45 long years Parliament has finally amended the SLO to provide minimum benefits and statutory protection to workers in Sarawak. These benefits are similar to the provisions of the Employment Act ( EA ) which covers West Malaysia.
4) The notable exception is that the ceiling for workers to be covered by the amended SLO is $2500 whilst the EA is $1500. Parliament, in its wisdom and after full debate, has decided not to follow the EA and give workers in Sarawak a higher ceiling.
5) MEF is now demanding that the workers in Sarawak, finally achieving the statutory protection after suffering for 45 years, to give up the higher ceiling in the amended SLO and to follow the provisions in the EA.
6) MEF is using Sarawakians as pawns in their quest to pressure the government NOT to increase in the EA.
7) This is totally unacceptable. The main reason why the State Government and the people in Sarawak do not want the Employment Act to be extended to Sarawak and instead amend the existing SLO is that we DO NOT want People in KL to dictate to us what they want.
8) Now MEF, an organisation that represents employers in West Malaysia only and has on loci standi in Sarawak, is demanding that we must follow them.
9) MEF'S rational that the $2500 threshold is too high and would mean junior execution and other professional employees have to be paid overtime, clearly expose the fact that employers have been exploiting workers by forcing them to work without paying overtime.
10) If employers do not want to pay overtime, then invest in more productive and effective management tools. They should employ more workers especially since that the country has so many unemployed graduated. Graduates normally enter the workforce at a salary of $1500 to $2500.
11) MEF is one organisation that has and will continue to oppose any initiative that will improve the welfare of Malaysia workers. MEF is even totally against the adoption of widely accepted protocol of Corporate Social Responsibility. Now is even prepared to go against the will of Parliament.
12) MEF'S claims that the higher ceiling will make us less competitive is based on wild figures and scare tactics.
13) MTUC'S own detailed study based on official ( EPE ) and very reliable date showed that the higher ceiling will only increase cost by not more than 3 million a month and only affect 10% of the workforce in the private sector.
14) Please do not bore us with the usual lame excuse of competitiveness and productivity. Increase in competitiveness and productivity can only be achieved through investment in base management practices, research and development & training - NOT by squeezing wages.
15) Empirical evidence has shown that low wages and illegal foreign workers
hinder productivity growth as there is no incentive and compulsion for employers to invest in R & D, in more efficient production tools and delivery channels.
16) Please take cognizance of the fact that the Federal
Government pays a Regional Allowance ranging between 15 to 25%
of the basic salary to government employees because of the high
cost of living in Sarawak. This is more than enough
justification that threshold should be higher in Sarawak as the
wages is higher to compensate for the higher costs of living.
17) Bank, Telekoms, Petronas, Shell and other private sector
employees also get a Sarawak Allowance that is based on the
government rates. Therefore, a bank employee, as well as every
other workers in Sarawak needs the higher threshold compared to
their counter-parts in Peninsular Malaysia to qualify for the
statutory protection accorded by the amended SLO
18) Workers in Sarawak have been exploited for the last 45
years. We will not tolerate any further delay just because the
government has to please the employers. Some of these employers
do not even pay wages of their illegal foreign workers.
19) Our patience is wearing thin. Don't push us too far.
ANDREW
LO KIAN NYAN
SECRETARY
MTUC
Sarawak Division
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