20 November, 2011
The Malaysian Trades Union Congress (MTUC) has launched a nation-wide campaign urging the government to repeal amendments to the Employment Act, which would legalize labour contractors.
The MTUC has been lobbying against these amendments since the bill was originally submitted to Parliament in July 2010. At that time, due to opposition from other political parties and trade unions, the government withdrew the bill. The amendments were re-introduced, with minor changes, in June 2011. Since then, the MTUC has been outspoken against the bill but, despite a picket at the Parliament on 3 October, the bill was passed by the majority Members of Parliament of the Ruling Party on 6 October.
The proposed amendments would introduce “contractors for labour” into Malaysian legislation and create triangular employment relationships in which workers would be employed and paid by a contractor, rather than by the company in which they work. The amendments would also open the way for unequal treatment of workers with respect to wages and benefits.
The MTUC further opposes deferred payment of overtime which, as laid out in the bill, would mean that contract workers would not receive remuneration for overtime until one month later, so that the principal employer time to pay the contractor for labour that in turn pays the contract workers.
The MTUC is committed to pursuing “all avenues available” until the amendments to the Employment Act are withdrawn.