MTUC Sarawak has demanded Putrajaya scrap plans allowing employers to hire contract labour — which they said was no different from “bonded labour” — through third-party agencies.
It said letting companies hire contract workers would lead wage inequalities as employers will likely engage more than one agency and have them bid for the lowest price to help lower labour costs.
“Workers doing the same work at the factory would be treated differently in terms of wages, work benefits as their employers are different,” MTUC Sarawak said in a memorandum to the prime minister dated Thursday.
This went against the Federal Constitution as all Malaysians doing the same job should be treated equally in terms of wages, work benefits, rights and reliance on collective agreements, it pointed out.
MTUC Sarawak also said contract workers would be prevented from joining unions to negotiate for better working conditions as they would technically be employees of the contract agencies and not the principal company.
“If the amendments proposed become law, many workers at the factory would effectively lose their rights to be able to form or be members of the trade union at the workplace, or the right to directly and effectively negotiate with the principal,” it said, adding that this would also weaken existing unions.
Agencies should not become employers and companies should rely on short-term employment contracts and not contract workers if they needed labour flexibility, MTUC Sarawak said.
“We call on Malaysia to immediately discontinue its policy of recognising outsourcing agents, and act immediately against ... employers and outsourcing agents who try to avoid or disguise employment relationships to the detriment of workers and unions,” it said.
“While the Employment Act does not apply to Sarawak, it is expected that the government will be making similar amendments to both the Sarawak and Sabah Labour Ordinances.”
The Human Resources Ministry is set to present the Bill to amend the Employment Act 1955 for a second reading at the Dewan Rakyat.
The second reading of the Employment (Amendment) Bill 2010 has been postponed twice previously.
MTUC has picketed twice in the last two months in protest of the proposed changes to the Act, which the umbrella body said threatened workers’ welfare.
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