Malaysian Trades Union Congress 25 June 2010

Airod Executives’ Union crippled by Human Resources Minister's decision

Since the dispute over the collective agreement was referred to the In-dustrial court two years ago, union reported that Airod management has embarked on a mission to crush the inhouse union. Firstly, Airod unilaterally withdrew the check off facilities accorded since 2001. Secondly, the company announced annual salary increments for all employees including management staff but specifically excluded all members of the Airod Executives union. In January 2010, union lodged an official report on the unfair labour practices and discriminatory action with the Director General of Industrial Relations. Though the company’s action are clearly in violation of the provisions of the Industrial Relations Act, the ministry has done nothing to solve the problem. However the HR minister has quickly made a ruling that the company was correct in deciding that the post of manager (Engines) is outside the union’s scope of membership. Based on the minister’s ruling Airod is de-manding that the union President should relinquish his membership and his position as union leader. Minister, unfortunately has ignored the fact that the union President has declined the company’s offer to promote him. Airod union members are questioning the Ministry's motive for failing to act on their six month old complain of discriminatory practices but has quickly responded to Airod Management’s request. G.Rajasekaran Secretary General

Decent work for domestic workers

The ILO reached a major milestone in the global response to end

exploitation of domestic workers when the International Labour

Conference in June 2010 voted to establish a binding convention.

Once the convention is adopted in June 2011, it will be the first

international human rights instrument entirely dedicated to

promote decent work for domestic workers.

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3 key elements required to prove speculation and suspicion on employees

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Jun 2010/ MTUC

Dismissal: Misconduct - claimant allegedly encour-aging to take medical leave en-masse – company’s operations affected and financial losses allegedly suf-fered-whether the charge had been proven by the com-pany - whether it had been premised on mere specula-tion and suspicion - whether the company’s actions had been inappropriate and inequitable. Whether the company had acted with mala fide intent.

Issues: The company had employed the claimant as an Opera-tor Grade 1, in September of 2005, the claimant was issued a show cause letter alleging that he had in-duced the company’s workers to take medical leave en-masse which had culminated in a total production stoppage in the Printing Section of the company, which in turn had resulted in the company suffering financial losses. The company then issued him an-other letter informing him to at-tend Domestic Injury (DI).

The DI proceeded as scheduled although much of it took place in the absence of the claimant as he has been feeling unwell. At the conclusion of the DI, the claimant was found guilty of the charges preferred against him and dismissed from service. Company’s allegation:

The company found that a significant number of em-ployees were on medical leave between 9 Sept 2005 and 14 Sept 2005. For the company this was abnormal as this incident of the en-masse sick leave situation had caused the stoppage of production at their plant and could only have been consequenced by organised instigation. The company was at the time in the process of nego-tiations with the National Union of Petroleum and Chemical Industry Workers regarding a Collective Agreement which was at the tail end of the cognizance

process at the industrial court. The purported investiga-tion implicated the claimant as the culprit who had insti-gated the workers to take medical leave concerned in order, it was alleged, to force the company to expedite the resolution of negotiations. The claimant was the “worksite committee secretary" of the union and this, alleged the company, put him in a position of ostensible influence over the said workers. Finding of the court: The company’s actions appeared to have been premised upon speculation and suspicion and not upon any cogent or tenable grounds, which had

resulted in an arbitrary and capri-cious exercise of its managerial rights and prerogatives. It had failed to hold the balance between the legitimate protection of its inter-ests on the one hand and the right of security of tenure and protection of the workman from unjust and unfair labour practices, capricious-ness and arbitrariness on the other.

The company had failed to prove 3 elements required: 1) the employer must established the fact of that

belief.– that the employer did believe it; 2) its must be shown that the employer had in his

mind reasonable grounds upon which to sustain the belief;

3) the employer, at the state at which he formed that belief on those grounds, must have carried out as much investigation into matter as was reasonable in all the circumstances of the case.

The court concluded that the company had failed to prove the 3 elements required thus awarded the claimant with backwages and compensation. Industrial Court Chairman: Frederick Indran X A Nicholas Company: Nordenia-Thong Fook (Malaysia) Sdn Bhd Award No: 231 of 2010

Regional Unions for Electronics workers

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Jun 2010/ MTUC

The cabinet had on May 27 last year approved, for the first time, the formation of non-internal trade unions for the electronic sector. This issue has been a thorn in the flesh for the government since the early 70s when elec-tronic multinationals first began making Malaysia their base to produce electronic chips and products. MTUC had demonstrated, protested and com-plained to the International Labour Organisation (ILO) over the last 40 years on the country's refusal to allow workers in this sector to unionise. After almost four decades of struggle, union ad-vocates are finally seeing light following the Cabinet's approval for the setting up of trade unions in the elec-tronic sector. Electronics industry workers can rejoice because although the Government still rejects a national union for them, the registration of four regional unions is almost complete. The Department of Trade Union Affairs has to date registered three regional electronics employees un-ions in the peninsula: the Wes-tern Region on Dec 1, 2009 (covering Kuala Lumpur, Selangor and Perak); the Southern Region on March 11 (Johor, Malacca and Negri Sembilan); and Northern Region on March 31 (Penang,

Kedah and Perlis). The Eastern Region, which covers Kelantan, Terengganu and Pahang, is still in the process of registra-tion. The first attempt to be unionised nationally failed when the authorities forbade the Electrical Industry Work-ers’ Union to accept electronics workers as members, saying they were in two different sectors. An attempt in the 1980s to set up its own national union also failed because government policy then was for in-house unions only in the electronics sector. There were around 12 registered in-house un-ions with about 12,000 members. The electronics industry has been in Malaysia for over 35 years; it has raked in millions of ringgit in profits, but there has been little im-provement for the employees. There is a huge difference in salary between em-ployees and management. In fact, it could be said that there has been no real salary increase from the 1970s to now, with a base salary of between RM350 and RM700 for operators, with most of them earning RM450 a month.” Source: http://thestar.com.my/news/story.asp?file=/2010/5/2/nation/6176290&sec=nation

Trafficking in persons is very much alive in Malaysia

Dialogue with migrant workers from Vietnam working in many parts of our country shows that working conditions accorded to them falls within the meaning of trafficking. MTUC met with more than 70 Viet-namese workers in Prai and Port Kelang to brief them of their rights under the Employment Act and Anti trafficking in Person Act 2007.

Their reports on the conditions imposed by Malaysian employers were most shocking and disturbing. They described instances where the employers required them to work for 23 hours continuously with only short breaks for meals and refreshment. This is clearly in contravention of the Employment Act which limits a workday to 12 hours.

Young women workers from a Port Kelang confectionary reported that they were required to start work at 02:30 hours every day. MTUC will submit a report to the Labour Department. Practice of with-holding salaries for more than three months appears to be widespread.

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KURSUS MTUC / NIOSH

Jun 2010/ MTUC

National Institute of Occupational Safety and Health (NIOSH) telah mengendalikan kursus “ Understanding & Im-plementing OSHA & Its Regulations” selama 2 hari dari 1-2 Jun 2010, di Pusat Latihan ibu pejabat MTUC Subang Jaya Selangor. Kursus ini telah dihadiri seramai 22 ahli dari pelbagai sektor dan mendapat sambutan yang baik dari kalangan peserta. Kursus ini adalah bertujuan untuk memberi pendedahan kepada peserta mengenai kepentingan dan fungsi Akta Keselamatan & Kesihatan Pekerja 1994 serta Akta Kilang & Jentera 1967 di tem-pat kerja. Peserta juga di beri pendedahan mengenai risiko dan bahaya akibat bahan-bahan kimia dan cara-cara mengendalikan

bahan kimia ini di tempat kerja. Kursus ini juga memberi pendedahan mengenai prosedur-prosedur yang perlu di lakukan oleh pekerja se-kiranya berlaku kecemasan di tempat kerja. Secara keseluruhannya, kursus ini telah memberi manfaat yang baik kepada peserta kerana isu keselamatan dan kesihatan pekerja adalah satu perkara penting dan ha-rus di titikberatkan di tempat kerja. Dilaporkan oleh: Chandra sekaran, Pelatih MTUC

TEMERLOH: Cuepacs is alleging that 418,200 or 41% of the 1.2 million civil servants were sus-pected to be involved in corruption last year. Its president Omar Osman said this was worrying and needed to be tackled urgently.

“To combat the scourge, Cuepacs will work closely with the Malaysian Anti-Corruption Commis-sion,” Omar told reporters after opening the triennial general meeting of one of the affiliates of the umbrella union here yesterday. Omar said besides corruption, Cuepacs would also not protect civil servants with disciplinary prob-lems. For example, playing truant or forging medical certificates. “There have been cases where a one-day medical leave was doctored to read as 11 days,” said Omar. - Star, 3/6/2010, 41% of civil servants involved in corruption

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GOVERNMENT MAKES A U-TURN ON MINIMUM WAGE FOR SECURITY GUARDS

Government’s decision to postpone the implementation of a minimum wage for the 150,000 security guards in the country is most shocking. On the eve of the voting in Hulu Selangor, Human Resources Minister Datuk Dr S. Subra-maniam announced that security guards in the private sector will enjoy a huge increase in salary beginning July 1, 2010 However on 14/06/2010 Human Resource Minister’s reversed his position stating that “the cabinet has decided to temporarily shelve the implementation of the new minimum salary for security guards scheduled for July 1 to give time to the industry to streamline operations.

Dr subramaniam said that the postponement was made following a request from the Security Ser-vices Association of Malaysia. After considering the appeal by the association, the cabinet decided to defer the implementation. Earlier Dr Subramaniam was reported to have said that the minimum salary for workers in the security service sector was now between RM300 and RM400 a month. The Minister created a panic by stating that the minimum wage would be increased between RM1100 to RM1450 a month.Whereas the wages council set up by the HR Minister in early 2006 recommended RM500 to RM700 according to zones.

MTUC Secretary General, G. Rajasekaran reminded the Minister that the HR Ministry has carried out a na-tionwide study since 2004. Initially the Ministry appointed a commission of inquiry in 2004 to carry out a detailed and lengthy investigation to determine as to whether government need to intervene.

Based on the findings and recommendation of the Commission of Inquiry in early 2006 the HR Minister ap-pointed a National Wages Council, which submitted its recommendation in October 2008 that a minimum wage of RM500 for those in Zone C, RM600 for Zone B and RM700 for Zone A.

Since employers and MTUC participated in the COI and the Wages Council they were accorded ample op-portunity to give their inputs.The HR Minister having had seven years to study all the views and recommendations before announcing his decision to implement a minimum wage with effect from July 1st, should not make a u turn to allow employers to continue to exploit their workers with a meager wage of RM300 to RM400 a month. By bowing to pressure from security guard service companies. Government has made a mockery of the Commission of Inquiry and the National Wages Council. How can we achieve high income economy if we continue to perpetuate low wages and exploitative working conditions?

Jun 2010/MTUC

MP flays government over minimum wage flip-flop The government has failed to show seriousness in drawing up a minimum wage policy, said Charles Anthony Santiago (DAP-Klang). It takes one step forward but takes three steps back," he alleged during the Question session in Parliament , as he posed a supplementary question to the human resources minister. He pointed to the sudden reversal of the decision to set a minimum wage for security guards as an example. The government deferred the move shortly after announcing it. "The government is afraid of pressure from security firms. This also shows that it is not serious about the decision to work towards a national minimum wage policy," claimed Santiago. He further said that the government has not shown sufficient concern for the interests of stakeholders in formulating the policy. "I hear from my friends in trade unions that the government had talked to them about the minimum wage, but that it did not take any of their views seriously,” he added. Responding, Deputy Human Resource Minister Maznah Mazlan dismissed the allegation that the government had bowed to pressure from security firms. "This is the usual baseless accusation by the opposi-tion," she said. She reiterated that the ministry is committed to arriving at a minimum wage policy. This will take time because each sector presents a different set of circumstance, she said, adding that feedback from workers has been lukewarm to date. Malaysiakini June 22,2010

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Jun 2010/ MTUC

2007 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Malaysia 105.1 105.1 105.0 105.0 105.1 105.3 105.7 105.9 106.0 106.1 106.8 107.1

S'jung 105.1 105.0 104.9 104.9 105.1 105.3 105.6 105.8 106.0 106.1 106.8 107.1

Sabah 105.0 105.2 105.3 105.4 105.3 105.6 105.9 106.1 106.3 106.5 106.9 107.2

Sarawak 105.1 105.2 105.3 105.3 105.4 105.6 105.9 105.9 106.1 106.2 106.8 107.2

2008 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Malaysia 107.5 107.9 107.9 108.2 109.1 113.4 114.7 114.9 114.7 114.2 112.9 111.8

S'jung 109.9 110.5 107.8 108.1 109.1 113.1 114.5 114.7 114.6 114.0 112.7 111.7

Sabah 107.9 108.2 108.4 108.5 109.1 114.2 115.4 115.8 115.7 115.6 114.6 113.8

Sarawak 107.6 108.2 108.5 108.9 109.1 115.0 116.2 116.3 115.8 115.1 113.4 111.9

2009 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Malaysia 111.7 111.9 111.7 111.5 111.7 111.8 111.9 112.1 112.4 112.5 112.8 113.0

S'jung 111.5 111.7 111.5 111.3 111.5 111.6 111.7 111.9 112.2 112.3 112.6 112.9

Sabah 113.9 114.5 114.2 113.9 113.7 113.7 113.7 114.1 114.4 114.6 114.7 114.7

Sarawak 111.9 112.7 112.5 112.2 112.0 112.1 112.2 112.3 112.6 112.7 113.0 113.1

2010 JAN FEB MAR APR

Malaysia 113.2 113.2 113.2 113.2

S'jung 113.0 113.0 113.0 113.1

Sabah 115.1 115.5 115.5 115.5

Sarawak 113.3 113.5 113.5 113.5

Consumer Price Index 2007-2010

CPI in total 2005-2010

90

95

100

105

110

115

120

2005 2006 2007 2008 2009 2010(April)

Inde

x

SemenanjungSabahSarawak

Sumber: Jabatan Perangkaan Malaysia

The above tables shows the figures of CPI in total from year 2007 to 2010. Its not really showing much differ-ences for each years. The differences only about 2-4% in total. Year 2008 onward the inflation rate has in-creased in all the region with the highest reported in Sabah for 6%.

Jadual di atas menunjukkan indek harga penguna bagi tahun 2007 hingga tahun 2010. Kadar CPI ini secara jumlah untuk semua kate-gori hanyalah menunjukkan pening-katan secara perlahan iaitu pada paras 2-4%. Hanya peningkatan yang tinggi dapat dilihat pada tahun 2008 hingga ke 2010. Sabah men-catatkan peningkatan yang agak tinggi berbanding dengan Se-menanjung dan Sarawak iaitu pada kadar 6%.

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CPI analysis for selected items 2007-2009

CPI analysis for 2007-2009

Food

Food

Transport

Transport

TotalTotal

TotalFood

TransportMiscellaneous goods &

Services

90

95

100

105

110

115

120

125

2007 2008 2009

Year

Inde

k

Total

Food

Transport

Miscellaneousgoods & Services

Jun 2010/ MTUC

Mengikut indek yang dikeluarkan oleh Jabatan Per-angkaan Malaysia kadar Indek Harga Pengguna bagi kategori barangan dan perkhidmatan yang dis-enaraikan di atas menunjukkan inflasi yang agak signifikan. Harga barangan makanan mengalami peningkatan

atau kadar inflasi pada paras 9 peratus pada tahun 2008 dan 4 peratus pada tahun 2009. Seterusnya kadar inflasi juga agak tinggi bagi pengangkutan iaitu mencecah 9 peratus pada tahun 2008 dan seterusnya barangan dan perkhidmatan yang berada dalam kategori lain-lain pula menunjukkan kenaikan pada kadar 3.4 peratus.

Sekiranya kerajaan teruskan dengan rancangan untuk mengenakan GST dan usul yang diperbentangkan oleh PEMANDU bagi mengurangkan hutang Negara maka ia akan terus memberi impak terhadap kenaikan kadar inflasi terutamanya terhadap barangan asas yang menjadi barangan keperluan. Sekaligus memberi kesan dan be-ban kepada penduduk yang menerima pendapatan rendah. Usul yang dicadangkan oleh PEMANDU:

Kenaikan: Harga gula 20 sen setiap enam bulan Harga minyak masak 15% setiap enam bulan Harga tepung 20 –25 sen setiap enam bulan Harga minyak (petrol dan diesel) 15/10 sen setiap enam bulan Harga gas/ tariff elektik RM0.024 –RM4.65 setiap enam bulan

Total Food Transport Miscellaneous goods & Services

2007 105.6 106.5 113.4 103.3

2008 111.3 115.7 123.2 106.8

2009 111.9 120.3 111.4 110.8

Food price increases as per: 2007-2008 = 8.6% 2008-2009 = 4% Transport 2007-2008 = 8.6 % Miscellaneous goods and Services 2007-2008 =3.4%

Adakah majikan sanggup menaikkan gaji pekerja setiap enam bulan sekali?..!!!

Sedangkan COLA, gaji minima, OT pun tidak

diberikan…!!!

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International news

ITUC OnLine/ 079/070610

World Cup Soccer Balls: Exploitation Still the Norm Report reveals Child Labour, Poverty Wages, Temporary Workers

Brussels, 7 June 2010 (ITUC OnLIne): As the frenzy grows over the upcoming FIFA World Cup in South Africa, there is a part of the World Cup that won’t be broadcast on TV. The Play Fair Alliance today asked FIFA to respond to the report “Missed the Goal for Workers: the Reality of Soccer Ball Stitchers”, released by US-based NGO International Labor Rights Forum (ILRF) on 7 June. The report reveals that workers stitching soccer balls in Pakistan, India, China and Thailand con-tinue to experience alarming labour rights violations. The research found that child labour still exists in the Pakistani indus-try and is also occurring in India and China.

In the 13 years since the soccer ball industry signed the “Atlanta Agreement” committing to clean up the industry, regular reports of violations of human rights in soccer ball production have been brought to the attention of key actors in the indus-try including global brands and FIFA. Most recently, in 2008, the Play Fair Alliance, which consists of the Clean Clothes Campaign (CCC), the International Trade Union Confederation (ITUC), the International Textile, Garment and Leather Workers Federation (ITGLWF), published research on China, India and Thailand, where workers reported wages below the legal minimum despite working 12-13 hours a day. Home-based workers in India reported piece rates as low as US$0.35 per ball, completing two to four balls a day.

“It is shocking that after all of these years, low wages and other labour rights violations are still the norm and not the excep-tion in the industry,” commented Ineke Zeldenrust from the Clean Clothes Campaign. “As fans worldwide get excited about the games, the public expects FIFA and the soccer ball industry to finally live up to its promises.”

“The ITUC has invited FIFA to discuss concrete measures that can be taken to clean up the industry. It is a scandal that so many workers are subjected to appalling exploitation in an industry that generates so much wealth, and we are looking to FIFA to take the lead in ensuring a fair deal for these workers,” said ITUC General Secretary Guy Ryder.

Jun 2010/ MTUC

Wisma MTUC 10-5, Jalan USJ 9/5T, 47620 Subang Jaya, Selangor. Tel: 03-80242953 Fax:03-80243225 Website : www.mtuc.org.my; email:mtuc@tm.net.my

Disediakan oleh: R.Rajeswari, Setiausaha Penyelidikan

ITUC OnLine/ 081/090610 Colombia: Another Trade Union Leader Assassinated Brussels, 9 June 2010 (ITUC OnLine): The ITUC, along with its Colombian affiliates, has firmly condemned the murder on 5 June of Hernán Abdiel Ordoñez Dorado, treasurer of the executive board of the prison workers' union ASEINPEC in Cali. Ordoñez was in the company of his mother when he was attacked by unknown assail-ants travelling by motorbike, who shot him dead with four bullets. According to the information received by the ITUC, the trade union leader had been involved in denouncing al-leged acts of corruption by top prison officers at the Women's Prison. He had received death threats and an attempt had already been made on his life. The government had ignored the repeated requests of the CGT (Central General de los Trabajadores) to provide him with security.