KUALA LUMPUR, April 24 — The Malaysia Trade Union Congress (MTUC) said while it supports the government’s decision in extending the movement control order (MCO), it also wants workers to be protected and assured of no mass retrenchments in the coming months.
Secretary-general J. Solomon said several employers have already expressed a desire to cull their workforce and that the government needs to keep that in check as the country is looking for time and space to kickstart its economy, in line with the recent World Bank Report.
“Tan Sri Muhyiddin Yassin rightly warned that the MCO may be extended beyond May 12, which would continue to impact the majority of workers in Malaysia. With limited funds to inject any more significant stimulus, the government’s biggest challenge will be to prevent mass retrenchments in the coming months with the hope the pandemic woes across the world subsides enough to enable the economy to kick start.
“As such, the government must urgently get employers on board in giving their commitment not to retrench workers for a period of time. MTUC notes that the Federation of Malaysian Manufacturers said 63 per cent of their members are likely to retrench workers with 47 per cent having to do so in the next three to six months.
“Such proclamations are not only irresponsible but, worse still, inflict much harm on the country
should destitute workers lose their livelihoods at a time when the government has no more money in the coffers to help them,” he said in a statement this morning.
Yesterday, Muhyiddin announced that the MCO will be extended for another two weeks, and will now end on May 12, with the possibility it might be extended beyond Hari Raya Aidilfitri, slated for May 24.
Solomon said that MTUC, the largest trade union in Malaysia, has urged the government to block employers’ bid to use Socso funds to screen their employees for Covid-19, which may become a requirement when they resume operations.
He said that this fund should be strictly used to compensate injured and dead workers.
“MTUC urges the government to implement Emergency Employment Regulations to
safeguard the jobs of workers during the Covid-19 crisis.”
Recently, the World Bank cautioned the Malaysian government about its inability to respond effectively should the Covid-19 fallout drag on, citing Putrajaya’s limited fiscal space for extended intervention.
South-east Asia’s third-largest economy is already struggling to shield its workforce and small businesses from the devastation wrought by the Sars-CoV-2 pandemic.
The bank warned that protracted restrictions could do more damage, given the little monetary options left for the government to extend help, even as the Muhyiddin administration injected an RM260 billion stimulus to retain jobs and keep businesses afloat.
