KUALA LUMPUR – Aug 4, 2017: The Malaysian Trade Union Congress (MTUC) has rubbished a claim by DAP’s Tanjong member of parliament Ng Wei Aik that the proposed Employment Insurance Scheme (EIS) is bad for both employers and employees.
This is because the 0.5 per cent monthly contribution from the employer and employee is too small to have an adverse effect.
According to MTUC president Abdul Halim Mansor, the amount is reasonable given the fact that the economic welfare of employees is not thoroughly protected in cases of retrenchment or business bankruptcy.
Citing Section 299 of the Companies Act, Halim pointed out that employees are the last party to be given any monetary compensation or benefits should a company goes out of business.
“So far, the total amount of unpaid compensation for ex-employees amount to RM650 million. Hundreds of companies have yet to properly pay their former employees despite being ordered by the courts.
“At least with the EIS, an unfairly dismissed employee will be able to get a sum of money from the fund while he or she looks for another job,” said Halim.
He added that those protected by EIS will also be automatically registered with the government-owned job portal, Jobs Malaysia and that they are guaranteed to be offered a job opportunity within six months.
Halim also refuted another claim that EIS will affect employees’ productivity by way of making them lazier due to having an additional safety net.
“Workers’ morale and productivity reflects the attitudes of employers. Bad employers make for bad employees. There have never been any cases of companies that were forced to close its businesses because of lazy workers,” said Halim.
Some netizens were also unhappy with Ng’s statement on the EIS.
“Stupid MP! Instead of protecting the masses, here you are trying to coddle to capitalists. I hope you lose in the next general election,” wrote Zulfadhli A’dil on the comment section of Ng’s Facebook post.
“DAP has abandoned its principle. There is no reason to support DAP since it is no longer a people-centric party,” wrote Anas Abd Jalil.
“People, this is an example of a pro-capitalists elected officials. Those in Tanjong, please make sure that this is will be the last year for Ng Wei Aik’s parliamentary stint,” wrote Aydel Jury.