Press Statement - 31^st July 2005

MTUC today said that Government will not be able to limit dependency on foreign workers by imposing hefty increase on foreign worker levy.

Our survey indicates clearly that most employers deduct all payment of levy from employees’ wages. The new rates, therefore will impose a heavier burden on the foreign workers who have traveled thousands of miles hoping to earn and return home with substantial savings, said MTUC Secretary General G.Rajasekaran. MTUC agree with Government’s findings that many employers are deliberately denying employment opportunities for Malaysians by abusing Governments lax policy on recruitment of foreign workers.

Government should require the Human Resources Ministry to activate its manpower department to effectively assess labour market situation on a regular basis. An updated register on available labour force and requirement will enable Immigration Department to determine foreign worker needs from time to time. The current practice of relying on employers’ reports and demands to issue work permits has led to widespread abuse. This has not only denied locals decent work opportunities but has also not benefited foreign workers.

We urge the Government to impose a minimum wage rate for all sectors, applicable to all employees including foreign workers. Immigration Department’s announcement on new levy rates on Friday, surprisingly say nothing about countless complaints published in recent weeks, regarding non payment of salaries, arbitrary reduction of agreed wage rates, beatings, withholding of travel documents which resulted in imprisonment of legal workers. MTUC will submit a memorandum on this pressing issue to the Deputy Prime Minister within two weeks. We are deeply disturbed by Government’s refusal thus far to give any consideration to our proposals. We hope that they will give serious consideration to our proposed solution, said G.Rajasekaran.