Master-servant viewpoint not good for productivity
Malaysian Employers Federation (MEF) estimates that 30,000 workers will be laid off this year, with the cost of doing business cited as the main reason for the rise in retrenchment.
Given the bleak economic outlook for the job market, MEF has urged the government to help employers retain their workers so that employers and employees can benefit as soon as the economy recovers.
MEF executive director Shamsuddin Bardan said the economy is on a downward trend, posing a challenge to employers to maintain profitability.
Common sense shows that it is not the role of the government to intervene when there is room for negotiations between employers and employees on how to reduce cost by increasing productivity.
While the economic outlook does not look favourable, it would be wrong to blame it on the increase in minimum wage and a new policy requiring employers to pay Socso for foreign workers.
The question is, can the economy recover and become sustainable and equitable in the long run when the purchasing power of most of the workforce is low?
If the cost of doing business is high, what can we do to increase productivity?
Have there been efforts to use technology to reduce cost?
Malaysia’s productivity is dependent on the ability of the workforce to innovate and apply advanced knowledge and technologies.
The issue of human capital development through higher quality education is critical in achieving long-term sustainable growth and becoming a high-income nation.
What role has MEF played in increasing productivity?
Labour productivity, aided by technology, is vital to reduce cost that would help in economic growth and bring down inflation.
Malaysia is going through a structural transitional phase in moving to a higher value economy.
In this context, it is vital for employers and employees to form partnerships to increase productivity, which will reduce the need for retrenchment.
One solution is to prepare the workforce to embrace technology and learn new skills.
Such planning has long-term strategic goals instead of shortterm goals that focus on costs.
MEF’s neglect of long-term human capital development is the real cause of its predicament.
It has nothing to do with minimum wage or social security for foreign workers. The idea of lowcost labour and discriminating against foreign workers in terms of social benefits does not portray a nation that intends to move up the value chain.
It is hoped that retrenchment can be avoided by joint solutions between employers and employees to increase productivity by embracing the partnership paradigm instead of a masterservant relationship that views things from the employers’ point of view.