Bank employees want government to implement EIS

KUCHING: Sarawak Bank Employees Union ( SBEU) is calling on the government to proceed with the implementation of the Employment Insurance Scheme ( EIS), to enhance labour mobility, improve productivity and provide safety net at minimal cost.

The call was contained in a resolution adopted at the union’s 19th Triennial Delegates Conference held at the Union Yes Retreat and Training Centre in Star Beach, Lundu recently.

More than 70 delegates and officials from all over Sarawak attended the three-day conference, where they also passed a resolution expressing dismay at the employers’ continued objection to the scheme.

“We wish to make it absolutely clear that we cannot agree to some employers’ proposals that the EIS benefits shall only be paid to employees who are not paid Employment & Lay Off Benefits ( ELTB) by reasons of employers failure and/ or refusal to pay. Some even demanded that those who are entitled to retrenchment lay off benefits under a Collective Agreement ( CA) terms and conditions of employment ( T& C) should not get EIS.

“We believe that such a proposal is inherently unfair and prejudicial to those employers who are generous enough to provide additional benefits in CA or T& C as well as unfair to their employees who also have to contribute but will not be able to claim.

“This will discourage employers from providing such benefits while some others may even withdraw the benefits,” said SBEU general secretary Law Kiat Min in a statement issued yesterday.

SBEU also expressed its rejection of another employers’ proposal that ElS benefits are only payable if employers are unable to pay retrenchment benefits under Employment & Lay Off Benefits ( ELTB).

“This is unworkable as the EIS’ main objective is to provide emergency and temporary assistance to retrenched workers, at the time when they are most vulnerable.

“It will be discriminatory as not all workers are covered by ELTB.

“Employers’ proposal to amend the Insolvency Act to make ELTB pari pasu in priority to tax and ahead of secured creditors will not resolve the time consuming process. Such proposals will scare away investors and disrupt financial markets because ELTB and retrenchment benefits are a contingent and unspecified liability.

“Banks and bond holders may want to pull back or renegotiate loans and credit facilities. This will drive up the cost and reduce the availability of borrowings and credit facilities,” noted the statement.

The EIS Bill, which was tabled and supposed to be debated in the last Parliament sitting, was deferred due to an outcry from employers.

Under the proposed scheme, employees who have lost their jobs may be able to claim a portion of the insured salary for a period of between three and six months of being unemployed. The EIS will be administered by Social Security Organisation (Socso).

The Federal Cabinet had on Aug 4 agreed to postpone the Bill to allow for a tripartite engagement to be held, led jointly by Human Resources Minister Datuk Seri Richard Riot, Second Finance Minister Datuk Seri Johari Abdul Ghani and ministers in the Prime Minister’s Department, Datuk Seri Dr Wee Ka Siong and Datuk Paul Low.

The tripartite engagement held on Aug 10 agreed, among others, to propose a revision to the contribution rate from 0.5 per cent each by employers and employees to 0.2 per cent.

The Cabinet subsequently agreed on Aug 11 for the revised Bill to be tabled in the coming Parliament session from Oct 23 until Nov 30.

Meanwhile, the union’s 19th Triennial Delegates Conference saw Hadiah Leen and Law Kiat Min re- elected as president and general secretary respectively.

Andrew Lo also continues on as chief executive officer of SBEU.

While in Lundu, the delegates spent some time to repair and refurbish a community hall at nearby Kampong Bajo as part of the union’s community service.

The delegates also attended a joint training on Sales, Services and Job Empowerment together with bank managers and executives.

The training is an example of the union and management working closely together to enhance efficiency of the banks and to improve customer service.