MTUC proposes alternative to EIS

KUALA LUMPUR: The Malaysian Trades Union Congress (MTUC) has proposed that employers make a fixed contribution to workers in a separate security fund following their opposition to the Employment Insurance System (EIS),

MTUC president Abdul Halim Mansor said the proposal should be considered by the Government if employers or the Malaysian Employers Federation feels that the EIS is unfair to them.

“If they feel the EIS is too troublesome to employers, perhaps they should look into making it compulsory for all companies to set aside a certain amount, either in a social security fund or a workers’ account, that should they cease operations, workers will get some sort of protection,” he told a press conference at Menara Perkeso yesterday.

He said the allocation should be equivalent to a sum an employee is entitled to under the Employment Termination Lay-off Benefit.

“This is not about making big profits but as a form of protection to workers after they have been retrenched by companies,” he said.

He added that the EIS should not be further delayed as it had been postponed in the previous Parliament meeting.

“If it has reached Parliament, but people are still questioning it, it is as if some are trying to block the protection scheme for workers.

“We hope the Government and the Prime Minister will look into the matter seriously,” said Abdul Halim.

Human Resources Minister Datuk Seri Richard Riot has expressed his disappointment that employers were still opposed to the EIS although the monthly contribution had been lowered to 0.2% of a worker’s salary.

The Human Resources Ministry and the Social Security Organisation drafted the EIS Bill to provide workers a social safety net.

The Bill was tabled during the most recent Parliament sitting, but now faces further delays after employer groups protested and submitted a memorandum against the scheme to the Government.