KUALA LUMPUR, March 24 ― The Malaysian Trade Union Congress (MTUC) has backed Putrajaya’s Employment Insurance Scheme (EIS) despite objection from industry groups.
The scheme, which will require contribution from both employers and employees into a fund that will be used to provide benefits to workers who are retrenched without compensation, should also have its rates increased, the workers union said.
The Star reported MTUC president Abdul Halim Mansor as saying that the move would protect workers who could lose their jobs due to an uncertain economic climate.
“We must not ignore the fact that retrenched workers still have bills to pay and families to feed,” he was quoted as saying.
He also criticised industry groups for objecting to the proposal.
“They are not thinking about the welfare of the workers and their social responsibility,” he said.
A group of 91 industry associations yesterday voiced out their objection against EIS, arguing that the amount of contribution that will go into the fund is not proportionate to the actual amount of workers who are retrenched without having benefits paid to them.
They had also argued that the move would allow irresponsible employers to avoid paying benefits to retrenched employees.
The EIS is set to be introduced via a Parliament Bill in July this year.
