The Malaysian Employers Federation (MEF) warns that a bigger wave of retrenchments may be happening after Raya as companies struggle to stay afloat during this tough times due to Covid-19 pandemic.
MEF executive director Shamsuddin Bardan said the retrenchments would likely occur just after Raya as bosses would try to keep their staff until then.
MEF expects over two million to lose their jobs
This unemployed figure includes fresh graduates and the 610,000 who just lost their jobs before March this year.
He also said that many business owners were depending on the financial aids provided or the companies’ cash reserve to pay their staff’s salaries. “We need new laws to help bosses deal with overheads,” he said.
Some of his suggestions are:
He gave the example of the employers’ share of Employees Provident Fund contribution which he suggested be lowered to 5% from the current 11% instead.
Besides, he also proposed a fixed ceiling rate for pay cuts and flexible working hours as a compromise with worker unions who were against reductions in salaries and hours. He emphasied that this new laws would be in line with a ‘new normal’ after Covid-19 – adding that the burden of keeping manpower low and staff employed should be shared by everyone.
He praised efforts to get locals to take up jobs at major wet market as the government had been doing a good job of clearing migrant hot spots in the city centre.
“It feels much safer too,” adding that there were up to 1,500 vacancies which locals could fill on either a part-time or full-time basis.
It would be expensive to hire locals. However, it would save employers more money in the long run as they would not have to deal with levies and legal documents.
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