KUALA LUMPUR: The Malaysian Trade Union Congress (MTUC) today voiced its approval for the new Employment Insurance Scheme (EIS), which is set to take effect on Jan 1, 2018.
MTUC secretary-general J Solomon said the congress had sent a letter to Human Resources Minister Datuk Seri Richard Riot, expressing their support for the scheme.
“We have written to the minister to seek a discussion. We are agreeable in principle to this scheme.
“We want to ensure that there are proper safety nets in place by the government so that it will not be open to abuse from irresponsible employers.
“We do not want employers to use this as an excuse to lay off their workers,” said Solomon.
He also suggested that contributions come from not just the government, but also employers and employees.
“We suggest RM1 from the employer, RM1 from the employee and RM2 from the government monthly for this scheme,” he said.
Asked to respond on the 90 trade associations which had voiced their objection to the scheme, Solomon said the government has to stand up for the workers.
“We are not saying that the government should be favourable to the workers but we do not want the government to be continuously bullied by employers.
“Employers are now holding the government to ransom and it should be stopped. The government must look positively at the growth of the nation.
“If they are continuously being harassed and bullied by the employer, the government would not be able to attain its vision of a high-income society,” said Solomon.
The scheme was announced by Prime Minister Datuk Seri Najib Razak today, who said it would benefit some 6.5 million employees nationwide.
Under the SIP scheme, workers who lost their employment will receive temporary remuneration and will look for new jobs under a employment service programme.