A major union has accused the government of being lax in enforcing its policy to freeze the employment of foreign workers but allowing multinational companies (MNCs) to recruit them at the expense of jobless locals.

Electrical Industry Workers' Union (EIWU) senior industrial relations officer N Balakrishnan is furious that the Human Resources Ministry has neglected its moral and legal responsibility in safeguarding the interests, rights and benefits of Malaysian workers.

He said the ministry was allowing MNCs to recruit foreign workers when the companies at the same time were terminating and retrenching local employees.

factory workers 021208 Balakrishnan pointed out that several MNCs have embarked on a policy to terminate local workers by way of voluntary separation schemes (VSS) or retrenching them, citing rising cost and lack of business as main reasons.

MNCs were also cutting down on working hours, days and allowances, drastically reducing the take-home pay of local workers.

Due to this, many local workers are facing financial difficulties due to rising costs and outstanding loans.

Balakrishnan, however, accused certain MNCs of recruiting foreign manpower almost immediately after retrenching the locals, which is against the interests of Malaysian workers and the national employment policy.

"It’s the duty of the ministry to stop this blatant violation of labour laws, rights and policies. But the ministry's response against this has been lukewarm," alleged the Prai-based unionist in a statement.

Ministry accused of blatant negligence

He substantiated his allegation by citing the recent action by a MNC to recruit 14 fresh foreign workers just 18 days after terminating 94 Malaysian workers at its plant in Penang.

The company announced on Feb 2 this year that it would terminate167 Malaysian workers by means of a VSS, a figure later reduced to 94 when the termination took place on Feb 28.

Prior to the VSS exercise, the company management had purportedly compelled local workers to take up their annual leaves during shutdowns between last December and February this year to help the company survive and overcome the current bad times.

The company justified to the EIWU that its cost-cutting measures were due to the lack of business and financial difficulties.

The union extended its fullest cooperation to the company as a gesture of goodwill.

However, Balakrishnan said the union had a shock when the company recruited foreigners just two weeks after terminating the Malaysians, thus betraying both the union and workers.

"The company should have behaved as a responsible corporate citizen by keeping jobs for Malaysians.

"But it instead terminated locals and recruited foreigners," he said, adding that EIWU had already submitted an official protest letter on the issue to the company and ministry.

However, to date, the company has failed to respond or explain its move. The company's human resources manager could not be reached for comment.

Balakrishnan blamed the Human Resources Ministry for blatant negligence by authorising foreign worker recruitment when the company had terminated local workers.

He questioned the ministry’s wisdom over its policy of freezing employment of foreign workers on one hand but allowing companies to recruit them at the expense of Malaysian workers on the other.

He said the ministry had a 'legal duty, moral obligation and social responsibility' to ensure that employers did not flout laws by exploiting foreign workers.

"In this case, did the company tell the truth or did it hoodwink the ministry into believing fabricated stories?

"Did the ministry officials scrutinise the company's application to recruit foreign workers?" he asked.