Twelve affiliates of the Malaysian Trades Union Congress (MTUC) expressed shock today at a recent amendment to the Employees Provident Fund Act which they claimed not even their representatives on the EPF Board knew about.

The amendment to Section 58(1) and (2) of the EPF Act, 1988, provides for reducing the (additional) amount of quantum paid upon death, mental and physical incapacitation from a maximum payment of RM30,000 to a fixed amount of RM2,000.

"(The amendment) is inhuman, inconsiderate and insensitive to the needs of contributors," said spokesperson Kamarus Zaman Mansor, who represented the unions.

"This is a clear indication that EPF is shying away from exercising its social and moral responsibility towards the nine million contributors," he told reporters at a press conference on the matter today.

Kamarus, who is also Metal Industry Employees Union (MIEU) president, said that he was puzzled as to why the amount should be reduced.

He also voiced out his unhappiness that EPF did not make any attempt to announce the amendment through the media or the MTUC representatives on the EPF Board.

"Why the secrecy? We think EPF is being a hypocrite on this matter," he said, adding that the amendment was first raised in the Senate in May and later passed in Parliament last July.

'Not their money'

Kamarus disclosed that several (deceased) members' beneficiaries have made their claims to EPF and were told that they would be entitled to RM2,000 only.

"They (beneficiaries) were also told rudely that the money was not their money but was EPF's 'goodwill' money to them," he said.

"EPF has challenged the labour movement in the country by its unscrupulous actions. It should know by now that one of the main struggles of MTUC is to enhance the existing social safety and security condition for workers.

"We urge MTUC to consolidate its effort, organise an action plan and bring this problem to the forefront."

Target is EPF, not MTUC

Asked why the 12 unions did not go through MTUC to convey their outrage on the matter, National Union of Transport Equipment, Allied Industries Workers executive-secretary Syed Shahir Syed Mohamud said that the unions' main purpose was to take EPF to task and not MTUC.

"The main issue here is that no one knows about the amendment to the EPF Act and that is why we are taking EPF to task for this.

"The question of whether we should go to MTUC or our members on the EPF board is another issue," he added.

Syed Shahir said that it was normal for unions to express their opinions without going through MTUC because each union is accountable to its members.

MIEU's Kamarus added that pressure from their members drove the 12 unions into voicing their displeasure directly to the media.

Other affiliates represented at today's press conference were the National Union of Non-Metallic and Mineral Product Manufacturing Employees and National Union of Timber Employees.