An opposition leader today criticised the proposed memorandum of understanding (MoU) between Malaysia and Indonesia on labour matters as encouraging slavery and allowing blatant exploitation of migrant workers.

PAS member of Parliament Mahfuz Omar said this in an open letter to Prime Minister Abdullah Ahmad Badawi, in which he listed several provisions in the MoU which he felt provided ample room for exploitation.

"It is very disappointing to note that the latest MoU between the two governments ignored their responsibilities and moral obligations under their respective national constitutions to set fair and appropriate employment terms applicable to employers and their workers," he said referring to a draft copy of the document which he obtained.

Employment fees

One of the problematic areas noted by Mahfuz is the absence of clear provisions which state the amount of employment fees payable by employees, thereby leaving them vulnerable to exploitation by labour recruitment agencies.

"At the moment, Indonesian labour recruitment agencies charge about RM4,000 per person and a year's worth of the worker's salary in exchange for a two-year contracts to work in Malaysia.

"This is made worse by the fact that only certain agencies are allowed to recruit potential migrant workers," he said.

Mahfuz said the MoU also required Malaysian employers to hire workers through specially appointed agencies but failed to stress on the need for Indonesian authorities to verify migrant workers' travel documents before they depart.

"Since 1998, the recruitment agency authorised by the Indonesian Labour Ministry has been the one most responsible for issuing fake documents. The appointment of other recruitment agencies to take over the responsibilities of the labour department may make things worse," he added.

No compensation

Aside from these issues, Mahfuz said the MoU also failed to address wider problems that have accompanied the recruitment of foreign labour in Malaysia.

One such area, he said, is the inflexibility of labour recruitment policies which restrict workers to one employer.

"There is no room to allow workers to change jobs and employers in response to labour demand over particular periods. This may lead to conflict between employers and their workers."

He also noted that the MoU did not include any provisions for employers to pay compensation to the workers should they fail to fulfill their contractual obligations.

"There is no mention of compensation in cases where employers cease operations, fail to provide suitable work for the workers, or downgrade the workers' designation in order to lower their salaries.

"There is no provision to protect the rights of workers who suffer from work-related accidents, torture, sexual harassment, diseases or other forms of abuses such as rape," he said.

In addition, Mahfuz said regulations set out in the MoU could well lead to further increases in recruitment of migrant workers by Malaysian employers because of terms favourable to them.

"The number of migrant workers could increase from 700,000 now to 1.5 million workers several months after the MoU comes into effect. Workers may also be encouraged to enter Malaysia illegally (to avoid paying high employment fees)," he added.

Pass renewals

Meanwhile, according to a draft copy of the MoU obtained by malaysiakini , several other provisions have been included in the document to resolve long-standing uncertainty over employment terms.

Among the key provisions, Article 8C states that all workers would in future be responsible for the payment of levy, pass, visa processing fees, and any other charges imposed by the Malaysian government.

Labour rights activists have long argued that employers should be responsible for paying these charges since they opt to employ foreign workers over locals.

Another important provision is that employers would henceforth be required to ensure that their workers receive foreign worker cards issued by the Immigration Department soon upon arrival. Employers will also be made responsible for renewing workers' passes at least a month before expiry.

The issue of Indonesian migrant labour in Malaysia was last discussed between leaders of both countries when Abdullah visited Indonesian President Megawati Sukarnoputri in Jakarta last month.

Abdullah was then reported as saying that the two sides were in the final stages of completing the MoU.

Indonesian Foreign Minister Hassan Wirajuda was in turn quoted as saying that the deal would be signed by the first quarter of the year.