Malaysia's draft MOU one-sided, unrealistic

Malaysia's draft MOU one-sided, unrealistic

Ridwan Max Sijabat, The Jakarta Post, Jakarta

The final draft memorandum of understanding (MOU) that Malaysia
proposed on Indonesian workers in that country's formal sector
sets more rigid recruitment standards but carries no provisions
on labor protection nor explicit and direct sanctions against any
contravention by Malaysian employers of the agreement.

The final draft, a copy of which was recently delivered to the
foreign ministry and made available to The Jakarta Post,
regulates an official recruitment procedure that apparently aims
at preventing unskilled workers from Indonesia from illegally
entering the neighboring country.

According to the terms and conditions of employment, Malaysian
employers are required to recruit workers through licensed
recruiting agencies and employment contracts will be kept not
only by workers but also by both countries' relevant authorities
and agencies.

The MOU draft demands more but pays less, placing Malaysia in
a strong position and weakening Indonesia's bargaining power
since the terms and conditions, including wages, allowances,
other benefits and working hours, are fully determined by
Malaysian employers.

Indonesia is also assumed to accept Malaysian employers'
rights to conduct selection and set qualification requirements
that are unable to be met by most workers.

Indonesian workers are required, among other things, to be
from the 18 to 40 years age group, possess the required
qualifications and skills, sufficient knowledge of Malaysian
culture and social practices and be able to communicate in
English or Malay.

Many Indonesians have sought jobs overseas because apart from
the rare job opportunities at home, they are unskilled in both
specified fields and communications.

Indonesia and Malaysia agreed to make a MOU on the recruitment
of Indonesian workers last year following the deportation of more
than 750,000 Indonesians in 2002 who migrated and worked
illegally in Malaysia and the enforcement of a harsher
immigration law to avoid any illegal entrance of Indonesian
workers into Malaysia.

Data at the manpower and transmigration ministry reveals that
the number of Indonesians working in Malaysia is around one
million. Almost 60 percent of that number entered the country
illegally, with an estimated 1.5 million Indonesians working
illegally in construction, on plantations and in the informal
sector.

Unlike other ASEAN nations, the two neighboring countries have
ethnic and religious similarities, developed historical ties far
before independence was declared in Indonesia in 1945 and in
Malaysia in 1957 .

The MOU draft adversely fails to provide a protection program
for Indonesian workers and carries no explicit sanctions against
any infringements by the relevant sides, especially Malaysian
employers and the recruiting agencies.

It still has loopholes giving chance for labor exploitation
and abuse since it does not carry any sanctions against Malaysian
employers who over-exploit workers, detain their documents, fail
to pay their monthly wages and providing equipment to prevent
occupational accidents.

In most cases, many Indonesian workers were involved in
disputes with their employers because despite the employment
contract, their payments were suspended and overstayed because
their documents were held by their employers or Malaysian
recruitment agencies.

The MOU draft, the substance of which has been discussed by an
Indonesian-Malaysian team, does not set a minimum wage but
requires employers to pay at least the equivelant to the basic
wage for Malaysian workers working in the same field and provide
appropriate accommodation as required by Malaysian law.

There is no mechanism on what workers should do when in
dispute with their employers nor a requirement for employers to
insure their workers.

It just stipulates that "the respective party shall take
appropriate action against employers and Indonesian recruitment
agencies contravening the provisions under this MOU."