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."