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PROCURE IT. Pathma Krishnan Monitoring Sustainability of Globalisation (MSN), Malaysia. Agenda. Introduction to Malaysia’s E&E sector Infrastructure of Migration State Migrant Policies on Migrant Workers Field Studies Conclusion. Introduction to Malaysia’s E&E sector. - PowerPoint PPT Presentation
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PROCURE IT
Pathma KrishnanMonitoring Sustainability of
Globalisation (MSN), Malaysia
AGENDA
Introduction to Malaysia’s E&E sector
Infrastructure of Migration
State Migrant Policies on Migrant Workers
Field Studies
Conclusion
INTRODUCTION TO MALAYSIA’S E&E SECTOR
1972: First semiconductor plant in Penang
1970s: 577 employees with 4 companies
Now, they have more than 1500 companies with more than 600, 000 employees
Total investment of RM 108 billion (USD 34.83 billion)
2008: Overall export valued at RM 233.8 billion (USD 75.4 billion)
INFRASTRUCTURE OF MIGRATION
Malaysia is a recipient of various communities in Asia
It is both a receiving and sending country
In the last 18 years, there has been substantial increase in regular and irregular migration into the country
2007: Malaysia recorded 72.7% increase in migrant labor
2010: 2 million registered regular & 1 million irregular migrants
MIGRANT FLOW- RECEIVING COUNTRY
SELECTION OF FACTORIES AND PROFILE
Two major Electronic Manufacturing Services (EMS): Jabil Circuit and Flextronics
JABIL: 15 Fortune 500 company Designs, test, manufacturers ODM and OEM Clients: Cisco System, HP, Echostar, Nokia,
Gateway 2000 and others Malaysia : About 5000 over employees, both
local and outsourced migrant workers
CONTINUED
FLEXTRONICS : Asia Pacific HQ in Singapore
Global in 30 countries, 4 continents Electronic Manufactures Service (EMS) Clients: Dell, Microsoft, Motorolla, Palm, HP,
Xerox and others Employees : About 7000 and more; locals
and outsourced migrant workers
STRUCTURE OF INTERVIEWS
Questionnaire agreed by WEED and Monitoring Sustainability of Globalisation (MSN)
Incorporating ILO Co Labor Standards and Codes (EICC)
46 workers interviewed: 26 from Jabil and 20 from Flextronics with translators
Nationality: Nepalese, Bangladesh, Indonesians, Cambodians, Burmese, and Vietnamese
Interviews of workers: July 12th and 13th and July 23rd and 24th. At Dormitories and outside dormitories
REGULAR VERSUS IRREGULAR MIGRANTS
Passed relevant skills test
Medical examination completed
Approved employment
contract
Required pre departure completed
Regular Worker
Unknown pre departure
preparation
No legal contract
No medical examination
Skills set unknown
Agency unknownLicensed agency; Legal placement
fee
Irregular Workerversus
STATE MIGRANT POLICIES
Malaysia manages migrants from law and order and security perspective
Policy measures; work permit, levy, bilateral agreements, memorandum of understanding (MOU)
Policy measures needed to monitor and eliminate irregular migration; Biometric security system Detention camps Punishment of whipping Amnesty Special security operations
STATE MIGRANT POLICIES
Policy instruments Legal Instruments
Immigration Act 1959/ 1963: Controls related entry and departure
Immigration Regulations 1963 Sect 9(3): Work permit only valid in particular employment; not transferable
Employment Act 1955: Apply equal employment opportunity to all workers.
Passport Act 1966
Mandatory medical examination Sect 8(3) of the Immigration Act
Mandatory medical examination which includes HIV, Hepatitis and pregnancy at selected entry points
Yearly pregnancy test required
FIELD STUDIES Key findings
•Passport withholdings/ Incidents of bonded labor
•Non payment of wages and/or illegal deductions/ withholdings
•Contract substitution/ Breach of contract
•Exorbitant recruitment/ Placement fee
•Unsafe and poor living and working conditions
•Lack of redress mechanisms/ No right to association
•Physical and verbal harassment
•Higher medical expenses
•Threat of imprisonment and forcible deportation from labor brokers
•Lack of pre departure/ skills training
•No effective monitoring system for labor brokers
•Lack of protection under national law
CASE STUDIES
“Om, 20 years, Nepal, we paid RM170 for accommodation deposit and we were asked to sleep at the dormitory corridors for nearly a week” (worker outsourced to Jabil)
Abdul 19, Bangladesh, I was verbally abused, slapped and threatened to be deported because my wages were not paid (4 months) by the labor agent…” (worker outsourced to Flextronics
“We had to prostitute ourselves to survive for two months because we did not have work…”
(Female workers from Nepal)
Passport Withholding/ Incidents of bonded labor Workers are forced to sign a blank form/ consent form Deposit required to return passport to the holder (RM500
to RM 3000; USD 166 to USD 1000)
Non payment of wages and/or illegal deductions/ withholdings Late payment Non payment/ Higher Debt Discipline wages Utilities deduction Accommodation deduction Forced savings deductions
Contract substitution/ Breach of contract Terms and conditions of receiving and sending countries
differ Contract written in English- A language most migrants do
not understand/ speak
Exorbitant recruitment/ placement fee Above legal limit Anywhere between RM2400 to RM 10000(USD 800
to USD 3400 approx.); depending on nationality
Unsafe and poor living and working conditions About 500-600 sq ft., 12 to 15 people occupy One bath, one toilet No mattresses, no fan Health and safety hazards - electrical wiring etc.
Lack of redress mechanisms The laws of the country do not provide for special
complaint or redress mechanisms
No right to association The contract prohibits any association/ to join trade
union in Malaysia
Physical and verbal harassment By labor brokers At work (supervisors, local workers – language
barrier)
Higher medical expenses Workers have to bear expenses above amount
stipulated in contract
Threat of imprisonment and forcible deportation from labor brokersPolice, RELA and labor brokers
Lack of pre departure/ skills training Inadequate training Misleading information Language barrier
No effective monitoring system for labor brokers• Poor enforcement in Malaysia• Suppliers not managing labor brokers effectively
Lack of protection under national lawThe lack of effective regulation and
enforcement within the countryLabor workers treated as commodities
CONCLUSION/ RECOMMENDATION
Government, MNCs, Stakeholders must hold recruiting agents/ outsourcing companies accountable for any violations of migrant workers.
Adjust code of conduct to include protection for migrant workers
Training and audit for suppliers
Most importantly, to make purchasing decision based on ethical treatment of migrant workers