Yoursay: Struggling businesses will be hard pressed to pay workers

YOURSAY | ‘Most businesses are already barely surviving in the last two years before the arrival of Covid-19.’

Minister: Employers must pay salaries during restriction period

Anonymous_63975706158502: Politicians failed to understand that businesses are the key to their survival. If businesses failed, so does the economy, and soon unemployment rises. Comes GE, a new government will be installed.

Enhance Public-Private Partnership, employers sacrifice by not retrenching, government defer corporate tax, Bank Negara can further reduce OPR (overnight policy rate), expedite approvals and disbursements of CGC (Credit Guarantee Corporation) loans, reduce employer’s portion EPF (Employees Provident Fund) contribution for 2020, all agencies to be more business friendly instead of imposing rigid rules and hefty fees.

Most businesses are already barely surviving in the last two years before the arrival of Covid-19. If the inexperience politicians do not understand what is happening on the ground, the whole country will go into deeper and much longer recession. Don’t just go for short-term populist measures.

Yes, these measures will reduce the government’s revenue which is further hampered by low crude oil prices. The government must raise its funding through other means like borrowings at the current near-zero interest rate regime.

Yes, the country’s gearing is quite high now but if the government don’t create some light at the end of the tunnel, the worst is unimaginable.

TGB: By having to shut down, employers are already unable to use capital assets or rental of premises for productive purposes. Are employers not sacrificing?

This year most companies are doing badly because the demands of their goods and services have come down tremendously. How many can survive if they have to give ‘buta gaji’ (blind salary) to their employees?

Furthermore, the PM even commented that the partial shutdown may even be extended. Business losses also equal zero tax for the government.

The Analyser: Indeed, this is an insane decision totally unrelated to reality.

The government should instead be encouraging businesses to close down but maintain a very basic operation to avoid bankruptcy. This is because the duration of the lockdown is a complete unknown.

Also, it will have to be the government’s task to provide ongoing support for the unemployed.

We are now reaping the consequences of 63 years of appalling governance whereby successive governments have governed for themselves and not for the people.

Annonnymous 080: What a first shot, Human Resources Minister M Saravanan.

Well done, after all these years of government breastfeeding the employers, it is high time for employers to start shouldering their fair share of the burden.

It can’t be that ‘heads they win and tail we lose’ concept anymore.

Anonymous 2465861491622056: I run a small business and am closed for two weeks.

If I have to pay for my staff salaries for them sitting in the house, I will either close my business or lay off my staff as my business cannot afford to pay unproductive salaries.

Rick Teo: Companies and employers are not charitable organisations. They pay you for work done and not for staying at home.

If the government want to implement this, then give incentive like tax deductions to employers, but don’t expect them to bear the brunt of paying for no work.

Homosapien: Big companies and rich towkays wouldn't mind paying the salaries. My boss told me that the partial shutdown is not a problem, just work harder when we are back as long as we are all safe.

How about small businesses? My friend re-mortgaged his father's house to start a business. After expenses, his take-home pay is just average. He drives not a BMW but an old Kenari. Some of his workers even drove a Honda City.

He himself will not have salary this month if he has to pay his workers’ salary. But he doesn't mind because he knows they have financial commitments as well.

Towkays are rich but not all towkays are rich. Towkays are greedy but not all towkays are greedy.

If being a towkay is easy and rich, everyone will want to be a towkay.

Francis T Rozario: This government directive (that employers must pay salaries during the two-week shutdown) can be challenged in court. In previous cases, it was the employer that declared the shutdown and the courts compelled the employer to pay.

This shutdown is beyond the control of the employer and accordingly, the employer can defend his right not to pay because remuneration is for work; the employee has annual leave and he can use part of it to offset the loss of salary during the period.

I am certain with proper representation, the courts will give the employer a sympathetic ear and I think they must take the matter to court.

Albert Ponniah: It is right to let the workers go on paid leave. Unions have a duty to demand it. Ministers or who else have to rely on the specific provisions of authority to appear educated and informed and not the opposite.

It is best they leave it the specialists in the labour department to make the case and stop issuing orders with the absence of legal basis and references. Get employers to cooperate and it will work.

Anonymous_1372125128: I have about 600 employees in my organisation. Business has been impacted by the economic downturn, unstable politics and Covid-19 since early of the year.

The decision of the company’s board of directors is to keep everyone and ensure everyone is able to put food on to the table every day. But the situation is getting worse. We won’t see business returning to normal anytime soon.

We have to make hard decisions, which won’t please any of the employees. We had tried our very best. Now, we have to let go 200 of them in the first phase to ensure we still able to take care of the other 400 families for another six months or so.

If the situation is still not improving or sustainable, we need to let go another 200. We will pay them compensation as per the law.

I hope the government can use the EIS (Employment Insurance System) to help them as well. This will ensure all employees in my organisation who are retrenched are able to survive for another six to eight months.

With that, I hope the government will draw up a comprehensive policy to help everyone. If the employers can’t sustain their operations, the employees will suffer as well as this is a chain reaction. Don’t put the burden on the employers only.

If one employer has 20 employees on average, and if 200 employers are forced to close down their business, 4,000 of employees will be unemployed. If 50 percent of the companies in this country are forced to close down, imagine the unemployment level.

Please, come up with a comprehensive policy to help all Malaysians.

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