The COVID-19 pandemic has caused major disruption to businesses and workers’ livelihoods in an unprecedented way and with much uncertainty as to when this crisis will end.
The Malaysian Government imposed a Movement Control Order from 18 to 31 March, with a further extension to 14 April, as a measure to contain the spread of COVID-19, has affected many of our friends from across the Causeway who are working in Singapore.
In addition, the Singapore government has introduced stricter measures including safe distancing; restrictions on inbound visitors and putting in place a "circuit breaker" to pre-empt escalating coronavirus infections.
All these calibrated and necessary measures have a direct impact not only on industries that rely on tourists such as hospitality, leisure, food and retail services, but also their ancillary industries such as landscape, cleaning and security industries that support such affected industries. Now we are beginning to see the effect, beginning to creep to many other sectors as well. Many of these industries also employ Malaysian workers to supplement their local workforce.
Liquidated Damages
That said, some companies in such ancillary industries like cleaning and environmental services companies, landscape firms and security agencies are caught off-guard by the sudden announcement and had little time to react. Hence, it is understandable that many of them may not be able to meet contractual obligations during this period if their Malaysian workers do not opt to stay in the accommodations provided by the companies or choose to be with their own families across the causeway.
With this Bill, I hope that firstly, service buyers will be deterred from acting in a high-handed manner and will not be able to impose liquidated damages for any shortfall in service standards due to manpower shortage.
The Security Industry Council, made up of the union for security employees and the two security associations, issued an appeal to the service buyers of security services urging them (quote) “to be reasonable and flexible as regards to the security agencies’ contractual obligations, including the imposition of liquidated damages, during this exceptional period” (unquote).
Similar appeals were made by the Tripartite Committees for the environmental services and landscape industries. The message is clear. Be reasonable. Avoid unnecessary punitive actions because the situation was brought upon by circumstances beyond their control.
With the support of our Government, many of these companies are doing their best to help their affected workers, while continuing to provide the essential services to the best of their abilities.
Contract Fees and Contractual Disputes
This brings me to my second point - due to reduced traffic from customers resulting in significant drop in revenue, some establishments have requested for reduction in contract fees from their service providers.
While it is understandable that service buyers who are affected by the COVID-19 situation are finding ways to cut costs, I hope this Bill will compel service buyers to work with their service providers and work out a win-win solution for both parties. Should they wish to scale down the essential services and contract fees, they should be pragmatic and fair and understand that it would mean a reduction in service frequency or standards.
While service providers would like to help their clients manage their costs, they also hope that the service buyers give them ample time to do the necessary adjustment. One cleaning company shared with the union that his company was asked to reduce his cleaning workforce by 92% from a workforce of 100 to only 8 cleaners within a very short frame of time.
In another case, a well-known landscape company had been given a stop work order for the maintenance of plants by some of his commercial clients during the circuit breaker period. No service payment will be made during period. Such cases are faced by many service providers of essential services. These companies are trying very hard to redeploy the workers but, it has not been easy. Such unilateral decision is unfair, and I would like to suggest for the bill to look into such issues.
I have also received feedback from unionised companies about their service buyers wanting to reduce their contract fees by 10% to 20%, simply because the service buyers perceived that their service providers would be able to do so due to the wage subsidies they would be receiving from the Enhanced Jobs Support Scheme. Despite the cleaners or security officers having to work extra hard, these service buyers want to squeeze their service providers. This is simply incredulous! The wage subsidy is meant to relieve financial pressures on companies as they weather the storm; and not to be used as a lever for anti-competitive practice.
The reality is that it can be difficult for the management of service providers to voice their objection for fear of having their contract terminated or be in a less favourable position during contract renewal in future, but neither do they have the finances to pay for the workers under their employment if there is no payment of contract fees.
I would like to urge all service buyers and service providers to be responsible because any unethical action on their part will affect the outsourced workers who are trying to earn an honest living. Please allow me to speak in Malay.
Pandemik COVID-19 telah menyebabkan gangguan besar kepada perniagaan dan kehidupan pekerja dengan cara yang tidak pernah kita alami sebelum ini dan dengan banyak ketidakpastian bilakah krisis ini akan berakhir.
Pengumuman secara tiba-tiba oleh kerajaan Malaysia mengenai Perintah Kawalan Pergerakan telah menjejas banyak syarikat di Singapura yang bergantung kepada pekerja Malaysia yang membentuk sebahagian daripada tenaga kerja mereka. Di samping itu, pemerintah Singapura telah memperkenalkan langkah ketat untuk mengekang penularan virus itu, termasuk memastikan jarak selamat, menutup sempadan kepada pelawat yang masuk dan mewajibkan pemutus lintaran mulai hari ini.
Oleh itu, saya harap rang undang-undang ini akan menghalang pembeli perkhidmatan daripada mengenakan apa-apa ganti rugi jumlah tertentu bagi sebarang kekurangan dalam piawaian perkhidmatan atau pengurangan tenaga manusia di tempat kerja.
Walaupun kita faham bahawa pembeli perkhidmatan yang terjejas oleh situasi COVID-19 akan mencari cara untuk mengurangkan kos, saya harap rang undang-undang ini akan memaksa pembeli perkhidmatan untuk berunding dengan penyedia perkhidmatan mereka dan bertolak ansur untuk mencari penyelesaian positif bagi kedua-dua pihak.
Saya ingin menggesa setiap pembeli dan penyedia perkhidmatan untuk bertanggungjawab kerana apa-apa tindakan yang tidak beretika akan memberi kesan kepada pekerja yang cuba mencari rezki.
Saya percaya bahawa semangat perpaduan kita, bersama-sama sifat empati dan belas kasihan, yang akan menolong kita mengharungi krisis ini.
Conclusion
Together with the support of our government, let’s all do our part to support our businesses and workers, and we shall overcome as one #SGUnited. I am confident that workers, employers and Government will stand united and ready to fight this virus. I believe it will be our spirit of solidarity, peppered with a lot of empathy and compassion that will pull us through this crisis. I support the Bill.
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