MPs urge govt to absorb contract workers into public service

 

Re-absorbing outsourced contract workers into the public service could save the government up to RM500 million, according to Tanjong Malim MP Chang Lih Kang.

Speaking to reporters in Parliament, the PKR lawmaker cited findings of a study by the Government Contract Workers Network (JPKK) on the alleged waste of public funds due to the current outsourcing practice.

"All this while we were always informed that privatisation is a good way to save government funds.

"But here I give one example, based on JPKK's research," Chang said during a press conference.

He said JPKK data found that the government had in 2019 paid RM1.5 billion to a third-party for a contract to hire 40,000 security guards in schools nationwide.

However, Chang said only RM1 billion was paid to the workers, while the hired contractor pocketed up to RM500 million.

Chang Lih Kang

"If the government was to reabsorb these workers, it can save the RM500 million.

"Maybe some of this amount can be used for administration, operating expenses, to help these workers get better rights including EPF, Employment Insurance Scheme and others," he said.

A group of JPKK members earlier held a silent protest outside Parliament, highlighting three demands to the government.

These include the government to absorb all contract workers, to eradicate all middle persons (contractors) and to reduce administrative red tape.

Aside from security guards, cleaners in schools nationwide are also employed through contracts with private third-party companies.

Meanwhile, Klang MP Charles Santiago said JPKK members represented a small group from a larger pool of "most vulnerable" informal workers, estimated to be some 40 percent of the country's 14 million labour force.

In times of the current pandemic, he said informal workers - often paid a daily wage with no social protection - would be among the worst affected by the loss of income.

"So one of the biggest contributions we have to do is to support them to be absorbed into the government system so that they can at least get a minimum wage," he stressed.

Lembah Pantai MP Fahmi Fadzil, meanwhile, said he would raise the issue of allocations to hire outsourced contract workers with the Parliament's Public Accounts Committee. - Mkini