FMM against the implementation of EIS

KUALA LUMPUR: The Employment Insurance Scheme (EIS) is expected to cost the industry approximately RM1.2 billion annually should it be implemented next year, said the Federation of Malaysian Manufacturers (FMM).
Its president, Tan Sri Dr Lim Wei Chai, said this is based on a monthly average salary of RM2,000 x 0.5% EIS contribution x 12 months x 10 million local workforce.
He said it was inaccurate to claim that the EIS would benefit six million workers.
Using the 2009 financial crisis as a yardstick, employers paid out RM30 million to compensate retrenched employees.
"Only 0.6% of the total workforce was retrenched and 95% of those retrenched received their retrenchment benefits under the current labour laws.
"These benefits are generous as Malaysia reportedly offers the fifth highest retrenchment benefits in the world," he said.
"The current labour laws have retrenchment benefits in place," he told reporters here today at FMM headquarters.
He said the last attempt by FMM to propose for further discussions was made in early March this year.
FMM is still open for a dialogue before the EIS is tabled in June, he said.
The EIS, which aims to provide temporary aid for retrenched employees, will require contribution from both employers and employees (0.25% contribution rate from each).