“We are looking at coming up with a blueprint for the government to consider by the end of the year,” Social Security Organisation (Socso) chief executive Datuk K. Selvarajah said yesterday.
He said the scheme, which is still in the “study stage”, was formulated with input from the International Labour Organisation, Malaysian Trades Union Congress and Malaysian Employers Federation.
“For now, we are compiling feedback from various parties and stakeholders as they would know best the needs of the employees.”
The establishment of the retrenchment insurance scheme was proposed at a workshop involving the ILO, MTUC and MEF on June 5.
Attended by over 300 participants representing various organisations, unions, government departments, academics and consultants from the ILO, it is aimed at presenting all findings to the Human Resources Ministry for setting up a scheme that meets the needs of Malaysian workers and their families.
Selvarajah said a series of public discussions would follow to provide input to a report that was being compiled.
“We are now working on consensus building between employees and employers.
“Once done, we would work on the mechanism before preparing the blueprint for the government’s approval.”
He said a meeting would be held with representatives of small and medium industry companies on Saturday to discuss the scheme.
MTUC president Mohd Khalid Atan said the country needed a labour safety net to safeguard employees and their families.
“Employees who are jobless all of a sudden would not have control over the situation and are often left helpless.
“They will be without income until they are re-employed. So, it will be difficult to continue with their daily life and sustain the family.”
Khalid said MTUC had sent a memorandum to the Human Resources Ministry after the last economic crisis, proposing a retrenchment fund.
“The current scheme is somewhat similar to that and we are happy it is being formulated.”
He said many countries, such as Australia, Finland and Denmark, had such a scheme and a committee would study what they offered.
“How much employees from different industries should get and for how long would be studied by the committee.”
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