Workers who were laid off hope EIS initiative will get the nod

Sujak is looking at an uncertain future after losing his job after 20 years of working at a hotel. His current job pays him half his previous salary. -Art Chen/ The Star.

KUALA LUMPUR: Razali Mamat was among hundreds of workers who lost their livelihoods when a bread-manufacturing company ceased operations last year.

The former marketing supervisor said he only found out that he would be jobless a day before his company officially shut down.

To make matters worse, Razali claimed that he did not receive any compensation for the retrenchment, despite serving eight years with the company.

“We were all sad and angry to lose our source of income out of the blue.

“And it all happened a week before Hari Raya. It was a terrible feeling,” he told The Star.

Razali, 41, and his five children, aged between four and 15, had to rely on his wife’s income for a few months while he was searching for work.

After eight months of job-hunting, Razali was finally hired by a courier services company.

His experience of unemployment, however, has made him a strong advocate of the proposed Employment Insurance System (EIS).

The scheme aims to protect the welfare of laid-off staff and increase their re-employability.

“I am in support of the scheme and I hope the Government will go through with it.

“If it gets approved, the scheme would help people like me, who lost their jobs abruptly,” said Razali.

Having worked in the same place for 20 years, long-serving fire safety and security officer Sujak Daim never thought he would be left in the lurch after he was retrenched from his post.

Sujak, 53, lost his job at a hotel along Jalan Ampang in January this year due to a change of ownership.

He and 80 of his colleagues were told to quit, despite assurance from their former employers that they would not lose their jobs.

“We found out about the change of ownership in October last year, but our employers told us not to worry about it.

“They issued us a notice in November, which they claimed was just a formality to acknowledge the changes.

“All the while, they assured us that we would be keeping our jobs,” Sujak said.

Sujak, who is the sole breadwinner in his family, said he received four months’ salary as compensation for the retrenchment.

“I felt disappointed and shortchanged. The amount is small for someone who has given 20 years of his life to the company.

“My family too were sad about the situation, but they learnt to accept it,” said the father of three.

The upcoming months were not easy for Sujak, who had to continue paying monthly fixed expenditures, in addition to paying for his children’s education fees.

“I have children studying in university. I have to pay for their accommodation and give them monthly allowances,” he said.

After two months of job hunting, Sujak secured a job at another hotel, but for half his previous salary.

To Sujak, the EIS could help alleviate the financial burdens of people in his situation.

“It’s hard for people in my age group to find work. When we do get a job, we have to settle for a much lower pay.

“Some of my ex-colleagues are still unemployed.

“The scheme would greatly help people like us survive for a few months while we find a job,” he said.

The EIS Bill, which was first tabled in Parliament on Aug 1 by Human Resources Minister Datuk Seri Richard Riot, will see the creation of the insurance scheme.

Under the scheme, employees who have lost their jobs may be able to claim a portion of the insured salary for a period of between three and six months of being unemployed.

The Government decided to put the Bill on hold to allow for more engagements with the stakeholders.

The EIS will be administered by the Social Security Organisation.