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Outsourcing of Migrant Labor is Showing Clear Signs of Trafficking In Persons for Labor Exploitation

TENAGANITA Press Statement

11 July, 2007: Tenaganita is very happy that the Parliament and the Senate have passed the Anti-trafficking in Persons Act that will be implemented in the near future.  One major aspect of the Act, is the definition of “exploitation” which means all forms for sexual exploitation, forced labor services, slavery like practices similar to slavery, servitude, any illegal activity or the removal of organs.


In the fact finding mission carried out by Tenaganita’s team on hundreds of stranded Bangladeshi workers and from the 36 cases handled by the organization on workers disputes with Outsourcing companies, it is clear that the form of exploitation of the workers showed that the workers were in a trafficked situation.

In Teluk Intan, Cameron Highlands, Kg. Subang Melayu 2, Kapar and Port Dickson, all the 150 workers interviewed of the 500 workers, had the same story.  They stated that they were not given work.  They had no food to eat.  They were locked up in their place of accommodation given by the company with guards to watch them and their movements. The conditions of living were deplorable, unhealthy and overcrowded.  The workers passports were taken away on arrival.  They were threatened with violence and arrest by the police.  The workers lived in fear.

What is more, is that the workers had paid more than RM9000, selling whatever they had, including house and jewelry.  Some had to borrow money.  The workers had a contract attested both by the Home Ministry and the Bangladesh High Commission.  The attestation is only made after verification of work and demand is confirmed with the Principal company.  Why then are the workers without a job?

The government of Bangladesh has put a ceiling of Tk 85000 or RM4200 as recruitment fees. But the cost of migration has almost tripled with workers paying up to TK250,000 or RM 12500. Why has the price increased?

According to the marketing agents of the Outsourcing companies, they claim they have to pay the Home Ministry, besides the official fees for visa and levy and attestation, a sum between RM1500-2000.

Then there is ‘lobbyist’ fee of RM 1000-2000 for Human Resources Manager, local agent and the Outsourcing company.  The agent is unable to give the breakdown.  We are concerned over the “cuts” the different parties are taking from the total fees paid by the poor Bangladeshi workers. 

It is noteworthy that the caretaker government in Bangladesh arrested MAH Salim, the President of Baira (the umbrella body of recruiting agents) in Kuala Lumpur for collecting unauthorized fees from migrant workers.  It was alleged to be corruption.

With these developments, why has the Malaysian government continued with recruitment of workers through the outsourcing system?  From the extent of human rights and labor rights violations that has happened, it is critical that the government addresses the issue. 

The Outsourcing companies know that they are violating the contract and the regulations related to outsourcing of labor. If not, the companies would not hold the workers in captivity and threatened them with arrest and detention.  Meanwhile the workers are trapped. They do not have their passports.  And even if they wanted to return they cannot, because of enormous debts. Under such conditions of control and inhuman treatment, it is clear that they are in a trafficked condition.

  • We call on the government to take action against the Outsourcing companies under the Anti Trafficking in Persons Act and make them accountable.
  • We want the Outsourcing strategy of labor employment to be scrapped as it has failed and brought about labor and human rights violations including violence against the migrant workers.  The outsourcing of labor as practiced lacks transparency and has forms of payment that are not accountable.  This practice only encourages corruption in the recruitment and employment of migrant labor.
  • The government must have a comprehensive policy on labor migration with a clear framework of a multi disciplinary approach to its management.  This management should be led by the Ministry of Human Resources.
  • The government needs to ratify the UN Convention 90 on The Rights of All Migrant Workers and Their Families.  This convention would act as the point of reference for the development of policies and regulations.
  • The Anti trafficking in Persons Act will be soon enforced.  In order to ensure that this Law is effectively enforced with political commitment, the government should conduct a comprehensive evaluation of all policies, regulations and laws that contravenes or is in conflict with the Act. 
All workers who were brought through the outsourcing scheme and have no job, are stranded or have been abused should be either compensated where the payment should be returned in full; compensated for the sufferings and be safely repatriated to their homes or be given employment directly to companies that need workers.
 
The authorities need to be transparent and consultative in the development of policies on migrant workers.  There must be a political commitment to wipe out corruption in the system of recruitment and employment of migrant workers. 

Signed by:

Dr. Irene Fernandez

Director

 
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