There are some interesting signals that the Malaysian Trades Union Congress (MTUC) might be shedding its accommodationist image in the arena of Malaysian politics.

Long accustomed to be labeled mischievously as 'Empty You See' for its non-performance in the labour front, of late, the MTUC has formed a sort of ad hoc united front with other concerned organisations to check and report on the activities of the Employees Provident Fund (EPF) to the public.

More than this, it has embarked on a nation-wide protest to demand transparency and accountability on the part of the EPF and the government in the management of public funds.

EPF's lack of transparency and accountability on investment matters, the channeling of contributor funds into questionable investments, the bailing out of companies such Time dotCom Bhd, and the loss of revenue and the overall poor performance have galvanised the country's major labour body into some kind of progressive action.

It has been planned and announced boldly that it, DAP and other non-governmental organisations (NGOs) would launch a major public protest over investment decisions of EPF's board that might not have been wise.

Incidentally, a committee has been formed under the leadership of the organisation's secretary-general, G Rajasekaran, with three executives from two unions and a consumer body to prepare for the public protest and to closely monitor the EPF's activities.

One of the members of this committee, Syed Sharir, seems quite confident that the dwindling annual dividends of the EPF might be enough to sensitise public opinion on the need for accountability and responsibility on the part of the EPF's management.

Much potential

The MTUC, which was formed in the 1950s as an entity to wean away labour from left-wing unions and to lead labour along a 'responsible' and 'moderate' path, has come a long way.

But years of close symbiosis with employers and the government have contributed to robbing the organisation of any credibility in responding to labour issues very effectively. Even very passive resistance engaged in by MTUC was looked upon by the state with much disfavour.

Years back, the leadership of the union was attacked by the state for collaborating with foreign trade unionists and endangering Malaysia's Generalised System of Preferences (GSP) trade status with the United States. In fact, the state even went to the extent of providing for the formation of another labour body called the Malaysian Labour Organsiation (MLO) as a rival to the MTUC.

Now with MLO gone from the scene, the MTUC, despite its weakness, is perhaps one of the main labour bodies with potential to do much for labour.

Lack of trade union rights, the state's opposition to national unions, the inability to form national unions in the electronic and textile sectors, employers' opposition to trade union formation, the raw deal for plantation workers, a lack of minimum wage, EPF's investment decisions and other issues have somewhat propelled the MTUC to take a fresh approach to labour relations.

There is growing realisation that the organisation just cannot remain passive and be only responsible to the requirements of the state. In the words of its secretary-general, Rajasekaran, the time has come for the organisation not so much to appear balanced in the eyes of the government but more to reflect the wishes of the rank and file - those who have been affected negatively by the policies of the country.

The very fact that MTUC took the novel step of forming a sort of united front with other organisations to oppose the EPF's investment policies is a very significant event in the Malaysian political arena.

After a long time, a labour entity like the MTUC has come to the realisation that problems and issues in the political arena that affect workers and others need a joint resolution. In this context, the formation of an ad hoc committee to oversee the EPF board's investment policies seems timely with the inclusion of non-union associations and political parties.

Citizens' pressure

To what extent the MTUC will be able to effect changes to the manner and style of the EPF remains to be seen. The fund's board comprises mainly of representatives from employers and government officials and will not like to be dictated to by the union representatives, given their minor role.

But then, the Malaysian public have lost much confidence in the way the board has been functioning and how investments decisions have been dictated by political considerations more than anything else in the last decade or so.

So if contributors' hard-earned money is going to salvage the business operations of crony capitalists, then there is every reason why contributors need to be concerned about the present policies of the EPF.

It is not that we are going to expect miracles and far-reaching policy changes as a result of MTUC's actions, but certainly, right-thinking Malaysians would not object to the aims of the organisation.

If these objectives bring about certain changes in the realm of EPF policy in the long run, then it will certainly augur well for the process of transparency and accountability in Malaysia. While the government might have all the laws and regulations for the purpose of transparency and accountability, these are not equal to citizens' pressure for change.

In this respect, the present move by the MTUC and other organisations to bring about democratic changes to government agencies must be regarded as pressure exerted by citizens of the country for political and social changes.

P RAMASAMY is a professor of political economy at the Political Science Department, Universiti Kebangsaan Malaysia and has academic interests in Malaysian politics and labour. He has written quite extensively and is currently focusing on conflict management in Sri Lanka.