updated version The Malaysian Trades Union Congress (MTUC) today decided to defer its picket scheduled this Saturday to three months later following a letter from Prime Minister Dr Mahathir Mohamad addressing the issues raised by the union.

According to its president, Zainal Rampak, the decision was unanimous, reached during an emergency council meeting held at the MTUC office in Subang Jaya, Selangor.

"During these three months we will take action on the issues that we have mentioned in our memorandum to the Employees Provident Fund (EPF)," Zainal told reporters after the meeting.

MTUC handed over a memorandum to EPF on April 27, questioning, among others, the government's decision to automatically reduce employee contribution from 11 percent to nine percent, and the six percent dividend for the year 2000, the lowest in 26 years.

The nationwide picket at EPF offices was to push for these and other issues to be resolved. However, the prime minister's letter, received today, had put a flap in their plan.

In the letter dated May 8, Mahathir agreed that the controversial annuity scheme that provides workers' pensions through private insurance companies will be put off until further study on the matter is conducted.

Mahathir also said the government will consider revoking the reduction of death and incapacitation benefits for workers from the previous RM30,000 to the present RM2,000.

The premier also agreed to have a more accountable, responsible and transparent management of funds for EPF.

Meeting with PM

Zainal said a promising development is that the EPF and the Human Resources Ministry have agreed to bring the death and disability benefits back to the original RM30,000.

He also told reporters that MTUC secretary-general G Rajasekaran would be sending a letter to EPF to set a date to meet with consultants for a joint-study of the annuity scheme.

As to how the EPF investment panel would be made more accountable to the board, he said, "We will be meeting with the prime minister, to discuss the issue on June 25. We are also asking the board to comprise 50 percent workers," he said.

Zainal said the loan policy of the EPF should be more transparent, giving way to "good governance".

"Many people take advantage of the EPF by borrowing money from it and using their shares as downpayment and then the stock market falls, our money falls, and the dividends become less. We do not want that," he said.

EPF had earlier decided to accept 78.7 million shares in telecommunications company Time dotCom Bhd in lieu of a loan to the its former entity, Time Telecommunications Holdings Bhd.

"We want to remind EPF that its monies are not to be given to just anybody. No matter whether they are politically powerful people or not, nobody should borrow money (from EPF) as they like," Zainal added.

He also said at the next general-council, MTUC would be setting up a watchdog to monitor the EPF.

"If we find something wrong, we are going to highlight it. We will not wait until the end of the day," he said.

Asked if workers would be disappointed with the deferment of the picket, Zainal said "no".

As to whether MTUC would continue to picket should talks fail, he said, "Don't worry, we will talk when we cross the bridge."

Not disappointed

Later, speaking to malaysiakini, Rajasekaran said he was not disappointed with the decision to defer the picket, adding: "Well, the excitement is over."

V Selvam, executive secretary of waste management company Indah Water Konsortium's union, said he was not disappointed either.

"[The assurances by the government are] an awakening for the labour movement," he said, though he added that they are "a little wishy-washy and are not enough".

However, another a worker from a transport union, who declined to be named, said the assurances were "better than nothing".

Kenneth Stephen Perkins, executive-secretary of the Penang Textile Workers Union, when contacted, reminded unionists that the picket was only deferred and not called off.

"Since the prime minister has agreed to look into the matter, I think we should honour his effort to resolve workers' problems," said Perkins, adding that people were not disappointed over the deferral.

"It is not that we enjoy picketing. We simply want to exercise our basic rights. If the government fails to act on the issues raised then workers will go on with the picket.

"If we can't trust our prime minister, then this time the picket should be for him," he added.

Stop-gap measure

Union leader Syed Shahir Syed Mohamud expressed his hope that the prime minister's undertaking was genuine and not merely a "stop-gap measure" to prevent the picket which coincided with the Asean Labour Ministers Meeting here.

"Let us see how serious the government is in resolving the grievances raised by workers," said the executive secretary of the National Union of Transport Equipment and Allied Industries Employees.

According to Syed Sahir, union members have been gearing themselves for the picket and the prime minister's letter has put unionists in a tight spot.

"This is not a show of strength against the government, we do not want to picket for fun. We do not mean to threaten anyone by picketing," he told malaysiakini.

"It is the democratic right of the people of this country to express themselves peacefully within constitutional boundaries and this picket is our way of showing that we are concerned about the manner in which EPF has managed our old age savings," he added.

Syed Shahir said the grievances against EPF were various and not only confined to those mentioned by the prime minister.

A unionist who declined to be named said: "We (unionists) had a shock when today's general council meeting was turned into an emergency meeting to decide on the deferment of the picket."

"We were all prepared for this Saturday and some of us are really upset. A picket is not something to be enjoyed, why do we need to pull out at the eleventh hour?" questioned the unionist.