Understanding Wage Theft!

Wage theft is when an employer withholds benefits, including breaks or compensation. It goes unreported either because employees are not aware of what they're owed or because they fear retaliation.

Wage theft occurs when an employer doesn't pay an employee the benefits they've earned, be it wages or other benefits such as a lunch break. It's one of the most costly crimes in America. From 2017 to 2020, a total of $3 billion dollars was recovered in stolen wages, which is a fraction of the overall cost of wage theft. 

Source: https://texassignal.com

Wage theft most commonly comes in the form of minimum wage violations and overtime violations, which are often the first things you may think of when you hear wage theft. That said, wage theft can come in many forms, some of which you may have experienced without you knowing, i.e:

 

• Paying less than minimum wage

• Not paying appropriate overtime

• Withholding your final pay-check after you quit your job

• Withholding tips 

• Asking for unpaid work

• Cutting your lunch breaks short

• Asking you to make work-related purchases without reimbursement

In 2021, the U.S. Department of Labor reported a total of $230 million recovered in back pay for employees. The most frequent filers were food service workers, followed closely by construction workers. The two industries together made up a total of over $70 million in back wage recovery. Retail, agriculture, and healthcare were also common industries where wage theft occurred.

Unfortunately, combating wage theft comes down to employees standing up for their rights against their employers, which can be interrupted by the employee-employer power dynamics. While wage theft often goes unreported because employees fear repercussions from their employers for filing complaints, it's actually illegal for employers to retaliate against their employees for exercising their rights as workers.

Talk to your employer: It's best not to jump directly to wage theft when there's a discrepancy in your paycheck. This could be the result of an error, either human or technical. If your boss is asking you to do work before you clock in or after you clock out, you can start a conversation about setting work boundaries. 

Keep records of these conversations and paycheck discrepancies: While you shouldn't assume the worst, it's best to prepare for the worst. You should keep a track of any errors in your paychecks and how much money you're short. 

File a complaint and be aware of labour laws: You can file wage theft complaints with the authorities. They will ask for some information about you, your employer, and your wages. 

Employers usually don’t go to jail for this theft. That includes large corporations like Burger King or UPS. However, if employees fail to comply to internal SOP, they may be consequences, with an internal inquiry to termination. Investigation and enforcement are weaknesses identified in the U.S. That also seems to be the case for us in Malaysia.

Reference:

Understanding wage theft and what to do if it happens to you, Paul Kim, www.businessinsider.com

 

This is the last article for the year!

We will resume on Tuesday, 3 January 2023!

Are Malaysians on the Brink of Financial Disaster?

Many Malaysians are still struggling from the financial impact of the pandemic. That’s based on the data from the RinggitPlus Malaysian Financial Literacy Survey (RMFLS) 2022. About 70% of respondents indicated that they save less than RM500/month or do not manage to save at all. This is the worst-ever result tracked by the RMFLS in 5 years.  

At the other end of the spectrum, the number of Malaysians who managed to save more than RM1,500 per month has also dropped significantly. From 20% in 2020, the figure has dropped to just 5% in 2022.

Source: https://bankunderground.co.uk

The RMFLS 2022 results also indicate that more Malaysians are struggling with less savings in hand, as 63% of respondents stated that they can survive for 3 months or less with only their savings (52% last year). A similar pattern is also seen where 55% of Malaysians spent exactly or more than what they earned each month (44% last year), essentially living paycheck-to-paycheck.

With depleted savings and higher cost of goods, the survey also highlighted a worrying trend where more credit cardholders are not paying off their bills in full – just 55% in 2022 compared to 70% last year.

With the challenges in cashflow and savings, the survey results show that Malaysians are choosing short-term monetary relief over long-term financial stability. A staggering 65% of respondents above 21 stated that they will consider applying for more Employees’ Provident Fund (EPF) withdrawals if the government allows it.

In addition, the survey also found that 52% of Malaysians above the age of 18 have not started investing. Meanwhile, a majority of those who are investing have low-risk appetites but medium-term investment horizons which is not optimal – though these may be influenced by current financial challenges and global economic outlook.

Financial literacy, higher wages, and an extended retirement age (to at least 65) are some of the points needed for better financial health of all Malaysians.

Reference:

RinggitPlus survey finds that Malaysians are on the brink of financial disaster, Alex Cheong Pui Yin, https://ringgitplus.com, 6 December 2022

Of Monorail Stations and LRTs

The new (but perhaps not so new) Transport Minister “turun padang” recently with inspection of KL’s trains and buses. This is a good development. But the key is follow-up and rectification. Otherwise, it is another good PR exercise.

All 16 KL monorail stations lifts were not working, 46 escalators were not operational and over 664 lights at LRT stations were not functioning. The paying public deserves better. And where was Prasarana’s management? Happy in their cocoons at UOA Bangsar? And with reserved car parks at Level 3 to boot? Surely, it is not the Minister’s job to inspect and report.

Is this the “chronic third world disease” of poor maintenance? So when we have “kissing” trains and “disappearing” trains (from the control room), it is a symptom of a disease.

Source: https://www.klsentral.info

The Rakyat has funded RM40 billion of Prasarana’s debt but they (the Management) live in Cuckooland! Isn’t it time we demanded better service? A change in the Board and Management? Please, no need for further studies and inquiries. There is currently a consultancy rumoured to examine restructuring of Prasarana? What’s the point? Isn’t it just pouring old wine into new wineskins!   

And for the Minister, please review the MRT3 costs and defer it; keep a close watch on ECRL; and, revive HSR by way of  phases from KLIA to Melaka Sentral (via Seremban 2 and Vision Valley) as the first phase of the whole project!                

Reference:

Of malfunctioning escalators, lifts, lights and LRT stations: Who should Anthony Loke reprimand? Focus Malaysia, 9 Dec 2022                                                                        

Redesign the Food Security System?

The new Minister of Agriculture and Food Security has been tasked to ensure food availability and reduce cost of living on food items. His priority should be to devise strategies to counter the rising cost of living, including:

1. Persuading State governments to identify suitable land available for vegetable and fruit cultivation, poultry farms and aquaculture;

2. Establish comprehensive proposals to develop the food sector, taking into consideration local and national needs;

3. Reintroduce the Green Book Plan (2.0)  to make Malaysia self-sufficient in food production through subsidies;

4. Encourage a community-based approach towards planting vegetables and fruit in residential areas. Identify the areas, especially under high-tension grid lines, and request Tenaga Nasional to give approval for residential farming;

5. Encourage residents with landed property to grow vegetables and fruit in any small space inside and outside their respective dwellings

6. Encourage residents’ associations to initiate projects for residents to plant vegetables and fruit in vacant spaces;

7. Provide expert advice to people engaged in food cultivation and in developing poultry farms;

8. Offer attractive financial incentives to farmers through BNM and Agro Bank;

9. Develop vertical farming or urban farming (examine how Singapore does it); and

10. Learn from the Danish experience (in the food sector).

We have neglected the food sector for too long. It has taken a “pause” because of our quest for industrialisation and the development of the services sector. Now we must return to the food sector.

https://www.thesundaily.my

Denmark, with almost six million people, produces enough food for five times its population! The Danish food ecosystem incorporates R&D, integrated farming, manufacturing and the development of food cooperatives. We can learn valuable lessons from Denmark’s universities and research institutes involved in innovation in food production and technology.

Malaysia should reduce its food import bill of RM60bn and take immediate action to boost the local food sector.

We must aim to be a major exporter and global player in food products. Why? Because food production is a recession-proof sector. As the global population increases, the demand for food products will rise and the nation will earn much-needed foreign exchange. We could do this if we take a professional approach and place emphasis on R&D, logistics, marketing and distribution. Then we don’t have to depend on Thailand or Indonesia.

Reference:

10 ways Anwar can boost Malaysia’s food security, Benedict Lopez, ALIRAN, 4 Dec 

Saudi Arabia Includes Chinese Language

The Kingdom of Saudi Arabia has implemented the Chinese language in the curriculum at all stages of education in Saudi schools and universities.

As part of Saudi crown Prince Mohammed bin Salman’s new vision for the education sector. The Ministry of Education included Mandarin (Chinese) from this academic year 2021-2022.

Source: https://dragonsteaching.com

The agreement was finalised during the Saudi crown prince’s visit to Beijing in February 2019, between the two countries to enhance bilateral relationship and cooperation.

Several initiatives have been launched with different organisations in the education and training sectors to introduce the language to the public. After Arabic, English serves as the second language and Chinese serves as an optional third language in the Kingdom.

It is reported that companies prefer to hire people who speak more than one language, so the University of Jeddah has made it mandatory for preparatory year students.

In Malaysia, we are still blinkered with race and religion. Pragmatic leaders see beyond, and implement realistic policies and strategies. Saudi kingdom has gone beyond our tahfiz and national schools. We have a great advantage with vernacular schools and teachers but are we open to new thinking? Have a partnership with vernacular schools to introduce a third language. This is optional. Language or learning cannot be forced upon someone. If you do, it will be with a huge grudge and no desire to really learn.

Those who complete an adequate understanding of conversational Mandarin or Tamil are given a certificate, which is useful in private/public sector employment. Just look at those Malay students who went to Chinese schools. They have at least two language skills – Bahasa Malaysia and Mandarin. Hopefully they may have some level of English as well. And with maths, they are employable readily.

We need to be open and welcome new ways of reaching consensus. Hopefully, the Minister has a more positive view of developments in the world.

Reference:

Saudi Arabia include Chinese language in its educational system, Sakina Fatima, www.siasat.com, 7 October 2021

Who Stole My Pension?

 “Who Stole My Pension? How You Can Stop the Looting” – is the title of a book by Robert Kiyosaki and Edward Siedle. It provides an action plan for pension stakeholders, including taxpayers, workers and retirees seeking to enhance pension protection. 

State and local government pensions in the United States hold almost $4 trillion in assets and provide retirement benefits for roughly 21 million current and former state and local employees. These are teachers, fire-fighters, and police officers who serve their communities. 

Source: https://www.thestar.com.my

Workers in government pensions around the world can count on politicians and taxpayers running to legislatures and courts to cut benefits workers have been “promised” when these already struggling government pensions start to run out of money. 

To fix or protect pensions, it is critical to understand how they work and why pensions fail.

Fortunately, the fundamentals of pensions are easy to understand.

There are three components to the health of a pension:

1.   Money In: How much money goes into the pension “pot” (contributions);

2.   Money Invested: How the money in the pot is managed or invested over, say, a worker’s 30-years of employment; and

3.   Money Out: How much money is paid out of the pot (benefits).

If any one of the above three drivers of pension health is amiss, then the pension may falter or fail.

Likewise, simply put, there are three ways to fix a failing pension.

1.   Put more money in the pot;

2.   Invest the money in the pot better; or

3.   Pay less out of the pot.

If the money in the pot is prudently managed, the pension would not fail. That is, enough money had been put into the pot to pay out all the benefits promised—had the money been managed properly. Management of pension investments globally today can most aptly be described as “gross malpractice generally practiced.”

Other disturbing “pension realities” discussed in the book include:

• The people watching over pensions (boards of directors/trustees) almost universally lack investment experience;

• Pensions are becoming increasingly less transparent;

• Pensions are gambling on high-cost, high-risk investments more than ever;

• Pensions routinely lie about the investment fees they pay, their investment performance and funding levels.

• Pensions, particularly those for state and local government workers, are not adequately protected under law or by law enforcement;

• Many pensions are not fully audited by independent accounting firms.  

Now maybe the time for immediate action to stop the “looting” and protect pensions by ensuring promises made are kept. An internet crowd-funded forensic investigation will provide a second opinion for pensioners, so argue both authors. Doing nothing is not an option.

Reference:

Who stole my pension? Book provides action plan to stop pension looting, Edward Siedle,

20 January 2020, www.forbes.com

How Many People Can Planet Earth Support?

There are nearly 8 billion people living on Earth today, but our planet wasn't always so crowded. Around 300,000 years ago, our total population was small, between 100 and 10,000 people. There were so few people at the start, that it took approximately 35,000 years for the human population to double in size, according to Joel E. Cohen, head of the Laboratory of Populations at the Rockefeller University and Columbia University in New York City. 

After the invention of agriculture between 15,000 and 10,000 years ago, when there were between 1 million and 10 million individuals on Earth, it took 1,500 years for the human population to double. By the 16th century, the time needed for the population to double dropped to 300 years. And by the turn of the 19th century, it took a mere 130 years.

From 1930 to 1974, the Earth's population doubled again, in just 44 years. But will the human population continue growing at this rate? And is there an upper limit as to how many humans our planet can support?

Source: https://www.worlddata.info

In 1679, Antoni van Leeuwenhoek, a scientist and inventor of the microscope, predicted that Earth could support 13.4 billion people. He calculated that Holland occupied 1 part in 13,400 of Earth’s habitable land, and so multiplied Holland’s population of 1 million people by 13,400. Over 40 years of research Cohen has collected 65 estimates, ranging from 1 billion to over 1 trillion people. 

Engineers initially used the term "carrying capacity" to describe how much cargo a ship could hold. In the 19th century, wildlife managers then used the term in herd management, before scientists later applied the concept to ecology to describe the maximum population of a species that a given habitat could support. Within a habitat, a population will remain stable if birth and death rates are equal. But environmental changes, such as pollution or disease, can increase or decrease a habitat's carrying capacity. For instance, natural constraints include food scarcity and inhospitable environments. Human choices include interactions between economics, and culture, such as how we produce and consume goods, as well as birth rates, average lifespans and migrations.

Many low-income countries around the world have high birth rates and large family sizes, but also a high rate of infant mortality and shorter lifespans.  Global population growth peaked in the 1960s and has slowed since then. In 1950, the average birth rate was 5.05 children per woman, according to the UN Population Division. In 2020, it had fallen to 2.44 children per woman. 

The scientific consensus is that the population of the world will reach a peak some time later this century. The world population is projected to reach 10.4 billion people in the 2080s and remain there until 2100, according to the United Nations Population Division. 

The number of people Earth can support is not a fixed figure. The way humans produce and consume natural resources affects how our environment will be able to sustain future populations. 

One study published in the journal the Proceedings of the National Academy of Sciences found that if the population of the United States switched to a vegetarian diet, the land used to grow crops for humans rather than animal feed for meat production would feed an additional 350 million Americans. High-income countries, where females have increased access to education and family planning, tend to have lower birth rates and smaller family sizes than middle- and low-income countries.

So, what is the upper limit? Technology, climate, education, income and many other related factors all play a part in what could be an upper limit. From now to 2080, let us strive to improve quality of life on the planet rather than quantity!

Reference:

How many people can Earth support? Martin Mcguigan, www.livescience.com, July 11, 2022