Tuesday, August 12, 2008

Unions cynical over planned welfare fund

Tuesday, 12 August 2008
Touch Yuthea
The Mekong Times


The Ministry of Labor yesterday unveiled ambitious plans for a welfare fund that will include payouts to injured workers and life insurance. Labor unions welcomed the idea but warned the enterprise may soon become riddled with corruption.

The National Social Security Fund (NSSF) will be funded by monthly insurance premiums paid by all the Kingdom’s private firms. Funds are to be pooled for payouts to injured workers.

“The establishment of the NSSF is a key development in the Royal Government’s work to protect workers in the private sector — a duty which has until now fallen on the private sector,” said NSSF Director Uk Samvichea.

We will implement the program after we have issued all the correct insurance certificates to employees, which will be before October.”

Uk Samvichea said it has been the responsibility of employers to cover medical bills for staff injured at work since 1992. But the ministry told firms Aug 8 how they may begin arranging their NSSF contributions.

“Costs for the NSSF depend on the company’s salary levels, but they will not be deducted from employee’s wages,” Uk Samvichea explained.

The monthly contribution for companies is apparently to be equivalent to 0.8 percent of salaries.

The ministry said factory managers must now send injured workers to hospital, with medical bills to be footed by the NSSF.

Incapacity benefit and life insurance are also to be included. “The NSSF will offer long-term payments to the families of injured workers. For example, if a worker loses a leg at work, we must support him indefinitely,” the NSSF director added.

“If someone sustains a lethal injury, his family members, such as his wife or children must all be supported by the NSSF. The wife is insured until she gets married again, while the children receive support until the age of 21.”

Any other dependents listed in a deceased employee’s “labor book”, such as elderly relatives, will also receive support from the fund.

The initiative triggered a mixed response from union leaders in the garment industry, which employs some 330,000 workers in nearly 400 factories.

Ath Thon, president of the Coalition of Cambodian Apparels’ Worker Democratic Union called for transparency within the NSSF.

“We welcome the establishment of the NSSF as our workers have never received any appropriate compensation,” he said.

“Furthermore, we propose employers and unions can exercise the right to examine the NSSF director’s performance. We want the Ministry of Labor to be transparent work because a public administrative institution has newly been founded as part of an effort for workers – most of whom are weak and suffer much injustice from their employers.”

Chea Mony, president of the Free Trade Union of Workers of the Kingdom of Cambodia (FTU), was dubious of NSSF motives.

I don’t welcome the formation of the NSSF because I believe the whole initiative will veer into corruption,” he said. “I feel pessimistic about this fund, but I do appreciate the goal of the ministry.”

Chea Mony opined the NSSF would be “useless,” as the Labor Law already covers occupational accidents; “so I think the formation only benefits [the NSCC’s] particular party or group, not workers.”

2 comments:

Anonymous said...

នែ ទើបតែបានដាក់ អក្សរសាស្រ្តខ្មែរ រួចអស់ហើយ អាចចូលទៅស្ដាប់បានណាបង
http://socheatk.blogspot.com/2008/08/khmer-literature-vol-01.html

Anonymous said...

Trust me I'm not a crook.

Regards,
Hun Sen.