Fed up with 'obscene' cost of hiring maids - New Straits Times

DISAPPOINTMENT: Human Resources Minister Datuk Seri Dr S. Subramaniam's recent statement that Malaysians will have to pay more to hire Indonesian maids comes as a rude shock to employers who had been assured that the long-standing issue had been resolved with the signing of the Bandung Memorandum in May last year. A riled up Engku Ahmad Fauzi Engku Muhsein, the president of the Malaysian Maid Employers' Association (Mama), tells Chandra Devi Renganayar that there is apathy on the part of the ministry in addressing the issue

Malaysian Maid Employers' Association president Engku Ahmad Fauzi Engku Muhsein says employers are being victimised as maid agencies are manipulating the situation at their expense. Pic by Izul Wafi Izhar

Question: What was stipulated in the Memorandum of Understanding (MoU) for the employment of Indonesian domestic workers signed by Malaysia and Indonesia in Bandung last year?

Answer: My understanding is that the Indonesian Government had agreed to lift the moratorium (imposed in June 2009) and send their domestic workers, subject to certain new terms.

The MoU in particular underlined that the fee to be paid to maid agencies would be RM4,511. Of the amount, RM2,711 will be for agency fees and the balance of RM1,800 is the advance payment which is recoverable by the employer in instalments from the maid's salary over a period of six months.

Other terms state that the maids will be trained for 200 hours in Indonesia before being sent here and their minimum salary will be RM700 a month. Employers are also required to give them a day off in a week or pay them RM28 for each off day they work.

Question: Just when employers thought that things had been settled with the signing of the MoU, they are now being told that they will have to pay more. What do you make of this?

Answer: What is the point of drawing up and signing an MoU if you don't observe, honour or implement it? It becomes meaningless. If the ministry can make an about-turn and arbitrarily increase the fee structure, in spite of the MoU, what guarantee do employers have that it will not be done again and again?

Why did the ministry take so long -- more than a year after the MoU was signed -- to talk about the need to review the price structure?

If the ministry had wanted to really help employers, this issue should have been resolved before the MoU was signed.

Employers are genuinely concerned because there is still no stability or assurance that the fee structure will remain for a while. What if three months down the road the agencies complain they are not making enough money? Will there be a hike again? When will it end?

Question: Weren't the maid agencies and Mama consulted before the terms of the MoU were finalised?

Answer: This was a government-to-government agreement. We were not involved in the discussions but I understand that some maid agencies were consulted on the fee structure and that they agreed to the RM4,511.

Question: So what is causing the current problem?

Answer: After the MoU was signed, it was reported that 63 maids arrived. They were trained as specified under the agreement and were certified by the Indonesian authorities.

The well-being of the maids was ensured, especially the payment of salary and scope of duties. There were no issues and everything was in order.

The problem was when the Malaysian Association of Foreign Maid Agencies (Papa) brought in 29 maids and did not conform to the terms of the MoU. There were quality issues as the maids were not trained.

Question: If some agencies could successfully bring in trained maids at a fee of RM4,511, why can't the others do the same. Why is there a need to increase the fee now?

Answer: This is what took us by surprise. The minister's announcement that the fee is too low for agencies to make a profit and that he is waiting for them to propose a new fee structure is puzzling.

If 63 maids could be recruited in accordance with the terms of the MoU, it proves that it is workable and agencies can continue to profit with that fee structure.

But in spite of the agreement, very few maids have arrived and I can tell you it is not because of the non-availability of maids.

It is the price factor. Now the price factor has sabotaged the whole process. If agencies find it difficult to profit, they will not bring in the maids.

Our question is, why isn't the ministry ensuring that the terms of the MoU are observed?

It appears as if it is only protecting the interest of the agencies without considering the hardship of the consumers (employers). The agencies are manipulating the situation at the expense of the consumers.

We are very disappointed with the way the ministry is handling this issue. It is not serious about it.

Question: Is RM4,511 too low a fee for the agencies to profit from?

Answer: The price structure agreed upon in the MoU surely reflects a figure that both parties found practical.

Why did they agree to this fee if it was not practical or realistic? How did the ministry derive the cost and why was it agreed upon if it was considered too low for agencies to make a profit. Didn't someone do their homework?

Question: Is the association against the price hike?

Answer: The price must be affordable to consumers and realistic for agencies to make some money.

Question: There have been reports that some agencies are charging employers between RM12,000 and RM14,000 for the recruitment of an Indonesian maid. Isn't this exorbitant and why is this allowed to happen?

Answer: Employers are being victimised by this "obscene" cost of hiring domestic workers and I blame it on the weaknesses in enforcing the MoU.

Unscrupulous agencies are taking advantage of the situation at the expense of the employers.

Question: What are your concerns if the fee is increased?

Answer: Any increase in the agency fees will be a burden to employers. We are afraid that if the new price structure is too costly, many will not be able to employ a maid.

We are disappointed because employers were never involved in the discussions to determine the price structure. To the ministry, we (Mama) do not exist although we represent the interest of the employers.

We would also like to know if the new fee structure will guarantee that we get qualified, well-trained domestic workers and they will arrive in big numbers to meet the demand.

Also, what guarantee is there that the agencies will be more responsible, trustworthy and efficient in supplying the maids? And the biggest concern for employers is when will the maids arrive?