Researcher in Gender Studies, Shanthi Thambiah, said today the impact of the pandemic differs from that of typical economic recessions in that it affects sectors with high female employment the most.
During an online discussion by Persatuan Sahabat Wanita Selangor (PSWS) and EMPOWER Malaysia, Shanthi said the rise in unemployment was directly related to a review of business strategies that companies employed during the pandemic.
For instance, she said, companies may undergo cost-cutting strategies such as shorter working hours and reduced staff capacity.
However, she noted that they may also shift many of their activities to the informal sector as a cost-cutting measure.
Shanthi said doing so would lead to a spike in the number of women entering the informal sector, as they have no other choice. This would put them at greater risk of economic disadvantages.
While she admitted that it was difficult to obtain empirical data on this phenomenon, Shanthi said the undeclared, informal economy needed to be seen as “part and parcel of new-age contemporary capitalism” as many businesses made the shift as a result of the pandemic.
Shanthi also noted that there were questions surrounding the numbers of documented migrant workers in factories who, as a result of current circumstances, had become informal, undocumented workers.
She said the shift could be in order to comply with SOPs as factories are forced to reduce the number of workers.
“The remaining workers may not necessarily be sent back to their home country but may be kept as ‘back-up’ labour or may go under informal employment doing part of the work elsewhere.”
She contended that as more blue-collar women accept lower wages, the country’s efforts to reduce poverty will suffer a setback.
Lead researcher of EMPOWER Malaysia, Farah Draim said many women factory workers they interviewed did not know what “economic harm” and “economic violence” meant, let alone be aware that they were experiencing it themselves.
“Economic harm and economic violence is when a worker is offered lower wages and denied leave or social protection.
“Women working in the manufacturing and service industries may not have the option to return to work after a career break. The cost of any missed opportunities during maternity leave such as training or promotions, are also often overlooked,” she said.
During the discussion, both EMPOWER and PSWS called on the government to remain committed to all International Labour Organization obligations that had been ratified, such as C100 Equal Remuneration (1951) and C098 Right to Organise and Collective Bargaining (1949).
The groups also urged the government to immediately ratify other conventions such as C189 Protection of Domestic Workers and C190 Violence and Harassment (in the World of Work).