By Wani Muthaih

KLANG, MALAYSIA - Factory worker Muhd Heraman Candy Abdullah still recalls the trauma he underwent when he lost his job at a flour mill in 2006.

"The retrenchment benefit was small and I used it all up within months to pay debts and the housing loan," said the father of four children, aged between 11 and 20.

Muhd Heraman, 45, had worked at the mill for 26 years and his retrenchment came as a rude shock.

He said that although he found another job soon after being retrenched, he had to take a 50% pay cut.

"Being the sole breadwinner in the family, I had no choice but to accept the job.

"But the low salary was another reason why my retrenchment benefit was used up quickly," said Muhd Heraman, who now works for a multinational firm dealing in biodiesel.

He said this in response to the suggestion by the high-level government committee for employers to cut working hours, have temporary lay-offs and reduce wages in preparation for the economic backlash next year.

He said the suggestion was not a viable solution unless a safety net existed.

Muhd Heraman said he had to borrow from relatives and even loan sharks.

"I had difficulty feeding my family. My colleagues who were retrenched along with me faced the same situation."

As for his current job, he said the world economic situation may affect its operations as the global biodiesel market was sluggish.

"I have prepared myself for the worst based on my past experience; I have managed to save some money to help me get through bad times," he said.

N. Thuraisingam, 23, who works for a multinational company producing sporting apparel, said he would be in big trouble if his salary dropped even slightly.

However, he felt that the committee's suggestion would enable him to keep his job.

"I like my current company and would rather accept a temporary lay-off and pay cut instead of being retrenched."

Thuraisingam added that if he were to be laid-off temporarily he would have to take on another job to meet his financial obligations.

"My father passed away two years ago and my mother needs dialysis. My two brothers and I pay the housing loan and all other household expenses, so I would have to find an alternative source of income."

Food and beverage supervisor Low Yoke San, 26, said the committee's suggestion would keep older employees from becoming redundant.

"Older people will find it difficult to get new jobs if they are retrenched and even if they manage to find employment, their wages would be much lower."