International Journal Of Academic Research In
International Journal of Academic Research in Business and Social Sciences
October 2012, Vol. 2, No. 10
ISSN: 2222-6990
The Impact of Employment of Foreign Workers: Local
Employability and Trade Union Roles in Malaysia
Ramesh Kumar Moona Haji Mohamed
(PhD Candidate), School of Distance Education, 11800,Universiti Sains Malaysia
Email: rameshk@utar.edu.my
Charles Ramendran SPR
Faculty of Business & Finance, UTAR
Email: charlesr@utar.edu.my
Peter Yacob
Faculty of Business & Finance, UTAR
Email: petery@utar.edu.my
Abstract
The issue of foreign workers has received increase media and national attention. However, to date there has been limited research on the nature and consequences of employment of foreign workers in Malaysia. Introduction of significant changes in recruitment phenomenon has ended in painful and traumatic atmosphere which barely acceptable by local workforce in
Malaysia. This conceptual paper can be derived from the field of industrial relations which play a significant role in employment of foreign workers. The article reports on the preliminary findings on employment status of local workforce and trade union rights affected by employment of foreign workers. In addition, the research makes a number of recommendations, including the need for further development on reducing the employment of foreign workers and more refined targeting of vulnerable foreign workers linked with labor legislations. Keywords: Malaysia, foreign workers, trade union rights, local workers and employability
Introduction
For over the past decade, Malaysia has over dependence on the foreign workers the number of foreign workers has increase gradually in Malaysia. According to the Economic Report
2010/2011 by the Finance Ministry, there were 1.8 million registered foreign workers in
Malaysia, 38.2% were employed in the manufacturing sector, 16% in the construction and
14.2% in the plantation sectors. Indonesia accounted for the highest number of registered foreign workers in
October 2012, Vol. 2, No. 10
ISSN: 2222-6990
The Impact of Employment of Foreign Workers: Local
Employability and Trade Union Roles in Malaysia
Ramesh Kumar Moona Haji Mohamed
(PhD Candidate), School of Distance Education, 11800,Universiti Sains Malaysia
Email: rameshk@utar.edu.my
Charles Ramendran SPR
Faculty of Business & Finance, UTAR
Email: charlesr@utar.edu.my
Peter Yacob
Faculty of Business & Finance, UTAR
Email: petery@utar.edu.my
Abstract
The issue of foreign workers has received increase media and national attention. However, to date there has been limited research on the nature and consequences of employment of foreign workers in Malaysia. Introduction of significant changes in recruitment phenomenon has ended in painful and traumatic atmosphere which barely acceptable by local workforce in
Malaysia. This conceptual paper can be derived from the field of industrial relations which play a significant role in employment of foreign workers. The article reports on the preliminary findings on employment status of local workforce and trade union rights affected by employment of foreign workers. In addition, the research makes a number of recommendations, including the need for further development on reducing the employment of foreign workers and more refined targeting of vulnerable foreign workers linked with labor legislations. Keywords: Malaysia, foreign workers, trade union rights, local workers and employability
Introduction
For over the past decade, Malaysia has over dependence on the foreign workers the number of foreign workers has increase gradually in Malaysia. According to the Economic Report
2010/2011 by the Finance Ministry, there were 1.8 million registered foreign workers in
Malaysia, 38.2% were employed in the manufacturing sector, 16% in the construction and
14.2% in the plantation sectors. Indonesia accounted for the highest number of registered foreign workers in
References: Baker & McKenzie. (2009). Worldwide guide to trade unions and works councils. Retrieved Jan 20, Brown, P. and Hesketh, A. (2004) The Mismanagement of Talent: Employability and Jobs in the Knowledge Economy Estrella-Gust, Dulce. 2000. Occupational Safety and Health Challenges: Proceedings of the National Conference on Philippine Industrial Relations: Philippine Industrial Relations for the 21st Century: Emerging Issues, Challenges and Strategies, November 18-19, 1999. Quezon City: U.P Hind, D. and Moss, S. (2011) Employability Skills. 2nd Edition. Sunderland, Business Education Publishers. Johari, H. B. (2006). Union commitment : A case of two Malaysian union. (Doctoral dissertation, Universiti Sains Malaysia, 2006). Retrieved Jan 20, 2012, from http:// eprints.usm.my/8359/1/A_CASE_OF_TWO_MALAYSIAN_UNIONS.pdf Tokyo, Japan, May 29- June 2, 2000. Labour and human resources statistic 2010. (n.d.).Retrieved Jan 25, 2012, from http://www.mohr.gov.my/indexx.php?option=com_content&view=article&id=2423% Lansbury, Russell D (2009). Work and Industrial Relations: Towards a New Agenda. Relations Industrielles Pencavel, J. (2005), Unionism Viewed Internationally. Journal of Labor Research 26: 65-97. Ramasamy, N. (2008). The future of the trade union movement in malaysia. Retrieved Jan 26, 2012, from http://www.mtuc.org.my/Nagiah%20The%20Way Schneider, K. and Otto, H-U. (2009) From Employability Towards Capability. Luxembourg. Sharma, Basu. Union Growth in Malaysia and Singapore. Singapore: Institute of Southeast Asian Studies, 1989.