Preview

The Future of the Trade Union Movement in Malaysia

Powerful Essays
Open Document
Open Document
7111 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The Future of the Trade Union Movement in Malaysia
THE FUTURE OF THE TRADE UNION MOVEMENT IN MALAYSIA Nagiah Ramasamy Universiti Putra Malaysia
Abstract

Globalisation cannot be resisted and it is here to stay. It is an economic reality and threatens the very existence of trade unionism in many countries. With globalisation come various challenges to trade unionism. This paper examines the changing environment, discusses the challenges confronting the labour movement and argues that to face the challenges ahead, leadership plays a critical role. There is a need to focus on organising the unorganised and reach out to the new generation of workers, the e-generation. Delivery of services to members is another key issue. Trade unions need to also reinvent themselves as e-organisations to survive and prosper.

1. Introduction The aim of this paper is to provide an overview of trade union development in the recent past, examine the current state of affairs and prospects for trade unionism in the future, in Malaysia. This paper examines the changing business environment and the challenges confronting the labour movement. The role of trade unionism in Malaysia is that of state-employer dominated model (Kuruvilla and Venkataratnam, 1996), which could explain the low trade union density, low trade union participation and related problems such as union formation, union recognition, union influence and union busting. This paper does not purport to answer all questions. It poses a number of questions and offers some suggestions on how the future of trade unions may be shaped. 2. Globalisation Verzola (1998) suggests that there are there periods or waves of globalization. The first wave being the period of colonialism, and followed by the post-colonial wave called the second wave of globalization. Industrial countries and global corporations would range across the globe for investment areas, industrial markets, trading partners, and sources of cheap labor and raw materials. The post-colonial powers were industrial countries in



References: Anantaraman, A. (1997) Malaysian Industrial Relations: Law & Practice, Universiti Putra Malaysia Press, Serdang, Malaysia. Azizan Bin Bahari (1989) Malaysian Trades Union Congress (MTUC) 1949-1981: A Study of a National Labour Centre, Ph.D. thesis, Department of Sociology, University of Warwick. Barber, B. (2003) ‘The future of trade unions’, City University Vice Chancellor 's Lecture, 12 June http://www.hrmguide.co.uk/relations/future-of-trade-unions.htm Bhopal, M. (2001) “Malaysian Unions in Political Crisis: Assessing the Impact of the Asian Contagion”, Asia Pacific Business Review, Vol. 8 No. 2, pp. 73-100. Cornfield, D. and McCammon, H.J. (Editors). (2003). Labor Revitalization: Global Perspectives and New Initiatives. Oxford: Elsevier Ltd. Craver, C.B. (2005). ‘The Labor movement needs a twenty-first century committee for industrial organization’, The George Washington University Law School Public Law and Legal Theory 12 Working Paper No. 281 Legal Studies Research Paper No. 281, Hofstra Labor & Employment Law Journal 69, http://ssrn.com/abstract=993126 Cruez, A. F.(2004), "Fong to explain his side of story," New Straits Times, 20 January. Department of Statistics (2006a) The Malaysian Economy in Brief, Malaysia, May; Department of Statistics (2006b) Malaysia Economic Statistics-Time Series 2005, Malaysia, February. Department of Trade Union Affairs (2003) Trade Unions by Sector, 2000 – Jan 2002 Ministry of Human Resources Malaysia, Available: http://www.mtuc.org.my/statistics.html, Accessed: 23 April 2004. DTI (1998) “Mandelson says modern unions have key economic roles”, Department of Trade and Industry, 17 September. Available: http://www/newsrelease-achive.net/coi/depts/GTI/coi5804e.ok, Accessed: 12 May 2004. Fernandez, L. (1993) “It’s hard to stay together”, Focus, Sunday Star, November 7, p. 18. Fernandez, L. (1997) “More expected from the MTUC”, Focus, The Star, January 25. Freeman, R. B. (2005) ‘What Do Unions Do?’: The 2004 M-Brane Stringtwister Edition, NBER Working Paper No. 11410, June, Massachusetts, http://www.nber.org/papers/w11410 ICFTU-APRO Education Policy (2004). Available: http://www.icftu-apro.org/news/APLabour129.html, Accessed: 8 May 2004. ILO (1980), Social and Labour Bulletin, No. 3, Geneva, September. ILO (2000), World Labour Report 2000: Income security and social protection in a changing world, International Labour Office, Geneva. ILO (2004) Organizing for social justice: Global Report under the Follow-up to the ILO Declaration on Fundamental Principles and Rights at Work 2004, International Labour Office, Geneva. Jomo, K.S. (1994) U-Turn? Malaysian Economic Development Policy after 1990, Townsville: James Cook University. Kenneth G. Dau-Schmidt (2007) “The Changing Face of Collective Representation: The Future of Collective Bargaining”, Indiana University School of Law-Bloomington Legal Studies Research Paper Studies, Research Paper Number 72, March, Social Science Research Network, Available: http://ssrn.com/abstract=967454 Kuruvilla, S. (2006), “Social dialogue for decent work”, in Ghai, D. (ed). Decent work: Objectives and Strategies, International Institute of Labour Studies, International Labour Organization, Geneva. Kuruvilla, S. and Venkataratnam, C.S. (1996) “Economic Development and Industrial Relations: The Case of South and Southeast Asia” Industrial Relations, Vol. 27 No. 1, pp. 9-23. Leong, Choon Heng (1991) “Late industrialization along with democratic politics in Malaysia”, Ph.D. thesis at Harvard University, May 6. Mahathir Mohamed (1982) The Malay Dilemma, Federal Publications, Kuala Lumpur. McShane, D. (2001) ‘Politics: Is there a future for trade unions?’, Critical Quarterly, vol. 43, no. 2, July, pp. 110-113. MHR (2008) Ministry of Human Resources, http://jheks.mohr.gov.my/BI/english/Statistics.html), Accessed: 16 January 2008 MTUC (1978) Report of the General Council 1976-1978, Malaysian Trades Union Congress, Petaling Jaya. MTUC (1992) Biennial General Council Report 1991-1992, Malaysian Trades Union Congress, Petaling Jaya. MTUC (1998) Report of the General Council 1997-1998, Malaysian Trades Union Congress, Subang Jaya. 13 MTUC (2007a) Memorandum to Datuk Seri Abdullah Ahmad Badawi, Prime Minister of Malaysia, on minimum wage of RM900 and Cost of Living Allowance of RM300, Malaysian Trades Union Congress, Subang Jaya, June 18. MTUC (2007b) Report of the General Council 2005-2007, Malaysian Trades Union Congress, Subang Jaya. Murugasu, S. (2000) “Has Labour Day lost its purpose?”, Section 2, The Star, May 1. Navamukundan, A. (2002), “Industrial Relations Issues and Promotion of Social Dialogue in Plantation Sector in Malaysia”, pp. 167-213, in Sivananthiran, A. and Venkata Ratnam, C.S. (eds), Labour and Social Issues in Plantations in South Asia: Role of Social Dialogue, South Asia Multidisciplinary Advisory Team-International Labour Organization New Delhi (ILOSAAT) and Indian Industrial Relations Association (IIRA) New Delhi. Navamukundan, A. and Subramaniam, Geetha (2003), “Decent Work in Agriculture in Malaysia”, pp.325-425, in Naidu, D.P.A. and Navamukundan, A. (eds), Decent Work in Agriculture in Asia, Report of the Asian Regional Workshop, International Labour Office, 821 August, Bangkok. NMP (2006) 9th Malaysia Plan 2006-2010, Government of Malaysia, Kuala Lumpur. Rasiah, R. and von Hofmann, N. (eds)(1998) Workers on the Brink: Unions, Exclusion and Crisis in Southeast Asia, Friedrich Ebert Stiftung, Singapore. Rowley, C. and Bhopal, M. (2002) ‘The state in employment: The case of Malaysian electronics’, International Journal of HRM, 13, 8: 1166-85. Rowley, C. and Bhopal, M. (2005) ‘Ethnicity as a management issue and resource: Examples from Malaysia’, Asia Pacific Business Review, 11, 4. Selvarani, P. and Abas, Marhalim (2004) “Airline’s union officials under probe”, The Malay Mail, January 31. Shamsuddin Bardan (2006) “Impact of Globalisation and Technical Innovation on Industrial Relations – Employer Perspective,” Paper presented at the Regional Policy Dialogue Workshop on Industrial Relations: Globalization, Regional Integration and Technical Innovation, 11-15 September 2006, Kuala Lumpur. Star, The (1996) “MTUC wants speedy recognition”, December 17. Sun, The (2003) “NUBE may face legal action, says Fong”, National, August 12. Unions21 (2007) ‘The Creation of the E-Union: The Use of ICT by Trade Unions’, Discussion paper, http://www.unions21.org.uk/discuss/discuss07.htm Verzola, R. (1998) ‘Globalization: The Third Wave’, Paper presented at the international conference "Colonialism To Globalization: Five Centuries After Vasco da Gama", sponsored by the Indian Social Institute (ISI), New Delhi, February 2-6. 14

You May Also Find These Documents Helpful

  • Better Essays

    In this paper we will learn what the role of management in an organization is and what the role of the union is in an organization and what similarities they have. It will also show two different types of strategies/actions that an organization can implement that will create and maintain a conducive and working relationship with the union. This paper will also show two strategies or actions that a union can implement to create and maintain a conducive and working relationship with management in an organization. These are all things that help to make the union strong and useful to employees and management.…

    • 1338 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    BUS 372 Entire Course

    • 647 Words
    • 3 Pages

    Changing Landscape of Unions. At the inception of unions, its members consisted of “blue-collar” workers concentrated in the manufacturing sector. Today, only about 35% of union...…

    • 647 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Answering the Questions The role of unions in today’s workplace is still has the responsibility to ensure the rights of workers, and provide an opportunity for their voices to be heard. Issues that are addressed by labor unions include work assignment, compensation, benefits and working conditions. Unions benefit their members (monopoly power), at the expense of higher cost, and requiring responses to employees grievances “voice power”. As a result of little job creation, debt crises, growing fiscal deficits and difficulties in states and local governments a “new normal” to the role of the labor unions have been created.…

    • 868 Words
    • 4 Pages
    Good Essays
  • Best Essays

    Griffin, G., Nyland, C., & O’Rourke, A. (2004) Trade Unions, the Australian Labor Party and the Trade-Labour Rights Debate. Australian Journal of Political Science 39(1) 89-107. doi 10.1080/1036114042000205669…

    • 3539 Words
    • 15 Pages
    Best Essays
  • Good Essays

    Unions all over the world are considered to be failing because of their low numbers. The influence and power unions had over management in companies when it came to policies has faded due…

    • 897 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Trade unions have been described as organisations of workers set up to improve the status, pay and conditions of employment of their members and associations of workers who by means of collective bargaining endeavor to improve their working conditions, economic and social position (Salamon, 1992). Trade unions face many implications, declining union density, rapid expansion into casual labor market and decline of the manufacturing industry as a job provider.Trade unions have played a major role in the development of Australia and will continue to do so, however its critical that they adopt a form of union renewal to apply to the changing environment of Australia, as these changes can influence and affect the conditions for renewal and also can affect the way unions organize and regroup.…

    • 2501 Words
    • 11 Pages
    Powerful Essays
  • Best Essays

    Labor unions in U.S are legally recognized as representatives for labors of industries in U.S. The trends private-sector labor unionism in U.S has steady fallen since 1920s and continues to 2010. Unions allege that employer-incited opposition has contributed to this decline in membership. Especially, the private-sector labor unions accounted for the majority of the declination from 18.5 percent to 9 percent among the entire industry. (Slaughter, 2007, Fig.1) Globalization seems contributed to the ongoing decline of U.S union coverage. The decline of private sector has been relentless in manufacturing while the integration of U.S companies into the world market has been rising. The questions about whether the private-sector labor union trend falling good or not good for U.S have attracted a lot considerable attention because there has wide relationship between private-sector labor unionization and U.S government and labor law; it impacts a lot on industrial and economics, as well as policymaking and business like on productivity, and employment rate.( Kaufman) Private sector labor union should be good in U.S because labor unions increase the productivity of industry, the effective adoption of high performance work practices, and given higher hourly wage.…

    • 2725 Words
    • 11 Pages
    Best Essays
  • Good Essays

    Today unions have a bigger number of members because and are able to stay afloat due to venturing into other industrial sectors. Due to such diversification, unions are not able to adequately focus on a particular category of workers. This means that policy and wage setting for different categories of workers are hampered (Mello, 2015). Policies that employers should abide by and wages that should be paid to workers are not thought about sufficiently since there are many different sectors of the industry that are involved. As a result, workers end up feeling like their needs are not being adequately met by the union. The loss of attention as the union tries to cater for the needs of the different types of workers is one of the reasons why the unions have become weaker. Diversity has also made unions to lack the influence they once had on organizations. Diversification has made unions look like opportunists as opposed to legitimately wanting to fight for the rights of employees (Mello, 2015). Unions have as a result lost their much of their…

    • 604 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Labor unions, popularly known as trade unions refer to a strategic setup formed by a group of workers or a company to protect the workers. Issues such as wages, discrimination, working conditions, and hours required to work are some of the aspects which necessitate unions to come in and assist if a problem arises (Daud and Tumin 126). The unions are beneficial because they protect the interests of the employees. In this case, they ensure workers are given fair compensation for the work done. This is because workers in a union can negotiate for higher wages or safe working environment through the union (ETI member briefing 2). Unions are helpful to a firm because they ensure satisfaction of the employees. When workers’ demands are addressed,…

    • 299 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Unions

    • 1052 Words
    • 5 Pages

    I compiled my research during the week of March 20, 2008. The resources chosen for the bibliography are all articles that cover the trade unions and their impact on the economy. These sources provided answers to the questions used during my research. For example; how the economy is affected by the unions? By using a wide variety of opposing view points I can also illustrate the how the unions have supported the economy in the past, but are not necessary for today.…

    • 1052 Words
    • 5 Pages
    Satisfactory Essays
  • Good Essays

    Trade Unions In Canada

    • 986 Words
    • 4 Pages

    Unions have experienced a limited growth in recent decades due to a shift from “old economy” industries which often involved manufacturing and larger companies, to small and medium sized companies outside of manufacturing. Considering potential union members in the recent past have spread into a large set of companies, it has made collective bargaining more challenging as union leaders must work with a greater set of managers and often have a difficult time organizing employees. One of the most apparent reasons as to why unions are less effective now is because of the evolution of the modern worker. Traditionally, union leaders have represented workers by negotiating with managers, but considering developed economies are shifting away from a reliance on manufacturing, and technology, automation, and computers have come to replace many roles the average worker once played, the significance between managers and workers has become less…

    • 986 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Bibliography: "Are labour unions obsolete in the new global economy? | Inroads | Find Articles at BNET." Find Articles at BNET | News Articles, Magazine Back Issues & Reference Articles on All Topics. Web. 31 Oct. 2009. .…

    • 1306 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Labor Unions

    • 1017 Words
    • 5 Pages

    During previous years, labor unions were used by industry workers as a way to make their voices heard and to push for change regarding unfair treatment. To some, these unions were seen as a form of threat but to others it was a way to bring the workforce together and make it beneficial to not one or a few, but to all. Labor unions have become irrelevant in the United States today. They were an important and fundamental part of the history of United States commerce and the country’s growth into an economic powerhouse (Jacob Silverman. How Labor Unions Work). But, as time has progressed and the economy and society have greatly advanced, there is a less need for labor unions. In addition to their irrelevancy, unions are unbeneficial to the United States commerce. To begin with, unions were formed initially for the common good and as a form of protection, but now they abuse their power to the detriment of its members. More importantly, they create a competition between the workers’ standard of living and the competitive strength of the employer. Furthermore, they decrease the amount of jobs available in the economy.…

    • 1017 Words
    • 5 Pages
    Good Essays
  • Best Essays

    Prah, Pamela M. “Labor Unions’ Future” CQ Researcher. 2 Sept 2005: 709-32. Web. 22 Oct. 2012…

    • 2821 Words
    • 12 Pages
    Best Essays
  • Powerful Essays

    Corporations are important members of the society as they are responsible for providing substantial input in terms of goods and services as well as adding to the growth of the country as a whole. The employees of a company are the only assets which do not have a monetary figure assigned to them yet the benefit accruing from the continued use of the employees is substantial. In a wide range of industries, the employees are members of trade unions which regulate the way in which organizations hire, fire and deal with employees including workplace conditions and wage rates etc. It is imperative that the organizations and the unions are aware of their roles and responsibilities because a lag by either one would lead to inefficiencies with respect to corporate functioning which would have a negative impact on the economy. The paper also seeks to explore various strategies which could be implemented by both the management and the unions which would allow them to regulate themselves properly as well as encourage the effective functioning of a relationship between the management and the union.…

    • 2236 Words
    • 9 Pages
    Powerful Essays

Related Topics