...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...
Words: 4950 - Pages: 20
... | 3 | 1.1 What is trade union | 3 | 1.2 Type of trade union | 4 | 1.3 Trade union’s function | 4 | 2.0 Structure of Trade Union in Malaysia | 5 | 3.0 How do Employers Perceive of Trade Union | 6 | 3.1 Conflict | 6 | 3.2 Controlled by purposely | 6 | 4.0 Do trade union membership decline | 6- 8 | 5.0 Why trade union decline | 9- 12 | 6.0 Why employee still join trade union | 13 | 7.1 Received Benefits | 13 | 7.2 Protection of Rights | 13 | 6.3 Collective Bargaining | 13 | 7.0 Conclusion | 13 | 8.0 References | 14 | 9.0 Appendix | | Introduction Trade union can be viewed as helpful or unhelpful by employer. For example, according to Maimunah (2007, p133), Japanese viewed union as an assisting tool, because many objectives are achieved by Japanese unions, therefore they are still using union. On the other hand, some countries believe that union is limiting the power of management and tends to discourage employee join union. Such as UK and USA, employers are strongly viewed union as an enemy. Therefore, this assignment will discuss about trade union and why is it declining and why some countries still using union. Besides that, we also will...
Words: 2867 - Pages: 12
...ACKNOWLEDGEMENT It is a great opportunity for me to write about the subject of Human Resources Management. Title: About the Ministry of Human Resources (Malaysia). At the time of preparing this paper, I have gone through different types of websites which helps me to get acquainted with new topics. I am actually focusing on those topics which are important for us to understand about this subject easily. I acknowledge with gratitude to Madam Norazima Md. Malia, my respective lecturer, who has been sincere and helpful in making me understand more about Human Resources Department. I would also like to thank my classmates and associates who have helped me understand the questions properly. I have tried my very best to gather and complete this paper on time. They may be shortcoming, factual error, wrong opinions which are all mine and I alone am responsible for those but I will try to give a better volume in the future TABLE OF CONTENTS Contents ACKNOWLEDGEMENT 1 TABLE OF CONTENTS 2 1.0 INTRODUCTION 2 ABOUT MoHR 2 2.0 DEPARTMENTS AND DIVISIONS OF MoHR 2 2.1 Manpower Department 2 2.2 Labour Department (Peninsular Malaysia) 2 2.3 Industrial Court of Malaysia 2 2.4 Industrial Relations Department 2 2.5 TRADE UNION AFFAIRS DEPARTMENT 2 2.6 OCCUPATIONAL SAFETY & HEALTH DEPARTMENT 2 2.7 NATIONAL VOCATIONAL TRAINING COUNCIL 2 3.0 STATUTORY BODIES 2 3.1 SOCIAL SECURITY ORGANIZATION 2 3.2 HUMAN RESOURCES DEVELOPMENT SDN BHD 2 4.0 ADVISORY...
Words: 5217 - Pages: 21
...Using the Dunlop Theory as your based for explanation to discuss Malaysian Industrial Relation development to the current time. What is Industrial Relations? Industrial relations is a multidisciplinary field that studies the employment relationship. Industrial relations is increasingly being called employment relations or employee relations because of the importance of non-industrial employment relationships, this move is sometimes seen as further broadening of the human resource management as synonymous with employee relations. Industrial relations is used to devote the collective relationships between management and the workers. Traditionally, the term industrial relations is used to cover aspects of industrial life as trade unionism, collective bargaining, discipline and grievance handling, industrial disputes and interpretation of labor laws and rules and code of conduct. The History of Malaysian Industrial Relations Malaysian became incorporated into expanding European capitalism from the early sixteenth century. This inclusion evolved through mercantilism (1500-1850s) driven by Portuguese and the Dutch, colonialism driven by the British (a850s-1930s and 1945-1957) and the Japanese (1941-1945), post-colonial industrialisation (1960s) and ethnonationalist economic development (1971-present). A productive market economy was built during British colonialism with the establishment of capitalist plantation and mining export industries, based on immigrant Indian and...
Words: 1538 - Pages: 7
...New Zealand Journal of Asian Studies 11, 1 (June 2009): 304-317. EMPLOYMENT RELATIONS IN MALAYSIA: PAST, PRESENT AND FUTURE MAIMUNAH AMINUDDIN1 Independent Scholar Introduction This paper offers an overview of the employment relations framework in Malaysia, focusing on the current status of three key areas central to the employment relations system, namely, the strength of the trade union movement, security of employment for employees, and the state’s position on measures to deal with sexual harassment. It will only examine these subsystems of the employment relations system as they apply in the private sector where the majority of employees work, this sector is considered the main driver of Malaysia’s economy. The Trade Union Movement The relationship between employers and employees in Malaysia is regulated by a number of laws which were introduced prior to independence (1957) and in the first decade immediately thereafter. The colonial economy prior to World War II (1939-45) was based on tin mining and rubber plantations. The need for labour in these two industries changed the human landscape of Malaysia (Malaya as it then was) for ever. The colonial government either allowed or actively encouraged the importation of labour from China and India, thus creating the multi-racial society which is Malaysia today. The wages of this growing group of employees were low and working conditions were mostly abysmal. Jomo and Todd explained the lack of governmental ...
Words: 6389 - Pages: 26
...1.0 Introduction Although the procedure for obtaining union recognition is lengthy, the law recognises the rights of most workers to form and join the trade unions. The 1959 Trade Unions Act and the 1967 Industrial Relations Act (IRA), as well as other amendments place extensive restrictions on freedom on association. The ILO committee of freedom of association (CFA) has found that many provisions of the Trade Unions Act violates the principles of freedom of association, and no such actions has been taken in order to amend these laws. Some other laws, not directly related to labour issues also place restrictions on freedom on association. For example, The Malaysian Penal code requires police permission for public gatherings of more than five people. 1.1 Restrictions on Union Formation, and de-registration of unions : The Director General of Trade unions (DGTU) has the power to supervise and inspect trade unions, and can refuse to register a trade union, without giving any valid reason for the refusal. The director general also has the power to withdraw any unions which do not register, or whose registration has been denied or withdrawn or are considered as illegal organizations. The Minister of Human Resources may also suspend a trade union for up to six months in the interests of national security or public order. 1.2 Banned from organising: The industrial unions are prohibited from organising employees in managerial and executive positions, or those involved...
Words: 1588 - Pages: 7
...the employer and motivation for the employees Employment relationships are built on trust and the rights of both employee and employer. Each day, employees and employers work together to complete tasks and projects for businesses. Both employees and employers have very specific rights and responsibilities that are standard based on current labour laws, employment acts and trade union acts. Balancing these rights is extremely important to a fair and successful employment relationship. Employees who understand their rights and duties may reduce their risk of being mistreated by their bosses. Similarly, employers who are familiar with their obligations and allowances may manage more effectively. It must always be remembered that with every right there is an obligation. In other words the rights of the employee are the obligations of the employer and the rights of the employer are the obligations of the employee. In Malaysia, there are several laws that govern the relationship between employees and their employers. Among them are the • Employment Act 1955 • Industrial Relations Act 1967 • Trade Union Act 1959 • Employees Provident Fund Act 1991 • Employee Social Security Act 1969 • Code of Conduct for Industrial Harmony 1975 • The Workmen's Compensation Act 1952 • Factories and Machinery Act 1967 and • Occupational Safety and Health Act 1994. The Employment Act 1955 (Act 265) covers employees whose wages does not exceed RM1500 per month...
Words: 1965 - Pages: 8
...a place which was later called Melaka (Malacca). • General features :- a. centre for trade b. centre of Islam c. big empire d. political relation with China Similarities with present Malaysia 1. Islam as the official religion 2. Government system :- a. Sultan – head of state, Islam and army b. Ministers / Officers : o Bendahara (Prime Minister) o Temenggung (Chief of Security / Police) o Penghulu Bendahari (Finance) o Laksamana (Navy) o Syahbandar (Trade and Port) 1. Law :- a. Undang-undang Melaka / Hukum Kanun Melaka (based on Islamic law) b. Undang-undang Laut Melaka (Marine Law) Factors that helped Malacca to prosper 1. Geographic :- a. Location – between India and China trade route b. sheltered from the South West and North East monsoon c. deep natural port d. people living by the seaside (orang laut) – help to defend from attacks 1. Economic :- a. concentration on trade – centre for trade in the Malay Archipelago b. centre of entreport trade – international level 1. Political & Administration :- a. relation with China (superpower) o protection from Siam o foster trade a. efficient administration o maintain peace o port & trade officer (Syahbandar) o strong military a. good tax collection system b. just law – Hukum Kanun Melaka & Undang-undang Laut Melaka c. Malay language – as ‘lingua franca’ (language for trade), single language makes trading easy d. good monetary system e. diplomatic ties with...
Words: 5786 - Pages: 24
...Running Head: ESTABLISING GOOD UNION RELATIONSHIP AT WORKPLACE Abstract…………………………………………………………………………. 3 Suggestion on Establishing Good Union Management Relationship in the Workplace Human Resource Management December 24, 2011 1 SUGGESTION ON ESTABLISHING GOOD UNION RELATIONSHIP 2 Introduction……………………………………………………………………… 4 Changing Union- Management Relations…………………………………… 6 Open Warfare………………………………………………………… 6 Adversarial………………………………………………………………………. 6 Accommodating………………………………………………………………… 7 Partnership……………………………………………………………………… 7 Overcoming Past History to Negotiate New Relationship…………………. High Integrity Relationship……………………………………………………. Role of Managers………………………………………………………………. 9 9 10 Dynamic Line Managers………………………………………………………. 11 Workplace Harmonies and Cooperative…………………………………………….. 12 Worker Participation and Employee Involvement…………………………. 12 Communication………………………………………………………………… 13 Training…………………………………………………………………………. 14 Employee’s Satisfaction……………………………………………………….. 14 Conclusion………………………………………………………………………………. 17 Reference……………………………………………………………………………….. 19 Appendix………………………………………………………………………………... 22 Table of Content Abstract SUGGESTION ON ESTABLISHING GOOD UNION RELATIONSHIP 3 Relationship between union and management has changed together with environment and economical condition from time to time. Union relations with management should ...
Words: 5404 - Pages: 22
...Employment Of Foreign Workers In Malaysia INDEX 1. Executive Summary 2. Introduction 3. Analysis 4. Challenges 5. Implications 6. Recommendations 7. Conclusion 8. References 1.0 Executive Summary The report investigates on the issue of employment of foreign workers in Malaysia. During the British colonial period in the early nineteenth century, Malaysia was a net receiver of foreign nationals who came to work in the plantations, mines, and construction sectors. Nowadays, rapid industrialization, urbanization, strong economic growth led to labour shortages in rural areas and plantation sectors due to rejection of locals to work in these industries. There are some changes and policy reforms since early 2000 regarding the employment of foreign workers, which includes: Amendments to the Employment Act and Equality in Treatment and Enforcement of Laws. There is also a proposel regarding Foreign Workers Act. The report analyses the advantages and disadvantages of employing foreign workers. Among the advantages are availability of low cost labour, willingness to work for long hours and availability of abundant foreign workforce. Nonetheless, there are also drawbacks to employing foreign workers including rapid expansion of population and increasing in level of unemployment of locals. The main issue is exploitation of foreign worker in Malaysia. Foreign workers are exploited by their employers in different ways, for instance, wage manipulation...
Words: 8266 - Pages: 34
...MalysiaINTRODUCTION Trade Union is an organization whose membership consists of workers and union leaders, united to protect and promote their common interests. The principal purposes of a labor union are to negotiate wages and working condition terms, regulate relations between workers (its members) and the employer, take collective action to enforce the terms of collective bargaining, raise new demands on behalf of its members, and help settle their grievances. A trade union may also be a company union that represents interests of only one company and may not have any connection with other unions. It is general union that represents workers from several companies in the same industry also known as industrial union. To explain more trade unions is a craft union that represents skilled workers in a particular field such as carpentry or welding. There are a number of labor laws in Malaysia. There are particular attention to major ones like the Employment Act 1955, Industrial Relations Act 1967 and Trade Unions Act 1959. The Employment Act provides minimum terms and conditions (mostly of monetary value) to certain category of workers, the Industrial Relations Act provides ways for settlement of trade disputes between employers and employees, whereas the Trade Unions Act regulates trade union registration and the uses of trade union funds.. BODY There have been some major issues occurring in the trade union currently, one been the act of no confidence to the prime minister...
Words: 1586 - Pages: 7
...survival in the 1950s to 1970s with heavy industrialization. In order to attract foreign investment, the state had to mold an industrial relations polices that were able to effectively draw investors. The symbiotic relationship between the political party, the People’s Action Party (PAP) and the labor movement crafted the industrial relations in Singapore. Anantaraman (1990) stated that in the initial stages to gain political stability and at the same time eliminate the communist, the PAP efforts in eliminating the communists not only brought political stability but also a dependent trade union movement. The noncommunist National Trades Union Congress (NTUC) took over the Singapore Association of Trade Union (SATU) to become the leading trade union organization. Anantaran (1990) also argued that it was an act of forming a legal corporation between NTUC and PAP. Members of parliaments are advisors of trade unions affiliated to the NTUC. Morley et al. (2006, p. 162) stated that the current government, which operates under a one party system, still maintains a state corporatist industrial relations structure. The state...
Words: 861 - Pages: 4
...teral Trade: Malaysia & Germany Malaysia is EU‘s second largest trading partner inside ASEAN, behind Singapore, with bilateral trade in goods reaching 31.9 billion Euros in 2010 and the EU‘s 22nd largest trading partner. Germany enjoys intensive trade relations with Malaysia and is one of the main foreign investors in Malaysia, while among members of the European Union, Germany is Malaysia‘s leading trade partner.14 Besides, Malaysia ranks 2nd as a consumer of German products among the ASEAN countries. The Electric & Electronic Industry in Malaysia Introduction to the Electric & Electronic Industry The strong E&E industry in Malaysia is a result of the Government‘s initiatives to promote laborintensive and export-oriented industries. Since the establishment of the first semiconductor plant in Penang in 1972, Malaysia has become a major global manufacturing hub for the electrical and electronics industry, as attested by the large number of multinational companies (MNCs) from USA, Japan, Europe, Taiwan and Korea which have chosen Malaysia as their base. Unsurprisingly, the E&E sector has grown into Malaysia‘s largest contributor to output, employment, investments and exports (35% of total exports15) 16 . The presence of leading electronic manufacturing services (EMS) companies such as Flectronics, Solectron, Celestica, Jabil, Plexus and Sanmina-SCI provides opportunities for local companies to be part of their supply chain in the supply of equipment, materials...
Words: 286 - Pages: 2
...telecommunications connect all the nations together but in the same time it does not mean that there is no barriers especially trade barriers .to regulate the world trade barriers and injustice, countries cooperate and construct the World Trade Organization. WTO promotes the free trade zones and equal trade regulations to increase competition in global market. But regardless of the size of the business there are regulations to govern exports and imports. To minimize these losses from barriers and regulations is important. Thus, there are regional trade blocks to associate nations at a governmental level to promote trade and defend the members against competition. The defense mechanism against global competition obtained through making tariffs on goods produced by member countries, import quotas, government subsidies, and technical and non-tariff barriers. As trade is not an isolated activity member countries also cooperate in political, security, climatic, economic and other issues affect the region. Countries participate regional blocs because of its advantages in trade and economy. Transaction costs between countries will be eliminated. It will be easier to compare prices between participants. Uncertainty caused by exchange rate fluctuations will be blocked. The inflation in member economies will decrease. It will reduce the cost of the firms and increase the trade. But also there are some disadvantages but they are not as much as advantages. There can be instability of the system...
Words: 2937 - Pages: 12
...Level 41 Suite A Menara Maxis KLCC, 50088 Kuala Lumpur Malaysia Tel: 603.2055.1888 fax: 603.2161.2919 MEMORANDUM MINIMUM WAGES AND FOREIGN WORKERS IN MALAYSIA Introduction The Malaysian economy provides employment to a significant number of foreign workers from neighboring countries including those from Indonesia, Bangladesh, Philippines and Myanmar. In recent times, there have been calls from certain quarters for the increase of wages of foreign workers such that they are on par with wages offered to local workers. It is said that in the long term, this will help to ensure that the wages of foreign workers do not result in lower wages for local workers. While most sectors of the economy, including the manufacturing industry, readily acknowledge the contribution of foreign workers to the Malaysian economy and wealth creation, there have been some concerns about the effects of the proposed wage increase. The fundamental obligation of an employer is to pay the agreed wages in return for work performed. This obligation is dependent upon the employee being ready, willing and able to perform the work at hand. Generally, the quantum of wages are agreed between employers and the individual employees. An appropriate wage is intended to attract qualified employees to perform the work required, to motivate employees to perform at a consistently high level, to encourage them to improve their skills, abilities and knowledge in order to improve job performance and for the long term...
Words: 1639 - Pages: 7
