Workplace industrial relations in a developing environment: barriers to renewal within unions in Malaysia

Abstract

In this paper we examine the views of employees from unionized companies and trade union leaders on the barriers to trade union activities in Malaysia through reference to survey data. These barriers are political, social and economic. The system of Malaysian industrial relations is not necessarily anti-union -in theory -but the article points to a range of structural barriers and challenges facing unions. However, the evidence presented also shows that there are major gaps and barriers within trade unions in terms of strategic renewal and organizational change. There are also major issues of union visibility within the workplace and the community. These are partly explained by the lack of systematic support offered by the legal system and employer; yet, there is a real perception gap as far as workers are concerned. Notably, the trade unions have little influence in decision-making processes across a range of human resource management practices and workplace issues. In addition, there are indications that trade unions have not really thought about or developed direct and more imaginative forms of communication in relation to the changing nature of the workforce and the economic context. As a result, internal barriers to change have been shaped by external ones, and this must be considered in any debate on Malaysian industrial relations. Key points1 The evidence of a trade union renewal strategy is limited in the Malaysian context in key strategic sectors. 2 The restrictions placed on trade unions by the state appear to be curtailing a more proactive approach. The barriers to trade union development and the challenges facing industrial relations regulation have become a significant academic debate. The last three decades have seen trade unions in many countries face considerable problems across a range of dimensions. The problems are broad and multifaceted; furthermore they bring significant challenges to the role of worker voice and democratic participation within the workplace. Based on a comprehensive review of relevant literature pertaining to trade unionism in Malaysia, the research questions which emerged for investigation were: Research question 1: What are the structures of trade unions in Peninsular Malaysia, the legal framework of Malaysian industrial relations and sections in the law that may act as barriers to the growth of trade unions, or cause a decline in trade unions? Research question 2: What are the perceptions of employees (members and nonmembers), from unionized companies, on the factors which may have impacted Malaysian trade unionism? Research question 3: What are the perceptions of the trade union officials on the environmental factors (both internal and external to trade unions) which may have influenced Malaysian trade unionism? Research question 4: What are the implications of such barriers in terms of union renewal and meaningful union engagement?In this paper we focus on these challenges in the Malaysian context and argue that the Malaysian context is a challenging one for independent...

A review on factors contributing to declining trade union membership in Malaysia

“…This is followed by employer hostility (B= 0.399), and the lowest is for trade union internal factors (B= 0.132; p<0.05). Kumar et al, 2013;Johari, 2014;Fiorito and Jarley, 2003;Ramasamy, 2010;Rose et al, 2011;Pyman, 2002 Industrial Relations Climate Snape andRedman, 2012;Pyman, 2004Employer Hostility Campolieti et al, 2013Gall and McKay, 2001;Cullinane andDundon, 2012 Union Membership Ramasamy, 2010;Rose et al, 2011;Kumar et al, 2013. .000 The purpose of the study is to identify the factors that contribute towards the declining trade union membership.…”

“…Simms et al (2012) stated that that unions have greater bargaining power when they have stronger membership. In the Malaysian context , there is undoubtedly pressure on unions emphasise on increasing their membership as they confront challenge of state/employer dominated industrial relations system (Kumar et al, 2013).However, according to Rose et al (2011) the existence of unions at workplace has both positive and negative effects. Taking Table 1 into perspective, the picture does not represent a healthy trend in the growth of unions.…”

“…Only 9% of workers in Malaysia are unionized and this percentage has never been increased over the years despite the steady increase on population and the work opportunities in this country. Malaysian union membership growth rate had showed a decreasing trend despite increasing number of growth of registered union and employment in this country (Ramasamy, 2010;Kumar et al, 2013;Tarumaraja et al, 2015;Aminuddin, 2013). The Department of Trade Union Affairs does not indicate the actual reasons for such an imbalance in the statistics.…”

“…However, in the Malaysian context, where industrial relations system is said to be state dominated, employers delay union recognition without concrete reasons (Aminuddin, 2013;Ramasamy and Rowley, 2008). Malaysian employers have historically been viewed as less accommodative to unions (Kumar et al, 2013;Aminuddin, 2013).…”

“…Jomo and Todd (1994) Trade union development in Peninsular Malaysia. Kumar et al (2013) Structural barriers to trade union growth at workplace Kuruvilla (1995Kuruvilla ( ,1996 Stages of industrialization, industrial relations and trade unions in Malaysia. Aminuddin (2009) Unions and employment relations in the private sector.…”