AMRC March Final · The early history of the labour movement in Malaysia is really that ... The British Colonial penetration into Malaya in stages was through the Straits Settlement

��

��

��

��

�� re

��

Asia Monitor Resource Centre

�� re��

AMRC is an independent non-governmental organisation

that focuses on Asian and Pacific labour concerns.

The Center provides information, research, publishing, training, labour networking

and related services to trade unions, pro-labour groups, and other development NGOs.

AMRC’s main goal is to support democratic and independent labour movements in Asia and the Pacific.

In order to achieve this goal, AMRC upholds the principles

of workers’ empowerment and gender consciousness, and follows a participatory framework.

� ��

Asia Monitor Resource Centre Ltd (AMRC), 444 Nathan Road, 8-B, Kowloon, Hong Kong, China SAR

Tel: (852) 2332 1346 Fax: (852) 2385 5319 E-mail: [email protected] URL: www.amrc.org.hk

Copyright © Asia Monitor Resource Centre Ltd, 2003

ISBN 962-7145-18-1

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmit-

ted

in any form without prior written permission.

��

Stephen Frost, Omana George, and Ed Shepherd

��

Tom Fenton

��

Eugene Kuo

��

AMRC expresses sincere thanks to the following people and organisations for their gratefully received

contributions to this book.

Suchada Boonchoo (Pun) is co-ordinator for the Asian Network for the Rights of Occupational Accident

Victims. We thank her for all the help in organising our conference of authors in Bangkok.

Thanks to the American Center for International Labor Solidarity, Bangkok, Thailand for a financial con-

tribution towards printing the book.

We are indebted to Oxfam Hong Kong for their financial contribution towards the production costs.

Thanks to the International Labour Organisation for allowing us to use photographs from their library free

of charge.

Eugene Kuo, a freelance photographer and designer, a big thank you for contributing photographs and de-

signing the cover free of charge. Look at www.226-design.com for some of Eugene’s stunning work and

ideas.

To Tom Fenton, co-founder (with Mary Heffron) of AMRC – thanks a lot for advice, maps, and all the time

devoted to the layout of the book, free of charge. E-mail: [email protected].

Finally, we would like to thank the International Centre for Human Rights and Democratic Development,

Canada, for an extremely generous contribution that covered much of the publishing costs of this book.

Without their last-minute financial assistance, it is possible that this book would never have proceeded be-

yond the editing stage. E-mail: [email protected]; URL: www.ichrdd.ca.

1

�� 7��

/�/��

��

The early history of the labour movement in Malaysia is really that of the activities of immigrants arising from

trend of development of the country (then Malaya) under British colonialists, who needed a constant adequate

supply of labour to meet their economic interests.

During that period our Malay brothers and sisters were engaged in the rural and agricultural sector as farmers

and fishermen whilst the world economy and consumption demand called for tea, coffee plantations in the early

nineteenth century and subsequently in the early twentieth century the opening up of tin mines and rubber planta-

tions to meet demand for its use in Malaya. Under British Rule vis-à-vis their economic interest, immigrant la-

bour from China and India was encouraged to work in tin mines and rubber estates respectively.

The British Colonial penetration into Malaya in stages was through the Straits Settlement (Penang, Malacca

and Singapore), the Federated Malay States (in states of Selangor, Negeri Sembilan, Pahang, and Perak) adminis-

tered by British Residents and Non-Federal States of Malaysia (i.e. Johore, Kedah, Perlis, Kelantan, and

Terengganu), which had British Advisors. The genesis

of the Malayan labour laws has its roots in legal mecha-

nisms that were enacted to deal with issues and matters

of the immigrant labour force and the peculiarities aris-

ing over the conditions of work at the mines and rubber

plantations.

Malaya gained political independence from the Brit-

ish on 31 August 1957. Subsequently in 1963, Sabah,

Sarawak, and Singapore joined Malaya to form Malay-

sia. In 1965, Singapore ‘left’ Malaysia and became

independent.

From an agricultural based economy, Malaysia has

rapidly moved towards an industrial based economy

with foreign direct investment drastically reduced. The

Malaysian economy will have to depend on stronger do-

mestic activities. The National Economic Policy which

was drawn up in 1970 after the civil riots in 1969 has not

achieved its target i.e. 30 percent of the economy to be

reserved for the Malays (constitutes slightly more than

50 percent of the total population). In relations to this

the Chinese( constitutes about 30 percent of the popula-

tion) have been very successful compared to the Indians

(population about 10 percent) who own less than one

percent of the economy.

Minority parties through are sympathetic towards the

workers’ right including the PAS government (which

rules two States i.e. Trengganu and Kelantan) but labour

laws are within the purview of the Federal Government

which is governed by Barisan Nasional with more than

two thirds majority in the Parliament.

1 ��!��

��!��

The initial labour laws in the nineteenth and twentieth

centuries dealt principally with immigrants’ conditions of

work, housing, and health. In 1877, the Colonial Govern-

ment appointed a Protector of Chinese Affair, and in 1899

a Chinese Affairs Enactment was in place to deal with

disputes and arbitrate thereon. In 1912, the Labour De-

partment had been set up for Straits Settlement and ex-

tended to Federal Malaya State (FMS) in the same year.

A Labour Code was enacted for FMS in 1912 and

Straits Settlement followed suit, which applied to all

races in the labour force of the country but the main fo-

cus was on conditions of work at mines and rubber plan-

tations. If the fundamental element for ensuring

workers’ rights are the rights to organise, associate, and

form trade unions then in Malaysian terms one has to

look at the development of comprehensive laws to en-

shrine and confirm trade union rights. No trade union

law per se existed before the 1930s and though there was

the Malaya Registration of Societies Ordinance

1889-1895. No trade union were registered and until

1948 though trade union may have emerged and oper-

ated, none were registered with the government.

The precursor to trade union laws in Malaysia, or Ma-

laya then, were three distinct scenarios.

i) The aspiration of the Labour Government in Brit-

ain and labour movement there led to the passing of

the following by the British Parliament: the Trade

Union Act 1871, the Trade Disputes Act 1906, and

the Trade Union Act 1913.

ii) The change in geo-politics in the world level with

emergence of communism as a champion of workers’

rights and as a negation of capitalism, gave rise to in-

dustrial unrest and series of strikes from 1930 – 1935

in Malaya for example the famous Batu Arang Coal

Mine Strike. This period witnessed well-organised

strikes and work stoppages all over Malaya.

iii) In Britain, Parliament also passed the Colonial

Development and Welfare Act in 1940 which deemed

it essential for continued long-term financial aid to the

colonies there should be laws protecting trade unions,

wages, and employment in the Colonies.

These three factors acted as undertones and, for polit-

ical and economic reasons, forced the colonial govern-

ment to enact the following laws and regulations: the

Trade Union Enactment of 1940, which was extended to

the whole of Malaya, setting up of the Department of

Registrar of Trade Unions, and the compulsory registra-

tion of trade unions in 1947 – 1948.

The year 1940 can be regarded as a watershed of the

labour rights and trade union movement.

��!� ��

Following independence however the comprehensive

labour laws that emerged continues to be in force are:

%�!�� 3466

This law as later entitled the Employment Act 1955

(EA), which regulates employer-employee relations and

2

-��


provides for basic terms and conditions of employment

and termination of employment, lay-offs, and termina-

tion benefit. This Act is administered by the Labour De-

partment of the Ministry of Human Resources. The EA

provides the minimum benefits for private sector em-

ployees whose wages do not exceed RM1,500 (US$395)

per month as follows :-

i)Termination and Lay Off Benefits 1980 - provides

payments for retrenched employees or in case of

plant closure:

• less than two years - 10 days wages for each year

of service;

• more than two years but less than five years - 15

days wages for each year of service; and

• five years and more - 20 days wages for each year

of service.

ii) Though employment of women between 10.00

p.m. and 5.00 a.m. is only allowed with the written

permission of the Director General of Labour, it ap-

pears in most cases it is allowed.

iii) Maternity allowance- 60 days paid leave.

iv) One day per week must be given as a rest day. Ad-

ditional payment for work on rest day.

v) Hours of work - 48 hours per week.

vi) Holidays - 10 paid holidays. Total public holidays

in some provinces is 16 days, others 17 days - 14

provinces in Malaysia).

vii) Annual leave between 8 to 16 days paid leave.

viii) Sick leave between 14 to 22 days paid leave and

in case of hospitalisation, 16 days paid leave. Em-

ployers must provide free medical attention for its

employees but not in the case of hospitalisation.

ix) Employment contracts can be either in writing or

oral but benefits provided cannot be less favourable

than the EA.

� ��'��3464

This act requires the registration of trade union and un-

ion federations specifies their composition, membership

and details, rights, powers, duties, and responsibilities.

This Act is enforced by the Department of Trade Union

Affairs in Peninsular Malaysia of Ministry of Human

Resources. The Director General of the Trade Union De-

partment has sweeping powers and decisions are made

by him based on his opinions.

.�� 345B

This Act regulates the relations between employer and

employees and their trade union and provides for the

recognition of trade unions at the workplace and preven-

tion and settlement of Trade Disputes.

.�� 345B

This Act is administered by the Industrial Relation De-

partment in West Malaysia. All three main acts men-

tioned are administered by the Labour Departments in

Sabah and Sarawak (East Malaysia).

Other crucial legislation is for health, safety, and so-

cial security:

��!��8��-��

344E��/�� 7��

��345B

These acts provide for the regulation, supervision of fac-

tories and registration of inspection of machinery in or-

der to secure safety, health, welfare, and social security

of workers.

The Pension Act for public sector employees and the

Employees Provident Fund Act 1991 for private sector

employees provides old-aged security and protection to

retired employees. Normal retirement age for public sec-

tor employees is 56 whereas private sector employees

retire at the age of 55.

The Social Security Act 1969 and the Workmen

Compensation Act 1952 are to provide protection and

compensation for accidents at work and work-related

illness.

Superficially the other legislation compliments the

EA - the Trade Union Act 1959 and the Industrial Rela-

tion Act 1967 were considered liberal but from the

1970s they have been extensively amended.

De-liberalisation was the key objective of all changes

and amendments to these three essential labour laws.

A 1971 amendment to the law was a minor limitation

to the right to strike especially in the public sector. But

the 1980 amendment has considerably hardened the la-

bour laws. The government of the day did not hesitate to

use the Internal Security Act against unionist and social

activist and political leaders aligned to the trade union

movement.

The laws were hardened in a number of ways, the de-

tails of which will be examined below. Under the Ordi-

Asia Pacific Labour Law Review

7��F-.�

3

nance, discretionary powers of the Registrar of Trade

Unions were progressively increased, giving extensive

latitude to reject applications by potential unions, to de-

register individual union members, and to register un-

ions in such a way as to promote weak sectoral units. In

1980 the Registrar was given the power to conduct pros-

ecutions, monitor union funds investment, call wit-

nesses to inform on union activities, and to obtain court

orders to enter union premises and seize articles or

documents.

Provisions of the Industrial Relations Act to which

the unions object include allegedly inadequate protec-

tion against dismissal for union activists and workers,

severe restrictions on picketing, limitations on industrial

actions in the public sector, constraints on political ac-

tivities by union leaders, and extensive discretionary

powers of the Minister for Labour and Manpower to

compel conciliation or arbitration and to suspend union

registration.

The reasons for this tightening process lay primarily

in the government’s growing belief that Malaysia could

not afford industrial instability, especially as it relied

heavily on foreign investment by multinationals and on

increased manufactured exports. One government publi-

cation for foreign investors emphasised the low wage

levels and cost of living, restrictions on the right to

strike, and the ease with which employees could be

dismissed.

However, there was mounting pressure in the late

1970s for a tightening of economic policies. This was

because of concern about affecting foreign capital and

protection of foreign investors export competitiveness

as a trade deficit grew and fears for the country’s image

of political and industrial stability, which worsened in

early 1979 with an internationally publicised strike by

employees of its international airline. This affair re-

sulted in the detention of strike leaders and the passing

of draconian amendments to the industrial laws in 1980.

In the early 1980s this development strategy appeared to

be working but industrial tension was increasing at that

time.

�� !� ��

Malaysia has not ratified Convention 87 1949 (Freedom

of Association and the Protection of the Right to Organ-

ise) but has ratified Convention 98 1949 (The Right for

Organise and Collective Bargaining) but public sector

unions have been deprived of collective bargaining

rights. It should be noted in spite of this situation the

Public Sector employees have received 20 percent sal-

ary increase in 25 months i.e. on 1 January 2000 and 1

January 2002.

��

A cornerstone of collective bargaining is the obligation

on both the parties to bargain in good faith with sincere

desire to reach an agreement. The Freedom of Associa-

tion Committee of the International Labour Organisa-

tion (ILO) has stressed the importance it attaches to

good faith bargaining by both trade unions and manage-

ment but stopped short of prescribing behavioural stan-

dards indicative of bad faith bargaining in order to

enforce this obligation.

The obligation of the parties to collective bargaining

to negotiate with a sincere desire to reach an agreement

is implied (though not explicitly stated) in the definition

of ‘collective bargaining’ under section 2 of the Indus-

trial Relations Act 1967, where the Act defines it as ‘ne-

gotiating with a view to the conclusion of a collective

agreement’.

Malaysian law does not provide for any special ma-

chinery like the National Labour Relations Board

(NLRB is an independent tripartite authority) in the

USA either to spell out behaviour indicative of bad faith

bargaining or to enforce the statutory obligation of good

faith bargaining between the parties.

However the Industrial Relations Act 1967 sought to

prevent types of bad faith behaviour as identified by the

NLRB;

i) refusal by the employer to respond to an invitation

by the union to bargain within 14 days leads to a trade

dispute under section 13(4) of the Act; and

ii) refusal to commence bargaining within 30 days af-

ter employer’s acceptance of union’s invitation also

gives rise to a trade dispute under section 13(b) of the

Act.

There was no need to spell out other types of bad faith

behaviour, such as failure of the employer to send for

bargaining session person with authority as required by

the labour standards, or parties engaging in delaying or

dilatory tactics since the Industrial Relations Act 1967

4

-��


provides for a party to report to the Director General of

Industrial Relations of failure to reach an agreement.

When conciliation by the Director General fails on its

notification, the Minister may refer the dispute to the in-

dustrial court for a binding award. (sections 18 and 26 of

the Industrial Relations Act).

In the context of effective conciliation and arbitration

provisions in the Act, the pressure on the parties to bar-

gain in good faith is evident because in the absence of it,

ultimately the industrial court would impose its own

award on the parties. Hence it appears under the law that

there is no need for any specialised machinery to enforce

the obligation to bargain in good faith.

��

The scope of the rights and prerogatives are dynamic

and in a state of permanent flux for it depends on the rel-

ative bargaining power and the relative strength of the

parties.

The international labour standards (the collective

bargaining convention 154 1981) indicated broadly the

bargainable issues or negotiable items but desisted from

spelling out non-negotiable issues. Specifically, this

convention calls for negotiations to determine working

conditions and terms of employment, regulate relations

between employers and workers, and regulate relations

between employers or their organisations and workers’

organisations. Thus international standards clearly in-

clude ‘relational matters’ as well as ‘economic issues’ as

appropriate for bargaining.

Under the Malaysian Industrial Relations Law the

scope of collective bargaining has been included in the

definition of the collective agreement under section 2 of

Industrial Relations Act 1967: ‘it is in agreement … re-

lating to the terms and conditions of employment and

work of workmen or concerning relations between such

parties’.

However the wide scope of collective bargaining was

curtailed by the ‘management prerogative clause’ viz

section 13(3) introduced in the Industrial Relations Act

in November 1971.

The management prerogative clause specifically pre-

cluded a trade union from raising any bargaining de-

mand concerning the recruitment, transfer, or promotion

of workers, retrenchment by reason of redundancy or re-

organisation, dismissal, and reinstatement, or allocating

of duties and tasks.

In other words, this clause is restrictive because it re-

moves ‘personnel matters’ from the scope of collective

bargaining, even though all these matters fall within the

meaning of the statutory definition of collective

bargaining.

Moreover, the prerogative given to the management

under section 13(3) of the Act are not absolute but very

much qualified. For example, while dismissal of a work-

man due to misconduct is a management prerogative, if

it is not for just cause or excuse, the union or worker may

raise a dispute under section 20 of the Act. Similarly

while retrenching workers is its right, if it is not due to

redundancy or reorganisation, a dispute can be effec-

tively raised under the law governing management

prerogatives.

��

The Malaysian Federal Constitution Part 8 – Equality

has been specifically amended so that there can be no

discrimination on gender.

‘All persons are equal before the law and entitled to

the equal protection of the law.’

‘Except as expressly authorized by this Constitution,

there shall be no discrimination against citizens on the

ground only of religion, race, descent, place of birth or

gender in any law or in the appointment to any office or

employment under a public authority or in the adminis-

tration of any law relating to the acquisition, holding or

disposition of property or the establishing or carrying on

of any trade, business, profession, vocation or employ-

ment.’


��

��

5

Though it appears the Federal Constitution is very

clear on equality, women employees especially in the

private sector are discriminated against, for instance em-

ployees in the private sector retire at the age of 50

whereas male employees retire at 55 and women em-

ployees are also paid lower wages for performing simi-

lar jobs as men. Such discrimination is not rampant in

the public sector.

The truth is that the Constitution is not fully observed

regarding Part 8.

*�� 0

��

The weakness of the Malaysian trade union movement

was deliberately designed by the British colonial gov-

ernment to eradicate the subversive influence of the

communists on the trade union movement. It is of cru-

cial importance to note that after Malaysia became inde-

pendent, the Government, in consolidating the existing

laws and regulations of trade unions introduced a new

definition of trade union as any association or combina-

tion of workmen … within any particular trade, occupa-

tion, or industry within similar trades, occupations or

industries. (Section 2 of T.U. Act).

This provision limiting trade union membership to

workers in similar trades etc has been responsible for

small trade unions and a weak trade union movement. It

effectively pre-empted the emergence of large powerful

national unions envisaged by the Malaysian Trades Un-

ion Congress (MTUC) and prevent the MTUC from be-

ing recognised as a federation of trade unions under the

Trade Union Act 1959. (MTUC is registered under the

Society Act and not under the Trade Union Act 1959).

The persistence of the government in not allowing

the National Union of Electrical Workers to organise the

electronic workers on the ground that they are not work-

ers in similar industries, illustrates the government pol-

icy not to intimidate the electronic multinationals by

allowing this powerful union to make inroads into the

electronic industry. The government frankly explained

to the ILO that the national union of electrical workers

with around 45,000 workers, if allowed to organise the

million electronic workers would have daunted the elec-

tronic industry and would have frightened foreign inves-

tors to leave the country creating an unemployment

problem in its wake. The saga of organising the elec-

tronic workers in Malaysia is well known and under

pressure of the ILO. All that these workers could gain

was the right to organise themselves into in-house un-

ions in electronic establishments, which are still reluc-

tant in accepting even this form of unionisation or their

workers.

Finally when the Malaysian government looked east

to Japan for inspiration, it was enamoured of reorganis-

ing the trade union movement into enterprises unions,

(called in-house unions in Malaysia), if necessary by

fragmenting the national unions into in house-union.

The definition of Trade Union as its stands today is any

association or combination of workers within any partic-

ular establishment, trade, occupation, or industry within

similar trades, occupations, or industries.

The definition of ‘trade union’ has not only denied

the MTUC the status of a federation of trade unions un-

der the Trade Union Act 1959 but has effectively

pre-empted the emergence of large powerful workers’

organisations. Finally the introduction of the word, ‘es-

tablishment’ in the definition of trade union 1989

amendment to the trade Union Act 1959 is an enabling

provision to break up national unions by organising

in-house unions in establishments. Till 1980 the law

stipulated that trade union officials must have a mini-

mum of three years experience in the industry of their

union. It is of interest to note that the Government,

through an amendment Section 29 (1b) to the Trade Un-

ion Act 1959, reduced the minimum period from three to

one year to speed up the process of in-house formation in

new enterprises, not to conform to the labour standard.

.��

�� 3

Dr James Alfred (Sabah) v. Koperasi Serbaguna Sanya

BHD (Sabah) and Anor, Federal Court, Kuala Lumpur

Dr James Alfred was dismissed from the employ-

ment of Koperasi Serbaguna Sanya Bhd (Sabah) on 1

June 1986. The industrial Court found for the appellant

and awarded him arrears of salary (back wages) from 1

June 1986 to 11 October 1995 (last day of hearing), com-

pensation in lieu of reinstatement of one month’s salary

for each year of service from 1 November 1984 (date

joined) to 11 October 1995, and 20 days; wages in lieu of

6

-��


unutilised leave. The High Court refused the Company’s

application for certiorari but the Court of Appeal al-

lowed the Company’s appeal in part in respect of back

wages. In quashing the award on back wages and remit-

ting the matter to the Industrial Court for reassessment,

the Court of Appeal held that in assessing the award for

back wages the Industrial Court should have taken into

account the fact that the appellant had found employ-

ment elsewhere after his dismissal. The worker appealed

to the Federal Court and the Federal Court upheld the

Court of Appeals decision and ruled that although the as-

sessment of back wages is a matter well within the dis-

cretion of the Industrial Court, that discretion is not one

which is unfettered; it has to be exercised according to

law and to equity as conceived by s. 30(5) of the Indus-

trial Relations Act 1967. The discretion is in the nature

of a decision-making process and is therefore open to ju-

dicial review. In line with equity and good conscience

the Industrial Court should, in assessing the quantum of

back wages, take into account the fact, if established by

evidence or admitted, that the worker has been gainfully

employed elsewhere after his dismissal. A failure to do

so amounts to a jurisdictional error of law and certiorari

will correct it. In the present case, the Industrial Court

had failed to take into account the material fact that the

appellant had been gainfully employed soon after his

dismissal. The award in respect of back wages was

therefore flawed.

�� *

Prestige Ceramics SDN BHD v. Kesatuan Sekerja

Pembuatan Barangan Galian Bukan Logam and Anor,

High Court, Kuala Lumpur

The Non-Metallic Union, sought for an order under s.

56(1) of the Industrial Relations Act 1967 (IRA) to com-

pel the Prestige Ceramic Company to pay annual incre-

ments and contractual bonuses due under the collective

agreement agreed upon by both parties. The company

sought the protection of s. 56(2) of the IRA, which al-

lowed the Industrial Court to vary a collective agree-

ment in light of ‘special circumstances’. The company

premised its case on financial hardship due to economic

crisis. On 4 August 1999, the Industrial Court held the

‘special circumstances’ under s. 56(2)(c) did not include

financial difficulties because if it did it would ‘open the

flood gates’ for similar claims. The Industrial Court then

granted an award in favour the union.

The company made an application for certiorari in

the High Court an on the 26 June 2000. The High Court

decided that financial inability is ‘special circum-

stances’ and further decided the Industrial Court was

wrong by adopting ‘inflexible generalisation’.

The Union has appealed to the Court of Appeal.


7��F-.�

7

��$�%

/� ��!� �2��

ILO Convention No. Area Date Status

Convention No. 7 on Minimum Ace (Sea), 1920 Sarawak 3 March 1964 Denounced

Convention No. 11 on Right of Association (Agriculture)

Convention, 1921Peninsular

11 January 1960 Ratified by

Sarawak on 3 March 1964Ratified

Convention No. 12 on Workmen’s Compensation

(Agriculture) Convention, 1921Peninsular

5 June 1961 Ratified by

Sarawak on 3 March 1964Ratified

Convention No. 14 on Weekly Rest (Industry), 1921 Peninsular 3 March 1964 Ratified

Convention No. 15 on Minimum Age (Trimmers & Stokers) ,

1921Sabah and Sarawak 3 March 1964 Denounced

Convention No. 16 on Medical Examination of Young

Persons (Sea), 1921Sabah and Sarawak 3 March 1964 Ratified

Convention No. 17 on Workmen’s Compensation (Accidents),

1925Peninsular 11 November 1957 Ratified

Convention No. 19 on Equality of Treatment (Accident

Compensation), 1925Peninsular

11 November 1957 Ratified

by Sarawak on 3 March

1964

Ratified

Convention No. 29 on Forced Labour, 1930 Malaysia 11 November 1957 Ratified

Convention No. 45 on Underground Work (Women), 1935 Peninsular 11 November 1957 Ratified

Convention No. 50 on Recruiting of Indigenous Workers,

1936Malaysia 11 November 1957 Ratified

Convention No. 64 on Contracts of Employment (Indigenous

Workers), 1939Malaysia 11 November 1957 Ratified

Convention No. 65 on Penal Sanctions (Indigenous Workers),

1939Malaysia 11 November 1957 Ratified

Convention No. 81 on Labour Inspection, 1947 Malaysia 1 July 1963 Ratified

Convention No. 86 on Contracts of Employment (Indigenous

Workers), 1947Sabah and Sarawak 3 March 1964 Ratified

Convention No. 88 on Employment Service, 1948 Malaysia 6 June 1974 Ratified

Convention No. 94 on Labour Clauses (Public Contracts),

1949Sabah and Sarawak 3 March 1964 Ratified

Convention No. 95 on Protection of Wages, 1949 Malaysia 17 November 1961 Ratified

Convention No. 97 on Migration for Employment (Revised),

1949Sabah 3 March 1964 Ratified

Convention No. 98 on Right to Organise and Collective

Bargaining, 1949Malaysia 5 June 1961 Ratified

Convention No. 105 on Abolition of Forced Labour, 1957 Malaysia 5 June 1961 Denounced

Convention No. 119 on Guarding of Machinery , 1963 Malaysia 13 October 1958 Ratified

Convention No. 123 on Minimum Age (Under-ground Work),

1965Malaysia 6 June 1974 Ratified

Convention No. 100 on Equal Remuneration, 1951 Malaysia 9 September 1997 Ratified

Convention No. 138 on Minimum Age, 1973 Malaysia 9 September 1997 Ratified

8

-��


��$��

��0�(��

1999 2000 2001p

2002f

Population (million persons) 22.7 23.3 23.8 24.3

Labour force (million persons) 9.2 9.6 9.9 10.2

Employment (million persons) 8.9 9.3 9.5 9.8

Unemployment (as% of labour force) 3.4 3.1 3.7 3.6

Per capita income (RM) 12,304 13,412 12,889

(US$) 3,238 3,529 3,392

Real GDP 6.1 8.3 0.4 3.5

(RM billion) 193.3 209.4 210.2 217.5

Agriculture, forestry and fishery 0.4 0.6 2.5 1.0

Mining and quarrying -2.6 3.1 0.2 3.0

Manufacturing 13.5 21.0 -5.1 4.2

Construction -4.4 1.0 2.3 2.4

Services 4.8 4.8 4.9 3.8

Nominal GNP 4.3 11.7 -1.7 5.3

(RM billion) 279.5 312.2 306.7 323.1

Real GNP 4.0 5.9 1.1 3.3

(RM billion) 179.7 190.3 192.4 198.3

Real aggregate demand¹ 2.0 14.5 2.3 2.8

Private expenditure¹ -3.8 16.0 -2.9 4.2

Consumption 3.3 12.2 2.8 5.0

Investment -21.8 28.7 -19.7 1.2

Public expenditure¹ 17.1 11.4 13.9 0.0

Consumption 18.5 1.7 11.9 4.1

Investment 15.9 19.9 15.5 -3.0

Gross national savings (as % of GNP) 41.1 39.5 34.9 33.8

Balance of payments (RM billion)

Goods 86.0 79.2 69.9 73.0

Exports (f.o.b.) 319.6 374.0 334.3 349.1

Imports (f.o.b.) 233.5 294.8 264.5 276.1

Services balance -10.7 -11.2 -8.4 -11.6

(as % of GNP) -3.8 -3.6 -2.7 -3.6

Income -20.9 -28.6 -25.9 -27.5

(as % of GNP) -7.5 -9.1 -8.5 -8.5

Current transfers -6.6 -7.5 -8.1 -8.4

Current account balance 47.9 32.0 27.4 25.5

(as % of GNP) 17.1 10.2 8.9 7.9

Bank Negara Malaysia reserves, net² 117.2 113.5 117.2 -

(as months of retained imports) 5.9 4.5 5.1 -

PRICES (% change)

CPI (2000 = 100) 2.8 1.6 1.4 1.8

PPI (1989 = 100) -3.3 3.1 -5.0 2.6

Average wages in the manufacturing sector 3.0 5.0 1.5 -

Note: Figures may not necessarily add up due to rounding

1. Exclude stocks

2. Arising from the fixing of the ringgit / US dollar exchange rate in September 1998, all assets and liabilities in

foreign currencies have been revalued into ringgit at rate of exchange ruling on the balance sheet data and the

cumulative gain / loss has been reflected accordingly in the bank’s current year account. The US dollar

equivalent of international reserves as at 31st December 1999 was US$ 30.9 billion.

p = Preliminary

f = Forecast

Source : Bank Negara Malaysia Annual Report 2001


7��F-.�

9

��$��

(��

The MTUC, which was inaugurated in 1949, is the most

representative labour organisation in Malaysia and its

affiliates are from private sector unions and public sec-

tor unions including unions in the statutory bodies. The

MTUC represents workers on tripartite bodies such as

National Labour Advisory Council (NLAC) and the

Employees Provident Fund (EPF), SOCSO Board.

Out of the nine million workforce in Malaysia only

about 10 percent are organised. The MTUC represents

about 500,000 members. The administration of The

MTUC is carried out by a council elected at a convention

held once in three years.

Contact Person: Bro. G Rajasekaran - Secretary General

Address: Wisma MTUC, 10-5, Jalan USJ 9/5T, 47620

Subang Jaya, Selangor Darul Ehsan

e-mail: [email protected]

Telephone: 03-80242953

Congress of Unions of Employees in the Public and

Civil Service (CUEPACS) is a federation of unions of

government employees and has served as the representa-

tive for public service workers since it was registered in

1959. The administration of CUEPACS is carried out by

a council elected at a convention held once in three

years.

Contact Person: Bro. Abd Rahman b. Manan - Secretary

General

Address: Wisma CUEPACS, No. 34A, Jalan Gajah, Off

Jalan Yew, Pudu, 55100 Kuala Lumpur

e- mail: [email protected]

Telephone: 03-92858104 / 92856110

Though ILO Convention No. 98 has been ratified by

Malaysia, CUEPACS do not enjoy collective bargaining

rights.

��$�;

�� 3"��3��

��"�1

Employment Act 1955

Trade Union Act 1959

Industrial Relations Act 1967

Children And Young Persons (Employment) Act 1966

Employment Information Act 1953

Employment (Restriction ) Act 1968

Human Resources Development Fund 1992

Private Employment Agencies Act 1981

Employees Provident Fund 1991

Employees’ Social Security Act (SOCSO) 1969

Workmen’s Compensation Act 1952

Sabah Labour Ordinance 1949

Sarawak Labour Ordinance 1952

Wages Council Act 1947

Wages Regulation for Catering/Hotel 1967

Wages Regulation for Shop Assistants 1970

Wages Regulation for Commercial Workers Ordinance

1972

Wages Regulation (Penang Stevedores and Cargo Han-

dling Ordinance 1977

Wages Regulation Sarawak S.A. Ordinance 1972

Workers Minimum Standard of Housing & Amenities

Act 1990

Occupational Health & Safety Act 1994

Port Workers (Regulation of Employment ) Act 1965

10

-��


Documents

AMRC March Final · The early history of the labour movement in Malaysia is really that ... The British Colonial penetration into Malaya in stages was through the Straits Settlement