Country Report Malaysia

MALAYSIAN TRADES UNION CONGRESS(MTUC))

INTRODUCTION
Malaysian Trades Union Congress is a federation of trade unions and registered under the
Societies Act, 1955. It is the oldest National Centre representing the Malaysian or!ers. Unions
affiliated to MTUC represent all "a#or industries and sector ith appro$i"ately 5%%,%%% "e"&ers.
Representatives o La!our
MTUC has &een recogni'ed &y the (o)ern"ent as the representati)e of or!ers in Malaysia and
is consulted &y (o)ern"ent on "a#or changes in la&our las through the National *oint +a&our
Ad)isory Council. MTUC also represent la&our at the International +a&our ,rgani'ation
Conferences and Meetings.
Tra"e Union Situation
In the year -%1. till May, there are a total of /%0 registered trade unions for or!er in the country.
,f these, pri)ates sector or!ers are represented &y 01- unions, pu&lic sector or!er 2including
the "ilitary and police3 are represented &y 10- trade unions hile statutory &ody and local
go)ern"ent or!ers are represented &y 1%% unions. The total nu"&er of unioni'ed or!ers in the
country as at -%1. 2May3 as 889,569 or 45 percent of the total or!force of 1-.9 "illion as *une
-%1-.
Union6s effort to increase union "e"&erships ha)e also &een restricted &y Section 9 213 of the
Industrial 7elation Act 191/ hich does not allo e"ployees or!ing in "anagerial, e$ecuti)e,
confidential staff and security capacities to #oin Unions.
-. Describe about own union background
3. #OLITICAL SITUATION O$ MALAYSIA
%) #oliti&al Situation
The 8ederation of Malaya, &eca"e independent in 195/. Malaysia as for"ed in 191. hen the
for"er 9ritish colonies of Singapore and the :ast Malaysian states of Sa&ah and Saraa! on the
northern coast of 9orneo #oined the 8ederation. The first se)eral years of the country;s history ere
"arred &y Indonesian efforts to control Malaysia, <hilippine clai"s to Sa&ah, and Singapore;s
secession fro" the 8ederation in 1915.
Malaysia has a de"ocratic syste" of go)ern"ent that is =>
i3 Upper ?ouse 2@ean Negara3
ii3 +oer ?ouse 2@ean 7a!yat3
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The federal go)ern"ent is headed &y the <ri"e Minister hile the state go)ern"ent is headed &y
a Chief Minister. The elected go)ern"ent is for of 5 years.
') MTUC Relations(ip )it( #oliti&al #arties
MTUC as "ulti>racial and "ulti religious "ass organi'ation, is co""itted to the eli"ination of
e$ploitation of "an &y "an and po)erty, to the preser)ation of hu"an and trade union rights,
de"ocracy and rule of la and to the esta&lish"ent of a society and dignity. MTUC has therefore
an i"portant role to play in the politics of the country.
MTUC addresses the larger political di"ensions including or!ers rights, hu"an and funda"ental
rights, social issues and the co""unal &ased political structure. This political di"ension or Aciti'en
politics6 shall &e pursued at &oth le)els of the national centre and its affiliates.
MTUC hold dialogues on social>econo"ic and political issues rele)ant to or!ing people and
pursue the" ith political parties and other pu&lic interest organi'ations hich are sy"pathetic to
la&our.
,n the electoral process, MTUC prepare a "anifesto. <olitical parties that respond positi)ely to
the "anifesto ill &e as!ed to enter into a social contract ith the MTUC. ,nce the agree"ent is
reached, MTUC ill render unreser)ed support and assistance including acti)e ca"paigning to the
party concerned.

C(allen*es $or MTUC An" Unions
+egal restrictions in the for"ation and registration of trade unions
Con)ention 4/ not ratified.
Mini"u" age of 7M9%% has &een appro)ed &y the go)ern"ent &ut still so"e co"panies
not i"ple"enting and re"o)ing other &enefits and fi$ alloances .
Mini"u" retire"ent age of 1% &en appro)ed and yet to &e i"ple"ent fully in all the
sectors.
Collecti)e &argaining negotiations under threat "ore e"ployers
gi)ing threatening unions to shift hile negotiations are ta!ing
place.
:"ployers prefer to e"ploy foreign or!ers.
Increasing of consu"er goods and ser)ices due to price increase of
fuel and electricity tariff.
Introducing the (ST 2good and ser)ice ta$3 &y April -%15.
Most of the e"ployers are not fa)oura&le to the National Union rather than the in>house
union.
In house union leaders &een controlled &y the e"ployer
Most e"ployers tried to a)oid their or!ers to for" or #oin the
Union
(enerally trade union "e"&ership declining for )arious reasons.
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Boung or!ers are not !een to #oin union.
A"end"ent of la&our las not in fa)oura&le to or!er and erode the la&out rights
7ecognising the @o"estic or!ers> a day off and allo then to #oin union and ratification
of I+, con)ention pertaining to @o"estic or!ers.
The Trans <acific <artnership Agree"ent2T<<A3> on la&our chapter> not "uch discussion
ith trade union too! place.
4.E&ono+i& an" So&ial situation O Malaysia
Malaysia6s econo"y faces a challenging ti"e ahead as its resilience and strength stands to &e
tested &y so"e donside ris!s facing the glo&al econo"y.
CDhile the glo&al econo"y is e$pected to e$pand, there are still donside ris!s on the hori'onE,
that for sur)i)al, Malaysia needs to integrate into the glo&al en)iron"ent or ris! &eing "arginali'ed.
The year -%%5 "ar!s the end of the :ighth Malaysia <lan and that the (o)ern"ent has
for"ulated the policy directions and strategic thrusts of the Ninth Malaysia <lan 2-%%1>-%1% as
ell as the second phase of Fision -%-%.
Strong do"estic de"and, sustained co""odity prices, a healthy &an!ing syste", high
international reser)es, "anagea&le e$ternal de&t and a current account that has re"ained in
surplus ere so"e of the strong funda"entals the nation possessed.
?ealthy foreign e$change reser)es, lo inflation, and a s"all e$ternal de&t are all strengths that
"a!e it unli!ely that Malaysia ill e$perience a financial crisis si"ilar to the one in 199/. The
econo"y re"ains dependent on continued groth in the US, China, India , :urope and *apan, top
e$port destinations and !ey sources of foreign in)est"ent
(1) Economic growth and its outlook
<olitical uncertainty and insta&ility are unli!ely to dissipate in the "onths ahead, despite an
e$pected orderly transfer of poer fro" the pri"e "inister, A&dullah 9adai, to the deputy
pri"e "inister, Na#i& 7a'a!, in March -%%9.
The leader of the opposition alliance, Anar I&rahi", ill continue ith his ca"paign to
desta&ilise the ruling 9arisan Nasional 29N3 go)ern"ent &y persuading 9N legislators to
sitch to the opposition.
The :cono"ist Intelligence Unit e$pects the 9N coalition to re"ain in poer o)er the
forecast period. The 9N still has a sufficiently large "a#ority to pass the &ul! of ne
legislation unchallenged.
8olloing donard re)isions "ade to our glo&al econo"ic groth forecasts, e no
e$pect real (@< to gro &y ..15 in -%%9, don fro" 0.15 pre)iously. (roth ill re"ain
sluggish in -%1%.
De ha)e re)ised don our forecast for consu"er price inflation, hich is no e$pected to
a)erage -.05 in -%%9, don fro" ..55 pre)iously.
The ringgit is e$pected to depreciate against the US dollar in -%%9, a)eraging
MG..05=USG1, &efore strengthening to MG....=USG1 in -%1%.
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The "erchandise trade surplus ill fall to USG.-&n in -%%9, fro" an esti"ated USG.9.0&n
in -%%4, as a donturn in Malaysia;s leading e$port "ar!ets loers de"and for a range of
Malaysian goods.
Malaysia;s pursuit of open trade policies and its attracti)eness to 8oreign @irect In)est"ent 28@I3
ha)e led to i"pressi)e groth and continued econo"ic transfor"ation.
In)est"ents are encouraged &y an array of ta$ and non>ta$ incenti)es granted, for the "ost part,
on a non>discri"inatory &asis to do"estic and foreign>oned enterprises.
Malaysia ree"phasi'es it co""it"ent to deregulation and li&erali'ation, particularly in the
financial sector. Measures ere introduced to e$tend foreign access to real estate purchases and
to de)elop the capital "ar!et.
Malaysia has also reaffir"ed its co""it"ent to the DT, financial ser)ices negotiations, ith plans
to li&erali'e insurance and &ro!erage industries.
Malaysia is a "e"&er of the Association of South :ast Asian Nations 2AS:AN3 and of the Asia
<acific :cono"ic Cooperation 2A<:C3. Under the AS:AN 8ree Trade Area Agree"ent 2A8TA3,
Malaysia has su&stantially reduced tariffs on i"ports fro" its A8TA partners. It is also co""itted to
reducing tariffs on i"ports of practically all "anufactures, including auto"oti)e products.
,- La!our Mar.et Situation
Malaysians can &e e$pect "ore #o& opportunities and lo une"ploy"ent in -%%/, in line ith an
i"pro)ed econo"ic situation do"estically and a&road. All Sectors of the econo"y are e$pected to
generate additional #o&s, &ring this year6s total e"ploy"ent groth for ne #o&s.
More people ere also loo!ing for #o&s , &ringing the groth of #o&>see!ers registered ith the
Manpoer @epart"ent.
Malaysia continues to attract foreign or!ers, particularly Indonesians, due to geographical
closeness and si"ilarities in culture and language.
The nu"&er of registered foreign or!ers totalled 1.1- "illion, ith the "a#ority fro" Indonesia
219.0 per cent3, folloed &y Nepal 21%.- per cent3, India 21.- per cent3 and Fietna" 20.1 per cent3.
/- La!our La)s An" In"ustrial Relations
The pri"ary ai" of the Industrial 7elations Act of 191/ as to create a co"prehensi)e statutory
fra"eor! for the orderly conduct of +a&our Manage"ent relations. It deals in detail ith right of
or!ers and e"ployers and their organi'ations, recognition of trade unions &y e"ployers,
collecti)e &argaining, the settle"ent of la&our disputes as ell as stri!es and loc!>outs. The
Minister occupies the central position and has the responsi&ility to ensure efficient i"ple"entation
of the Act.
0- Ratii&ation O ILO Core Conventions
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The ne "illenniu", fuelled &y glo&ali'ation, has &rought forth nu"erous challenges and
hopefully opportunities for or!ers. MTUC ai" is to highlight i"portant issues i"pacting on la&our
and trade unions, apart fro" the funda"ental issues such as freedo" of association and
collecti)e &argaining hich ha)e and ill alays &e the &asis of the organi'ed la&our "o)e"ents
struggle through the years. MTUC continue efforts to urge the (o)ern"ent to ratify I+,
Con)ention 4/ 28reedo" of Association and <rotection of the 7ight to ,rganise3
National La!our A"visory Coun&il (NLAC)
The National +a&our Ad)isory Council 2N+AC3 has &een functioning as a "ere indo dressing in
Malaysia all these years. The (o)ern"ent uses the N+AC as a li)ing e$cuse to clai" that it has
a&ided &y the reHuire"ents of I+, Con)ention 100 2Tripartite Consultation3.
1- So&ial #rote&tion
Intro"u&tion
The protection hich society pro)ides for it "e"&ers, through a series of pu&lic "easures, against
the econo"ic and social the distress that otherise ould &e caused &y the stoppage of
su&stantial reduction of earnings resulting fro" sic!ness, "aternity, e"ploy"ent in#ury,
une"ploy"ent, in)alidity, old age and death, the pro)ision of "edical care and the pro)ision of
su&sidies for fa"ilies ith children.
The (o)ern"ent pro)ides protection for its citi'ens, through a series of pu&lic "easures, to
pre)ent po)erty and econo"ic and social the distress as a result of )arious econo"ic factors.
%) Une+ploy+ent insuran&e
:"ployees Insurance co)ered &y the Co"pany.
<er"anent e"ployees ho had opted for the :"ployees <ro)ident 8und 2:<83
') In"ustrial a&&i"ent &o+pensation
Social Security ,rganisation 2S,CS,3
:"ployees contri&ute a&out %.55 of their salary hile :"ployers contri&ute a&out 1./55
of the salary.
:"ployees are eligi&le for co)erage under the :"ploy"ent In#ury Sche"e and In)alidity
<ension Sche"e.
2- Ot(ers
O&&upational 3ealt( an" Saety
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MTUC is happy that its persistent efforts to introduce a co"prehensi)e legislation to regulate
,ccupational ?ealth and Safety in the country has finally co"e into &eing. In April 1990 the
(o)ern"ent announced its decision to i"ple"ent the ne ,ccupational ?ealth and Safety Act
hich ould "a!e it co"pulsory for all industries to esta&lish ?ealth and Safety Co""ittee. MTUC
con)ened a "eeting of all affiliates in March 1990 to &rief all the Union +eaders the i"portant
aspects of the ne Act and also to ta!e necessary steps to prepare sufficient unions acti)ities to
participate in the ,ccupational ?ealth and Safety co""ittee in or!places throughout the country.
The or!shop funded &y the Social Security ,rganisation as ell attended and dre up a list of
priorities and action progra""e.
3ealt( Care
Se)eral pri)ate fir"s launched an intensi)e ca"paign to ta!e o)er "anage"ent of e"ployees6
healthcare. The Malaysia Medical Association 2MMA3 and "any "edical practitioners openly
stated that or!ers ould not get Huality treat"ent under the ?M, sche"e. MTUC6s study,
indicate that or!ers ould ulti"ately &e the losers under this sche"e. A special "eeting of
affiliated unions decided that there as no necessity to &ring another party, at considera&le, to
ad"inister healthcare.
Mi*rant 4or.ers
MTUC recei)ed nu"erous co"plaints fro" affiliates regarding e"ploy"ent of foreign or!ers and
discri"inatory practices against Malaysians. (o)ern"ent policy on recruit"ent of foreign or!ers
created a great deal of an$iety a"ongst Malaysians. @espite attracti)e econo"ic groth, age
rates continued to re"ain lo throughout the country and the situation is far orse outside the
Ilang Falley and <enang. MTUC also sent reports and co"plaints to the ?u"an 7esources
Minister reHuesting hi" to in)estigate and co"e up ith specific policy to ensure that e"ployers do
not e$ploit and ta!e ad)antage of the situation.
Statisti& on unionis+
Trade Union membership in Malaysia 2005-May 2013
Year
Trade
Union
Membershi
p
2005 621 761,160
2006 631 801,585
2007 642 803,212
2008 659 805,565
2009 680 806,860
2010 690 803,289
2011 697 800,171
2012 694 889,718
2013May! 704 889,569
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"#mber $% Trade Union Membership &y 'ender (n Malaysia,
Year 2008-May 2013
Year "#mbers $%
Trade
Union
Membership
Male
Fema
le
Total
2008 659
4869
78
3185
87
80556
5
2009 680
4876
79
3191
81
80686
0
2010 690
4857
47
3175
42
80328
9
2011 697
4826
53
3175
18
80017
1
2012 694 5156
64
3740
54
88971
8
May
2013
704
5155
43
3740
26
88956
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"#mber $% Trade Union &y (nd#s)ry (n Malaysia,
May 2013
(nd#s)ry 2012 2013
Number
Membersh
ip
Numb
er
Membershi
p
Agriulture!"u#ti#g $ Forestry 49 77965 49 77965
Fishi#g 3 1038 3 1038
Mi#i#g $ %uarryi#g 3 961 3 961
Ma#u&aturi#g 158 97447 158 97447
'o#strutio# 4 1387 4 1387
(letriity! )as $ *ater 28 49374 28 49374
*holesale $ +etail Tra,e!
+epair -& Motor
.ehiles/Motoryles!0erso#el
$ "ousehol, )oo,s
35 39831 35 39831
"otel $ +estaura#t 18 16383 18 16383
Tra#sport!1torage $
'ommu#iatio#
97 58635 101 58635
Fi#a#ial 2#terme,iatio# 41 43344 41 43344
7
+eal (state!+e#ti#g $
3usi#ess Ati4ities
3 173 3 173
0ubli A,mi#istratio# A#,
5e&e#e!'umpulsory 1oial
1eurity
113 119158 114 119308
(,uatio# 57 316307 58 316276
"ealth A#, 1oial *or6 46 61082 47 61082
-ther 'ommu#ity!1oial A#,
0erso#al 1er4ie Ati4ities
39 6633 39 6633
T-TA7 694 889718 704 889569
Source: Trade Union Department, website
Labourbulletin4worker.blogspot.com
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