PRESENTATION DURING
SPEAKERS TOUR
“ELECTRONIC INDUSTRIES”
AN
“HISTORICAL PERSPECTIVE”
• POLITICAL Independence
• ECONOMIC Independence
- Pre-Independence – ISI Strategy
• Political Instability
•
Unemployment
•
Response after 1969
 Post
Independence – EOI Strategy
 New Economic Policy/ Industrialisation
Policy
 Foreign Direct Investment
 Free Trade Zones
 Objectives
-
of bringing in FDI
Create Employment
Eradicate Poverty
Social Restructuring & etc
CREATING EMPLOYMENT

As per UNIDO’s recommendation FTZ’s
were established

The 1st FTZ established in the state of
Penang in early 1970

Investment from foreign MNC’s were lured
The attraction offered, were ,
 Cheap Labour
 Young Educated Female Labour Force
 Tax Free Holidays
 Low Rental & Lower Payment For The
Use Of Public Amenities
 Excellent Infrastructure
 No Restriction On Repatriation Of Profits
INVESTORS DEMANDED
• Weak Labour/ Laws
• No Labour Unions in the FTZ
• Low Wages
• Long Working Hours
THE LABOUR FORCE
The Penang Experience
-
-
Full employment created
Shortage of Labour
Migration of labour from neighbouring
states
(Today, the migration of foreign workers)
Working Conditions

Working Hours – normal 8 hours/day & 3
rotating shift system
- Now 12 hours/day @ 4
days per week
( this is also violated)
 Wages
-
In the 70’s, the starting salary was
about 0.95 ¢ USD. (Ω RM3.00)
-
Currently,the starting salary (average) for a
new worker = RM 550(Approx. € 128)
-
Currently , for a senior worker with an
average of 25 years service , basic
salary is at an average RM1,050 (€ 244 )
/month
-
Take Home (gross) = RM 1,400 (€ 325) /
month
• Overtime Work : Compulsory
(Legal limit)
: 104 hours/month
: Rest Day & Public Holiday Work
• OHS - Exposure to chemicals /hazardous
substance
- solvents, gas, fumes
- Long Working Hours
- Standing System Work
- Psycho social problems
- Musculoskeletal disorders
- Radio Active Substances
UNIONISATION
•
•
•
•
•
•
•
Historically, attempts in the mid 70’s
Difficulties in organising
Cultural / Religious/Political hindrance
Vigilance and Preventive Action by Employers
Requirement of Law
Threats of employers towards the Government
Bureaucracy
CURRENT DEVELOPMENT
After 40 years of struggle & with the pressure from
IMF & via the International Frame Work
Agreement
On 27.5.2010 – The Malaysian cabinet decided
allow the setting up of a union in the electronic
sector
The MTUC & the Pro-Tem Electronic Union
Committee negotiated with Minister of Human
Resource
Ministry agreed to the formation of State Level Unions
This was disagreed by the Labour Movement
Electronic Industry Employees Pro –Tem Committee
&
MTUC Struck a
Compromise to form Regional Unions
Approval by MOH wef 25.6.2009
• It was agreed to at least form a regional union
instead of state level union.
• Registration of Union based on Regions took
place as
Eastern
Western
Southern
Northern
Scope of Electronic Union
>900 electronic companies
Labour Force : Ω 360,000 workers
Industrial Activity : Semiconductors,
memory
chips, power ICs, liner ICs,
opto devices etc
Silicon Wafer Processing
Wafer Fabrication
Chip Design, etc
&
• Capacitor, Resistors, Inductor/Coils Quartz
& Oscillators, Magnets etc
Display Devices, ICT, Data Storage devises
etc
ROBERT BOSCH-est. 1972
• Established & Existed as one single entity
• Later, split into 3 different entities
Robert Bosch
Malaysia
(RBM)
Robert Bosch
Power Tools
(RBPT)
Blaupunkt
(est.March
2009)
• EIWU’S attempt to organise RB began in
early 1984 but failed due to several
reasons.
• EIWU in collaboration with ACILS started
the organising process and Managed to
get a majority of 60% after 8 months of
struggle in November 2009
• 3.12.2009 – Union served recognition
claim, as required by law
• 22.12.2009 – Company responded ; by
saying that the EIWU is not the
competent Union to represent workers at
RBPT;
• that the company doubted that the Union
has majority.
• On 24.12.2009, As provided under the law the
Union referred the matter to the Director General
of the Industrial Relations Department.
• Following this ,
the Ministry has directed the
EIWU to meet on 13.10.2010 to discuss the
process of secret balloting
NATIONAL UNION (TEAIWU)
• The attempts by Transport Equipment & Allied
Industries Union (TEAIWU)
• TEAIWU organised Robert Bosch (M) Sdn.Bhd – on
March 2009
• TEAIWU had filed for recognition on end of October
2009.
• Ministry of HR – rejected this claim on July 2010
stating that the Unions is not competent
• EIWU has also filed for recognition on
22.7.2010 to avoid sabotage by the company in
forming an In-House Union.
• On 12.8.2010, RBM replied the EIWU that it
accepts the EIWU as the competent Union, but
it wishes to certain the majority.
• On 13.8.2010, the matter had been filed with
the Ministry.
BLAUPUNKT
• This company produces mainly car radio
speakers and a whole range of related items.
• Company was organised by TEAIU in 2009
and claim for recognition was filed on the
company on 11.9.2009.
• So far there is no response from the Company
and the matter is pending.
• Corporate manipulation – Originally taken over
by Aurellius AG. Co.sold to Long House AG
(India) – but operating under the Blaupunkt
name.
THANK YOU
Presented By :
N.Balakrishnan
Senior Industrial Relations Officer
Electrical Industry Workers’ Union, Malaysia