PRESENTATION DURING SPEAKERS TOUR

• POLITICAL Independence• ECONOMIC Independence - Pre-Independence – ISI Strategy • Political Instability• Unemployment• Response after 1969

““ELECTRONIC INDUSTRIES” ELECTRONIC INDUSTRIES” ANAN

“HISTORICAL PERSPECTIVE”“HISTORICAL PERSPECTIVE”

Post Independence – EOI Strategy Post Independence – EOI Strategy New Economic Policy/ New Economic Policy/

Industrialisation PolicyIndustrialisation Policy Foreign Direct Investment Foreign Direct Investment Free Trade Zones Free Trade Zones Objectives of bringing in FDIObjectives of bringing in FDI

-- Create EmploymentCreate Employment

-- Eradicate PovertyEradicate Poverty

-- Social Restructuring & etcSocial 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 ,The attraction offered, were , Cheap LabourCheap Labour Young Educated Female Labour ForceYoung Educated Female Labour Force Tax Free HolidaysTax Free Holidays Low Rental & Lower Payment For The Low Rental & Lower Payment For The

Use Of Public AmenitiesUse Of Public Amenities Excellent InfrastructureExcellent Infrastructure No Restriction On Repatriation Of Profits 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 ConditionsWorking Conditions

Working Hours – normal 8 hours/day & 3 Working Hours – normal 8 hours/day & 3 rotating shift system rotating shift system

- Now 12 hours/day @ 4 - Now 12 hours/day @ 4 days per week days per week

( this is also violated) ( this is also violated)

WagesWages -- In the 70’s, the starting salary was In the 70’s, the starting salary was about 0.95 about 0.95 ¢¢ USD. ( USD. (Ω RM3.00)Ω RM3.00)

-- Currently,the starting salary (average) for Currently,the starting salary (average) for a a new worker = RM 550(Approx. new worker = RM 550(Approx. € € 128)128)

-- Currently , for a senior worker with anCurrently , for a senior worker with an average of 25 years service , basic average of 25 years service , basic salary is at an average RM1,050 (€ salary is at an average RM1,050 (€

244 ) 244 ) /month/month

-- Take Home (gross) = RM 1,400 (€ 325) / Take Home (gross) = RM 1,400 (€ 325) / monthmonth

• 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 DEVELOPMENTCURRENT DEVELOPMENT

After 40 years of struggle & with the pressure from After 40 years of struggle & with the pressure from IMF & via the International Frame Work IMF & via the International Frame Work

AgreementAgreement

On 27.5.2010 – The Malaysian cabinet decided On 27.5.2010 – The Malaysian cabinet decided allow the setting up of a union in the electronic allow the setting up of a union in the electronic

sectorsector

The MTUC & the Pro-Tem Electronic Union The MTUC & the Pro-Tem Electronic Union Committee negotiated with Minister of Human Committee negotiated with Minister of Human

ResourceResource

Ministry agreed to the formation of State Level UnionsMinistry agreed to the formation of State Level Unions

This was disagreed by the Labour MovementThis was disagreed by the Labour Movement

Electronic Industry Employees Pro –Tem CommitteeElectronic Industry Employees Pro –Tem Committee

&&

MTUC Struck aMTUC Struck a

Compromise to form Regional UnionsCompromise to form Regional Unions

Approval by MOH wef 25.6.2009Approval 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 companiesLabour Force : Ω 360,000 workersIndustrial Activity : Semiconductors, memory chips, power ICs, liner ICs, opto devices etcSilicon Wafer ProcessingWafer FabricationChip Design, etc

&

• Capacitor, Resistors, Inductor/Coils Quartz & Oscillators, Magnets etc

Display Devices, ICT, Data Storage devises etc

• Established & Existed as one single entity

• Later, split into 3 different entities

ROBERT BOSCH-est. 1972

Robert BoschMalaysia(RBM)

Robert BoschPower 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

• 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

NATIONAL UNION (TEAIWU)

• 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