There has been continuous erosion of the influence and power of trade unions over the last three decades. Does this indicate that the industrial relations system premised on a concept that there is an imbalance of power in the employment relationship is now outdated, that workplace problems in a complex business environment are better addressed by new approaches such as ‘human resource management’ or organisational behaviour

1. Industrial Relations
ManagementQuestion:
Under pressures of a global economy, the environment has
become more complex. There has been continuous erosion of
the influence and power of trade union over the last three (3)
decades. Does this indicate that the industrial relations system
premised on a concept that there is an imbalance of power in
the employment relationship is now out-dated, that approaches
such as “human resources management’ or organisational
behaviour? Argue whether industrial relations is still relevant

2. Internal Relations (IR)
 The terms and conditions of employment relationship, between interests of
the employees and employers;
 Reinforce the social protection of employee social security, welfare, safety
& health;
 Settle of disputes and differences between Employers V Employees in the
workplace;
 Involved in the Tripartite relations between employers and employees the
Government; and
 I wish to show The Context of IR over Economic, Social, Industry & Mass
Media.

4. Globalisation
 Globalisation emerged in the 1980’s by economic free-trade policies, lead by
the late Thatcher & Reagan;
 The free-trade policies adopted privatising of public agencies, promote
deregulation & reduce income tax ;
 Advanced countries range globally via MNC by spread investment, trading
partners and sources of cheap labour and raw material;
 MNC’s made an impact globally and locally. The best 30 companies to work
in Malaysia is Shell, Intel, DHL & Petronas etc.
Source: http://www.skorcareer.com/malaysia-eng/30-best-companies-to-work-
in-malaysia.htm

5. Perspectives of Globalisation upon IR
The world is changing and here are relevant aspects:
 Impression of IR and trade union
 The relevance of trade unions?
 Global Environment
 The advent HRM
 The recent trends and changes

6. Trade Union
 Trade unions exist to protect workers, improve salaries and reinforce safety
& health;
 Trade unions represent the workers, fight for oppressed and defending the
working class;
 Recent studies highlight that trade unions are important to resolve
workplace disputes (Saundry, Jones & Antcliff, 2011)
 The relationship between trade unions, employers and the government may
be affected and by rapid ‘Globalisation’.

8. Trade Unionism in Malaysia
 Current legislations would be Trade Union Act, 1959 and, the Industrial
Relations Act 1967 that regulate the employee, employer and the trade
unions
 NUBE represent non-executive workers in banks and considered in vogue
now.
 Newsflash: NUBE is attacking Alliance Bank for various malpractices –
 Imposing VSS on workers to reduce turnover; and
 Cynical promotion of non-executive staff to an executive position, in
order to lose out the coverage of NUBE.
 VSS should be the last resort for the employer because of retrenchment
and/or closure. Alliance Bank discarded The Code of Conduct for Industrial
Harmony 1975.
 The photos of the picket by NUBE in front of Alliance Bank on 8/7/2013, C .
Later will play the video clip.

11. Perspectives on Globalisation
Approaches.
 There are the globalists, that argue that globalisation is a vital on national
economies, politics & the global network
 There are the traditionalists, who considered globalisation as a myth by
Marxists.
 In reality Globalisation, ventures theorist have compromise on both parties
International Environment – Convergence and Divergence
 Convergence, would be MNC’s adopted effective management practices in
terms of management, structure, technologies.
 Divergence, would be MNC’s abroad will face a range of different
behaviours and culture. Divergence in the Middle-East would be the
weekend are on Friday & Saturday.

12. Globalisation and IR
Effects of Globalisation :
 MNC has the ability to move knowledge, people, capital, goods, service and
technology and able to access all borders;
 Management practices require modification in other countries, described the
term glocal, to think globally but act locally;
 “Capital” are able to employ “ Labour” at lower cost in various countries
and can influence the business world; and
 IR seems to be compromised, by globalisation, render the trade unions are
weakened and diluted.

13. Advent of HRM
The HRM objectives is reflected :
 Individualistic relationship between employer and employees;
 Reinforced workers commitment, stable workplace flexibility time,
efficiency and quality of life ;
 On-going training and development;
 Focused on employee rewards, safety & health plus welfare;
 Inspire performance management;
 Emphasis on staff selection and induction, leadership and motivation.
.

14. Global HRM Concept

15. IR V HRM
 HRM presents a challenge to IR and may lead to discord:
 Unitary perception of HRM which sees the unity of interests between
managements and employees
 IR prefer the pluralist outlook , which assumes the potential for conflict in
the employment relationship flowing from different interests
 IR perceive Collective Bargaining as premium leading to a formal
agreement as a group effort. HRM is more individualist
 HRM is said to pose a challenge to unions is on the issue of flexibility
working time, pay rates, job scope and type of contract
 HRM’s objective is on employee loyalty and commitment to the
organisation. On the one hand, IR promote employees and commitment to
the trade union.

16. Trade Union in Decline
Possible reasons:
 Educated workers are capable discussing with the employers on, no need of
trade union any more;
 Less misuse of workers by HRM practices, no need of trade union fund any
more;
 Trade Union leaders seems to be power hungry, self-interest and very
corrupt
 In reality trade union tend to be genders biases (Women & Transgender) and
narrow in scope
 Gen X, Gen Y view trade unions as outdated, old-fashioned and irrelevant to
the globally major issues.

17. Trade Union Alternative
Currently, there other representations avenue to replace the trade union:
 There are direct communication, meeting and team briefing via the social
media;
 Consultative committees as substitutes for collective bargaining;
 More employers prefer employee engagement to capture employees view
 Management are ready to share information and receive feedback and
opinion from the employees’
 HRM will establish a routine consultative committee for employees’ as the
collective voice;

18. NUMBER OF MEMBERSHIP AND TRADE UNION IN MALAYSIA,
2006-MAY 2013 http://www.mohr.gov.my/jheks/index.php/en/source/statistics
YEAR TRADE UNION MEMBERSHIP
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 889718?
MAY 2013 704 889569
Gradual decline the number of trade unions in Malaysia. Are the members active or
not?

20. Global Trade Union

21. Trade Union Density

22. Impact of other trends on IR
The gradual decline of Trade Union:
 Employment shifting to service-oriented industries, manual to ‘white-collar’
employment;
 Women seek more right, and discard genders biased
 Union management state their set for internationalism, however, in reality
union habits are still more national biases ;
 Gen X & Gen Y view trade union as outdated, weary, & ancient compared
to the global issues;
 Malaysia has ratified all of the ILO Convention but Clause 87 (Freedom of
Association) to attract FDI, the tentacles of Globalisation.

23. Conclusion
 HRM modern organizations with progressive ideas like workers
empowerment and workers participation have been adopted
 Would HRM and IR would merge for the Future?
Most likely HRM will usurp IR, lock barrel and stock.
 This new economy is:
 Informational, knowledge-based;
 Production is organised on a global scale;
 Create trade & business through global networks of interaction. ’
 “The problem with socialism is that you eventually run out of other people's
money.”― Baroness Margaret Thatcher