Industrial RelationsManagementQuestion:

Under pressures of a global economy, the environment hasbecome more complex. There has been continuous erosion ofthe influence and power of trade union over the last three (3)decades. Does this indicate that the industrial relations systempremised on a concept that there is an imbalance of power inthe employment relationship is now out-dated, that approachessuch as “human resources management’ or organisationalbehaviour? Argue whether industrial relations is still relevant

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 theworkplace;

Involved in the Tripartite relations between employers and employees theGovernment; and

I wish to show The Context of IR over Economic, Social, Industry & MassMedia.

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, promotederegulation & reduce income tax ;

Advanced countries range globally via MNC by spread investment, tradingpartners and sources of cheap labour and raw material;

MNC’s made an impact globally and locally. The best 30 companies to workin Malaysia is Shell, Intel, DHL & Petronas etc.

Source: http://www.skorcareer.com/malaysia-eng/30-best-companies-to-work-in-malaysia.htm

Perspectives of Globalisation upon IRThe 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

Trade Union Trade unions exist to protect workers, improve salaries and reinforce safety

& health;

Trade unions represent the workers, fight for oppressed and defending theworking class;

Recent studies highlight that trade unions are important to resolveworkplace disputes (Saundry, Jones & Antcliff, 2011)

The relationship between trade unions, employers and the government maybe affected and by rapid ‘Globalisation’.

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 tradeunions

NUBE represent non-executive workers in banks and considered in voguenow.

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, inorder to lose out the coverage of NUBE.

VSS should be the last resort for the employer because of retrenchmentand/or closure. Alliance Bank discarded The Code of Conduct for IndustrialHarmony 1975.

The photos of the picket by NUBE in front of Alliance Bank on 8/7/2013, C .Later will play the video clip.

Perspectives on GlobalisationApproaches.

There are the globalists, that argue that globalisation is a vital on nationaleconomies, politics & the global network

There are the traditionalists, who considered globalisation as a myth byMarxists.

In reality Globalisation, ventures theorist have compromise on both parties

International Environment – Convergence and Divergence

Convergence, would be MNC’s adopted effective management practices interms of management, structure, technologies.

Divergence, would be MNC’s abroad will face a range of differentbehaviours and culture. Divergence in the Middle-East would be theweekend are on Friday & Saturday.

Globalisation and IREffects of Globalisation :

MNC has the ability to move knowledge, people, capital, goods, service andtechnology and able to access all borders;

Management practices require modification in other countries, described theterm glocal, to think globally but act locally;

“Capital” are able to employ “ Labour” at lower cost in various countriesand can influence the business world; and

IR seems to be compromised, by globalisation, render the trade unions areweakened and diluted.

Advent of HRMThe 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.

.

Global HRM Concept

IR V HRM HRM presents a challenge to IR and may lead to discord:

Unitary perception of HRM which sees the unity of interests betweenmanagements and employees

IR prefer the pluralist outlook , which assumes the potential for conflict inthe employment relationship flowing from different interests

IR perceive Collective Bargaining as premium leading to a formalagreement as a group effort. HRM is more individualist

HRM is said to pose a challenge to unions is on the issue of flexibilityworking time, pay rates, job scope and type of contract

HRM’s objective is on employee loyalty and commitment to theorganisation. On the one hand, IR promote employees and commitment tothe trade union.

Trade Union in DeclinePossible reasons:

Educated workers are capable discussing with the employers on, no need oftrade union any more;

Less misuse of workers by HRM practices, no need of trade union fund anymore;

Trade Union leaders seems to be power hungry, self-interest and verycorrupt

In reality trade union tend to be genders biases (Women & Transgender) andnarrow in scope

Gen X, Gen Y view trade unions as outdated, old-fashioned and irrelevant tothe globally major issues.

Trade Union Alternative

Currently, there other representations avenue to replace the trade union:

There are direct communication, meeting and team briefing via the socialmedia;

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 andopinion from the employees’

HRM will establish a routine consultative committee for employees’ as thecollective voice;

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 ornot?

Global Trade Union

Trade Union Density

Impact of other trends on IRThe 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 realityunion habits are still more national biases ;

Gen X & Gen Y view trade union as outdated, weary, & ancient comparedto the global issues;

Malaysia has ratified all of the ILO Convention but Clause 87 (Freedom ofAssociation) to attract FDI, the tentacles of Globalisation.

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