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| Women workers in Malaysia (1980-2004) (Part 1)
Gains and pains
by Dr Cecilia Ng
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However, in the wake of the regional financial crisis in 1997, the Malaysian government had to alter its development course. In the Third Outline Perspective Plan (2001-2010) it is emphasised that a knowledge-based economy (K-economy) would now be developed. The K-economy would provide the necessary platform to sustain a rapid rate of economic growth and to enhance international competitiveness. What has been the impact of these policies on women? The shift towards EOI has undoubtedly brought a wave of women workers into the labour force, dubbed the �feminisation� of labour. Industrialisation in Malaysia (and in many developing nations) has been as much women-led as export-led. The labour force participation rate of women increased from 37% in 1970 to 43.5% in 1995 and 44.5% in 2000 (Eighth Malaysia Plan, 2001-2005). Today, about 85% of women workers are in the manufacturing and services sector, with the majority located in urban areas. In manufacturing, they make up the bulk of production operators in the electronics and textiles and garments industries � jobs that are generally labour-intensive and low skilled. Indeed the so-called success of the Malaysian economy, where the electrical and electronics industries have consistently been the major export earners, has been built on the back of low-waged women labour. Gains and pains Subordinate position Although more women are earning an income, they are basically located in low-skilled jobs, in labour-intensive operations and in clerical and secretarial positions, rather than in the ranks of chief executive officers, managers or supervisors. For example in the manufacturing sector in 1993, only 15.8% of the managerial and professional category comprised women, compared to 65.9% and 57.9% in the clerical and production categories. Women also earn less than men for the same type of job in some sectors in the private sector. In a 1992 study, it was discovered that the average monthly income of women factory operators was RM267 compared to RM493 for men operators. Another study conducted in 2001 showed that women managers and assistant managers in the hotel industry earned less than their respective male counterparts. Recent production trends arising from economic globalisation are especially worrying for women workers. Catchwords such as �labour flexibility�, �casualisation� and �sub-contracting� are becoming the norm in managing production as firms compete in the global marketplace. With economic restructuring following the 1997 financial crisis, firms are combining formal factory work with informal, sub-contracting and home-based work. For instance, bank workers, many of them women, have been going through turbulent times as a result of the green light given by Bank Negara to the banking industry in May 2001 to outsource certain functions. In one prominent domestic bank, three departments � the call centres, the cheque clearing and the payment processing departments � are being outsourced to subsidiary companies. Most of these new companies do not have union protection and offer less lucrative jobs, as a result of which workers are experiencing high levels of anxiety. In addition, banks are capitalising on such deregulatory and cost-cutting measures by hiring contract and temporary staff. Sexual harassment at work Sexual harassment in the workplace has become a serious problem with adverse consequences for women workers, especially now that their numbers have increased in the labour force. Research conducted from 2000 to 2001 found that 35% of the 1,483 respondents from six pioneer companies had experienced one or more forms of sexual harassment in their workplace. A significantly higher proportion of female than male respondents indicated that they had experienced such harassment which ranged from dirty jokes (verbal) to visual and physical harassment. As a result of such harassment, many of the victims felt insecure and said that their personal security was being threatened. Those who were interviewed reported �feelings of fear, confusion, shock and anger�. Although the Malaysian government has adopted a Code of Practice with the laudable intention of eradicating sexual harassment in the workplace, this does not have the legal force to compel all companies to adopt sexual harassment policies. As a result, sexual harassment, with all its detrimental consequences, continues unabated. Low level of unionisation
It is difficult for women to be active in union activities because the bulk of women workers are found in free trade zones (FTZ), where multinational companies discourage outright the formation of unions. One of the major reasons for the low participation rate of women union members is the position of the government vis-a-vis unionisation of workers in the FTZ. Although there have been attempts to organise electronics unions under a national banner, the government has consistently rejected such applications, grudgingly allowing instead the formation of in-house unions. Two factors hampered electronic workers from organising. Firstly, the Malaysian government had promised industrial peace and harmony, guaranteeing smooth production operations to multinational capital in the FTZ set up in the 1970s. Secondly, the Registrar of Trade Unions (RTU)�s discretionary power to recognise the formation of new unions was fully utilised to ensure �industrial harmony� and that there would be no undue disruptions. Thus in 1974 when the Electrical Industries Workers Union (EIWU) started to organise electronics workers, the RTU objected by arguing that its scope was limited to �electrical� workers involved in producing finished goods and not �electronics� workers producing electronics components. 
Subsequently, in 1978, when the MTUC submitted an application to form the National Union of Electronics Workers, the RTU kept the application in cold storage for a record 12 years before it issued an explicit rejection. While the pressure not to accord recognition came from multinationals in the FTZ area, especially American firms which had openly threatened to relocate if the government allowed electronics workers to organise, the situation was also consistent with the Malaysian government�s anti-union stance through the years.However, in an apparent turnabout, in September 1988, the Minister of Labour, Lee Kim Sai, suddenly announced that the electronics workers could form their own trade union. The MTUC then submitted its application to get the union registered. But this process was turned into a charade when three weeks later, on Oct 18, 1988, the Minister was forced to retract his statement in the face of protests from American firms; he then said only in-house or company-based unions would be allowed. Lessons learnt Culpability of the state First, it is clear that in the era of neo-liberal globalisation, the government, instead of protecting its citizens, has shifted its position to being a mediator and protector of capital, international as well as domestic. It does this in several ways by:
The government does not only rely on repressive legislation to keep labour movements in check. During the 1997 financial crisis, companies were required to report any retrenchment, lay-off, volunteer separation scheme (VSS), or salary reduction plans to the Labour Department so that it could monitor these activities and assist in re-deploying affected workers. Although this move appeared motivated by concern for workers, it also had the desired effect of preventing strikes arising out of worker discontent. Divide-and-rule strategy A second observation is the arrogance of US multinational companies and their disrespect of national sovereignty, as evidenced by disregard and non-recognition of decisions made by Malaysian labour authorities. By viewing labour as mere objects in their pursuit of profit maximisation, all kinds of tactics were used to both intimidate workers and �win� them over. These ranged from a divide-and-rule strategy through the use of ethnicity, gender, culture and religion to mollifying workers with company outings, handouts and so-called �empowerment� training programmes. In interviews with workers in a major US electronics factory conducted before the 1997 financial crisis, a woman worker commented: The management tells us that we have an open policy so why do we need to form a union? Why do you need to pay a subscription to others to settle your problems? We have an open-door policy. What you want we will give. The management brainwashed the workers against forming a union.The comments of another worker from the same company appear to confirm that this brainwashing has yielded results: There is freedom of speech. Now there is empowerment. We have a �speak out� programme where we can air our problems to the personnel department. A paper with four columns is given and all you have to do is to tick one of the four ways you would like to settle your problems. The workers felt they do not need a union as whatever they asked for they always got. Even the GM, when he meets workers, would greet them first before any one of the workers would think of greeting him.In addition to practising apparent transparency of management, the factories also organise recreational and social activities to create the atmosphere that the workers are all part of one big family working towards the company vision. Such an environment creates difficulties for labour organising. As observed by a former labour activist: Management is very smart and organises activities to take the minds of women workers away from their issues. They organise free aerobics exercises, sports activities and family days. So they [the workers] feel that management cares for them. Unions are not important. Anyway they are scared as management also warns them not to talk about unions. In fact this is done as soon as they are interviewed for their first jobs. And money is important for the workers so they have a lot to lose if they get fired.Even during the crisis, workers generally accepted the strategies used by their companies. Indeed because of globalised production, multinational companies were able to re-structure using their shared global resources to reallocate production options and co-ordinate production shifts in a balanced way. The nature and scale of restructuring during periods of economic crises vary according to individual factories. While some downsize or close down operations entirely, others shuffle workers across the production floor until such a time that demand rises. The human resources director at one factory suggested two reasons for such organisational change rather than resorting to retrenchment: firstly, to preserve the company�s public image; and secondly, to avoid the cost of having to train new workers once demand levels pick up. Rather than retrench workers, some larger factories prefer to continue employing them at a loss, or even ask workers to use up their annual leave. However, poor working conditions or unsatisfactory benefits were not a major concern among workers. This seemed so in factories that managed to continue the practice of offering bonuses, profit-sharing schemes, medical and life insurance, or skills-upgrading opportunities during the lean period. This focus on worker welfare and security was part and parcel of the new management style that accompanied the switch to high value-added production over the last 10 years. Production of this nature requires workers� skills to be enhanced and this in turn calls for long-term investment on the part of the companies. As it is also necessary to circumvent the union�s role in addressing workers� grievances, employers feel that it would be in their interest to view workers as �partners� rather than adversaries. A manager in the Bayan Lepas FTZ in Penang boasted: Workers have not formed a union because the company takes care of their welfare very well. For example, besides their good wages and perks, the company provides a cyber cafe at the factory, good chairs at the cafeteria which also has a two-million ringgit view (of the sea).Ethnic Divisions The persistence of ethnic identification has weakened class unity and diminished the role of labour bodies like the MTUC. Often, workers ask ethnic-based political parties to redress their labour woes rather than seek recourse to an ethnic-blind trade union. Labour grievances are often channelled through the United Malays National Organisation (UMNO) if workers are Malay or the Malaysian Indian Congress (MIC) if workers are Indian, rather than through the trade unions. Management also invites religious authorities to deliver talks to workers to instil a sense of company loyalty, often arguing that religion does not condone workers to go on strike or be anti-management. Part 2: Emerging issues: Migrant workers and sex workers
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Management is very smart and organises activities to take the minds of women workers away from their issues.
