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UCAPAN PERASMIAN OLEH YB SENATOR DATO’ MAZNAH MAZLAN,
TIMBALAN MENTERI SUMBER MANUSIA
SEMPENA PERSIDANGAN PERHUBUNGAN PERUSAHAAN 2009 PERSEKUTUAN PEKILANG-PEKILANG MALAYSIA

18 JUN 2009
GURNEY RESORT HOTEL & RESIDENCES, PENANG

Yang Berbahagia Dato’ O. K. Lee,  
Pengerusi, Persekutuan Pekilang-Pekilang Malaysia, Cawangan Utara.

Yang Berusaha Encik Mohammed Thajudin bin Abdul Muthaliff,
Pengerusi, Jawatankuasa Sumber Manusia,
Persekutuan Pekilang-Pekilang Malaysia, Cawangan Utara.

Para Tetamu Jemputan, Peserta Persidangan, Tuan-Tuan Dan Puan-Puan yang saya hormati sekalian.

Assalamualaikum Warahmatullahi Wabarakatuh, Salam Sejahtera dan Selamat Pagi.

1.    Pertama-tamanya, saya ingin merakamkan setinggi-tinggi penghargaan dan ucapan terima kasih kepada Persekutuan Pekilang-Pekilang Malaysia (FMM) di atas jemputan dan juga penghormatan yang diberikan kepada saya untuk  menyampaikan ucap-tama dan seterusnya merasmikan Persidangan Perhubungan Perusahaan 2009, Persekutuan Pekilang-Pekilang Malaysia pada pagi yang ceria ini.  

2.    Bagi pihak Kerajaan dan juga Kementerian Sumber Manusia, saya mengambil kesempatan di sini untuk mengucapkan Selamat Datang kepada para peserta persidangan, para penceramah dan para ahli panel ke persidangan ini, yang menumpukan fokus khusus terhadap agenda perhubungan perusahaan ke arah memelihara keharmonian perusahaan tatkala ekonomi negara kita diharungi pelbagai cabaran ekoran daripada arus perubahan dan ledakan ekonomi global pada ketika ini.  

3.    Saya juga mengucapkan tahniah kepada pihak Persekutuan Pekilang-Pekilang Malaysia di atas daya usaha murni mereka menemukan perwakilan-perwakilan dari pihak majikan, golongan pekerja, kesatuan sekerja, para Pengamal Sumber Manusia (Human Resource Practitioners) dan juga Kerajaan di bawah satu ‘perkampungan’ di sini.  Kesempatan seumpamanya ini bukan sahaja memberi ruang kepada para peserta untuk bertukar-tukar maklumat dan berkongsi pengalaman, malah lebih daripada itu, pertemuan sebegini memantapkan lagi potensi untuk berinteraksi di antara rakan-rakan sosial dalam industri, untuk memberikan tumpuan terhadap isu-isu dan cabaran-cabaran semasa serta strategi-strategi yang berkualiti, ke arah merealisasikan satu matlamat penting perhubungan perusahaan iaitu memelihara keharmonian perusahaan, selain mengukuhkan lagi usaha-usaha ke arah meningkatkan daya saing negara.

4.    Saya menganggap forum berkomunikasi secara tripatisme sebegini juga akan mendorong penyertaan (involvement) yang lebih produktif di kalangan para peserta, untuk  mengetengahkan idea-idea dan input-input baru yang inovatif dan kreatif, bagi menjana strategi atau menggubal dasar pengurusan sumber manusia yang lebih realistik, untuk diaplikasikan, baik bilamana negara kita sedang dilanda krisis ekonomi mahu pun ketika suasana ekonomi di negara kita telah pulih semula kelak, Insya Allah.

(Tuan dan Puan sekalian, izinkan saya untuk menyampaikan seterusnya ucapan saya dalam bahasa Inggeris.)
 
Ladies and Gentlemen,

5.    Change is an inevitable phenomenon that everyone has to face in today’s globalizing economy.  The borderless world is supposed to bring with it benefits in the forms of economic efficiency, lower production cost and new perspectives in the labour market. One cannot envisage what, how and when these powerful forces of change will occur and where it will lead us, but one has to acknowledge that it will create a difference.

6.    As development in information and communication technology (ICT) and new technologies which change the ways how we organize our work and how we manage human resources issues became regular headlines and topics at relentless forums of discussions, today, as we rise to the challenge, in our persistent pursuit for progress, we are confronted with constant and eminent challenges to face uncertainties and the probable impact of a declining global economy, given our country’s position as one of the world’s leading exporters of technology related products to fuel constant economic growth. (According the economist, the Malaysian economy is forecasted to grow at only 5 – 6 % this year, down from 7% in 2006.)     

7.    A resultant impact of the economic slowdown had undeniably affected the employment of Malaysian workers, specifically those engaged in the manufacturing sector. This is evident from the series of retrenchment exercises conducted by many organizations which resulted in loss of jobs for our Malaysians. This is an inevitable phenomenon in any economic crisis.  

8.    In the light of these prevailing developments and responses, the government through the Ministry of Human Resources needs to be constantly kept abreast with new demands and challenges facing our workforce in order for us to be able to strategize and institutionalize strategic action and measures to ensure one remains competitive. To do so, it is important for us to preserve a sound and harmonious as well as productive and quality labour-management relations and cooperation among the social partners, to secure our continued relevance, and to enhance our competitive edge in the dynamic global market.
 
Ladies and Gentlemen,

9.    The government has always been supportive of the industry and business so that Malaysia remains attractive to Foreign Direct Investments (FDIs) as well as to promote business growth. In complimenting this policy, the government through my Ministry subscribes to a policy of ensuring continued industrial peace and harmony.  A calm industrial environment facilitates the effective and productive implementation of Government policies and programs.

10.    Today’s economic circumstances require closer rapport and consensus building on strategic industrial relations between the social players through regular dialogues and consultations. The government through my Ministry highly values tripartism and facilitates industrial harmony by heightening the Ministry’s engagement - working together in collaboration with the social partners by adopting a consultative approach, to address issues and challenges faced through tripartite dialogs and consultation, to meet common goals, for the benefit of workers, employers and the economy.

11.    In this respect, it is imperative for us to give due regard to regular and constructive social dialogue, to reach common understanding and demonstrate mutual trust in overcoming the current economic crisis.  Social dialogues must include firm and genuine willingness to deliberate on and find amicable solutions to difficult but pertinent issues related to human resource management.

12.    Security of tenure of employment is increasingly becoming a more challenging issue in an ever dynamic and globalised economic environment. While employers would like to have smoother and clearer processes in dealing with management prerogatives, for instance, the right to hiring and firing, we have to ensure that the rights and welfare of workers are not compromised but instead given due care and consideration.

13.    In this connection, the Government through my Ministry is entrusted with the responsibility of ensuring employment and safeguarding the welfare of workers as well as the interest of management.  The Ministry also performs the delicate role of regulating and balancing the rights between labour and capital,  in our concerted quest and continued policy of promoting and maintaining a sound and quality industrial relations in the country.

14.    Industrial problems owing to conflict at workplaces are ever present phenomenon in industrial relations.  We certainly hope for a state of affair where conflicts could be eliminated in ‘toto’.  Unfortunately, given the economic interest of both the parties, the interest of employers and workers cannot possibly be always identical, and at times, are in fact often in opposition to each other.  

15.    In a vulnerable economic environment, while employer seeks to find solutions to old industrial relations problems at their workplaces, new challenges and issues arise. The ideal solution to minimizing, if not eliminating stress and tension in managing industrial relations problems is not one that only seeks to find a quick solution to the industrial problems, but one must have for his purpose, the elimination of the causes of that problem.

Ladies and Gentlemen,

16.    Present trend in industrial relations and human resource management is to accord greater emphasis on employee’s involvement, harmonious employer-employee relations and on mechanisms and practices which promote them. Heightening engagement between workers and employers through constant communication and consultation will keep the parties abreast of the challenges confronting the enterprise.  Generally speaking, to promote sound and productive industrial relations, management needs to observe and acknowledge two-way communications, information sharing, consultation and participation as the key to building confidence, trust and cooperation between manager and workers.

17.    The performance of an organization in the context of our present day economy is affected by the manner in which that organization communicates with its employees.  Two-way communication tends to enhance understanding and cooperation and influence behavior in a desired direction. Human resource management policies and practices in an enterprise should be geared to creating the climate appropriate to securing the cooperation necessary to increase mutual trust and their ability to cope jointly with the present and emerging uncertainties.

18.    Labour-management cooperation can be improved by the employer through the development and motivation of human resources. Effective two-way communication is an important source of motivation, hence, the link between productivity, motivation and effective two-way communication. The promotion of sound industrial relations system at the workplace is closely linked to a progressive human resource management policy translated into practice. Harmonious industrial relations are more likely to exist in an enterprise where the human resource management policies and practices outlined in their corporate agenda emphasize significantly on two-way communication, career development and people-oriented management style and leadership.  

Ladies and Gentlemen,

19.    The Code of Conduct for Industrial Harmony which lays down sets of moral rules and values is a crucial piece of social instrument, applicable by employers and employees to guide them in the conduct of their day-to-day relations and interactions.  Despite its long existence since 1975, this ‘moral instrument’ had served our nation well over the last decade.  Efforts are however undertaken by my Ministry to regularize and streamline the contents of the Code to keep abreast with present day developments. Basically the Code which is recognized by the Industrial Court promotes the concept of constructive and positive consultation between employers and trade union on matters affecting industrial relations at all times, immaterial whether the matter in question is already governed or not by legislations. It identifies areas of cooperation in several aspects of labour and management relations which include: (1) Recognition of Trade Union; (2) Negotiation; (3) Joint Consultation; (4) Redundancy and Retrenchment and other vital areas of cooperation.  

20.    The strength of the Code lies not in its enforcement values but more on its moral sanction.  The key ingredients for the success of the Code therefore lies on the degree of adherence and observance by the parties to whom the Code is intended to apply.

21.    The impact of any economic crisis can be witnessed by the number of possible reduction of the workforce through retrenchment and termination of service.  In our context, as of 8th of June, 2009, statistics compiled by my Ministry had to date, recorded a cumulative figure of 36,243 workers who were out of employment due to the prevailing economic crisis. Out of this figure, 28,200 workers were permanently terminated while 8,769 workers resorted to voluntary termination from their employment.  Within the same period, a total of 47,192 workers comprising 37,995 who opted for pay-cuts and 9,197 workers who were temporarily laid-off were reported. Those affected in these instances were employees of 1,747 employers. The Government’s utmost concern is to secure jobs for Malaysians.

22.    In our government’s effort to lessen the probable and imminent impact on employment due to the present economic slowdown, the government through the Ministry of Human Resources (MOHR) had initiated proactive steps by implementing the Economic Stimulus Packages.  Under these stimulus packages, a RM650 million allocation had been approved by the government to enable the Ministry to undertake various training and placement programs to reduce unemployment and provide employment opportunities for Malaysians.  

23.    Despite softening of the Malaysian economy, jobs are still aplenty in certain economic sectors such as the agriculture and services sectors. Malaysian job seekers especially among those who were retrenched should be willing to have a positive outlook about acquiring new skills through the “Train and Place” program set up by the government.   Unemployed workers must be willing to go for training through the programs as it provides them with the opportunity to secure new skill sets, thus widening their prospect for employment and employability into other jobs.  To date, out of the 28,200 workers who lost their jobs in recent months, only 3,382 people have thus far signed up for the program in the last 2 months.

24.    Undeniably, there are negative effects which can be brought about by termination of a worker’s employment.  Workers especially among those who are already advanced in age may find it difficult to secure alternative employment.  Besides, alternative employment may not guarantee the quantum of salary and benefits earned and the acceptable working atmosphere previously enjoyed by the workers. In addition, the affected workers may also encounter difficulties in adjusting themselves to new work-style, trades or occupation which differs greatly from the nature of their previous job, for instance, certain cases of employees in the banking industry.

25.    Other effects resulting from the termination of workers’ services is the inevitable increase in the rate of unemployment in the country.  The social effect brought about by the termination of workers’ services to the government is also problematic, specifically in allocating funds for special program to retrain workers who were terminated from service, in addition to the need to pool resources and efforts together to avert social problems which may arise.
 
26.    Despite the above undermining effects, with Malaysian caring concept in mind, the government took strides to initiate policy to assist workers who lost their jobs amidst economic uncertainties. These initiatives in the form of the government’s economic stimulus packages, which among others are translated for execution through the “Train and Place” programs undertaken by my Ministry, are targeted at facilitating job seekers into acquiring new skills and competencies which are essential in securing their employability and continued employment.  Malaysian job seekers have yet to maximize the opportunity offered by the Ministry’s “Train and Place” program.

27.    The lack of positive response by job seekers to such programs in this turbulent time appears to offer no realistic justification to explain why Malaysian job seekers who were either unemployed or retrenched could not take up the challenge to go for training and accept alternate employment, especially when training and job opportunities are awaiting at their doorstep , whereas foreign workers could travel through the breath of islands and across the Straits of Malacca to seek employment here.  To ensure continued growth in an economic downturn, job seekers must do away with complacency. They should instead maximize the government’s “Train and Place” program and register themselves through the Ministry’s JobsMalaysia portal to facilitate training, job search, job-matching and job placement services.  

28.    One of the salient policies in managing retrenchment exercises due to economic slowdown is the need for organization employing foreign workers to firstly retrench or terminate the services of foreign workers over local workers. This underlying policy which is aimed at ensuring security of tenure to local workers must be given due regard by employers. Present employment law requires employer to adhere strictly to this requirement whereby non-compliance renders a person to penal action. (In this regard, statistics compiled by my Ministry for the period ending 15 Jun, 2009 show 6,236 foreign workers who were retrenched due to the present economic slowdown.)
 
29.    On retrenchment, the principles enunciated in the Code of Conduct for Industrial Harmony form substantial parts of the guideline on retrenchment detailing the procedures to be followed before exercising retrenchment. The procedures to be followed among others include (1) giving early and adequate warning/notice of the impending retrenchment; (2) retraining and transfer (out-placement services); and (3) consultation with workers representative; (4) Voluntary retrenchment and retirement; (5) selection for retrenchment (Last In First Out Policy); (6) to work closely with relevant government department or agencies to assist workers to find alternative employment.

Ladies and Gentlemen,

30.    Managing industrial relations issues in the present context, demands real collaboration rather than confrontation stance among parties concerned. Such stance and mindset must be our goals as it will create the platform for greater synergy and a better comprehension and appreciation of the problems faced. Employers and unions play equally important roles in providing feedback from the ground by consulting their constituents, and representing and voicing their issues and concerns.

31.    It will not be an easy balance to achieve, but by listening to and sharing viewpoints during this conference today, it is hoped that we can create pragmatic approaches to deal with the current difficulties we are facing, so that we can effectively address them and move forward with renewed optimism for the benefit of workers, employers and the economy.

Ladies and Gentlemen,

32.    To facilitate realization of the aforesaid policies and objectives, let me impress upon you that the government through my Ministry had promulgated for implementation the Ministry’s Strategic Plan Objectives 2008-2010 in realizing the Decent Work Agenda for the Malaysian workforce.  The Ministry’s Decent work agenda capture all four dimensions of the concept of decent work governing areas on labour standards and fundamental principles and rights at work; employment opportunities;  social protection; and social dialogues. Beyond a common set of main indicators, the decent work indicators should also reflect country-specific circumstances and priorities.  

33.    The Ministry will ensure relevant national labour strategy and programs are promulgated and implemented in order for Malaysia to remain viable and be able to compete globally.  These strategic plans serve as a crucial platform to inculcate the policy of Decent Work in the Malaysian employment scenario. The Ministry’s responsibilities begin when a person enters the labour market until the time he leaves employment.  In this purview, the Ministry undertakes to execute its planned objectives of ensuring Malaysian workers have an opportunity for employment, to reasonable earnings and benefits which guarantees a decent living.  

34.      The Decent Work agenda focuses into developing an industrial society which is productive, knowledgeable, disciplined, caring and responsive to changes in the labour environment. It seeks to induce a conducive work environment with harmonized industrial relations besides upholding social justice and maintain industrial harmony through expeditious settlement of disputes between employers and employee and the cognizance of collective agreements.  Emphasis is also granted to ensuring dynamic changes in respect of Occupational Safety and Health and its related regulations are widely adhered to, through effective enforcement besides developing knowledgeable, competent human capital with positive core values to support Government's aspiration of a developed nation status by year 2020.  

35.    By realizing Decent Work, we will be able to attract investments into the country, create more employment opportunities and encourage progressive participation of the workforce towards meeting employment challenges and enhancing national competitiveness.  In our journey forward, the government under the auspices of my Ministry performs the vital role in developing a competitive and skilled national workforce to meet the needs of the industry.  

36.    The current generation of citizens has to take the challenge of development as we move on in our pursuit of becoming a fully developed nation by year 2020.  We have to take the actions that will help us to realize the goals we seek to achieve and create the country in which we want to live.  Sustained economic growth and employment generation are crucial to provide for decent work for all sectors of the workforce.

37.    In this context, the Ministry focuses on programs and activities in cooperation with the social partners in its aspiration to realize Decent Work at the workplace in Malaysia.  Decent Work sums up the aspirations of people in their working lives – their aspirations for opportunity and income; their rights, their voice and recognition; their family stability and personal development; of fairness and gender equality. Ultimately these various dimensions of decent work underpin peace in communities and society.  Decent work reflects the concerns of governments, workers and employers, who together show their unique tripartite identity.



Ladies and Gentlemen,

38.    I am confident the objectives and aspirations of the government in the management of human resources can be realized through proceedings of a tripartite nature, such as this conference in which we are participating today.  I am convinced, through active interaction and involvement in this get-together here, should facilitate the accomplishment of the vital objectives of the conference which we subscribe to together, in sharing strategies and established principles in addressing industrial relations issues in an economic downturn, apart from providing an opportunity to regularize networking and exchange of ideas and experiences in order to prompt continued sound and quality industrial relations in turbulent times.

39.    It is my sincere expectation that this conference should serve as a productive platform for participants to discuss issues related to promoting and implementing our nation’s decent work program, with specific regards to the theme of this conference – “Towards Industrial Harmony in an Economic Downturn”.  

40    Making a difference as we journey forward to excellence certainly demands ‘commitment and sacrifices’, as Steven Covey said “Real excellence does not come cheaply - a certain price must be paid in terms of practice, patience and persistence - natural ability notwithstanding”.   Let us look at things with new eyes as we innovate newness, to cope with change and manage emerging challenges”. To my mind, as Robert Schuller once said, “The compulsion for excellence should assure excitement”.  Consequently, participants may propose strategies and measures that should be considered for adoption by all parties concerned.  I wish all valued participant a fruitful proceeding.

41.    … and with those notes, ladies and gentlemen, it is now my pleasure and privilege to declare open this FMM Conference on Industrial Relations 2009. Thank you so very much.

Assallamualaikum Warahmatullahi Wabarakatuh.