The Role of Employers' Unions in Industrial Relations in Malaysia
Abstract
This paper analyses the role of employer unions in the context of industrial relations in Malaysia. Employer unions are coalitions of employers operating in various industrial sectors across the country. There are unions or federations representing employers across diverse economic sectors, as well as associations whose members are specifically involved in particular or similar business activities. This paper focuses on their roles in various activities, such as contributing to legislative development, engaging in collective bargaining, and resolving industrial disputes. The analysis begins with the question of the role played by employer unions, particularly in the formulation of national industrial relations policies. It raises the question: Do employer unions always oppose or cooperate with the government in formulating industrial relations policies and legislation? Through a qualitative approach, this paper analyses trends and patterns of action among employer unions in Malaysia’s industrial relations by referencing statistics, association reports, books, and journal articles. The findings reveal that employer unions contribute meaningfully to national labour policies, whether through their roles in drafting or amending new legislation, engaging in collective bargaining, or participating in dispute resolution processes.
Keywords: Employer associations, trade unions, industrial relations, collective bargaining, trade dispute
References
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33. Parthiban S. Gopal, & Suresh Narayanan. (2017). Collective agreements and the wages of rubber tappers in Malaysia, 1954–2003: A revisit of “bad bargains”. Malaysian Journal of Economic Studies, 54(1), 141–157. https://doi.org/10.22452/MJES.vol54no1.7
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40. Siti Suraya Abd Razak, & Nik Ahmad Kamal Nik Mahmod. (2019). An analysis of the good faith bargaining process: Reform of the Malaysian trade union legal framework. IIUMLJ, 27(2), 501–524.
41. Siti Suraya Abd Razak, & Nik Ahmad Kamal Nik Mahmod. (2021). Ratification of International Labour Convention and the reformation of trade union recognition process in Malaysia. Pertanika Journal of Social Sciences and Humanities, 29(1), 193–206. https://doi.org/10.47836/pjssh.29.1.11
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43. Tollefsen, D. P. (2015). Groups as agents. John Wiley and Sons.
44. Wood, E. M. (2002). The origin of capitalism, a longer view. Verso.
2. Beson, J., Zhu, Y., & Gospel, H. (Penyunting). (2017). Employers’ associations in Asia, employer collective action (Edisi Pertama). Routledge.
3. Bhala, R., Howse, R., Lester, S., & Weiss, M. (2016). To TPP or not TPP? Should the U.S. join the trans-pacific partnership and other international trade agreements? Journal of International Business and Law, 16(1), 7. https://scholarlycommons.law.hofstra.edu/jibl/vol16/iss1/7
4. Bloom, N., Han, R., & Liang, J. (2024). Hybrid working from home improves retention without damaging performance. Nature. https://doi.org/10.1038/s41586-024-07500-2
5. Bratman, Michael E. (2000). Valuing and the will. Philosophical Perspectives, 14, 249–65. http://www.jstor.org/stable/2676131
6. Carstensen, B. M., Ibsen, C. L., & Schmidt, A. V. (2022). Ideas and power in employment relations studies. Industrial Relations, 61(1), 3–21. https://doi.org/10.1111/irel.12302
7. Chaison, G. N., & Bigelow, B. J. (2002) Unions and legitimacy. ILR Press. https://id.erudit.org/iderudit/006913arCopiedAn error has occurred
8. David, P., & Todd, P. (2001). Otherwise you’re on your own: Unions and bargaining in Malaysian banking. International Journal of Manpower, 22(4), 333–348.
9. Farnham, D. (2008), Beatrice and Sidney Webb and the intellectual origins of British industrial relations. Employee Relations, 30 (5), 534–552. https://doi.org/10.1108/01425450810888295
10. Federation of Malaysian Manufacturers. (t.t.). Official website of the Federation of Malaysian Manufacturers (FMM). https://www.fmm.org.my
11. Goldman, L. (2020). Immanuel kant, radical thinkers, versa books 2025. https://www.versobooks.com/en-gb/products.
12. Gooberman, L., & Hauptmeier, M. (Penyunting). (2022). Contemporary employers’ organizations: adaptation and resilience. Routledge.
13. Graves, A., & Moorthy, N. (2016). Because of the Trans-Pacific Partnership, “we’ve got a country like Malaysia taking really serious efforts to crack down on human trafficking”. Politifact. The Poynter Institute. https://www.politifact.com/factchecks/2016/aug/05/barack-obama
14. Ibsen, L. C. (2016.) Making sense of employer collectivism – The case of Danish Wage bargaining under recession. Journal of Industrial Relations, 58(5), 669–687.
15. Ibsen, L. C., & Navrbjerg, E. S. (2022). Keeping the state out through legitimacy: Employers’ organizations in Denmark. Dlm. L. Gooberman & M. Hauptmeier (Penyunting), Contemporary employers’ organizations: Adaptation and resilience (Edisi pertama, hlm. 122–138). Routledge.
16. International Labour Organization (ILO). (2022). Social dialogue report 2022, collective bargaining for an inclusive, sustainable and resilient recovery. ILO.
17. Kamal Halili Hassan, Rozanah Ab. Rahman, & Mariani Ismail. (2024). Legal aspects of industrial safety in Malaysia. Dewan Bahasa dan Pustaka.
18. Kamal Halili Hassan. (2015). Regulatory impact analysis in legal research: Way forward for Malaysian legislation. Mediterranean Journal of Social Sciences, 6(3), 520–524.
19. Kessler, I., & Purcell, J. (2003). Individualism and collectivism. Dlm. P. Edwards (Penyunting), Industrial relations theory and practice (Edisi kedua, hlm. 313–337), Blackwell.
20. Lee Hishamuddin, & Gled Hill. (2024). https://lh-ag.com/wp-content/upload
21. Lee Kiong Hock, & Sukumaran Alagandram. (1996). Contract labour in Malaysia: Perspectives of principal employers, contractors and workers’. International Labour Review, 135(6), 75–91.
22. Li, C., & Whalley, J. (2021). Effects of the comprehensive and progressive agreement for trans Pacific Partnership. The World Economy, 44(5), 1312–1337. https://doi.org/10.1111/twec.13026
23. Lim Weng Khuan. (2023). A practical guide to negotiating collective agreements with trade unions in Malaysia (Edisi semakan kedua). Creation Sdn. Bhd.
24. Liukkunen, U. (2021). The role of collective bargaining in labour law regimes: A global approach. Dlm. K. Boele-Woelki, D. P. Fernández Arroyo & A. Senegacnik (Penyumting), General Reports of the XXth General Congress of the International Academy of Comparative Law - Rapports généraux du XXème Congrès général de l’Académie internationale de droit comparé. Ius Comparatum - Global Studies in Comparative Law, (Jil. 50, hlm. 373–408). Springer. https://doi.org/10.1007/978-3-030-48675-4_14.
25. Mahkamah Perusahaan Malaysia. (t.t.). www.mp.gov.my
26. Malaysia Employers Federation (MEF). (2022). Annual report 2022. www.mef.gov.my
27. Mohd Bakri Abu Bakar, Nurul Syahirah Zakaria, Nor Azlina Mohd Ariffin, Iswandi Harahap, Muhamad Wazir Muslat, & Mohd Adlin Salleh. (2022). The perception of employees on work-from-home during movement control order in Malaysia. Malaysian Journal of Social Sciences and Humanities (MJSSH), 7(6), e001568. https://doi.org/10.47405/mjssh.v7i6.1568
28. Nagiah Ramasamy. (2017). Employers’ associations in Malaysia: Seeking greater relevance. Dlm. J. Benson, Y. Zhu & H. Gospel (Penyunting), Employers’ associations in Asia: Employer collective action (hlm. 205–228). Routledge. https://doi.org/10.4324/9781315672335-11
29. Nehaa, V. (2023). Comparative analysis of collective bargaining in India and Japan. Indian Journal of Law and Legal Research, 5(1), 1–12. https://www.ijllr.com/post/comparative-analysis-of-collective-bargaining-in-india-and-japan
30. Neil, H. R. (2020). Employer associations: Collective bargaining, services and power in historical perspective: The case of the EEF in the UK. Labor History, 61(3–4), 286–299. https://doi.org/10.1080/0023656X.2020.1725811
31. Nordin Nurnaddia, Nordin Nurhaiza, Yusoff N. Mohamed, & Zainudin Norzalina. (2021). The impact of minimum wage on employment in Malaysia’. Dlm. B. Alareeni, A. Hamdan, & I. Elgedawy (Penyunting), The importance of new technologies and entrepreneurship in business development: In the context of economic diversity in developing countries (hlm. 858–869). Springer International Publishing. https://doi.org/10.1007/978-3-030-69221-6_66
32. Parthiban S. Gopal, & Suresh Narayanan. (2017). Collective agreements and the wages of rubber tappers in Malaysia, 1954–2003: A revisit of “bad bargains”. Malaysian Journal of Economic Studies, 54(1), 141–157. https://doi.org/10.22452/MJES.vol54no1.7
33. Parthiban S. Gopal, & Suresh Narayanan. (2017). Collective agreements and the wages of rubber tappers in Malaysia, 1954–2003: A revisit of “bad bargains”. Malaysian Journal of Economic Studies, 54(1), 141–157. https://doi.org/10.22452/MJES.vol54no1.7
34. Pei Ling Tin., Yusof M. Fathi., Nik Mahmood N. Hasnaa, & Hup Soon Tan. (2014). The implementation of minimum wages in Malaysia. Sains Humanika, 2(2), 3–46.
35. Rabiu Shatsari, & Kamal Halili Hassan. (2006). The right to collective bargaining in Malaysia in the context of ILO standards. Asian Journal of Comparative Law, 1, 1–20.
36. Rahmat Lim & Partners. (2023, 29 Disember). Trade Unions (Amendment) Bill 2023 passed in Senate. Rahmat Lim & Partners. https://www.rahmatlim.com/publication/articles/27322/trade-unions-amendment-bill- 2023-passed-in-senate
37. Refslund, B. (2025). Theorizing collective action: Instrumental collectivism as a key concept for explaining workplace collective action. Industrial Relations: A Journal of Economy and Society, 64(2), 229–245. https://doi.org/10.1111/irel.12364
38. Shussett, D. (2024). Group Agency. Dlm. M. Sellers & S. Kirste (Penyunting), Encyclopedia of the Philosophy of Law and Social Philosophy. Springer. https://doi.org/10.1007/978-94-007-6730-0_1151-1
39. Siti Marshita Mahyut, Harvind Singh Terlok Singh, Jivashini Ravi, Logeswari Yogalingan, Jeremy Russel Danker, & Vishnu Darshan Thiagarajan. (2023). Impactful changes: Analyzing the Employment (Amendment) Act 2022 on employers and employees in Malaysia’. Dlm. Y. C. Adam & S. A. Samsudin (Penyunting), Proceedings of the 3rd International Conference on Law and Digitalization, 7–37.
40. Siti Suraya Abd Razak, & Nik Ahmad Kamal Nik Mahmod. (2019). An analysis of the good faith bargaining process: Reform of the Malaysian trade union legal framework. IIUMLJ, 27(2), 501–524.
41. Siti Suraya Abd Razak, & Nik Ahmad Kamal Nik Mahmod. (2021). Ratification of International Labour Convention and the reformation of trade union recognition process in Malaysia. Pertanika Journal of Social Sciences and Humanities, 29(1), 193–206. https://doi.org/10.47836/pjssh.29.1.11
42. Tingting Wu, & Dhirendra Chadee. (2022). Comprehensive and progressive agreement for Trans-Pacific Partnership (CPTPP): Implications for the Asia-Pacific Region. Dlm. Tingting Wu & Neng Liang Bu (Penyunting), International business in the new Asia-Pacific: Advances in theory and practice of emerging markets. Springer. https://doi.org/10.1007/978-3-030-87621-0_3
43. Tollefsen, D. P. (2015). Groups as agents. John Wiley and Sons.
44. Wood, E. M. (2002). The origin of capitalism, a longer view. Verso.
Published
2025-07-31
How to Cite
HASSAN, Kamal Halili.
The Role of Employers' Unions in Industrial Relations in Malaysia.
Kanun: Jurnal Undang-undang Malaysia, [S.l.], v. 37, n. 2, p. 187-210, july 2025.
ISSN 2682-8057.
Available at: <http://jurnal.dbp.my/index.php/Kanun/article/view/9027>. Date accessed: 02 aug. 2025.
Section
Articles
