Partnership Industrial Relations of The Retail Sector in Malaysia.

Group 63/1018
PARTNERSHIP INDUSTRIAL RELATIONS OF THE

RETAIL SECTOR AND THEIR RELATIONSHIP
WITH TRADE UNIONS IN MALAYSIA
BY
AMANDA JOAN CHOW
A final year project submitted in partial fulfilment of the

requirement for the degree of
BACHELOR OF INTERNATIONAL BUSINESS

(HONS)
UNIVERSITI TUNKU ABDUL RAHMAN
FACULTY OF ACCOUNTANCY AND

MANAGEMENT DEPARTMENT OF
INTERNATIONAL BUSINESS
APRIL 2019
Partnership Industrial Relations of the Retail Sector in Malaysia.
COPYRIGHT PAGE
Copyright @ 2019
ALL RIGHTS RESERVED. No part of this paper may be reproduced, stored in a

retrieval system, or transmitted in any form or by any means, graphic, electronic,
mechanical, photocopying, recording, scanning, or otherwise, without the prior
consent of the authors.
ii
DECLARATION
We hereby declare that:
(1) This undergraduate FYP is the end result of our own work and that due
acknowledgement has been given in the references to ALL sources of
information be they printed, electronic, or personal.
(2) No portion of this FYP has been submitted in support of any application for
any other degree or qualification of this or any other university, or other
institutes of learning.
(3) Equal contribution has been made by each group member in completing the
FYP.
(4) The word count of this research report is 9085 words.
Name of Student: Student ID: Signature:

1. Amanda Joan Chow 15UKB00023
Date: 16 April 2019
iii
ACKNOWLEDGEMENT
First of all, we would like to express our heartfelt gratitude and appreciation to our
supervisor, Miss Lee Sim Kuen, for her valuable time, guidance and comments
rendered throughout this entire study, until the completion of this research.
Apart from this, we would also like to thank Union Network International –
Malaysia Labour Centre, UNI Global Union – Asia & Pacific for their guidance in
the course of carrying out this research. We would also like to thank all individuals
who directly or indirectly guided us with new insights and ideas on the path of
completing this study.
In addition, we wish to thank our parents for all their supports, be it morally, efforts
or monetary, as well as their encouragements given to us.
iv
DEDICATION
This research is dedicated to the individuals who has attempted to set the author’s
life on fire (figuratively) in an attempt to extinguish her. Unfortunately (or,
fortunately) the author was moulded and remade from fire. With a renewed
perspective in life, and a raging spirit of determination, the author sincerely thanks
these individuals for serving her the best setbacks and failures one could afford in
life as it has showed the author that the perception of an individual’s limitations and
boundaries are merely a suggestion of what can be successfully achieved.
Furthermore, the author would like to thank individuals who have contributed
countless amounts of kites to her (they told me to ‘fly kite’) as it has been used as
firewood to propel the author when the she starts doubting her abilities.
Penultimately, the author would like to sincerely thank kind individuals who had
taken the time and effort to support the author by allowing the author to talk their
ears off and make jokes so cold that the Kelvin scale says 0 K (meaning OK).
Finally, the author would like to thank her parents for playing along with the ‘we
picked you up from the rubbish bin’ story and has been driving the author to the
nearby dumpster every birthday and whenever she doubts herself too much (or close
to giving up) in an attempt to remind her that she is blessed in many ways and were
given many opportunities that she has taken for granted.
Author’s note; The dumpster is used not in a degrading way, but a point of reference
to the Payatas feeding project the author has been actively involved in. Payatas is
Manila’s open dumpsite, and it is what some people call home. Residents struggle
with homelessness, malnutrition, unemployment, a lack of opportunities
(employment & education) following the stigma against employing people from
this district.
v
TABLE OF CONTENTS
Page
Copyright Page.........................................................................................................ii
Declaration ............................................................................................................. iii
Acknowledgement .................................................................................................. iv
Dedication ................................................................................................................ v
Table of Contents .................................................................................................... vi
List of Tables ....................................................................................................... viii
List of Figures ......................................................................................................... ix
List of Abbreviations ............................................................................................... x
List of Appendices .................................................................................................. xi
Preface....................................................................................................................xii
Abstract ................................................................................................................ xiii
CHAPTER 1: INTRODUCTION ............................................................................ 1
1.1 Introduction ................................................................................. 1
1.2 Research Background .................................................................. 1
1.3 Problem Statement....................................................................... 2
1.4 Research Objectives .................................................................... 3
1.5 General Objectives ...................................................................... 3
1.6 Significance of the study ............................................................. 4
1.7 Chapter Layout ............................................................................ 5
1.8 Conclusion ................................................................................... 6
CHAPTER 2: LITERATURE REVIEW ................................................................. 7
2.1 Introduction ................................................................................. 7
2.2 Literature Review ........................................................................ 7
2.2.1 Industrial Relations 7
2.2.2 Social Dialogue ............................................................. 9
vi
2.3 Conclusion ................................................................................. 14
CHAPTER 3: METHODOLOGY ......................................................................... 15
3.1 Introduction ............................................................................... 15
3.2 Research Design ........................................................................ 15
3.3 Data Collection Methods ........................................................... 16
3.4 Sampling Design ....................................................................... 17
3.4.1 Target Population ........................................................ 17
3.4.2 Sampling Frame and Sampling Location .................... 18
3.4.3 Sampling Elements ...................................................... 18
3.4.4 Sampling Technique .................................................... 19
3.4.5 Sampling Size .............................................................. 19
3.5 Research Instrument .................................................................. 19
3.6 Conclusion ................................................................................. 20
CHAPTER 4: DATA ANALYSIS ........................................................................ 21
4.1 Introduction ............................................................................... 21
4.2 Descriptive Analysis .................................................................. 21
4.2.1 Respondent Demographic Profile ............................... 29
4.3 Conclusion ................................................................................. 33
CHAPTER 5: DISCUSSION, CONCLUSION AND IMPLICATION ................ 35
5.1 Introduction ............................................................................... 35
5.2 Discussion of Major Findings ................................................... 35
5.3 Implication of the Study ............................................................ 36
5.4 Limitations of the Study ............................................................ 36
5.5 Recommendations for Future Research ..................................... 38
5.6 Conclusion ................................................................................. 38
References .............................................................................................................. 40
Appendices ............................................................................................................. 43
vii
LIST OF TABLES
Page
Table 4.1: Respondent A 29
Table 4.2: Respondent B 30
Table 4.3: Respondent C 30
Table 4.4: Respondent D 31
Table 4.5: Respondent E 32
Table 4.6: Respondent F 33
viii
LIST OF FIGURES
Page
Figure 2.1: Social dialogue triangle 10
Figure 2.2: Cycle of social dialogue 12
Figure 2.3: Typology of social dialogue 13
ix
LIST OF ABBREVIATIONS
ASEAN Association of South East Asian Nations

ETUC European Trade Union Confederation
ILO International Labour Organisation
IR Industrial relations
NGO Non-governmental organisation
SD Social dialogues
UNI Union Network International
UNI-APRO Union Network International-Asia Pacific Regional
Organization
UNI-MLC Union Network International – Malaysia Labour Centre
WEC World Employment Confederation
x
LIST OF APPENDICES
Page
Appendix 1.1 Questionnaire (English) .................................................................. 43
Appendix 1.2 Questionnaire (Bahasa Malaysia) ................................................... 46
xi
PREFACE
The subject of this research was motivated by the personal experiences of the author,
whereby she has witnessed the unjust treatment of blue-collar and undocumented
workers, especially those in the service and retail sector. As such, she became
determined in finding ways to improve employees’ quality and standard of life by
first focusing on workplace-relations through the study of industrial relations the
use of social dialogue as an anchor. Such experiences has strengthened her
motivation in conducting this research with the hopes that her literature will bring
significant change by being adopted not only by multinationals, but also local small
medium enterprises nationwide, with the help of the local union and the Malaysian
government.
The start of the first step within the journey of upholding workers’ rights were
further fuelled by the lack of literature regarding the practice of industrial relations
within Malaysia as well as the discovery of Magdelene M. Kong’s study on Social
Partnership Industrial Relations in PT Hero Supermarket, Indonesia which had
opened the author’s eyes on how a bottom-up social partnership approach can
initiate sustainable changes within a local social system through the involvement of
the union, which has acted as a bridge between union and management in forming
relationships.
As such, the author had been intrigued by Hero Supermarket’s success and hopes
that her study on the retail industry in a Malaysian perspective is able to facilitate
organisations in replicating such successes locally.
xii
ABSTRACT
In this exploratory paper, we examine the views of retail workers, enterprise trade
unions and national and regional trade union organizations on the role of partnership
industrial relations in the retail sector of Malaysia, as well as the relevance of trade
unions within this context through reference to a focused group interview. The
practice of social dialogues as a method of communication in fostering positive
industrial relations with employees have been practiced and implemented by
regional, local and enterprise trade union and have indicated that employees and
stakeholders were able to communicate effectively and achieve mutual
understanding.
Our findings yield that the practice of social dialogue in maintaining positive
industrial relations has added value in sustainable long term industrial relations
which benefits employers and stakeholders, which resulted in mutual respect, trust
and sharing a common objective and vision as long as there are consensus building
and involvement involved.
xiii
CHAPTER 1: INTRODUCTION
1.1 Introduction
This chapter consists of a total of five sections. Within the first section, the
background of the study was highlighted with regards to globalisation and the
industrial relations, followed by the problem statement of this research. The third
section will encompass research objectives and covers the general objectives. The
fourth section will cover specific objectives which is key in shaping the research
questions. The fifth section will touch on the discussions, conclusion and
implications of findings that have occurred following the fourth section of this paper.
1.2 Research Background
Due to globalisation, there had been significant development in opportunities for

countries has been created through trade and use of technology resulting in a
widening market for goods and services and investment opportunities. Such
development has resulted in negative impacts of globalisation which accelerates
“the race to the bottom” to enable multinational companies in acquiring higher
profits. This leads to exploitation of labour and particularly affects workers in terms
of working conditions, employment, international labour standards, equality as well
as social protection. (Ng, 2015)
Therefore, the International Labour Organisation (ILO) has placed an importance

on social dialogue amongst the three groups, government, workers and employers’
organisation in promoting international labour standards in line with the key
premise of Fair Globalisation. The ILO promotes the formation of trade union as an
essential party in industrial relations. Trade unions are an organization of workers
which seeks social dialogues with employers to be the voice of their members by
representing their members and negotiating with employers. (Daud & Tumin, 2013)
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The retail sector has been undergoing significant transformation, with multinational
companies acquiring larger market shares due to the deregulation of foreign
investment, and deregulation on monopoly within the retail industry. The practice
of these multinational companies in cutting labour cost by subcontracting and
franchising in an attempt to reduce investment risk have impacted smaller firms,
suppliers, consumers and employees significantly. (Luce, 2013)
1.3 Problem Statement
This study is motivated by Magdelene M. Kong’s study on Social Partnership

Industrial Relations in PT Hero Supermarket, Indonesia which has demonstrated
that industrial relations can be self-sustained through social partnership between an
international company and local stakeholders through the involvement of the union,
which has acted as a bridge between union and management in forming
relationships. This had effectively demonstrated local stakeholder empowerment
through international networks of civil groups. (Kong, 2011)
The success of Indonesia’s Hero Supermarket’s social partnership model and its
impact on the emerging tripartite relationship in Indonesia had demonstrated how a
bottom-up social partnership approach were able to initiate sustainable changes
within a local social system. (Kong, 2011)
This breakthrough has aroused the interest of our researcher in examining if these
successes could be replicated within Malaysia, and if so, in what manner. Therefore,
the limited academic literature regarding the role of trade unions within Malaysia
had inspired our study to examine the partnership industrial relations of retail sector
and their relationship with trade unions in Malaysia.
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1.4 Research Objectives
The objectives of this study is to investigate how an organization builds a successful

and meaningful relationship between management and stakeholders as well as
resolving issues faced through industrial relations from the view point of workers,
enterprise trade unions and national and regional trade union organisations.
1.5 General Objectives
The general objectives of this study are follows:

1. To identify the benefits of an organization practicing meaningful, successful
social dialogues from the perspective of both workers as well as trade unions.
2. To identify the problems faced by the retail workers as well as the trade
union in the process of implementing and conducting meaningful,
successful social dialogues.
3. To identify any strategies adopted by industrial relations actors as well as
union leaders in overcoming or minimizing implementation issues.
4. To identify and analyse any current or ongoing issues among stakeholders.
Specific Objectives
The specific objectives of this study are as follows:
To investigate the key practices an organisation utilises to ensure a successful and
fruitful relationship between management and stakeholders as well as the methods
employed to resolve issues not only in terms of implementation, but also regarding
ongoing practise of industrial relations from the eyes of their workers, enterprise
trade unions, as well as national and regional trade union organisations to improve
the livelihood and wellbeing of both partners.
Research Questions
The following are the research questions derived from the general objectives as
mentioned above;
Page 3 of 48
1. What are the benefits of practicing meaningful social dialogues from the
view point of stakeholders?
2. What are the problems faced during the process of implementing and
conducting successful social dialogues?
3. What are the strategies adopted in overcoming or minimizing
implementation problems?
4. Whether there are any current or ongoing issues among stakeholders?
1.6 Significance of the study
The Statistics Department of Malaysia has reported that Malaysia’s wholesale and
retail trade has grown by 8 % within the fourth quarter of 2018, and a further 7.8%
of the total Gross Domestic Product in January 2019. The performance break down
in terms of sub-sector shows that the retail trade is mainly responsible for the
significant growth as the growth spurt was contributed by an increase of 12.4% in
retail trade within December 2018 with a further growth of 10.6% in January 2019
alone. (Mahidin, 2019)
In terms of Malaysia’s retail industry’s growth prospects, the Retail Group Malaysia
– a leading retail consulting firm in Malaysia, forecasts the retail industry to expand
by 3.9% during the third quarter of 2019, with an expected further increase of 5.8%
by the end of the year. (The Star Online, 2019)
This reflects that the commerce sector (wholesale and retail sector) is an important
segment of the economy. Even so, there are limited discussions regarding the
human resource relationship that deals with this industry – as this is an important
segment relating to the growth of the Malaysian economy, this research was carried
out to give some insight on how the retail industry maintains industrial harmony.
This is more so important when we consider Malaysia as a member of the ASEAN

Economic Community which aims to realise economic integration within the region
to present itself as one market and production base. By doing so, members of the
Page 4 of 48
economic community will be part of a highly competitive region with free

movement of goods and services, investment as well as a more relaxed flow of
capital and skills. (Association of South East Asian Nations, n.d.)
Therefore, our research findings will play an important role in terms of company
management, employers’ association, governments, workers and trade unions as a
reference of methodology to deal with the labour relations issues and how to achieve
a win-win situation from all parties, as well as a peek on how this approach could
assist a company’s growth.
This research looks behind the barriers and success of social dialogues in the
prospect of labour in Malaysia. This may assist the social partners in implementing
social dialogues in future and may also give them insight on what to expect based
on our respondent’s experiences.
In addition, the findings of this study could offer useful information for social
partners on how social dialogues can be used in Malaysia, should they chose to
utilise this model. Finally, this study could also provide references for other
researchers and academics in continuous research on the effectiveness of social
dialogues in other sectors or industries of their study.
1.7 Chapter Layout
Chapter 1: Introduction
This chapter is a preliminary chapter which presents partnership industrial relations
of the retail sector and their relationship with trade unions in Malaysia. It also
outlines the research objectives, research questions and the hypotheses. The
significance of the study and the overall chapter layout of the research project will
be highlighted.
Page 5 of 48
Chapter 2: Literature Review

This chapter consists of the review of literature which encompasses industrial
relations and social dialogues. This chapter will define various dimensions and talks
about the different views of authors to give a clear understanding of how industrial
dialogue functions, as well as the use of social dialogues as a key component in
establishing industrial relations. In-depth explanation about the forms of social
dialogue will be inserted as well.
Chapter 3: Methodology
Chapter three includes the research design, data collection, sampling design, and
research instrument. Target population as well as sampling frame and elements will
be justified to give a clear direction of how this study will be conducted.
Chapter 4: Data Analysis

Chapter four presents itself as the analysis and interpretation of results from the data
collected. Questions in the questionnaire will be justified along with the results from
our respondents. There will be a discussion on the respondents’ background and we
will highlight why they were chosen to participate.
Chapter 5: Discussion and Conclusion

This chapter illustrates the research project review of discussions of major findings
together with the implications and limitations we have come across during this
study with recommendations for the researcher for future research at the end.
1.8 Conclusion
In concluding this chapter, we have examined globalisation and understand its

benefits as well as consequences towards the retail industry if steps are not
maintained by workers in curbing multinational’s race to the bottom. In the next
chapter, we will examine journals and ways that this issue could be resolved in a
win-win situation for both employees and stakeholders.
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CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
In the beginning of this chapter, we will discuss about industrial relations as well as
its definitions. After that we will look into social dialogue and learn how it pertains
to the practise of industrial relations as well as look into intensities of social
dialogue, the steps of social dialogue as well as the typology and many different
ways social dialogue is practised. These frameworks will be used in answering
research objectives and questions.
2.2 Literature Review
2.2.1 Industrial Relations
To put it simply, the term industrial relations can explained in a simplified manner
by breaking down the terms ‘industry’ and ‘relations’ where ‘industry’ bears the
meaning of a productive activity an individual is engaged in, whereas the term
‘relations’ pertain to the relations existing within an industry between an employer
and his employees. (Sinclair, 2008)
The International Labour Organisation defines industrial relations as “a relationship

between the State and employers’ and workers’ organization as well as the
relationship between the occupational organization themselves”. To put it simply,
as V.B Singh describes “industrial relations are an essential aspect of social
relations which occurs from interactions between employer and employee which
are regulated by the state in varying degrees in conjunction with organized social
forces and are influenced by prevailing institutions”. (Singh, 1968)
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Additionally, most authors recognize that industrial relations is not only limited to
bipartite relations – which are relations between employer and employees
representatives, but also tripartite relations – which refers to relations encompassing
3 parties; the employer, employee and government representatives. (Roberts, 2015)
Furthermore, some authors adds an additional dimension to industrial relations – a

“tripartite plus” dimension which includes stakeholders such as NGOs, outsider
interest groups, etc. This means that they do not view relations as solely between
workers and employers but also takes into consideration the relations between
representatives of workers and employers at an industry and national levels as well
as their interaction with the state. (Ishikawa, 2003)
Therefore, the term industrial relations can be used as an expression to denote

matters regarding the freedom of association as well as the protection of the right
to organize. With the application of the principles of the right to organize,
employees will earn the rights to practice collective bargaining through methods of
collective agreements, conciliation and arbitration as well as other machinery which
allows for greater cooperation between relevant authorities and occupational
organizations within various levels of economy. (Kilhoffer, Lenaerts, & Beblavý,
2017)
In the perspective of employers, the World Employment Confederation is a

collective group of employers of agency workers which also believes in having
meaningful, constructive relations with trade unions. As such, they have collective
labour agreements which has been concluded not only within a company or sector
level, but also on a regional and global scale. So far, the outcomes of sectoral social
dialogues have contributed to the establishment of training funds, social funds,
health and safety funds, pension as well as compliance funds which are set and
contributed by both employee and employers for the betterment of all parties.
(World Employment Confederation, n.d.)
According to Christopher Ng, UNI Apro Regional Secretary. Companies, workers

and unions have a vital role to play in fostering a strong spirit of partnership to
facilitate business expansion, create better jobs, and promote decent work on
Page 8 of 48
sustainable terms and conditions of employment. Industrial relations arising from

individual relations and joint consultations between employers and employees in
the workplace can be facilitated through the government’s efforts in regulating these
relations which may help increase the frequency of successful collective relations.
Efforts in building these relations will benefit not only the management and workers,
but the overall industry as well as the country’s economy. (Ng, 2015)
2.2.2 Social Dialogue: a key component of industrial relations
Currently, there is no universally agreed definition of social dialogue. This reflects

the diversity within each country through the different ways each culture practice
social dialogue through their own set of processes and practices.
Therefore, the general idea of a social dialogue can be described as, all types of
negotiation, consultation or any exchange of information between representatives
of governments, employers and workers, regarding issues of common interest to
negotiations. Social dialogue is a key component of industrial relations because
social dialogue is the method of communication between parties seeking to build a
strong industrial relationship with each other. (Ishikawa, 2003)
The International Labour Organisation defines social dialogue as; “a bipartite direct
relations between labour and management whereby the government may or may not
be involved informally or, tripartite process with the government being recognized
as an official party to the dialogue. These can take place at a national, regional,
sectoral or enterprise level”. Forms of dialogues can take place in multiples forms,
namely informally, on a need-basis or in a formal and institutionalized manner.
However, in reality this often takes places as a combination of the two because
informal processes are as important as formal processes. (Ishikawa, 2003)
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Figure 2.1: Social dialogue triangle
High
Negotiation
Intensity Consultation
of social
dialogue
Exchange of Information
Low
Source: Ishikawa (2003). Key Features of National Social Dialogue: a Social

Dialogue Resource Book. Geneva: International Labour Office.
The ILO illustrates social dialogue in the form of a triangle with different levels of
intensities. Within the triangle, at the bottom-most is the exchange of information
where the beginning of a social dialogue happens. It is here that consultation
happens – social partners begin to share information and engage in dialogues
amongst themselves. Take note that while no real discussion takes place here, it is
still a crucial step as it represents the starting point of a more substantive social
dialogue.
After exchange of information comes the next step - consultation process, while
there may not be any real decision making power concerned at the moment, it is a
necessary key feature in opening the floodgates towards the potential use of
collective bargaining and policy concentration. Following successful consultation,
two tools of negotiation – collective bargaining and policy concertation becomes
Page 10 of 48
available as the intensity of dialogues between parties increase even higher.

(Ishikawa, 2003)
Tools of negotiation
In examining the 2 main tools of negotiation; collective bargaining is amongst the
most widespread forms of social dialogue, and it is widely practiced across many
countries. It involves negotiations between an employer, a group of employers or
employers’ representatives and workers’ representatives in determining issues
regarding employment terms as well as wages. Collective agreements are the fruits
of successful collective bargaining and are an indication of a county’s readiness to
engage in national level tripartite policy concertation.
The second tool of negotiation - Policy concertation is defined by Berger &

Compton (2002) as “the codetermination of public policy by governments,
employers’ organisations and trade union confederations”. Therefore, Trebilcock
(1995) regards tripartite policy concertation(also known as social concertation) as
the full bloom of social dialogue because the ability of execution would mean that
employers’, workers’ representatives and governments are able to act in a concerted
multifaceted manner in addressing all national economic and social policy issues
through consensus.
Successful accomplishments of policy concertation can only happen when the

government recognizes the constructive legitimacy and constructive functions of
social partner’s participation in policy-making. Therefore, successful tripartite
concertation takes form through the results in agreements, such as internal notes or
publicized social pacts. (Ishikawa, 2003)
The different perspectives of social dialogue

While the European Trade Union Confederation (ETUC) recognizes social dialogue
similarly to the ILO’s definition, however, a narrower perspective suggested by
Visser (2001) has differentiated social dialogue from collective bargaining, stating
that social dialogue provides a setting for more effective bargaining, but it is not the
same as collective bargaining as it merely sets the stage for more effective
bargaining. This is because Visser views social dialogue as an initial stage where
Page 11 of 48
parties, first, communicate with the goal of reaching mutual understanding, which
may lead to collective bargaining.
Visser’s perspective was endorsed by the European Union High Level Group on
Industrial Relations as “a process, in which actors inform each other of their
intentions and capacities, elaborate information provided to them, and clarify and
explain their assumptions”. Therefore, the only difference between the ILO,
European Commission and other definitions of social dialogue is that Visser clearly
differentiates between social dialogue and negotiation.
Figure 2.2: Cycle of social dialogue
Information
exchange Follow-up
Agreement of
Consultation Action Implementation Monitoring
Negotiation Program Evaluation
Feedback to the next round of social dialogue
Source: Kilhoffer, Z., Lenaerts, K., & Beblavý, M. (2017). The Platform Economy
and Industrial Relations. Centre for European Policy Studies, Brussels.
Figure 2.2 above is based on Killhoffer‘s elaboration of social dialogue is adapted

from the European Commission’s definition of social dialogue and combines the
diagram from Ishikawa (2003) on the cycle of social dialogue which graphically
illustrates how social dialogue might function.
Page 12 of 48
Classification of the different forms of social dialogue

Social dialogue can be done in many different forms, and as such has been classified
by Casey and Gold (2000) and Berger and Compston (2002). These 3 basic variants
provides a simplified categorization of various forms and patterns of social dialogue
in relation to economic and social issues which are frequently discussed.
Figure 2.3: Typology of social dialogue
Labour relations issues

(Rights at work, working conditions, etc.)
Narrow social
dialogue
Insider-only Insider + outsider

representation representation
Broad social dialogue Wide social dialogue
Wider social and economic policy issues
Source: Ishikawa (2003). Key Features of National Social Dialogue: a Social

Dialogue Resource Book. Geneva: International Labour Office.
The first quadrant, ‘narrow social dialogue’ shows a tripartite or bipartite

representation involved in discussing labour relations issues. In this context,
employers, workers and their representative bodies takes places to discuss internal
issues, usually regarding pay, terms, conditions and rights at work, and social
security. This form of social dialogue are usually done through consultation
procedures or collective bargaining.
Page 13 of 48
The second quadrant, representing ‘broad social dialogue’ is usually represented in

a tripartite or bipartite manner, with issues commonly discussed being: wider
economic and social issues. In this dialogue, ‘insiders’ discuss about matters
pertaining to ‘outsider’ issues in an attempt to relate certain issues to inactive
participants through interest engagement. Examples of issues are, job creation
measures and employment policy.
2.3 Conclusion
In concluding this chapter, we see that the practise of social dialogue is key in
achieving industrial harmony. We also note the cultural differences which affects
the way different nationalities practise social dialogues and have touched on the
various ways social dialogue can be practised. In conclusion, we can say that there
is no best way to achieve industrial harmony and the practise of social dialogue
needs to be tailored to each specific region in order to be have successful industrial
relations.
Page 14 of 48
CHAPTER 3: METHODOLOGY
3.1 Introduction
Research methodology refers to a set of procedures or methods implemented by
conducting a systematic empirical study. Through collecting relevant information
relating to our study, we will be able to clarify the analysis of our findings and have
a clear mind set on the research procedures involved. As such, this chapter can be
considered an important part of the research process as it involves theoretical
foundations that will affect the collection and analysis of data.
3.2 Research Design
The research design employed in this study is qualitative research due to the need
to gauge the effectiveness of industrial relations from the perspectives of unionized
workers and their representatives, therefore, the use of interview best fits our
purpose by not only retrieving information but also facilitating our efforts in
probing for more information which the interviewee may not initially bring up.
Our questionnaire design is based on exploratory research, which is carried out to

give a clearer picture of a topic by allowing the researcher to understand the topic
in greater detail as respondents can better describe and clarify what they are trying
to convey. (Sekaran & Bougie, 2015)
The combination of a qualitative exploratory research is perfect to kick start

findings and define the main frameworks of industrial relations and social
partnership in Malaysia. This allows researches the flexibility to try to understand
and learn more from the point of view of employees which is crucial for the success
of the topic dissection there was never any research done in regards to this particular
topic and field.
Page 15 of 48
In this paper, the exploratory method is focused on the different perspectives of

stakeholders and their roles which justifies why the questions within the
questionnaires are from a multi-perspective view. Our findings will be developed
based on the opinions expressed by our respondents.
3.3 Data Collection Methods
Methods used to collect the primary data is through the use of a focused group
interview. Before the interview was conducted, a copy of the open-ended interview
questions in both English as well as Bahasa Malaysia was emailed to the union
representative for clearance, as well as permission for data collection. Once all the
necessary procedures were carried out and the green light was given, a venue as
well as suitable time to conduct the interview was set in place and interview
questions in both languages were then printed out. Then, before the survey was
started, permission was again sought by the interviewer to each and every
interviewee before the interview. A strong emphasis was given on the purpose of
the study as well as maintaining each and every interviewee’s confidentiality.
Once the interview commenced, data was collected through the interview in either
languages, and interviewees’ responses were recorded down. For interviews
conducted in Bahasa Malaysia, respondents were informed that their responses will
be translated to English and after translation, answers were re-read to the
respondents to ensure that their response was accurately captured.
While most interviews were conducted face-to-face, 2 of the respondents had the
questionnaires done via email - they requested that the open-ended interview
questions to be sent to them via email instead as they were unable to commit any
time.
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3.4 Sampling Design
3.4.1 Target Population
The target population adopted in this study are retail employees which are members
of the trade union, whose employers formally recognizes the trade unions which are
within Malaysia. Furthermore, we also had sought the opinions of a national trade
union organization (Union Network International – Malaysia Labour Centre) as
well as the opinions of a regional trade union organization (UNI Global Union –
Asia & Pacific) for comments as they are directly involved with helping members
earn their recognition, as well as helping new union set up by means such as, but
not limited to - training future leaders on honing their inner leadership skills with
the goal that they will be self-reliant in conducting dialogues with employers in the
future.
We reached out to UNI-MLC (a local union) to inquire about the companies

officially recognizing union membership and we were sent a list of participating
retail companies. As a result, we have reached out to members of IKANO Pte. Ltd.
Employees Union, Proton Edar Sdn. Bhd. Employees Union, Kesatuan Pekerja-
Pekerja AEON Big (M) Sdn. Bhd., Kesatuan Pengurus Pengurus AEON Big (M)
Sdn. Bhd. and Kesatuan Pekerja-Pekerja Robinson & Co (M) Bhd. for their
responses. These groups of respondents are pertinent to our study as they directly
involved in the situation, and thus, able to answer accurately and in depth through
their first hand experiences.
We have excluded employers who are not affiliated to the union as they would not
be able to relate and answer the questionnaire as most of the topics deals with the
union’s role in fostering social dialogues.
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3.4.2 Sampling Frame and Sampling Location
The SAGE Encyclopedia of Social Science Research Methods defines a sampling

frame as a subset of a target population from a set of elements. (Lewis-Beck,
Bryman, & Liao, 2004)
Our sampling frame consists of members from the respective enterprise unions;
Proton Edar Sdn. Bhd. Employees Union, Kesatuan Pekerja-Pekerja AEON Big (M)
Sdn. Bhd., Kesatuan Pengurus Pengurus AEON Big (M) Sdn. Bhd. and Kesatuan
Pekerja-Pekerja Robinson & Co (M) Bhd. as well as union representatives from
both the local and regional level.
However, IKANO Pte. Ltd. Employees Union members did not participate in this
study as we were unable to interview them. As such, we have excluded them from
the sampling frame.
The sampling location was carried out in Kuala Lumpur, where members of the
Malaysian union was gathered for a short training course. Our researcher was able
to obtain access and permission from the host to conduct the interview prior to the
event.
3.4.3 Sampling Elements
Respondents who take part in this research are; union president, union director,
workplace union leaders, managers and employees. These respondents are
purposefully chosen due to their relevance in the process of industrial relations by
either being a major player or a stakeholder. All those interviewed are either from
the national union, a regional trade union or an enterprise union.
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3.4.4 Sampling Technique
Expert sampling technique was employed in this research as it allows the researcher
the flexibility to choose respondents purposefully based on expertise on the area of
interest being studied. (Sekaran & Bougie, 2015)
In this research, we had purposefully picked interviewees who are; trade union
leaders of each respective unions as well as key union members within the national
and regional level with direct relationship to the retail sector due to their familiarity
with industrial relations practices within Malaysia.
3.4.5 Sampling Size
Jon Zamboni defines a sample size as individual samples or observations within the
setting of a statistical study. He further mentioned that the size of a sample is
extremely crucial as there may be unreliable results when sample size is too small.
He also mentioned that a too large sample size is unnecessary as it consumes too
much time. (Jon Zamboni, 2018)
Sample size for this qualitative research will comprise of 6 respondents who are
active within the trade union and are retail sector’s union representative or are union
representatives who are directly involved with the trade unions from the retail sector.
We had settled for one representative from each enterprise union as well a union
representative from the national and regional district as it is a good representation
of the population and since it was a qualitative study, we tried to prevent
information saturation.
3.5 Research Instrument

Our main research instrument that is employed in the study is the use of a researcher
as the key interviewer, accompanied with a set of questionnaires containing 6 open
ended questions pertaining to the practise of industrial relations.
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3.6 Conclusion
Within this chapter, the research procedures and methods used in carrying out data
analysis were discussed and the justifications in samples as well as sample sizes
were highlighted. These justifications will allow us to interpret the data we had
collected with a greater sense of direction.
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CHAPTER 4: DATA ANALYSIS
4.1 Introduction
This chapter pertains to the analysis and interpretation of results from the data
collection. We will first start defining the reasons for the questions we had included
in the questionnaire, followed by the responses from our respondents. Then, we will
make a conclusion based on the analysis of the respondents. The last part of this
chapter will be a list of all our respondents’ background along with the reasoning
of why they were chosen to participate in our study.
4.2 Descriptive Analysis
This section summarizes the findings based on the questions that were asked during
the interview.
Theme 1: What are the benefits of practicing meaningful social dialogues from
your point of view?
How do you define meaningful and effective social dialogues?
What difference have you personally experienced from the practice of social
dialogue, compared to before the implementation?
The first question as well as the sub-questions attempts to understand what workers
and stakeholders’ perceive the benefits of practicing meaningful social dialogues to
be. Then in the sub-questions, interviewee are further probed to understand their
perception and definition of meaningful and effective dialogues. This is put in place
to gauge what each individual perceive successful social dialogue is, because every
culture has a different perspectives to a certain matter - and up to now, there has not
been a collective perspective in a Malaysian context on this matter.
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The sub-questions also addressed each individual’s experience following the

practice of social dialogue as compared to pre-implementation. If the respondent
were not present within the company before the pre-implementation, then, they
were asked to compare their previous workplace experience with the current
workplace environment.
Respondents have all agreed that by practicing social dialogues, there were
improved 2-way communications and as a result of that, issues were easier resolved
due to improved communication between employer and employee. Respondent C
further added that the practice of social dialogue enables misunderstanding to be
clarified due to the ability to gain clear understanding on several issues that had
been misunderstood. Candidates E and F has also mentioned a decrease in
employer-employee conflict, open channels of communication, a heightened sense
of belonging, mutual respect in resolving issues in the workplace, as well as better
working conditions for employees.
Respondent A defines meaningful and effective methods of dialogues through the

practice of effective communication, whereas respondent B defines it through the
extent of how easily employees are able to raise and resolve issues with prospective
employers. Respondent D stated that he gauges effectiveness through the mutual
confidence and trust in an employer-employee relationship which is coupled with a
high level of conscience about the subject matter tackled by both parties
respectively along with the need to continuously meet and discuss about ongoing
and current issues. Respondent E states that trust between both parties is the main
determinant in which he gauges if successful social dialogues has taken place.
Respondent F places Respondent E’s views into perspective by further elaborating
that both parties require trust to work together in providing mutual benefits through
growing the company and sharing its wealth.
In terms of personal experience from the practice of social dialogues, respondents

have all stated the positive relations between employer and employee has the effect
of increased mutual understanding, citing decision making in the workplace is now
being done with the input of employees being taken into consideration (respondent
A), as well as a higher rate of responsiveness towards issues within the workplace
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with amicable solutions reached by both parties to in due time (respondent C).
Respondent C added that these factors have contributed to a higher work-place
security and promotes a higher understanding between employer-employee
relationship ad they are more sensitive towards each other’s needs and have evolved
to be more reasonable as a result. Respondent E and F further elaborates on the
concept of mutual understanding by stating that trust and respect amongst both
parties have prompted a more transparent and accountable management, with
reduced conflicts and tension as conflicts of interest are significantly reduced.
Theme 2: What are the problems faced during the process of implementing
and conducting successful social dialogues?
How involved are stakeholders in participating in social dialogues?
How do stakeholders usually participate in social dialogues? Whom do they
speak to and why?
How does your respective company practice social dialogues? Are all the staffs
usually involved, or are only the representative involved?
How are stakeholders informed or notified of any changes arising from social
dialogue?
How easy/difficult it is to bring up issues through social dialogues
In this question, the interviewer attempts to investigate the problems that

organizations face in the process of conducting social dialogues, as well as finding
out the level of participation amongst stakeholders. This is to find out how effective
companies are at encouraging employee participation as well as the effectiveness
of social dialogues that take place. Also, employees and stakeholders were asked
about what kind of issues were typically raised and to whom the issues were raised
to, this is important towards the success of social dialogues – if stakeholders are
unable to direct and raise issues towards a party that represents their ‘voice’
successfully, then chances are, the dialogues may not be as effective and successful.
The second part of the question then focuses on the changes that takes places
following a social dialogue – change. We then put up questions probing on how
changes were notified to stakeholders as well as accessing how stakeholders gauge
the level of difficulty in bringing up issues through social dialogues.
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In relation to issues faced during implementation and conducting social dialogues,

respondent E and F mentioned that in the past, there were negative perceptions on
trade unions and employees that demand attention in the workplace, which caused
the management to react negatively towards better interaction with employees. This,
they state, caused a mistrust of intention between both parties as they perceived that
they were working against each other’s interest. Respondent C’s company is an
example of a mistrust of intention as their company was not given the mandate from
shareholders to implement and conduct social dialogues in the past. All respondents
had faced implementation problems through the lack of communication and
cooperation and were unable to get the initial expected outcome as a result.
Respondent D further elaborated and stated that the management used to avoid
certain topics relating to salary or budgets, and that they were initially reluctant to
speak up and pursue the matter further which made communication difficult. In the
perspective of unions, respondents E and F highlighted that 9 other retails
companies they were trying to organize had practiced union busting techniques to
discourage any social dialogue or union activities from taking place within their
company. Respondent F further elaborated by stating that this is due to the
perception of trade unions being anti-establishment and mistrust towards employees
who speak up, caused the lack of will from both parties to work using the social
dialogue methodology.
Stakeholder involvement within the retail sector were asked. Respondents A, B and
D stated that the government have no participation in social dialogues with them
whereas respondent C has stated a little participation. In terms of employer
participation, respondents B and D rated participation as moderate whereas
respondent C stated that there was a high participation and respondent A stated a
very high rate of participation. Employee involvement was rated at a moderate level
by respondent B, high involvement by respondents C and D, with respondent A
citing a very high employee participation. Union participation was then gauged,
with respondent B stating a moderate level, respondent D stating a high level and
respondents A and C stating that unions had a very high participation rate.
Respondents E and F maintained that all 4 parties were participating at a very high
social dialogue participation as they are actively conducting dialogues and represent
large quantities of unions.
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All respondents had stated that social dialogue takes place with the participation of
employer representatives (usually top management) and union representatives.
Employees voice their concerns to their respective union representative leader
which then communicates these issues with the employer representative to solve
these issues amicably. Issues commonly discussed were: workplace and welfare
issues (respondent A & C), employee rights (respondent A), as well as employee
benefits (respondent D).
All of our respondents’ state that the principle trade union leaders as well as the
company’s representatives are the active partners in conducting social dialogues.
Employees are also involved as issues can be brought up through dialogues with
the union.
Our respondents have stated that stakeholders are usually notified of changes arising
from social dialogues usually through verbal or written notices. Usually the
methods of communication practiced are the use of e-mail, weekly employee
meetings, messaging application – Whatsapp as well as social media such as the use
of Facebook as well as the union’s official website.
Respondents B, C and D have stated that it is easy to bring up issues through the
use of social dialogues whereas respondent A has stated the difficulty as fairly easy.
Respondents E and F states that the difficulties in bringing up issues will rely largely
on the strength of social dialogues which rely largely on the relations and trust of
both parties concerned and whether they view each other as partners.
Theme 3: What are the strategies adopted by your company in overcoming or

minimizing implementation problems?
What were the problems in the past following implementation?
How did were these issues resolved?
Question 3 attempts to investigate the use of any strategies adopted by companies

in attempts to overcome or minimize potential implementation problems. We also
asked respondents if there were any occurring problems in the past as well as how
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these issues were resolved. Combined, these questions are able to gauge the
effectiveness of strategies used to overcome and minimize implementation issues.
Then the questions seek to understand occurring issues following the
implementation of social dialogues and steps were taken for these issues to be
resolved.
All respondents maintained that communication as well as reaching a mutual

understanding and compromise was key in overcoming implementation problems.
Respondent C stated that his company has done so by implementing the use of open
discussions in facilitating communication.
Following implementation of social dialogues, there were problems that had

happened in the past; namely – misunderstanding due to miscommunication
(respondent A and C) as well as not having a proper venue and time set aside per
month for dialogue sessions (respondent C and D).
To overcome issues that were mentioned above, respondents E and F stated that a
clear guideline of principle in working together as well as regular and progressive
social dialogue meetings were vital to prevent recurring issues. Respondents A, B,
C and D stated that they simply had conducted more face to face meetings to foster
effective communication. Both parties also agreed on a consistent time and date
every month to conduct dialogues and had begun noticing their respective
shortcomings and had strived towards helping each other.
Theme 4: Whether there are any current or ongoing issues among stakeholders.
Are there any issues were unresolved from before implementation of social
dialogue until now?
Has there been any newer issues that are being addressed? This is referring to
issues that occur after the practice of social dialogues
How do you stakeholders feel about addressing issues within the company?
Do you wish to address any issues you have encountered?
This question attempts to investigate if there are any current or ongoing issues
among stakeholders as well as possible issues that has occurred pre-implementation
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of social dialogues that has persisted until now. Furthermore, the interviewer also
tries to find out current issues that are being addressed as well as how stakeholders
perceive about addressing issues within the company – note that this is different
from Question 2 because it refers to bringing up issues within the company only
and not during social dialogues. Interviewee was also given the chance to address
and issues that they have encountered but has not necessarily brought up yet.
Issues that are ongoing pertains mostly to employee welfare, such as off-days
(respondent A), workplace transfers (respondent B), wages and bonus issues
(respondent D). This is an area of concern because the department manager has the
sole decision on the bonus allowance with staffs raising issues that the allocation is
unfair, furthermore, there was issues relating to wages whereby newcomer’s wages
were comparable to that of senior staff members (respondent D). Respondent C had
issues relating to Jabatan Perhubungan Perusahaan Malaysia (JPP) which is the
Malaysian department of Industrial Relations – their union had filed complaints,
but the department has not contacted anyone regarding the matter after more than
half a year. Respondent E and F has highlighted that trust still needs to be built
between both parties.
Respondents A, B, C and D stated that there was no internal issues that were
unresolved and brought forward before the implementation of dialogues. Candidate
F elaborated that issues were quickly resolved following dialogue sessions as issues
unresolved at branch level would be brought to attention at the national level. If it
wasn’t sufficient, these issues will be brought up higher to the regional or global
level for both parties to reach an agreement. Candidate E pointed out external issues
which has been ongoing – namely the Trade Union Act 1959 which has been an
obstacle in limiting the scope of trade union membership. As a result of these
restrictions, only 6-7% of the total workforce of 13 million in Malaysia are a
member of the union.
Newer issues that were addressed after the practice of dialogues were imposed are;
layoff issues regarding workforce from branch to dealers (respondent C) as well as
issues relating to wages as well as attendance bonus(respondent D). Respondent E
stated a more outward perspective regarding issues that pertain to the laws regarding
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migration, migrant workers and the unionization of independent and informal

workers. He further states that there has been negotiations with the Malaysian
Ministry of Human Resource, industrial relations experts as well as trade union
representatives in resolving these issues.
All respondents stated that stakeholders feel comfortable in addressing issues and
are interested in achieving peaceful industrial relations through open
communication for the betterment of all parties. As such, there were no further
issues that any respondents would like to address.
Theme 5: What stage of social dialogue is applicable to your company?

This question is set to find out the level of social dialogue that the interviewee’s
company is engaged at, to access the intensity of social dialogues that had taken
place.
All respondents had stated that their company practices the highest intensity of
social dialogue, having signed the collective bargaining agreement.
Respondent E, being a national organization (UNI MLC) had provided additional

evidence on the success of the Social Dialogues when they recognized six
companies for their outstanding Smart Partnership practices, and presented them
with the UNI MLC - UNI APRO Smart Partnership Award 2016. (UNI Malaysia
Labour Centre, 2016) Do note that Smart Partnership refers to the practise of
industrial relations through the use of social dialogues. The term is coined slightly
differently but does not deviate from the original meaning mentioned earlier due to
regional differences.
He further stated that there have been recent active talks with the Director General
of the Department of the Department of Industrial Relations Malaysia regarding the
current development on Smart Partnership and Human Resource Development in
the country. (UNI Malaysia Labour Centre , 2018)
According to Respondent F, she had mentioned that there were UNI-APRO

Outstanding Employer-Partner Awards given in recognition of model employers.
The then Prime Minister of Malaysia, Datuk Seri Abdullah Ahmad Badawi
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presented these awards at the 2nd Asia- Pacific Regional Conference to model
employers; the local recipients were the Star Publications (M) Bhd and Telekom
Malaysia. (The Star Online, 2007)
4.2.1 Respondent Demographic Profile
The table below shows a glimpse of each respondent’s profile and background, as
well as the reasons as to why they were selected as a respondent in this study.
Table 4.1: Respondent A

1 Name Anonymous – Referred to as respondent A
2 Company name AEON BiG Malaysia
3 Affiliated union Kesatuan Pengurus Pengurus AEON Big
(M) Sdn. Bhd
4 Gender Male
5 Membership status Union leader
6 Representation Manager
7 Justifications for being He is able to give insight on the practice of
chosen as a respondent industrial relations between his union
(which represents the managers) and the
company’s management.
Source: Developed for the research from the respondent’s background.
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Table 4.2: Respondent B

1 Name Anonymous – Referred to as respondent B
2 Company name AEON BiG Malaysia
3 Affiliated union Kesatuan AEON Big (M) Sdn. Bhd
4 Gender Male
5 Membership status Union Leader
6 Representation Non – executive
7 Justifications for being His union represent the majority of the
chosen as a respondent workforce in AEON BiG. As a trade union
leader, he would be able to share with us the
view point of the workers and the effects of
adopting the social dialogue methodology
in his union.
Table 4.3: Respondent C

1 Name Anonymous – Referred to as respondent C
2 Company name Proton Edar Sdn. Bhd
3 Affiliated union Edar Sdn. Bhd. Employees Union
4 Gender Male
7 Justifications for being He has been an employee in this company for
chosen as a respondent more than 5 years and is presently a trade
union leader. As a union representative he is
one of the key persons responsible for
industrial relations between the workers and
management.
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Table 4.4: Respondent D

1 Name Anonymous – Referred to as respondent D
2 Company name Robinsons & Co (M) Bhd
3 Affiliated union Kesatuan Pekerja-Pekerja Robinson & Co
(M) Bhd
4 Gender Male
7 Justifications for being This union leader was very keen to share his
chosen as a respondent experience with us on the experience of
having a social dialogue in his workplace
which had benefited the workers and
smoothen the management of the stores.
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Table 4.5: Respondent E

1 Name Anonymous – Referred to as respondent E
2 Company name UNI Malaysia Labour Centre
3 Affiliated union UNI MLC
4 Gender Male
6 Representation Not applicable
7 Justifications for being This respondent is the President of UNI
chosen as a respondent Malaysia Labour Centre (UNI MLC and the
Secretary-General of Asean Services
Employees Trade Union Council
(ASETUC).
He is a highly respectable trade union leader
with more than 46 years of experience in the
trade union. UNI MLC was established 18
years ago and now has a membership
of more than 300,000 members from 65
union groups and has been a key in
organising workers in the commerce sector
into trade unions. Due to his proximity to
our area of research, we will be provided
with accurate picture of how employers,
employees and trade union function together
within Malaysia.
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Table 4.6: Respondent F

1 Name Anonymous – Referred to as respondent F
2 Company name UNI Asia & Pacific Region
3 Affiliated union UNI Asia & Pacific Region
4 Gender Female
6 Representation Not applicable
7 Justifications for being She has 37 years’ experience in the trade
chosen as a respondent union movement and is presently the Director
of Commerce for the Asia & Pacific region
which represents 172 trade unions and
over 2,330,700 workers.
Her extensive knowledge and opinions of
how industrial relations is practised amongst
different countries within the Asia & Pacific
region which is why we had contacted her for
our study.
4.3 Conclusion
To conclude this chapter, all respondents agreed that social dialogue has facilitated
them in terms of workplace relations, and that there is a significant positive
experience following the implementation of social dialogues.
Furthermore, they all mention that there were issues which needed to be ironed out
after the initial implementation of social dialogues but these issues were quickly
resolved through open communication and trust with each other.
It is noted that UNI MLC being the national labour centre has closer working
relations to promote social dialogues with their affiliates, employers and the
government while UNI Apro as a regional trade union organisation has continued
to facilitate this process.
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In conclusion, both employees as well as stakeholders were keen in resolving

industrial matters through social dialogues and are constantly working through
existing issues with the aim of attaining industrial harmony.
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CHAPTER 5: DISCUSSION, CONCLUSION AND

IMPLICATION
5.1 Introduction
Within this last chapter, we will discuss about major findings, followed by the
implications and limitations we have experienced whilst conducting this study.
Finally, recommendations for future studies will be highlighted for future
researcher to take note should they decide to pursue research in similar studies.
5.2 Discussion of Major Findings
In general, our findings shows that employees are welcome towards the idea of
building good industrial relations through the practise of social dialogues and have
cited that the main benefits of social dialogue are improved communication between
employer and employee which leads to a better understanding towards each other.
It is also noted that effective social dialogues tend to resolve workplace frustrations
especially pertaining to decision making matters, and an increase in problem
solving as well as a sense of higher-work security.
Furthermore, there were inward facing issues in the process of implementation and
conducting social dialogues but these were resolved in due time. Outward facing
issues pertaining to the law and regulations are still work in progress.
Stakeholder participation in social dialogues are generally rated moderate to very

high with the exception of the government whose participation was rated none to
little, but only within the retail union. From the interview, we noted that social
dialogues takes place in the form of a bipartite representation which leans towards
the narrow aspect of social dialogues.
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Stakeholders maintained that it is easy to bring up workplace issues through their

respective leaders so it can be raised during dialogue sessions. Effective
communication was cited as key in overcoming past issues.
It also appears that dialogues have been very effective as current issues were raised
in dialogues and respondents did not have any additional issues they would like to
address in the interview. Also, all respondents practised the highest intensity of
social dialogue and had already signed a collective bargaining agreement with their
employers.
5.3 Implication of the Study
From our findings, we noted that stakeholders are keen in practicing meaningful,
successful social dialogues as the open communication, engagement with their
employers and mutual respect had brought about a better working environment
where workers, through their union can bring out issues of common concern without
fear of backlash from their employer. Stakeholders are keen to assist the company
to grow profits and enhance the company’s performance as the workers as they felt
that they are valued and can identify in the company’s vision.
Based on the survey, there are clear indication that social dialogue is beneficial for
the stakeholders in resolving problems and issues at the workplace. The strength
of social dialogues which encompasses mutual respect, trust and sharing a common
objective and vision helps add value in sustainable long term industrial relations
which benefits both parties – the employers and stakeholders, as long as there are
consensus building and involvement involved.
5.4 Limitations of the Study
Throughout this study, it should be noted that there are various limitations which
we have encountered. However, despite there being these limitations it does not
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affect the significance of findings within this study. As topics about industrial
relations within Malaysia’s retail sector has been scare, we have done our best in
trying to minimize these limitations although we were unable to completely
eliminate such limitations. Such limitations that we have encountered are described
below.
Time Limitation
Due to the limited time frame, it was impossible to cover every aspect of this topic
in regards to literature review. Furthermore, this research intended to seek the
opinions of the Government as well as policy-makers but were unable to do so as
scheduling appointments and higher up clearance (on their part) requires upwards
of 6 months.
Word count limitation

The data analysis was intended to be done through a combination of qualitative as
well as quantitative methods in order to give a more solid structure towards the
findings, but doing so will affect the overall word count significantly. Therefore, it
was advised to stick to only one method in the analysis.
Sample Size
The sample size employed within this study may not be sufficient in accurately
representing the total population of stakeholders involved within this study. Due to
time constraints, this study has been carried out through a limited number of
interviewees. Hence, the research outcome may not entirely represent the opinions
of all the stakeholders involved within this study.
Insufficient Information
Most of the studies referred to are from foreign studies and journals as there are
insufficient studies based on this topic. It is noted that these studies and journals
referred to may not be applicable within the local context due to societal differences
and ideology. Additionally, there was much difficulties in relation to access to some
information as obtaining such access required payment or subscriptions.
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5.5 Recommendations for Future Research
Future studies may consider exploring different fields of similar studies within
Malaysia due to the lack of academic journals within this field. As employer and
employee participation in the practise of industrial relations are increasing, future
researches may look to update previous studies as well as consider re-visiting
published journals in order to examine how industrial relations has evolved over
time within Malaysia.
Furthermore, in regards to this research paper – we hope that future researches will
employ the use of quantitative methods in examining the accuracy of the views held
within this paper, to examine if they are representative of the population.
Also, it would be interesting if future researches could cover the views of not only
the government but also the views of the management in respect to the companies
involved as these are the aspects we have left out in this study.
Lastly, as the platform economy is quickly expanding following our transition to

the new era of globalisation – researchers may look into how industrial relations
can adapt into this new reality as well as various ways it may bring changes.
5.6 Conclusion
To conclude our study, we have given several suggestions to guide researches in
carrying out similar topics in the future.
To increase trade union workers’ participation rate in perspective of the Malaysian

government, we would like to recommend the use of behavioural ‘nudges’ in the
entire Malaysian workforce. In behavioural science, the practice of ‘nudges’
alongside public policy implementation yields an effective, yet cost efficient
method tool in addressing issues relating to nationwide policies and can be used to
increase employees’ participation in the trade union.
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To put into context, a nudge policy can be implemented when the Malaysian
government makes it default for all employees within the workforce to join the
union but gives them the flexibility to opt out. This effectively protects employees’
freedom in participation while yielding the advantage that employees tend to accept
default policies. Through the successful implementation of behavioural nudges in
line with union participation, Malaysia may be able to reduce the instances of brain-
drain from happening, and retain specialized and skilled human capital. This will
also benefit employees through uplifting and strengthening their employee rights.
(Beshears & Milkman, 2017)
Employers, too, can play a part in attracting employees to join the trade union. As
mentioned earlier, the benefits of good social dialogues can help foster successful
communications and allows both parties to work towards a shared goal. Employers
can take a step further by integrating stakeholders into part of the business plan
whereby they may offer stakeholders bonuses in terms of company shares. This
allows them to have a sense of belonging within the business as they are
shareholders of the company they are working for – so they will work hard in
improving themselves for the overall betterment of the business, resulting in a
tighter fit in shared objectives amongst employers and stakeholders.
We hope that this research has been successful in creating the awareness of the
importance of educating more people about industrial harmony which can be
achieved through the use of social dialogues. Thus, we hope that stakeholders will
actively seek out the use of social dialogues instead of being compelled by the law
to enter.
In conclusion, the strength demonstrated by social dialogues of mutual respect

between employers and employees, trust amongst each other and sharing a clear
objective by adding value in sustainable long term industrial relations that will
definitely benefit both parties so long as there are consensus building and
involvement of the main stakeholders.
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Page 42 of 48
APPENDICES
Appendix 1.1 Questionnaire (English)
Dear respondent,
I am Amanda Chow, an undergraduate student from Universiti Tunku Abdul

Rahman (UTAR). I am currently conducting a research project titled “Partnership
Industrial Relations of the Retail Sector and their Relationship with Trade Unions
in Malaysia”. The purpose of this research is to investigate how an organization
builds a successful and meaningful relationship between management and
stakeholders as well as resolving issues faced through social dialogues.
I sincerely invite you to participate in this study and hope that you will take a few
minutes to complete this questionnaire. Your response is essential in this study and
I will be both grateful and appreciative for your time and effort taken in completing
this questionnaire. This survey is strictly for academic and research purposes.
Therefore, be rest assured that all responses collected will remain private and
confidential.
1. What are the benefits of practicing meaningful social dialogues from your
point of view?
a. How do you define meaningful and effective social dialogues?

b. What difference have you personally experienced from the practice
of social dialogue, compared to before the implementation? *
*If you have joined your current company after the union was
recognized, please compare your current workplace environment with
your previous workplace environment (in your past job) and describe
your experiences in detail.
Questions 2-5 will refer to the following Union recognized companies within
Malaysia in the retail sector, namely; Proton Edar Sdn. Bhd. Employees Union,
IKANO Pte. Ltd. Employees Union, Kesatuan Pekerja-Pekerja AEON Big (M) Sdn.
Bhd., Kesatuan Pengurus Pengurus AEON Big (M) Sdn. Bhd., Kesatuan Pekerja-
Pekerja Robinson & Co (M) Bhd and others.
Page 43 of 48
2. What are the problems faced during the process of implementing and
conducting successful social dialogues?
a. How involved are stakeholders in participating in social dialogues?

(1) Government
None Little Moderate High Very High
(2) Employer
(3) Employee
(4) Union
(5) Others, if applicable please state; __________________
b. How do stakeholders usually participate in social dialogues? Whom

do they speak to and why?
c. How does your respective company practice social dialogues? Are
all the staffs usually involved, or are only the representative involved?
d. How are stakeholders informed or notified of any changes arising
from social dialogue?
e. How easy/difficult it is to bring up issues through social dialogues
(please elaborate)
3. What are the strategies adopted by in overcoming or minimizing

implementation problems?
a. What were the problems in the past following implementation?

b. How did were these issues resolved?
4. Whether there are any current or ongoing issues among stakeholders?
a. Are there any issues were unresolved from before implementation

of social dialogue until now?
b. Has there been any newer issues that are being addressed? This is
referring to issues that occur after the practice of social dialogues
c. How do you stakeholders feel about addressing issues within the
company?
d. Do you wish to address any issues you have encountered?
Page 44 of 48
5. Which stage of social dialogue is most applicable to your company? Please

tick whichever is applicable.
High intensity
Intensity Collective Bargaining Agreement
of Negotiation
Social
Consultation
Dialogue
Exchange of information
6. Please tick on the box to suggest which of the following union company
you are representing.
o Proton Edar Sdn. Bhd. Employees Union
o IKANO Pte. Ltd. Employees Union
o Kesatuan Pekerja-Pekerja AEON Big (M) Sdn. Bhd.
o Kesatuan Pengurus Pengurus AEON Big (M) Sdn. Bhd.
o Kesatuan Pekerja-Pekerja Robinson & Co (M) Bhd
o Others, please state: _________________________
Page 45 of 48
Appendix 2.2 Questionnaire (Bahasa Malaysia)
Responden yang dihormati,
Saya, Amanda Chow adalah seorang pelajar sarjana dari Universiti Tunku Abdul
Rahman (UTAR). Saya sedang menjalankan projek penyelidikan bertajuk
"“Partnership Industrial Relations of Retail Sector and their Relationship with
Trade Unions in Malaysia ". Tujuan penyelidikan ini adalah untuk menyiasat
bagaimana sebuah organisasi membina hubungan yang efektif dan bermakna antara
pihak pengurusan(management) dan pihak berkepentingan(stakeholders) serta
bagaimana mereka menyelesaikan masalah yang dihadapi melalui dialog sosial.
Saya dengan ikhlas menjemput anda untuk mengambil bahagian dalam kajian ini
dan berharap anda akan mengambil masa beberapa minit untuk menyelesaikan soal
selidik ini. Tanggapan anda adalah penting dalam kajian ini dan saya sangat
bersyukur serta amat menghargai masa serta usaha anda dalam menyelesaikan soal
selidik ini. Kajian ini adalah untuk tujuan akademik dan penyelidikan sahaja. Oleh
itu, saya akan memastikan bahawa semua respon yang dikumpul adalah peribadi
dan sulit.
1. Apakah faedah mengamalkan dialog sosial yang bermakna dari pandangan

anda?
a. Bagaimana anda menentukan and mendefinisikan dialog sosial yang

bermakna dan efektif?
b. Apakah perbezaan yang dialami oleh anda dalam persekitaran
perkerjaan dari pengamalan dialog sosial, berbanding sebelum
pelaksanaan dialog sosial?*
*Jikalau anda telah menyertai syarikat selepas kesatuan pekerja dibentuk,
sila membandingkan persekitaran perkerjaan anda sekarang dengan
persekitaran pekerjaan anda yang lalu dan menerangkan pengalaman anda
dengan terperinci.
Soalan 2-5 akan merujuk kepada syarikat-syarikat yang mengiktiraf kesatuan

pekerja dalam sektor jualan runcit(retail) di Malaysia, iaitu; Proton Edar Sdn. Bhd.
Employees Union, IKANO Pte. Ltd. Employees Union, Kesatuan Pekerja-Pekerja
AEON Big (M) Sdn. Bhd., Kesatuan Pengurus Pengurus AEON Big (M) Sdn.
Bhd.,Kesatuan Pekerja-Pekerja Robinson & Co (M) Bhd dan lain-lain.
Page 46 of 48
2. Apakah masalah yang dihadapi dalam proses pelaksanaan dan rintangan

yang dihadapi dalam menjalankan dialog sosial yang berhasil?
a. Setakat manakah pihak berkepentingan(stakeholders) melibatkan diri
dalam menyertai dialog sosial?
(1)Pihak Kerajaan
Tiada Sedikit Sederhana Tinggi Sangat Tinggi
(2)Pihak Majikan
(3)Pihak Pekerja
(4)Kesatuan Pekerja
(5) Lain-lain, jika berkenaan sila nyatakan; __________________
b. Bagaimana pihak berkepentingan(stakeholders) biasanya menyertai

dialog sosial? Siapakah yang mereka berkomunikasi dengan dan
mengapa?
c. Bagaimanakah syarikat yang anda berada di dalam mengamalkan dialog
sosial? Adakah semua kakitangan biasanya terlibat, atau hanya wakil-
wakil pekerja sahaja yang terlibat?
d. Bagaimanakah pihak berkepentingan(stakeholders) dimaklumkan atau
diberitahu mengenai sebarang perubahan yang tertimbul daripada dialog
sosial?
e. Betapa mudah / sukar untuk bersuara mengenai isu-isu yang ditemui
melalui dialog sosial (sila memberi keterangan bersama contoh yang
terperinci)
3. Apakah strategi yang digunakan dalam mengatasi atau meminimumkan

masalah pelaksanaan?
a. Apakah isu isu yang dihadapi dalam prosess pelaksanaan dialog sosial?
b. Bagaimanakah isu-isu ini dapat diselesaikan?
4. Adakah terdapat sebarang isu semasa atau isu yang masih berterusan
antara kalangan pemegang kepentingan(stakeholders).
a. Adakah terdapat isu-isu yang masih belum diselesaikan atau yang

dalam proses diperselesaikan? Ini merujuk kepada isu isu yang
tertimbul sebelum pelaksanaan kesatuan pekerja yang masih beterusan
sehingga sekarang.
Page 47 of 48
b. Adakah terdapat isu-isu semasa yang sedang ditangani? Ini merujuk

kepada isu isu yang tertimbul selepas syarikat anda melaksanakan
dialog sosial.
c. Bagaimanakah pihak berkepentingan(stakeholders) berperasaan
mengenai membangkitkan isu-isu dihadapi dalam syarikat/pekerjaan?
d. Adakah terdapat isu-isu yang anda sedang menghadapi dan ingin
membangkitkan mengenai syarikat/pekerjaan anda?
5. Tahap dialog sosial yang paling sesuai untuk syarikat anda? Sila tandakan
mana-mana yang berkenaan.
Intensiti tinggi
Perjanjian Kolektif(CBA)
Intensiti
Negosiasi
Dialog
Sosial Konsultasi
Pertukaran maklumat
6. Sila tandakan kotak untuk mencadangkan mana-mana syarikat kesatuan

pekerja berikut yang anda mewakili.
o Proton Edar Sdn. Bhd. Kesatuan Pekerja
o IKANO Pte. Ltd. Employees Union
o Kesatuan Pekerja-Pekerja AEON Big (M) Sdn. Bhd.
o Kesatuan Pengurus Pengurus AEON Big (M) Sdn. Bhd.
o Kesatuan Pekerja-Pekerja Robinson & Co (M) Bhd
o Lain-lain (sila nyatakan): __________________________
Page 48 of 48

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Group 63/1018

PARTNERSHIP INDUSTRIAL RELATIONS OF THE

AMANDA JOAN CHOW

A final year project submitted in partial fulfilment of the

BACHELOR OF INTERNATIONAL BUSINESS

UNIVERSITI TUNKU ABDUL RAHMAN

FACULTY OF ACCOUNTANCY AND

ALL RIGHTS RESERVED. No part of this paper may be reproduced, stored in a

We hereby declare that:

(4) The word count of this research report is 9085 words.

Name of Student: Student ID: Signature:

Date: 16 April 2019

Declaration ............................................................................................................. iii

Table of Contents .................................................................................................... vi

List of Tables ....................................................................................................... viii

List of Figures ......................................................................................................... ix

List of Abbreviations ............................................................................................... x

List of Appendices .................................................................................................. xi

Abstract ................................................................................................................ xiii

CHAPTER 1: INTRODUCTION ............................................................................ 1

1.1 Introduction ................................................................................. 1

1.2 Research Background .................................................................. 1

1.3 Problem Statement....................................................................... 2

1.4 Research Objectives .................................................................... 3

1.5 General Objectives ...................................................................... 3

1.6 Significance of the study ............................................................. 4

1.7 Chapter Layout ............................................................................ 5

1.8 Conclusion ................................................................................... 6

CHAPTER 2: LITERATURE REVIEW ................................................................. 7

2.1 Introduction ................................................................................. 7

2.2 Literature Review ........................................................................ 7

2.2.1 Industrial Relations 7

2.2.2 Social Dialogue ............................................................. 9

2.3 Conclusion ................................................................................. 14

CHAPTER 3: METHODOLOGY ......................................................................... 15

3.1 Introduction ............................................................................... 15

3.2 Research Design ........................................................................ 15

3.3 Data Collection Methods ........................................................... 16

3.4 Sampling Design ....................................................................... 17

3.4.1 Target Population ........................................................ 17

3.4.2 Sampling Frame and Sampling Location .................... 18

3.4.3 Sampling Elements ...................................................... 18

3.4.4 Sampling Technique .................................................... 19

3.4.5 Sampling Size .............................................................. 19

3.5 Research Instrument .................................................................. 19

3.6 Conclusion ................................................................................. 20

CHAPTER 4: DATA ANALYSIS ........................................................................ 21

4.1 Introduction ............................................................................... 21

4.2 Descriptive Analysis .................................................................. 21

4.2.1 Respondent Demographic Profile ............................... 29

4.3 Conclusion ................................................................................. 33

CHAPTER 5: DISCUSSION, CONCLUSION AND IMPLICATION ................ 35

5.1 Introduction ............................................................................... 35

5.2 Discussion of Major Findings ................................................... 35

5.3 Implication of the Study ............................................................ 36

5.4 Limitations of the Study ............................................................ 36

5.5 Recommendations for Future Research ..................................... 38

5.6 Conclusion ................................................................................. 38