Labour competitiveness in the plantation industry: where are we heading?

Amatzin, Daud (2005) Labour competitiveness in the plantation industry: where are we heading? [Proceedings Paper]

In the case of modern Malaysian plantation scenario, there is already ample legislation in place to create conducive labour relations environment as well as to enhance industrial and economic growth. Its main functions are: protection of the economic and social interest of workers, assist in enhancing national productivity and in promoting and preserving industrial harmony in the country. It also encourages employers in the private sector to employ disabled persons, promoting activities to facilitate and improve the planting environment so as to enhance the participation of unutilized workforce into the labour market. Certainly, the quality development of human capital will ensure continued progress for the nation. Hence, employers are duty-bound to invest in training. However, with a population of about 25 million and a vast area under cultivation of tropical crops such as oil palm, rubber, cocoa and paddy covering about 6 million hectares and a thriving manufacturing, construction and services sectors, intense competition to recruit suitable and available local workers is the norm. Today it is evident that through the process of Malays ianisation, the ownership of plantation equity is predominantly under Malaysian hands. Thus, conflicting priorities set by decision makers, both in public and private sectors at times create a challenging situation as well, which may be one of the reasons discouraging the local population from being attracted to plantation life. Overall, there is a shortage of manpower in the plantation sector. In order to sustain economic growth of the country, the government has been pragmatic in their approach to fulfill the manpower needs. Thus, employment of guest workers (generally known as foreign workers) from approved source countries were allowed in order to alleviate the shortage of manpower in certain sectors, including the plantation and construction industry. However, with the influx of migrant workers with various background and disposition, many challenges are encountered. There has been some tension between the local community and guest workers. Cases of abuse and mistreatment attracted the media into reporting them as sensational news and may have influenced policy makers. Policies change frequently, employer's dependency on guest workers increases with the area under cultivation. Local workers shun the plantation sector in favour of better working environment in and around urban setting. Over reliance on one particular group of guest workers has proved to bring negative impact. Additionally, of late (05/05/05), the YAB Prime Minister (PM) had just outlined that addiction to "cheap foreign labour" as being one of the three Malaysian "few bad habits". If we are not serious about combating this problem, maybe it is time for us to venture into other businesses which is non-labour intensive. The PM also called for employers to invest into the necessary areas in order to become more labour-efficient and adopt high technology. Despite efforts from both the government and private sectors on automation of the work processes, the nature of work in the oil palm and rubber estates has inherent limitations such as biological and geographical factors. Much R & D work must focus in the area of mechanization especially the harvesting of fresh fruit bunches. Motivation and incentives to promote innovation and automation can be intensified. The employment of special people or inmates from Pusat Serenti, for example, has been tried out by some responsible employers with some degree of success. This effort can be expanded further. The development of the National Occupational Skills Standards (NOSS) for the plantation sector by Majlis Latihan Vokasional Kebangsaan (MLVK) under Minister of Human Resources must be implemented. The plantation sector must grow in tandem with the rest of other business activities towards k-economy. The productivity-linked wage system (PLWS) concept may be in practice but to go forward, can MAPA and NUPW come up with alternative wage system rather than one solely based on collective agreement? If both conventional and creative approaches in the manner of employment in the plantation sector have proven unsustainable, perhaps we should learn from our forefathers. Migrant workers were offered Malaysian citizenship then, land ownership by private individuals or through land cooperatives were encouraged. Today we may not have the luxury of ample land for new planting by individuals but, ownership through shares may be another option. In the interim, the key is to enforce a clear, consistent and manageable policy on recruitment of guest workers. Adopting a constructive engagement approach such as by direct consultation of all parties involved in recruitment of guest workers rather than a unilateral action by the authorities working in isolation, perhaps can work better. As a last resort, legislation can be formulated to safeguard the interest of all stakeholders by disallowing other urbanized economic sectors such as the services industry from employing guest workers. Remember that we also have about 3.5% unemployment, untapped to consider.

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Abstract

In the case of modern Malaysian plantation scenario, there is already ample legislation in place to create conducive labour relations environment as well as to enhance industrial and economic growth. Its main functions are: protection of the economic and social interest of workers, assist in enhancing national productivity and in promoting and preserving industrial harmony in the country. It also encourages employers in the private sector to employ disabled persons, promoting activities to facilitate and improve the planting environment so as to enhance the participation of unutilized workforce into the labour market. Certainly, the quality development of human capital will ensure continued progress for the nation. Hence, employers are duty-bound to invest in training. However, with a population of about 25 million and a vast area under cultivation of tropical crops such as oil palm, rubber, cocoa and paddy covering about 6 million hectares and a thriving manufacturing, construction and services sectors, intense competition to recruit suitable and available local workers is the norm. Today it is evident that through the process of Malays ianisation, the ownership of plantation equity is predominantly under Malaysian hands. Thus, conflicting priorities set by decision makers, both in public and private sectors at times create a challenging situation as well, which may be one of the reasons discouraging the local population from being attracted to plantation life. Overall, there is a shortage of manpower in the plantation sector. In order to sustain economic growth of the country, the government has been pragmatic in their approach to fulfill the manpower needs. Thus, employment of guest workers (generally known as foreign workers) from approved source countries were allowed in order to alleviate the shortage of manpower in certain sectors, including the plantation and construction industry. However, with the influx of migrant workers with various background and disposition, many challenges are encountered. There has been some tension between the local community and guest workers. Cases of abuse and mistreatment attracted the media into reporting them as sensational news and may have influenced policy makers. Policies change frequently, employer's dependency on guest workers increases with the area under cultivation. Local workers shun the plantation sector in favour of better working environment in and around urban setting. Over reliance on one particular group of guest workers has proved to bring negative impact. Additionally, of late (05/05/05), the YAB Prime Minister (PM) had just outlined that addiction to "cheap foreign labour" as being one of the three Malaysian "few bad habits". If we are not serious about combating this problem, maybe it is time for us to venture into other businesses which is non-labour intensive. The PM also called for employers to invest into the necessary areas in order to become more labour-efficient and adopt high technology. Despite efforts from both the government and private sectors on automation of the work processes, the nature of work in the oil palm and rubber estates has inherent limitations such as biological and geographical factors. Much R & D work must focus in the area of mechanization especially the harvesting of fresh fruit bunches. Motivation and incentives to promote innovation and automation can be intensified. The employment of special people or inmates from Pusat Serenti, for example, has been tried out by some responsible employers with some degree of success. This effort can be expanded further. The development of the National Occupational Skills Standards (NOSS) for the plantation sector by Majlis Latihan Vokasional Kebangsaan (MLVK) under Minister of Human Resources must be implemented. The plantation sector must grow in tandem with the rest of other business activities towards k-economy. The productivity-linked wage system (PLWS) concept may be in practice but to go forward, can MAPA and NUPW come up with alternative wage system rather than one solely based on collective agreement? If both conventional and creative approaches in the manner of employment in the plantation sector have proven unsustainable, perhaps we should learn from our forefathers. Migrant workers were offered Malaysian citizenship then, land ownership by private individuals or through land cooperatives were encouraged. Today we may not have the luxury of ample land for new planting by individuals but, ownership through shares may be another option. In the interim, the key is to enforce a clear, consistent and manageable policy on recruitment of guest workers. Adopting a constructive engagement approach such as by direct consultation of all parties involved in recruitment of guest workers rather than a unilateral action by the authorities working in isolation, perhaps can work better. As a last resort, legislation can be formulated to safeguard the interest of all stakeholders by disallowing other urbanized economic sectors such as the services industry from employing guest workers. Remember that we also have about 3.5% unemployment, untapped to consider.

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Item Type:	Proceedings Paper
Additional Information:	Available at Perpustakaan Sultan Abdul Samad, Universiti Putra Malaysia, 43400 UPM Serdang, Selangor, Malaysia. TP684 P3I61 2005 Call Number
AGROVOC Term:	plantations
AGROVOC Term:	labour
AGROVOC Term:	agro-industrial sector
AGROVOC Term:	plantation crops
AGROVOC Term:	employment
AGROVOC Term:	economic analysis
AGROVOC Term:	industrial development
AGROVOC Term:	employers' organizations
AGROVOC Term:	sustainability
Geographical Term:	Malaysia
Depositing User:	Nor Hasnita Abdul Samat
Date Deposited:	04 Sep 2025 03:41
Last Modified:	04 Sep 2025 03:41
URI:	http://webagris.upm.edu.my/id/eprint/1071

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