The Changing Organisation of Work in Malaysia’s Electronics Industry

Abstract

The early growth phase of Malaysia’s electronics industry coincided in the 1970s with high unemployment and accelerated rural­urban migration and a willingness to make considerable concessions to foreign transnationals seeking suitable cheap and passive labour sites. The result was a very rigid exploitation of the labour force. Interviews with a variety of contemporary electronics firms show how this changed in the I 980s and I 990s. Demand for labour increased and unemployment declined, automation removed much of the labour intensity and raised the need for skill and cooperation and commitment of those hired to work in an increasingly sophisticated sector. Wages rose and management practices changed, together with the introduction of flexible production techniques, preventative maintenance and quality control, each of which required considerable employee participation. Despite these changes, both firms and government have resisted attempts nationwide unionisation of the industry.