Published online by Cambridge University Press: 28 November 2008
Malayan labor and trade union policy at the eve of Merdeka (Independence) bore the indelible imprints of past crises and uneven development. Prior to the Second World War trade unions were outlawed in British Malaya, where labor policy limited itself to protecting workers from the more blatant social and economic evils as a means of encouraging immigration of needed manpower.1 By the end of the war and Japanese occupation, however, the hitherto transient Chinese and Indians had become transformed into a domiciled labor force, conscious of their organizational power and prepared to defend their interests.
1 On pre-war British colonial labor policy and practice see Parmer, J. Norman, Colonial Labour Policy and Administration (New York, 1960);Google ScholarGamba, Charles, The Origins of Trade Unionism in Malaya (Singapore, 1962), ch. I;Google Scholar and International Labour Office, The Trade Union Situation in the Federation of Malaya. Report of a Mission from the International Labour Office (Geneva, 1962), esp. pp. 24–28.Google Scholar
2 For a history of early post-war labor relations and the rise of the Communist-led Pan-Malayan Federation of Trade Unions, see Stenson, M. R., Industrial Conflict in Malaya (London, 1970);Google Scholar and Charles Gamba, op. cit., ch. 7. For an official account of the problem see Donnison, F. S. V., British Military Administration in the Far East (London, H.M.S.O., 1956), pp. 238, 312–13;Google Scholar and Awberry, S. S. and Dalley, F. W., Labour and Trade Union Organization in the Federation of Malaya and Singapore (London, 1948), col. 234.Google Scholar The aims and tactics of the communist trade unions and the countermeasures adopted by the government have been dealt with by Hanrahan, G. Z., The Communist Struggle in Malaya (New York, 1956), ch. 4.Google ScholarJosey, Alex, Trade Unionism in Malaya (Singapore, 1954), provides a sympathetic left-wing treatment of contemporary issues of labor policy.Google Scholar
3 For a detailed treatment of labor policy and trade unionism during this period of colonial tutelage, 1948–1955, see Stenson, op. cit..; Gamba, op. cit.Google Scholar
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21 The official explanation offered to the Legislative Council for these arrests claimed that the four trade unionists were ‘guided and advised’ by militant, Communist-influenced ‘Middle Road’ trade union leaders in Singapore; that they possessed ‘communist’ books and books having ‘communist association’; and that they kept ‘communist and workers’ songs: Deputy Prime Minister and Minister of Defence, L. C. Proc.,9 December 1955, col. 3788–9. The NUFGW was later banned.Google Scholar
22 Thaver, K. V. (MTUC), L. C. Proc.,7 December 1957, col. 3626–7.Google Scholar
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24 The reason given for the ban on public May Day celebrations was that communists would try to manipulate such labor symbols ‘to put over ideas which tend to sow disloyalty and to instill in the workers revolutionary ideas and violence’: Deputy Prime Minister and Minister of Defence, L. C. Proc.,1 May 1958, col. 4719.Google Scholar
25 Cf. Gamba, Charles, ‘Malayan Labour: Merdeka and After’, India Quarterly (1958), p. 219.Google Scholar
26 L. C. Proc.,7 May 1957, col. 2629.Google Scholar
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31 Minister of Labour, L. C. Proc.,23 April 1959, col. 6763–4. For a discussion of the provisions of the 1959 law and its impact on the trade unions, see the I.L.O.'s The Trade Union Situation in the Federation of Malaya, pp. 52–72.Google Scholar
32 Thaver, K. V. (MTUC), L. C. Proc.,23 April 1959, col. 6764–5.Google Scholar
33 High Commissioner, L. C. Proc.,31 November 1955, col. 144.Google Scholar
34 Minister of Labour, L. C. Proc.,12 December 1957, col. 4180–2.Google Scholar
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36 Chairman SirJohn, Hay report to Kamuning (Perak) Rubber and Tin Co. Ltd general meeting,16 November 1955.Google Scholar
37 Cf. Warren, W. M. report to Malayan Chamber of Mines annual meeting,11 July 1956;Google Scholar and Rick, J. H. report to Tronoh Mines Ltd annual meeting,16 November 1956.Google Scholar
38 Rick, J. H. report to Tronoh Mines Ltd annual meeting,16 September 1956.Google Scholar referred to followed arbitrary dismissals of workers and their replacement by non-unionized labor. See also report by Turner, E. R. to Malayan Mining Employers Association annual meeting,27 May 1959.Google Scholar
39 Nair, V. D., (Manager, Prang Besar Rubber Estate), ‘The Strike Weapon is Outmoded’, in The Planter, reprinted in Malaya, (November, 1960), pps. 30–1.Google Scholar
40 Houghton, R. G. D. (Commission for Labour to 1960), ‘The Big Task Ahead for Malaya's Rubber Industry’, Straits Budget, 25 May 1960.Google Scholar
41 The former Labour Department and office of the TUAM were merged after 1957 into a new Department of Labour and Industrial Relations: however, personnel changes at the top proceeded slowly and, in any event, old ideas died hard.Google Scholar
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47 Thaver, K. V. (MTUC), L. C. Proc.,3 December 1955, col. 349. On union weakness in establishing themselves as partners in industrial relations see The Trade Union Situation in the Federation of Malaya, pp. 81–4.Google Scholar
48 Cf. The Trade Union Situation in the Federation of Malaya, pp. 75–9.Google Scholar
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54 Cf. David, V. (SF-MTUC), D. R. Proc.,24 February 1960,Google Scholar col. 1901–13; and Emmanuel, John, NUPW Deputy General Secretary,press statement in Ipoh,24 April 1960 (Straits Budget, 4 May 1960, p. 7) on this point.Google Scholar
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67 Government refused to collect even simple unemployment figures because of the dispersal of population (Minister of Labour, D. R. Proc.,25 November 1959, col. 186) and it was only in 1962 that Malaya undertook a comprehensive employment survey.Google Scholar
68 See Minister for Labour, L. C. Proc.,17 March 1958, col. 4339–41 on this point.Google Scholar
69 Relief projects of limited scope and scant success were initiated in certain urban centres, but not in hard-hit tin and rubber areas for fear of redeploying labor away from their normal employers.Google Scholar
70 Prime Minister, D. R. Proc.,23 May 1963, col. 126.Google Scholar
71 Cf. Nair, V. D., ‘The Strike Weapon is Outmoded’, p. 30. See also SF complaint on this practice: Lim Kean Siew, D. R. Proc.,4 December 1959, col. 110.Google Scholar
72 Out of a total labor force of 2,126,182 in 1957, some 119,000 were in government service (excluding the armed forces, municipalities and public enterprises). This compared to 614,000 in the rubber industry. On the position of government-sector unions in the Malayan labor movement, see The Trade Union Situation in the Federation of Malaya.Google Scholar
73 Addresses by the Chief Minister, L. C. Proc.,14 March 1956, col. 1020–1; and Economic Adviser, 9 December 1957, col. 3772.Google Scholar
74 Minister of Finance, D. R. Proc.,25 November 1959, col. 124–6.Google Scholar
75 Thus the Official Side lacked authority to make any ‘major’ decisions involving ‘a lot of money’, which had to be referred to the Cabinet: Cf. Prime Minister, D. R. Proc.,29 November 1959, col. 1699.Google Scholar
76 The NUFGW accounted for about a quarter of the man-days lost in 1956, and brought about substantial improvements in wages and working conditions using strikes as a ready weapon (Federation of Malaya Annual Report (1956), p. 81). The union was banned in 1957 for late submission of its annual statement to the Registrar of Trade Unions.Google Scholar
77 Narayanan, P. P. (MTUC), L. C. Proc.,15 November 1956, col. 2256–7.Google Scholar
78 Cf. Singh, K. Karam (SF), D. R. Proc.,25 April 1960, col. 534; 28 April 1960, col. 835; 21 June 1960, col. 1272–3.Google Scholar In a strike at the Seremban Rubber Estate police were accused of ‘most villainous’ practices including arrests of strike leaders, assaults on picketers, attempts to ensnare strikers by tendering ‘sinister advice’, attempts to ‘smuggle’ strike-breakers into the estate in a police vehicle, and refusal to detain ‘armed thugs’ hired by management, when reported by strikers. At least one major employer confessed reliance on police support in using strike-breakers to break strikes: Rick, J. H., report to Tronoh Mines Ltd annual meeting,16 November 1956.Google Scholar
79 The sliding wage geared to the price of rubber was retained, however. On the ‘go-slow’ see The Colonial Territories (1956–1957) Cmd. 195, para. 868;Google Scholar and Gamba, Charles, The National Union of Plantation Workers (Singapore, 1962), ch. 6.Google Scholar
80 Cf. Mullaly, A. E. report to Consolidated Salack Rubber Estates Ltd annual meetings,30 October 1956,Google Scholar and Coghlan, P. B., report to Anglo-Asian Rubber Plantations Ltd annual meeting,4 December 1956.Google Scholar
81 According to the Federation of Malayan Annual Report (1956), p. 82, the trade union situation in the rubber industry had now come ‘to resemble the situation which exists in the better organized industries in Britain.’Google ScholarSee also The Trade Union Situation in the Federation of Malaya, pp. 40–2.Google Scholar
82 This refers to basic wage rates and does not take account of cyclical fluctuations in rubber wages geared to commodity prices. The latter tended downwards from 1958 to 1960, re-bounded slightly during the boom of 1960 only to fall back to previous levels in 1961 and 1962. Other wages remained virtually constant throughout. On annual wage trends in Malaya see the Colombo Plan, Annual Reports of the Consultative Committee 1959 to 1963.Google Scholar
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84 Professor Raul Prebisch, first Secretary-General of the United Nations Conference on Trade and Development, has argued that the failure of primary-exporting economies to achieve permanent higher wage levels during prosperity exposes them to deteriorating real terms of trade over the trade cycle, and results in an increasing development gap between themselves and industrialized countries that do. Cf. Prebisch, R., ‘The Economic Development of Latin America and its Principal Problems,’, in Economic Bulletin For Latin America (February 1962), pp. 1–6.Google ScholarThis thesis has been incorporated in the official report of the Secretary General to UNCTAD, Towards a New Trade Policy for Development, (New York: United Nations, 1964), (E/CONF. 46/3), ch. 2, esp. pp. 14–17.Google Scholar
85 From 88 unions with 177,900 members at the end of March 1957 (Federation of Malaya Annual Report (1957) p. 60) membership in industrial trade unions declined to 126,000 at the end of 1960 (Official Year Book (1962) p. 179) and increased to 171,000 at the end of 1962 (Official Year Book (1963)). The number of unions was then 90.Google Scholar
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88 Cf. D. R. Proc.,10 December 1962, col. 2615–47.Google Scholar
89 Deputy Prime Minister, D. R. Proc.,10 December 1962, col. 2634. The SF retorted that the provision of cheap public services should be borne by the Treasury and not by low-paid labor.Google Scholar
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