Team Labor Relations Slide – Group 9
What Needs to Be Answered:
- Identify the labor relations and employment laws within the country your team is researching that could impact HR decisions and/or the “cost of doing business” for macro & micro?Macro – All US companies entering this market, regardless of industry.Examples: codetermination law, union laws, local labor requirements, taxation, non-wage labor costs, and other items identified in textbook or video lecturesMicro – Only companies within the Rubber Manufacturing Industry
- Identify the types of skill sets required to hire for the industry your team is researching and whether there is enough local talent (or what countries you recommend hiring the labor from)What general cost of living differences are there for the areas of the country your team is geographically focused on versus Kansas City, MO or the U.S.?What general local salaries are expected for the types of industry specific positions and how do they compare to Kansas City, MO or the U.S.?Example – average auto manufacturing wages for both marketsWhat would be the source(s) of labor and for what general types of positions?Examples Sources: expatriates, host-country, and third-countryExamples Positions: executives, factory managers, and factory workersInclude all general types of labor required, regardless of any split alliance responsibilities.Would any training of the main labor force be expected? Examples – such as for factory workers, systems operators, or 5G tower construction workersHow extensive would the training be and on what general skills?
What’s Going On:
Above gives the specific breakdown of what each question is asking
Below gives you a space to answer EVERY question with just 1 or 2 points
Team Work:
- Identify the labor relations and employment laws within the country your team is researching that could impact HR decisions and/or the “cost of doing business” for macro & micro?
Macro————————————————————————————————————
Austin –
James-
– The maximum overtime hours an employee can be required to work is 104 hours in one month. No employer shall require any employee under any circumstances to work for more than 12 hours in any one day, the required overtime rate in Malaysia is 1.5 times regular pay (if working on a rest day it is 2x regular pay). (Replicon)
– In Malaysia, it is customary to pay a “13th-month” payment at the end of the year, usually equal to one month’s salary. Though not required by law, it’s common with most jobs in Malaysia. (Globalization Partners)
John- Minimum Wages Order 2018:
This Order prescribes the minimum wage payable to employees as being 1,100 ringgit per month or 5.29 ringgit per hour for employees in Malaysia. The minimum wage may be revised on a periodic basis. (1,100 ringgit=$260.97 USD) Low cost labor
Sandra-
Nicole –
Philip- The employment act of 1955:
- 8 hour max work days (48 a week)
- 11 paid holidays
- 60 day maternity leave
- 8+ paid vacation days varying on years at the job
- 14+ paid sick days varying on years at the job
- Website:https://www.3ecpa.com.my/resources/human-resources-immigration/summary-of-employment-laws-in-malaysia/ (HAS TONS OF LAWS)
Chris Worth-Industrial Relations Act 1967 (Act 177) (‘the IRA’),‘An Act to promote and maintain industrial harmony and to provide for the regulation of the relations between employers and workmen and their trade unions and the prevention and settlement of any differences or disputes arising from their relationship and generally to deal with trade disputes and matters arising therefrom’.
Micro————————————————————————————————————-
Austin-
James- Female employees are not allowed to work in any industrial or agricultural job between the hours often 7 o’clock in the evening and 5 o’clock in the morning
John- Local Malaysian rubber glove factories have been plagued by reports of abusive working conditions for years. It will be important that we are careful when hiring certain people that could have negative views upon rubber factories in Malaysia.
Sandra-
Nicole-
Philip- “…carried out enforcement activities on errant companies, and would continue to monitor and take action against employers failing to adhere to national labour laws and legislation” (https://www.reuters.com/article/malaysia-politics-labour/malaysia-has-inspected-will-monitor-rubber-manufacturers-labour-law-compliance-idUSKBN2720J7)
Chris-Personal Income Tax: For resident full-time, contract, or freelance employees, the net taxable income after the tax exemptions and tax reliefs is subjected to the progressive tax rate starting from 1-30% on income > RM 5,000. For non-resident employees, a flat tax rate of 30% applies to the total taxable income.
Income Tax Return (ITR): Employers must provide Form EA by the last day of February. The deadline for resident individuals to file their taxes is 30 April (for offline channels) and 15 May for e-Filing.
Corporate Income Tax (CIT): For both resident and non-resident companies, the current CIT rates are:
Service Tax: 6% on any taxable service provided by a registered business in Malaysia.
- Identify the types of skill sets required to hire for the industry your team is researching and whether there is enough local talent (or what countries you recommend hiring the labor from)
What general cost of living differences are there for the areas of the country your team is geographically focused on versus Kansas City, MO or the U.S.?
Austin-
James – Cost of living in Malaysia is, on average, 47.31% lower than in United States. Rent in Malaysia is, on average, 78.64% lower than in United States. (Numbeo)
John- Average house price: Malaysia (US$95,491) Kansas City, MO (US$239,941)
Sandra-
Nicole-
Philip-
Chris-
What general local salaries are expected for the types of industry specific positions and how do they compare to Kansas City, MO or the U.S.?
Austin –
James-
John- Entry level rubber worker average salary: Malaysia (US$8,287.55) United States (US$29,865)
Sandra-
Nicole-
Philip- https://wise.com/us/blog/cost-of-living-in-malaysia#malaysia-cost-of-living-compared-to-the-us
Chris- In 2020, the average monthly salary for employees in the manufacturing industry in Malaysia was around 2.54 thousand Malaysian ringgit. Employees in the manufacturing industry had a mean average monthly salary that was lower than the national average.
Manufacturing jobs for Amazon located in Kansas City start anywhere from $20-$22 an hour https://www.glassdoor.com/Hourly-Pay/Amazon-Manufacturing-Kansas-City-Hourly-Pay-EJI_IE6036.0,6_KO7,20_IL.21,32_IM437.htm
What would be the source(s) of labor and for what general types of positions?
Austin-
James- Malaysia’s share of skilled employment (those who are employed in managerial, professional or technician roles) is at 28.2%. Meanwhile, the share of semi-skilled workers is at 59.9% and the share of low-skilled employment is at 11.9%. (Talent Corp)
John- Factory workers
Sandra-
Nicole-
Philip- Sources: Locals that understand the industry/environment (host-country)
Positions: Factory Workers and Lower Level Managers
Chris- Between 2018 to 2020, the Malaysian government officially estimated that the country hosted approximately 1.4 to 2 million documented migrants, and unofficial estimates of 1.2 to 3.5 million additional migrants (as reported by the World Bank) – thus making Malaysia the largest migrant-receiving country in Southeast Asia. The migrant workers are from Indonesia, Bangladesh, Nepal, Myanmar, and other Asian countries in smaller numbers including India, Cambodia, and Lao PDR; and engaged in industries including manufacturing, plantation, agriculture, services (hospitality and security), and domestic work.]
Would any training of the main labor force be expected?
Austin-
James-
John- Yes. Mainly having to do with proper communications between other workers and superiors. Need to establish a non threatening work environment and communicate fully that the workers participation is desired.
Sandra-
Nicole-
Philip- Training such as cultural understanding and quality expectations
Chris- Training will not only include how to properly utilize factory machinery, but to also learn how the organization ladder works within their system. It will also be necessary to include proper cultural training on factory proceedings if the company decides to use an immigrant workforce so that the workers and supervisors can get along and work together effectively.
How extensive would the training be and on what general skills?
Austin-
James- In depth training on both cultural aspects & actual job. Make sure companies core values align with cooperation & understanding. Employees will need to be trained on specific areas dependent on their job title.
John- Training on nonverbal communication, because a lot of communication in Malaysia is done this way.
- Also training on how typical managers work in Malaysia. Many managers in Malaysia show concern for their employees that go beyond the workplace. So managers need to understand this and show that they care about their employees life outside of work and not just their performances in the workplace.
- It is also important not make a Malaysian lose face, so proper training on this will be important
Sandra-
Nicole-
Philip- adding on to what Peyton put it is important to share and understanding of expectations from both parties and to seek out best ways to have these met
Chris-