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Dispute at Ericsson

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30 May, 2000The Electrical Industry Workers' Union of Malaysia has reported to the IMF that Ericsson, a Swedish multinational, is challenging the representative status of the union.

MALAYSIA: On May 3, the Electrical Industry Workers' Union (EIWU) received a letter from Ericsson which came as a big surprise - but a negative one. It said that "the recent rapid development in telecommunications industries has brought about tremendous changes in the position of our employees in Malaysia." Therefore, the company has asked for an "investigation" as to whether the union should continue to represent the employees of the Ericsson group of companies in Malaysia.
The union considers the action of Ericsson "highly provocative and a violation of the freedom of association." The general secretary of the IMF Malaysian Council, G. Rajasekaran, says that Ericsson is seeking to take advantage of the Malaysian government's regressive labour policy in order to deny the workers their collective bargaining rights.
If the attempt by Ericsson to get rid of an established union like the EIWU is allowed to succeed, it will spell disaster for the Malaysian trade union movement, says the EIWU general secretary Vejaragavan Gopal.
Ericsson first set up business in Malaysia about 30 years ago. The EIWU organised the workers 25 years ago, and ever since the union has been representing them.