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Victory for Ericsson workers

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7 December, 2000The Malaysian Electrical Industry Workers' Union will continue to represent workers at Ericsson's Malaysian subsidiary.

MALAYSIA/SWEDEN: The issue of the continued representation of Ericsson (Malaysia) workers by the Electrical Industry Workers' Union has been settled in favour of the trade union. In a letter to the registrar of trade unions, dated November 28, 2000, the managing director of Ericsson Mobile Communications (Malaysia) Sdn. Bhd. states that the company is officially withdrawing its previously submitted application on the issue of continued representation of Ericsson workers by the EIWU.
In May of this year, when the union, an IMF affiliate, served claim for its ninth collective agreement, after more than 25 years of unionisation, negotiating and having concluded eight collective agreements with the company, the local Ericsson management tried to get rid of the union. By using Malaysia's labour law which bars national unions from organising in the electronics sector, Ericsson applied to the registrar of trade unions to reconsider the industrial classification of the company. On June 22, the IMF Central Committee demanded that Ericsson withdraw this application and immediately start bargaining in good faith with the EIWU. Informed of this situation, Ericsson's head office, in Sweden, sent a message to the Central Committee delegates stating they would attempt to find a solution agreeable to all parties, as their goal was "good labour relations with all Ericsson workers".
In a meeting on September 27, management and the union reached a verbal agreement in which the union would accept the continued practice of the seven-day week and management would withdraw its letter to the registrar of trade unions. When the union was informed that the local company had only asked the registrar to "put on hold" its original request, the IMF again wrote to the head office in Sweden. On November 16, a written agreement was signed between the company and the union in which Ericsson states it "shall withdraw the application put forth to the director general of trade unions on issues of competency."
The EIWU has expressed its thanks to all involved in helping them achieve this positive result, including the IMF and its Southeast Asia regional office, Svenska Metall, the IMF Malaysian Council and the Malaysian Trades Union Congress.
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.