INDUSTRIAL-RELATIONS IN MALAYSIA - MULTINATIONAL PREFERENCES AND STATE CONCESSIONS IN DEPENDENT DEVELOPMENT - A CASE-STUDY OF THE ELECTRONICS INDUSTRY

The Malaysian economy has been highly dependent on Japanese and Americ an inward investment to further its export-oriented industrialization strategy. At the outset of this strategy the state effectively banned unionization in the electronics sector as an explicitly stated strateg y to attract inward investors. The article explores state and multinat ional anti-union strategies in the electronics sector at macro-and org anizational levels. It is argued that while opportunities for trade un ionism are affected by domestic and international political environmen ts which can exert pressure on states to adopt particular policies, mu ltinationals are subject to fewer constraints. This can give rise to s tate concessions to trade unions which are not only undermined by mult inational capital but can bring the state and multinationals into publ ic conflict. Using the electronics sector as a case in point this arti cle explores the underlying dynamics of Malaysian state policies towar ds trade unions within the paradigm of dependent development. Second, the article explores micro-level multinational strategies in union avo idance where state-level strategies have been felt to be weakened. The article concludes by arguing that the debate on social clauses and tr ade needs to target the first world as well as the third, and until th is occurs future prospects for trade unionism in the electronics secto r are slim, irrespective of the needs and desires of the Malaysian sta te and its labour movement.