FACULTY OF ADMINISTRATIVE

SCIENCE & POLICY STUDIES

ADS465 INDUSTRIAL RELATIONS

SITUATIONAL BASED ANALYSIS

INTRODUCTION
 Everyone was expecting 2020 will be a good year aligned with our vision Wawasan
2020 which was implemented by our dearly former Prime Minister, Tun. Dr. Mahathir but
who would know that 2020 will be a total chaotic disaster, relentless and surreal all in one
time. The whole world is affected and businesses are not excepted.

Initially, Malaysian citizens did not realize how deadly the virus is until the first two
people reported died in mid-March 2020. So many efforts given by the Malaysian
Government in order to reduce and control Covid-19 from spreading. One of them was The
Movement Control Order (MCO) which everyone was asked to stay at home. Every place
was closed, especially schools, universities and shopping malls. Employees were asked to
work from home except for front-liners.

This pandemic has given a very negative impact to the industrial economy especially
the tourism industry. According to the latest International Labour Organization (ILO)
estimates, over one million Malaysian jobs in manufacturing supply chains are at risk due to
significant disruptions to the supply of imported inputs into Malaysian manufacturing
production.

Almost 50 percent of self-employed Malaysians have lost their jobs due to MCO,
while 28 percent of employers experienced more than 90 percent drop in their income.
Employers are struggling to cut costs to retain their employees hence the employees were
forced to leave, no-pay leaves, salary deductions and union busting.

Thus, this assignment is to discuss the roles of government in maintaining

harmonious industrial relations in the country and the effects of working from home (WFH)
towards the employers or organisations and employees during pandemic Covid-19.
1. The Roles of Government in Maintaining Harmonious Industrial Relations in
The Country.

The whole world is facing unprecedented situation and the government plays an
important role in maintaining harmonious country. They have been planning and
implementing so many new things and new law for the country with no guidelines to refer
because this pandemic is something new that no one has ever experienced. Some plans
may have failed, but nothing is perfect. I believe they have done their best.

1.1 To ease the burden of individuals and companies

The first role that the government can do in order to maintain harmonious industrial
relations in the country is by implementing the wage subsidy programme. This programme is
actually a payment to workers by the state and it is made either directly to the workers or
through their employers. Wage subsidy program are also financial assistance programs paid
to employers for all local employees earning RM4,000 or less. This program aims to support
all the affected businesses by the economic impact of the Covid-19 crisis and also this
program is to prevent workers from losing their jobs and source of income.

Everyone was paranoid and panicked, especially businesses where they cannot
operate which lead to major losses. Small and medium enterprises (SMEs) are the
backbone of the Malaysian economy which comprises 98.5% of all business establishments
in Malaysia, contributing nearly 40% to GDP and employing almost two-thirds of the
workforce. As we all know, this Covid-19 outbreak has caused businesses to shed jobs at a
record pace and also has triggered unprecedented mass layoffs and furloughs. For example,
one of the major industries that have announced they are downsizing their workforces is
Airline Industry.

This program is available to all the businesses in Malaysia regardless of nature or

size of the business. In this program, the government will contribute between RM600 and
RM1,200 per month towards the salary of each local employee who earns a salary of
RM4,000 or less and it is only maximum of 200 employees in one company or businesses.
But, there are eligibility for wage subsidy programme applications which are, only the
businesses that have at least 50% drop in revenue since 1st January 2020. In exchange, the
employers that already meet the following conditions and have applied for this program,
must not lay off any staff or force their staff to take unpaid leave and the employers also
must not cut the salaries of their existing staff for a period of 6 months after the
implementation of this program.

By implementing this program, it can assist the employers that have been affected by
the Covid-19 pandemic to sustain businesses and reduce retrenchment. Which means, this
program can prevent a large-scale retrenchment of the companies by funding a portion of
the employees’ wages and to make sure that all the businesses in Malaysia can remain
operating and also remain sustainable.

1.2 Tighten up the security for everyone’s safety and health

In conjunction of breaking the Covid-19 chain, the government has tightened up the
security for everyone’s safety and health such as roadblocks for red zone area to avoid any
new contacts, required to check body temperature and scan QR code before entering
premises, social distancing by 1 metre and lastly wearing a mask to everywhere.

The government took wearing a mask very seriously. Those who flout can be subject
to prosecution under the Prevention and Control of Infectious Diseases Act 1988 that
provide for a fine of up to RM1,000, close to the minimum monthly wage of RM1,100 or
RM1,200. Besides that, the law also imposes a penalty of six months’ imprisonment, or both
fine and jail. However, face masks are not compulsory in private vehicle or during physical
activities such as doing house chores, jogging or bike riding.

One of the symptoms of Covid-19 is fever hence checking body temperature is

mandatory. Furthermore, the purpose of scanning QR code is to keep track our history
visited places. For example, an individual tested positive Covid-19, the Health Department
officer will check his or her history and will contact those that have been there to ensure
everyone will be taking SWAB test and quarantine to avoid it from spreading.

However, some people have no symptoms at all, that is why we are advice to take
precautionary measures such as wearing a mask and keep distance from everyone,
especially the senior citizens who are most likely to get infected. Besides that, keep
ourselves hygiene at all times by applying hand sanitizer and taking a shower once we get
back home.
1.3 Ensuring food supply chain is sufficient and controlling the prices

Citizens went panic buying when the government declared lockdown due to
tremendous increased cases day by day. This resulted grocery store shelves have been
replenished over time. Due to movement restrictions of workers, changes in demand of
consumers, the food supply chain were facing a bottleneck which created a situation of
underutilization of resources and completed goods did not deliver to consumers on time.

The government reassured that any activities, businesses, and services related to
food have been classified as top priorities and essential services which are allowed to
operate throughout the MCO period. In order to ensure the adequate food supply, Malaysia
also does not impose any export restrictions on certain goods during the pandemic.

The whole world is facing such unprecedented problems and situation. Unfortunately,
some parties were taking advantage by risen up the prices of essential things such as foods
and face masks because they believed the demand was very high. We were all aware the
rapid increased in price of face masks which was RM75 per box or even more expensive
than that. Nevertheless, the government has fixed new ceiling prices to ensure that there is
enough supply during MCO for everyone.

1.4 Reflection

Covid-19 has entered Malaysia for almost a year now and yet active cases still
increase massively. The government has given their best to protect the country, especially
us. My reflect on this, I may not have any close contact that has been tested positive Covid-
19 as for now, but I will always be attentive to surroundings and keep a distance from
people. Better be cautious than sorry.
2. The Effects of Working from Home (WFH) Towards the Employers/Organization and
Employees.

Working from home means an employee is working from their house, apartment, or
place of residence rather than have to work at the office. Work from home is also known as
working remotely or telecommuting which implies that the employees are working from a
remote location. As we all know that, the Covid-19 pandemic was affecting every aspect of
our daily lives including the way we work. And this pandemic also has forced many
companies all over the world to adapt to and embrace remote work. With millions of workers
taking part in this work from home, it is worth asking the question - how do people and
companies actually being affected by working from home and what are the effects of working
from home towards them? Some of the effects of working from home are:-

2.1 Happier and healthier work life

Some people really love the idea of working from home because they are now being
able to do their job while staying close to family and loved ones. It is not that the employees
hate working at the office but it is more that the employees have grown to really like the work
from home life because it makes them feel less stressful with the office environment. For
example, when you are working from home, you will be working alone and you will be free
from the stress that comes from your nagging boss and colleagues and also free from the
office drama.

Besides that, to those that living alone, they usually will feel less distractions and
interruptions at home and they will feel freedom when working from home which results in
increase productivity and motivation of the employees. They can get their work done without
being disturbed or distracted when they have more peaceful atmosphere at home. Little
things such as having a quiet surrounding of working from home is something that is hard to
get by in a traditional office scenario. For example, when you are working from home, you
can escape yourself from the office environment and you can create your own working
environment that works best for you and which one that you feel comfortable with.
2.2 Working from home does not suit everyone.

Working from home can be very challenging to some of the employers or employees
because working from home might be not suited to someone’s personality or ability. Some of
the employees might already feel very comfortable and pleasant with their office
environment rather than the home environment. For example, when we are at the workplace,
we will be provided with the availability of basic office equipment and office machines that
helps us to complete all the tasks and make sure the tasks run effectively.

The example of office equipment and machines are printer machines, high speed
internet access, telephone, computer software and more. Some of the employees really
need office equipment and machines in conducting or completing office related tasks or work
and without all these equipment and machines, they might not be able to complete the tasks
and it can be very difficult for them when they bring their tasks at home with them and if they
wish to set up their home to become like a home office this can be very costly for them and it
is not convenient for everyone.

Besides that, in the office, we cannot expect that all the staff in the company are
expert and being able to work independently because sometimes when they have problems
with their tasks, they are most likely prefer to have personal interaction with or face to face
communication with other colleagues to ask for their help, opinions and also seek for
guidance with their supervisor or manager in order for them to complete their tasks or
achieve their goals.

Some employees prefer to have face to face communication because by doing so

they can avoid any misunderstanding and miscommunication. For example, when they are
working alone at home and they want to ask quick questions that are important and urgent to
other colleagues, it can become difficult for them because there is no one there around
them. As we all know, human beings rely on the nonverbal communication when they speak
because it plays a significant role in our lives as it can improve a person's ability to relate
and engage. Even though email, phone call, and video call can be very convenient when
working from home, it has become one of the worst means of effective communication and
can lead to a high chance of miscommunication and misunderstanding.
2.3 Home distraction

Another effect of working from home is home distraction. Distraction can be external
and internal and can cause us to lose focus in doing our job, hard to pay attention to the job
and also loss of interest in the job. For example, one of the top distractions for people who
are working from home is the kids or spouse.

As we all know, during this Covid-19 pandemic, all the kids are not allowed to go to
school which means they have to stay at home all the time and can only be learning from
home. Even if their kids are going to school, there is probably days when they are left at
home for special circumstances. One of the distractions comes when the kids are having
their online classes and at the same time the parents also have work to do, they will have to
spare some time guiding their kids instead of concentrating on their own work. It can be very
difficult for them to focus on the two things at once. Another distraction is when their kids are
running and jumping around, talking loudly, watching television with high volumes, or even
fighting with one another. All of these distractions interrupt the employee’s focus in doing
their job and it becomes challenging for them to get the work done.

The same thing can happen to a partner that has to work from home too. Their
partner can come anytime and speak to each other to talk about crucial problems or stuff
that are not important at all. Your children or your partner may be doing something that is so
loud which can lead to a noisy environment and can ruin your thoughts and ideas.
Additionally, it may be noise from your own making, such as a washing machine or music
that you play. No matter what the source might be, too much noise may make focus nearly
impossible at times. You will tend to lose your focus on your work as you have been
distracted by the surroundings.

2.4 Reflection

Working from home actually another initiative by the government to break the chain
of Covid-19. Nonetheless, this initiative is not applicable to those who are working as front-
liners. I am very grateful with my current occupation despite other problems I am facing right
now, because there are front liners that have been working day and night, risking their life in
order to protect us.
CONCLUSION

Upon exploring the situation from multiple perspectives, during this pandemic or
during this economic slump, a lot of people are being affected economically, physically,
spiritually and also definitely financially. I am sure that so many people get so demotivated
and frustrated with the current situation we are facing right now. However, this pandemic has
taught us a lot.

Not a single person in this whole world was ready for the pandemic. It was a total
chaos that we have no idea on how to prevent or even protect ourselves because this
disease is seriously weird that cannot be seen, at all. The most tragic part is that it can kill.

Almost everyone is affected financially, especially those in tourism and airline

industry. They used to be the most remarkable growth and evolved one of the country’s
fastest growing economic sectors. Regrettably, today they are hopeless due to Covid-19
where everyone is not able to travel. Air Asia Berhad had to cut cost by retrenchment and
reduce salaries for the remaining employees. This happened to other business related also
such as hotels and even worse some hotels had to shut down. However, these industries
are slowly recovering.

One thing for sure that I learned from this is that good hygiene is vital to keep us
healthy and prevent us from not only Covid-19 but also other spreading germs and infectious
diseases. Lastly, I really hope this pandemic will end soon so that we all can go back to our
previous normal life and our country recovering from the financial crisis.
APPENDIX

The socioeconomic impacts of COVID-19 in Malaysia: Policy review and guidance for
protecting the most vulnerable and supporting enterprises

http://ilo.org/wcmsp5/groups/public/---asia/---
robangkok/documents/publication/wcms_751600.pdf

COVID-19: Roadblock mounted at Sandakan entry point beginning today

https://www.astroawani.com/berita-malaysia/covid19-roadblock-mounted-at-sandakan-entry-
point-beginning-today-261588

Starting Aug 1, Masks Mandatory In Public Areas With Max RM1,000 Fine

https://codeblue.galencentre.org/2020/07/23/starting-aug-1-masks-mandatory-in-public-
areas-with-rm1000-fine/

Food Supply Chains and COVID-19: Impacts and Policy Lessons

http://www.oecd.org/coronavirus/policy-responses/food-supply-chains-and-covid-19-impacts-
and-policy-lessons-71b57aea/

Malaysia in lockdown: Covid-19 reignites food supply fears in Singapore despite

government reassurance

https://www.foodnavigator-asia.com/Article/2020/03/18/Malaysia-in-lockdown-COVID-19-
reignites-food-supply-fears-in-Singapore-despite-government-reassurance

Protecting the Agriculture Sector During the Covid-19 Crisis

http://www.krinstitute.org/assets/contentMS/img/template/editor/200330%20Views_Agri
%20COVID-19_EN.pdf

Covid-19: Govt sets new face mask ceiling price, bans export

https://www.nst.com.my/news/nation/2020/03/576681/covid-19-govt-sets-new-face-mask-
ceiling-price-bans-export
Government, workers and employers discuss COVID-19 impact on Malaysian supply
chains

https://www.ilo.org/asia/media-centre/news/WCMS_746339/lang--en/index.htm

Malaysia: Second Economic Stimulus Package

https://www.roedl.com/insights/covid-19/coronavirus-malaysia-second-economic-stimulus-
package

Economic Stimulus Packages saved 2.75 million jobs – PM Muhyiddin

https://www.pmo.gov.my/2020/07/economic-stimulus-packages-saved-2-75-million-jobs-pm-
muhyiddin/

Employees working from home

https://www.nibusinessinfo.co.uk/content/advantages-and-disadvantages-employees-
working-home

Remote Work Disadvantages & Challenges

https://www.wrike.com/remote-work-guide/remote-working-disadvantages-challenges/

The Negative Effects of Working From Home on Company Culture

https://www.coworkingresources.org/blog/the-negative-effects-of-working-from-home-on-
company-culture