DURING my trip to Geneva Switzerland, in June this year for the International Labour Organisation conference, I met some employers from India. Since we stayed at the same hotel, I had the opportunity to explore some of their labour practices. In our short discussion they complained that ILO seems to be taking a black and white approach to labour issues. To them, ILO tends to divide capital and labour, where the capitalist is seen to be unjust while the labourer is a victim of capitalism and needs justice in terms of upgraded work standards.

They told me that in India, especially in small towns and villages where there are small- and medium-sized industries, employers and workers work closely like a family without any division and this has brought great results. There is engagement among all without the so-called psychological and social economic barrier and conflict between capital and labour.

Reflecting on this discussion I realised the old conflict between labour and capital does not need to happen if there is common engagement on all sides. In a digital age, where knowledge and skills will predominate the context in which bargaining between employer and employees takes place, engagement becomes a strategy of competitiveness.

Research has shown that employee engagement is not about happiness, or creating a fun club or going for picnics. It is about an emotional attachment to an organisation where there is a trust between leaders and team, and this translates into productive results. Engaged employees are those who work with passion and feel a profound connection to their company. They drive innovation and move the organisation forward.

Data has show the correlation between revenue growth and employee engagement – the most successful companies in the world have the highest levels of employee engagement and are growing the fastest. Companies in the top tier of employee engagement outperform their peers by 147% in earnings per share and have a 90% better growth trend than their competition. 

In the current age of technological change, many organisations are moving towards a horizontal and team-based approach in building strong organizations where employees are empowered to make decisions. It is no longer appropriate to hold on to the master-servant relationship between employers and employees. It about engagement and solidarity.

It sad that employers and unions in this country fail to grasp the complexities of the future of work that sooner or later will break up the vertical dimension of employer-employee relationships. Organisations of the future function as a cohesive unit built on engagement and rooted in trust. It is hoped that a paradigm shift takes place between employers and unions in Malaysia where there should be engagement that built trust rather than division. – November 24, 2019.

* Ronald Benjamin is secretary of the Association for Community and Dialogue. He reads The Malaysian Insight.

* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight. Article may be edited for brevity and clarity.