UNIVERSITI Utara Malaysia School of Technology and Logistics Management’s senior lecturer Rohafiz Sabar said the recent lorry operators and drivers’ strike can disrupt the supply chains of various industrial sectors, affecting the economy and society as a whole and could complicate supply chains as delivery might be delayed while the availability of products in the Malaysian and overseas markets would be affected.

“Cost hikes may also occur and companies may use alternative means of transportation which are often more expensive. This may result in higher logistical costs that may be borne eventually by business users and end users,” she said.

Rohafiz was responding to a recent news report of a group of lorry drivers and operators who went on a three-day strike in several states starting October 17 to protest against enforcement operations by JPJ.

She said businesses facing the challenge of maintaining optimal inventory levels might cause uncertainty in the availability of goods in the market, leading to the issue of ineffective inventory management by the companies.

“As a result, end users will also experience shortages of certain products, which can lead to inconvenience and potential price increases. This can (negatively) influence consumer behaviour and spending patterns.

“For serious cases, job loss may also occur. A prolonged strike risks possible job losses in various sectors of the country’s economy,” she said.

Rohafiz said collaboration between the government and the private sector in overcoming the strike could be an effective strategy to curb its impact.

“Communication and dialogue can create an open mechanism among representatives of the government, lorry drivers, and the companies involved. Holding regular dialogues to discuss key issues and find common solutions is also desirable.

“Active negotiations can lead to reaching an agreement that satisfies all parties. This will speed up the dispute resolution process to avoid lasting impact on the supply chain,” she added.

Rohafiz reckons alternative transportation channels, such as railways, cargo ships, or air delivery, need to be identified to ensure the continuous delivery of goods.

“Additionally, effective monitoring and reporting is required to detect changes in the supply chain. Providing a reporting platform by using technology to report problems quickly would ensure immediate action can be taken,” she said.

Rohafiz called for continuous training and education for lorry drivers to improve their capabilities and raise professionalism in the industry.

“Financial assistance and incentives to the affected companies can help them deal with the impact of the strike. Giving incentives to lorry drivers or transport companies to encourage operational recovery should also be considered accordingly.

“However, the basic issue that led to the strike needs to be identified first so that any appropriate measures can be implemented,” she added. – Bernama, October 26, 2023.