Determinants of Trade Union Effectiveness Among Plantation Workers in Malaysia: A Conceptual Study

Determinants of Trade Union Effectiveness Among Plantation Workers in Malaysia: A Conceptual Study

Adilah Othman¹*, Mohd Saad Mohd Yusoff², Siti Noor Aishah Mohd Sidik³

Faculty of Business and Management, Universiti Teknologi Mara, Terengganu, Malaysia^1,3

Faculty of Business and Management, Universiti Teknologi Mara, Shah Alam, Selangor, Malaysia²

*Corresponding Author

DOI: https://dx.doi.org/10.47772/IJRISS.2025.909000461

Received: 14 September 2025; Accepted: 21 September 2025; Published: 15 October 2025

ABSTRACT

This conceptual paper examines the factors influencing trade union effectiveness among plantation workers in Malaysia, with particular focus on trade union leadership, employee voice, trade union commitment, and management style. Recognizing the critical role of unions in safeguarding workers’ rights and enhancing labor relations, this study adopts a quantitative research design to investigate how these variables shape both union effectiveness and employee job satisfaction. Data will be collected through structured surveys administered to 302 respondents, comprising both local and migrant workers across various plantations in Kelantan. The data will be analyzed using SPSS to identify the structural relationships among the four constructs and their impact on trade union effectiveness. By integrating leadership, voice, commitment, and management dimensions into a unified framework, this paper contributes to a deeper understanding of labor dynamics within the plantation sector. The anticipated findings are expected to provide theoretical insights into industrial relations literature and offer practical recommendations for strengthening trade union practices, thereby fostering improved productivity, worker well-being, and reduced turnover among plantation workers in Malaysia.

Keywords: trade union leadership, employee voice, trade union commitment, management style, and trade union effectiveness, NUPW.

INTRODUCTION

The effectiveness of trade unions has long been a subject of scholarly debate within industrial relations and labour studies. Trade unions are organized associations of workers formed to protect and advance their collective interests. Their effectiveness, however, is not absolute but varies across historical periods, industrial sectors, and socio-political contexts. Based on recent records from the Department of Trade Union Affairs (JHEKS), Malaysia has 762 registered trade unions as of 2024 (Ministry of Human Resources Malaysia, 2025). This study will focus on the National Union of Plantation Workers (NUPW), which is actively engaged in representing plantation employees across Malaysia, particularly those working in the rubber and oil palm sectors. The union plays a central role in collective bargaining, safeguarding workers’ rights, and negotiating wages and benefits, with a strong historical presence in states such as Selangor, Perak, Johor, and Kelantan, where plantation activities are most prominent.

This study concentrates on the National Union of Plantation Workers (NUPW) as the focal point of analysis, given its status as the largest and most established union representing plantation workers in Malaysia. Established in 1954, the NUPW has historically played a pivotal role in safeguarding the interests of employees in the rubber and oil palm plantations, particularly in states such as Selangor, Perak, Johor, and Kelantan, where plantation activities are most concentrated. The union is actively involved in collective bargaining, dispute resolution, welfare initiatives, and policy advocacy, making it a critical institution for understanding the dynamics of labour relations in the plantation sector. By focusing on the NUPW, this research is able to capture both the historical significance and the contemporary challenges of trade unionism among plantation workers, thereby providing a robust case for examining the determinants of trade union effectiveness in Malaysia’s plantation industry. This research is situated within the context of Malaysia’s palm oil sector, a cornerstone of the national economy and one of the country’s most important contributors to gross domestic product (GDP) (Malaysian Palm Oil Board, 2024) As a labour-intensive industry, the plantation sector not only sustains economic growth but also provides employment opportunities for a diverse workforce.

Minister Datuk Seri Johari Abdul Ghani recently pointed out a significant imbalance in Malaysia’s labour market. While the manufacturing and services sectors have a surplus of about 165,000 and 27,000 foreign workers respectively, the plantation industry—particularly the palm oil sector—is experiencing a critical shortage. This shortage disrupts operations, reduces productivity, and limits export capacity, posing risks to the long-term sustainability of the industry (The Star, 2024). Since a stable and skilled workforce is essential to meet domestic and international demand, the current imbalance is slowing growth. The Minister emphasized the importance of introducing policies that better align labour distribution with sectoral needs and ensure more effective registration processes for foreign workers (The Star, 2024). The heavy reliance on foreign labour reflects the declining interest of Malaysians in plantation jobs, which are often viewed as unattractive (Kozera-Kowalska & Uglis, 2021; Stapa et al., 2019).

In this context, the National Union of Plantation Workers (NUPW) has an important role to play in addressing workforce challenges and enhancing trade union effectiveness. From the perspective of trade union leadership, NUPW leaders must act as strong advocates for fair employment practices, engaging with both the government and plantation companies to secure better policies for recruitment, wages, and working conditions. Effective leadership can also provide direction in balancing the needs of local and foreign workers, ensuring that both groups receive adequate protection and representation.

Equally important is employee voice, where NUPW serves as a platform for plantation workers to express their concerns and needs. By creating channels of communication between workers and management, the union can ensure that issues such as long working hours, safety conditions, and fair treatment are heard and addressed. A strong system of employee voice not only empowers workers but also fosters greater trust and loyalty, which can help reduce the problem of high turnover (NUPW, 2024).

The dimension of trade union commitment is also central. NUPW’s effectiveness depends on its ability to cultivate strong commitment among members, encouraging active participation in union activities and collective bargaining processes. When workers feel that the union is genuinely invested in their welfare, their sense of belonging and solidarity grows, which strengthens overall union influence and contributes to workforce stability (NUPW, 2024).

Finally, management style within plantations interacts closely with NUPW’s efforts. Unions can play a mediating role in promoting more collaborative and participative management practices, rather than adversarial ones. By encouraging a management style that values workers’ contributions, supports career development, and upholds fair labour standards, the NUPW can help foster a positive work environment that improves job satisfaction and retention (NUPW, 2024).

Overall, the NUPW’s effectiveness in advancing leadership, amplifying employee voice, deepening union commitment, and shaping constructive management styles is essential not only for protecting workers’ rights but also for ensuring the long-term sustainability and productivity of Malaysia’s palm oil sector (Yusoff, 2025).

LITERATURE REVIEW

This chapter reviews the existing literature related to the proposed framework used in the study. This includes the discussions on the theoretical foundations of this study and Trade Union Effectiveness (TUE), which is the basis for the constructs chosen for this thesis. The subsequent sections provide overviews of TUE and its evolution, proposed constructs in the thesis, past studies on the determinants, and outcome of TUE Also discussed are the theories underpinning the research, the hypotheses development, and the proposed research framework. The final section summarises the chapter.

Trade Union Effectiveness

Review of the literature revealed that for many years, trade union effectiveness has been a subject of interest and research. Numerous of scholarly and research investigations have been undertaken to comprehend the influence of trade unions effectiveness across diverse contexts. The study by Loganathan et al. (2022) asserted that trade union effectiveness is significantly influenced by the status of industrial relations and trade union characteristics. Meanwhile, the study by Yusop et al. (2020) claimed that trade union membership decisions among Malaysian civil servants are heavily influenced by union leadership, effectiveness, and commitment. Previous study by Bryson and Gome (2002) define trade union effectiveness as the ability to meet thneeds and interests of its members. According to Majid et al. (2021), that study about bank employees in Malaysia claimed that bank employees remain committed to their unions due to their effectiveness in negotiation, organising, politics, and solidarity. On the other hand, Ahmad et al. (2019), stated that the efficiency of the union was influenced by both its leadership and labour policy, as well as the prime minister’s leadership.

Trade Union Leadership

Based on the literatures, Trade Union Leadership can be categorised as one factor that influencing the Trade Union Effectiveness. Previous study has been recognised that both union and management leaders must possess specific abilities in communication, problem-solving, and conflict-resolution in order to effectively interact with members and other local stakeholders as part of effective leadership. The study in Malaysia by Yusop and Hassan (2020) union leadership is viewed as an involvement, a dedication to the cause of empowering workers to make a better living and protecting their rights. The study by Koyi et al., (2021) that focus on public service in Zambia found that leadership, democratic structuring, accountability, organisational strategies, innovations and administrative are significant factors that positively influence trade union effectiveness. The study by Hennebert et al., (2021) that using the transformational leadership theory found the significant relationship between leadership and members’ union commitment and participation.

Employee Voice

According to Prasetyo (2016) the definition of “voice” refers to the informal behaviour and communication choices of workers regarding thoughts, ideas, facts, or perspectives related to workplace issues. The objective of this employee voice is to improve organisational performance or make a change (Loganathan et al., 2023). The study by Mowbray et al. (2020) mentioned that through employee voice workers have the opportunity to express their ideas, concerns, and issues to higher-ranking executives through a direct exchange of communication between employees and management. In addition, based on Dundon et al., (2004) point of views, the practice of voice in the workplace has the potential to significantly influence both quality and revenues, in addition to diverting attention away from potentially harmful topics. The study by Logantahan et al., (2023) found the significant relationship between employee voice and Trade Union Effectiveness (TUE) in Malaysia manufacturing trade unions. Based on the importance of employee voice in enhancing trade union effectiveness, this study will reexamine the relationship between employee voice and trade union effectiveness by focusing in National Union Plantation Workers in Kelantan branch.

Trade Union Commitment

According to Li et al. (2019) point of views, the concept of trade union commitment is a highly controversial topic in the field of union studies. Majid et al. (2021) in their study also stated that the commitment of people who are members of a union is necessary for the union to be successful. Meanwhile, the previous study by Trif et al. (2023) also claimed that a significant factor that contributed to the success of the recruitment of workers to join the trade union was the commitment of the union leader to prioritising the interests of workers. As a result, this study will examine the relationship between Trade Union Commitment and Trade Union Effectiveness in NUPW Kelantan.

Management Style

In a highly competitive environment today, the determination of employee behaviour to join the trade union is very dependent on the management style used by a company (Logantahan et al., 2023). Therefore, management style is a very important approach that can be used by a company to enhance trade union effectiveness. However, the previous findings have showed the inconsistent findings between Management Style and Trade Union Effectiveness. This study attempt to bridge the gaps by examining the relationship among between management style and trade union effectiveness in NUPW Kelantan.

THEORETICAL FRAMEWORK

Based on the review on the literature, the proposed theoretical framework for this study is presented in figure 2.1. The hypothesized relationships illustrated in the model display that Trade Union Effectiveness is the dependent variable, whereas Trade Union Leadership, Employee Voice, Trade Union Commitment and Management Style are the independent variables.

Figure 2.1: Theoretical framework

The theoretical framework showed that the effectiveness of trade union can be influence by factors like Trade Union Leadership, Employee Voice, Trade Union Commitment and Management Style. Therefore, it could be hypothesised that:

There is a positive relationship between Trade Union Leadership and Trade Union Effectiveness

There is a positive relationship between Employee Voice and Trade Union Effectiveness

There is a positive relationship between the Trade Union Commitment and Trade Union Effectiveness Trade Union Effectiveness

There is a positive relationship between Management Style and Trade Union Effectiveness

The aim of this study is to include the variables that have the greatest impact on Trade Union Effectiveness. Discussions on related literature conclude that Trade Union Leadership, Employee Voice, Trade Union Commitment and Management Style are the crucial elements that can enhance Trade Union Effectiveness. Through this study, it is hoped that the propose independent variables have impact on Trade Union Effectiveness in National Union Plantation Workers (NUPW) Kelantan.

METHODOLOGY

This study is situated within the plantation sector of Kelantan and includes both local and foreign workers in order to provide a comprehensive understanding of their heterogeneous experiences and challenges. Kelantan is a particularly relevant research setting because of its strong reliance on the palm oil industry as a driver of economic activity, its significant dependence on foreign labour, and the active presence of the National Union of Plantation Workers (NUPW) in representing plantation employees. According to NUPW records, as of December 2024 there were 1,481 registered plantation workers in the state (NUPW, 2024).

Accordingly, the target population of this study comprises palm oil plantation workers in Kelantan, with the 1,481 NUPW-registered workers serving as the reference population. To ensure representativeness, a proportionate sampling technique was adopted. This approach improves the precision of estimates by giving appropriate weight to larger subgroups that exert greater influence on population characteristics (Sekaran & Bougie, 2009). Based on the sampling guidelines of Krejcie and Morgan (1970), a minimum of 302 respondents is considered statistically sufficient for a population of 1,481, and this study adheres to that recommendation.

The survey method was chosen as the primary mode of data collection, given its efficiency, cost-effectiveness, and ability to capture information from a relatively large and geographically dispersed workforce. A self-administered structured questionnaire will be employed, enabling systematic data collection while addressing both time and budgetary constraints. This method also ensures the representativeness of responses, thus enhancing the generalizability of findings (Sekaran, 2000).

Prior to the main survey, a pilot study will be conducted to evaluate the clarity, effectiveness, and validity of the questionnaire. A sample of 30 plantation workers from one company in Kelantan will participate in this pilot, allowing for the identification of potential shortcomings, such as vague or misleading questions. This process will help refine the instrument to ensure its appropriateness for large-scale deployment (Bougie & Sekaran, 2020). The reliability of the questionnaire will be tested using Cronbach’s Alpha, with coefficient values greater than 0.70 considered acceptable indicators of internal consistency (Sekaran & Bougie, 2010).

CONCLUSION

This study offers both theoretical and practical contributions to the discourse on trade union effectiveness. From a theoretical perspective, it advances understanding of the interplay between trade union leadership, employee voice, trade union commitment, and management style within the plantation sector of Kelantan. To date, no study has examined these factors concurrently in this specific context, thereby positioning this research as a valuable addition to the existing body of literature.

From a practical perspective, the findings of this study hold substantial implications for the plantation sector in Malaysia, which continues to be a cornerstone of the national economy. By deepening the understanding of trade union effectiveness, particularly through the lens of the National Union of Plantation Workers (NUPW), this study highlights how unions can play a pivotal role in shaping better labour-management relations.

The NUPW’s contribution is evident across several dimensions. First, through trade union leadership, the union acts as a strong representative body that negotiates fair wages, ensures compliance with labour standards, and advocates for improved working conditions. Effective leadership not only strengthens workers’ trust in the union but also promotes stability across plantations.

Second, by amplifying employee voice, NUPW provides workers with formal channels to raise concerns and communicate grievances that might otherwise go unheard. This function enhances transparency and supports a more balanced dialogue between workers and employers, thereby reducing workplace conflicts and improving morale.

Third, the NUPW fosters trade union commitment among its members. When workers observe that the union is actively safeguarding their rights and addressing their concerns, they are more likely to remain loyal to both the union and their employers. This sense of solidarity contributes to lower turnover and a more stable workforce, both of which are critical to the sustainability of the palm oil sector.

Finally, NUPW influences management style by encouraging plantation companies to adopt more participative and equitable approaches. Through negotiations and collective agreements, the union promotes practices that value workers’ contributions, prioritize safety, and offer opportunities for career development. Such collaborative management practices not only improve job satisfaction but also enhance productivity and efficiency across the sector.

In sum, the contribution of NUPW goes beyond protecting workers’ rights—it also strengthens the long-term competitiveness and resilience of the plantation industry by fostering a committed, satisfied, and productive workforce.

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