An examination of the legal, social, and economic determinants of strike rarity in Malaysia and the strategic role of alternative dispute resolution

Abstract

Strikes are quite rare in Malaysia due to strict legal frameworks, economic dependencies, and alternative mechanisms for conflict resolution. The IRA 1967 imposed procedural requirements of prior notice, secret ballots, and union approval, which discourage industrial actions. In addition, the judiciary plays a critical role in ensuring strikes comply with legal provisions while maintaining public order and economic stability. Strikes affecting the public's interest, such as healthcare and transportation, are further controlled to avert inconvenience to the public. The paper explores the underlying factors for the low strike frequency and examines the effects on the economy in terms of stalled production, financial loss, and impaired industrial relations. This study, while encouraging ADR mechanisms in containing disputes, also underscores that employees' grievances be heard and addressed. Recommendations include improving ADR processes, empowering trade unions, and simplifying legal procedures to balance workers’ rights with national economic interests.