Mediation saves RM60 million in workplace disputes, says HR minister
GEORGE TOWN: Mediation has proven to be a cost-effective and efficient method for resolving workplace disputes, saving employers and employees millions while fostering industrial harmony.
Human Resource Minister Steven Sim Chee Keong highlighted that 65 per cent of cases referred to the Department of Industrial Relations were successfully resolved through mediation in 2024, preventing unnecessary legal battles.
Speaking at the inaugural Industrial Mediation Symposium 2025, Sim noted that mediation handled over 3,000 cases this year, reducing the burden on the Industrial Court.
'If each court case costs RM20,000 for both parties, mediation has saved more than RM60 million in 2024 alone,' he said.
Before disputes escalate to court, the Department of Industrial Relations employs alternative dispute resolution (ADR) methods, primarily conciliation meetings, to settle conflicts amicably.
Currently, 122 industrial relations officers (IROs) trained in professional mediation assist workers and employers in reaching swift resolutions.
Sim emphasised the ministry's commitment to enhancing mediation expertise through partnerships with international bodies like the International Labour Organisation (ILO) and local institutions such as the Kuala Lumpur Mediation Centre and the Malaysian Employers Federation (MEF).
Since 2024, collaboration with the US Department of Labour has further strengthened officers' mediation skills.
The symposium, organised by the Society of JP Community Mediators Penang (SJPCMP) alongside the JP Mediation Bureau Penang and the Federation of Malaysian Manufacturers (FMM), aimed to promote mediation as a key tool for workplace conflict resolution.
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