Aspecto

The thesis aims and objectives have been outlined in this introductory chapter. The study is pursued on the basis of conflicting socio-economic goals in Brunei: diversification, Bruneianisation, and domestic labour constraints. The main concern here is the increasing reliance on foreign workers by Brunei to supplement the limited local manpower. Shortage of manpower is a significant underlying constraint in the country and this has been further exacerbated by the incompatibility of the structure of labour demand and supply. Consequently, this has precipitated labour migration in order to maintain existing services and pursue further development. In increasingly utilising foreign labour for development, the resultant Brunei labour market and employment structure has been that of segmentation between different groups of workers. The thesis concludes that the processes which have brought this situation about seem to have become permanent - at least for the foreseeable future.

Chapter Two develops a working definition for this theme through an overview of the concept of labour market segmentation as it applies to the circumstance of Brunei. The origin of the theories of segmentation is also outlined here to provide a background characterisation and understanding of the theoretical base of this study. In order to provide a model for explaining segmentation processes in the Brunei labour market and employment structure, empirical

studies of how segmentation has been created and maintained in the other labour-short countries, such as the NICs, ASEAN and the Gulf States are examined. Since the economic diversification problems of these countries were related to changes in the nature of labour demand and supply, as well as government intervention during their development processes, the model of examination pursued is that of the relationship between the principal labour market actors: employers, workers, and government and non-government bodies.

Since the economic diversification problem in Brunei seems to be similar to that of the NICs, ASEAN and the Gulf countries, that is disparities in the labour demand (employers) and supply, qualitatively and quantitatively (workers), this study uses these labour market actors as part of a model for explaining segmentation in the Brunei labour market and employment structure. A third factor: an institutional role (government and non-government) is also included to the model because of its significant role in influencing the inflow and policies for employing foreign labour and the resultant structure of employment. The role of these labour market actors in creating and sustaining the resulting segmentation are examined in Chapter Three.

The model, which shows the interaction between the main actors identifled, government, employers and workers is used in Chapter Four to examine and explain the factors and mechanisms responsible for bringing about segmentation processes in the Brunei labour market and employment structure as a whole. The analysis mainly uses census records of the 1971-91 period. The focus is on labour market development (mainly demographic changes) and their impacts on the total stock of human resources and composition, as well as characteristics of the workforce and recent patterns of employment. The chapter reveals how segmentation between local and foreign labour as well as within the local workforce emerged through a set of processes, to create such features which seem to be permanent. This finding indicates the necessity of further investigation of different economic sectors to examine more closely how segmentation processes apply in particular economic sectors, effectively separating the workforce into non-competing occupational groups.

The remaining chapters, form the heart of the thesis as they present analyses of primary data to supplement secondary information derived from the census and other sources. These data detail the employment structure that has evolved in particular economic sectors, together with the occupational roles of the different groups of workers and their employment characteristics, and identify the segmentation processes that have created and maintained the resultant segmented labour market and employment structure in these sectors. Chapter Five mainly explains the fieldwork strategy, sources of data, method of data collection, and problems that emerged during the fieldwork. Analyses of workforce composition, identification and explanation of segmentation processes which produced the resultant employment characteristics of BSPC, the construction, and wholesale and retail sectors, are presented in Chapter Six, Seven and Eight.

Chapter Six identifies and explains the trends and patterns of employment in BSPC between 1984 and 1992^^. Detailed analysis of employment structure by functions, departments, professions (engineering and technical) between locals and foreign workers, and locals by ethnicity (Brunei Malay citizens and non-Malay) is also made. This is followed by analysis of segmentation processes using the model developed for the company, which is basically similar to the base model illustrated in Chapter Three. In the model for the company, those factors and mechanisms causing segmentation, mainly through the interactions of the roles of the principal labour market actors, are identified and explained systematically. The findings show that the segmented employment structure in BSPC between local and foreign workers, between foreign nationalities and among the locals have been created and maintained by a set of factors and mechanisms at work, some of which are common to all industrial sectors in Brunei (such as preference for employment and promotion for the citizen Malays) while others are unique to the company (such as joint-ownership status and recruitment policies).

Chapter Seven and Eight identifies and explains the employment patterns and segmentation processes respectively, in both the construction and wholesale and retail sectors. While between these sectors, and Brunei Shell Petroleum Companies, it is found that there are significant

differences in terms of job and skill hierarchies (Chapter Six), there are many similarities between the construction, and wholesale and retail sectors. The similarities are in terms of segmentation processes which have caused occupational selectivity and sectoral segmentation in the sectors, leading to reliance on foreign labour and the permanency of segmented labour market and employment structure. Because, the construction, wholesale and retail sector in particular are very similar in terms of segmentation processes affecting them, they are examined and analysed together in Chapter Seven and Eight.

As far as dual and multiple segmentations are concerned, segmentation of workers between local and foreign, as well as between different ethnic groups (Malays and non-Malays) in construction and wholesale and retail reflect the segmentation characteristics of the employment structure for Brunei as a whole, revealed in Chapter Four. Both forms of segmentations as well as that between the different foreign nationalities are also evidence in the three sectors examined (Chapters Six, Seven and Eight). Overall, examination of the employment structure and characteristics of these three sectors will portray the manpower problems, particularly segmentation of workers by occupation and economic sectors in Brunei which has undermined its economic diversification. A summary and conclusion of the thesis is presented in Chapter Nine.

^^General trends of employment are shown between 1984 and 1992/93. But data for detailed analysis of employment are however only available for 1992/93.

CHAPTER TWO; SEGMENTATION PROCESSES IN SELECTED LABOUR-