Professional Documents
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which regulates the terms and conditions of employees in their workplace, their duties
and the duties of the employer. In addition, the collective agreement is in fact the
result of the collective bargaining process between employers and labor unions
representing the workers. Other than that, it also means a contract signed between
agreement have been prepared after consultation between the two sides of the
managers and employees. The agreement is also related to working conditions in the
workplace.
on the one hand and a trade union of workmen on the other relating to the terms and
such parties´. Based on this definition , the agreement must have the form of an
agreement between employers and trade unions and an agreement between trade
importances which are required by statute under section 14 of the IRA. The
conditions are all collective agreements must be in writing, the names of the parties
to the agreement must be clear, the parties named or authorized representative must
reduce their signature, this agreement should specify the period in which agreements
must be accepted and the term is not less than three years, should not contain the
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working conditions are less favorable than, or conflict with the law applicable to
employees covered by the agreement, it also should prescribe how to deal with
matters relating to the interpretation and application and referral of each of these
questions to the Industrial Court and the last one it should be prescribed procedure to
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All trade union need to comply with the requirements or contents of the
collective agreement. If the trade union does not comply with it, the Court may require
the party to amend the agreement. Meaning to say that, if the parties are not
complying with the requirements needed the Court may refuse to approve the
establishment of the parties. When the parties are not complying with the agreement,
the Court will interpret or take actions against the parties. The agreement also will
become an award of the Indus trial Court and it also will bind both parties.
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# Meaning to say that in the collective agreement it must stated the name
both parties that involves or bound in the agreement. In the other word the both
parties which are the trade union of the organization and the organization itself. For
February 2011.
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'() It must be specify the period it shall continue the agreement tha t valid or how
long it can be use. Meaning to say that, it must be specify how long the duration of
the agreement of the organization clearly. The duration cannot be less than three
years. In the other word for the effective duration, the agreement must be for a
minimum three years. Means that, the collective agreement needs to be renewing
once in three years. Within the period the parties also can adjust the terms with by
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the mutual consent and it also must be brought to the Industrial Court. This is
because Industrial Court needs to know what they want to do on their agreement. In
the other word, they can or have the right to add some terms or conditions that they
between Association of Maybank Class One Officers. Thus the duration of the
agreement is from 1 st March 2008 to 28 th February 2011. So, in the agreement it need
to be state it like this agreement shall be deemed to have come into effect on 1st
March 2008c and shall continue to remain in force until 28th February 2011 c and
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% ! Meaning to say that, i t must be specify the procedure
that to be used in order to settle any disputes occur over interpretation of the
agreement. In the other word if there is any dispute occur over the interpretation, they
know the procedure that they need to follow and the re lated people also know what
they need to do in order to settle the dispute. Any dispute relating to the interpretation
of the agreement need to be settled by negotiation. Meaning to say that, they need to
have the negotiation between the company itself and the Trade Union of the
company.
In this case during the time of concluding the collective agreement the union
and the employer both may have been agreed on the terms in the agreement.
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owever, when it is time to implement it, it may have that both two p arties may
provided in the Industrial Relations Act. In this Act said that if any question arises as
to the interpretation of any collective agreement is taken by the Industrial Court. The
party bound by the agreement may apply to the Court for a decision on the question.
This is to ensure that both parties company and trade union of the company satisfied
with the decision making la ter. Where the decision making that will be make is equal
for others and it also can avoid dispute among them. It also needs to be referred to
For example is the union leader of Sabah Banking employee¶s Union in the
banking industry in Sabah is disappointed and protests the Alliance Bank where the
three branches will be closed. The bank had breach the agreement where it shall
require having early discussion with the union. Thus, then they had the peaceful
negotiation between them why this happen and to settle it. Thus at the same time
they can maintain their relation between them and to create harmonious relation
between them.
According to the Industrial Relation Act 1976(Act 177) section 14 (2) that the
agreement should be prescribed with the procedure for the adjustment of any
question that arise regarding with the implementation or the interpretation of the
agreement and the reference of the Industrial Court, unless there is a suitable
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mechanism that is being set up by both parties in the in the agreement to settle the
dispute.
disputes between an employer and his workers which is connected with the
for any such worker´. Trade disputes are also known as industrial disputes. It can be
caused by four factors. Firstly an individual who has grievance and it is represented
by his union and who has exhausted the grievance procedure without getting
satisfactory result. Next factor is because difference opinion between employer and
union worker as to the appropriate terms and conditions of service for the workers.
or industrial court award and lastly the non - implementation of the agreement.
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implementation of this agreement must be settled between the company and the
union and be referred to the industrial court for definite decision. In also must be
followed with the existences of Grievances Procedure as shall not prevent either
party to this Agreement initiating informal exchange of views between the union and
the company regarding on the matters of the mutual interest. The agreement also
need to be recognizing the value and importance of full discussion in clearing up the
effort shall be made by both the company and the union as to dispose any grievance
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The first procedure is within the 5 working days of grievance arise, the
employee concerned may raise the grievance with his immediate supervisor or
office committee. Next step, if the matter is still not settled within the further 7 working
days, the union can make formal presentation to the company in writing. On the
receipt of the union¶s letter the company will without delay offer arrangements for a
meeting between the branch manager and accredited official of the company and the
union which will be attended by the union branch secretary and also his appointed
deputy. Meeting should be held within 7 days of receipt of union le tter. But if the
the company and his credited officer and union¶s secretary and or with his appointed
deputy within 10 days of period. But again if the matter still remains u nsettled after
this meeting or any further meeting between the company and the union itself, then
only it will be referred to the ministry of human resource for conciliation. And the last
step, if the dispute end up still remain unsolved after the reconcil iation proceedings
by the ministry of human resource both parties may refer the dispute to the industrial
court for settlement under the provision of the industrial relations act 1967 or such in
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the article 4 modification and termination stated that the currency of this agreement
either the company and the union, save by the mutua l agreement shall seek to add,
vary, modify any of its terms and condition in any way or even to seek or impose any
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new terms, condition and also the benefits. There is also should any legislation
supersede, vary, repeal, or add to any of the provisions of this agreement as the
said legislation. Whereby, this agreement will be terminated either by the party
serving on the 3 months of notice in writing, but no such notice sh ould be given
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#! $ & $"%% # It means that any area of
some concern to management and union alike is the decision over what can and
collective agreement, they not only hope to improve the terms and condit ion of
employment of the workers concerned but also try to influence managerial decision
making which affect the welfare and the careers of their members. According to the
Section 13(3) Industrial Relations Act ³No trade union of workmen shall may include
in its proposal for collective agreement a proposal in relation to any following matter
transfer, recruitment, dis missal, termination for redundancy and assignment of work.
owever, general issues relating to procedures on these matters can be, and
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"- "$&" -. $!% &* % # . A company that is
given pioneer statues under the Investment Incentives Act 1968 also enjoy certain
privileges (IRA S ection 15). For example the collective agreement made between an
employer and a trade union of workmen in pioneer industry should not certain
provisions that are more favorable to the workmen with regards to terms and the
conditions of the service. Even th ough the pioneer status is given 5 years, but it could
be extended by notifying in the gazette. According to IRA Section 14(3) that the
provisions made in the collective agreement must be part of better that what is
available in other written laws, otherwi se whatever is being provided for in the
collective agreement is void and be replaced by the provisions available in the written
laws which is been signed by the both parties. For example, terms that are less
favourable than the provision of Wages Council Acts 1947 and employment act 1955
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Industrial Relations and Employment Law, Si xth Edition, the collective agreement can
employers, and a trade union of workers relating to the terms and condition of
employment or the relation between the two parties. Collect ive agreements can
While, the term of employer can be define under section 2 of the IRA as any
workman under a contract of employment and includes the government and any
According to section 17 (1) of IRA had state that the effect of collective
(a) The parties to the agreement including in any case where a party is a
trade union of employers, all member of the trade union to whom the
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(2) as from such date and for such period as may be specified in the collective
agreement, it shall be impli ed term of the contract between the workmen and
employers bound by the agreement that the rates of wages to be paid and the
Court.
themselves by reducing turnover and producing parity on wages. The high turnover
can be harmful to company¶s productivity if skilled workers are often leaving and the
worker population contains a high percentage of news workers. The parity on wages
used in the setting of wages to establish similar status to different work groups. New
Other than that¶s, the effect of collective agreement that bringing goodness to
scheduled pay increases. Employer also can plan reallocation of staff through
as a result of collective agreement. Productivity gains result from greater staff morale,
increased staff retention and lower absenteeism. While, productivity for the employer
Furthermore, there is the condition where effect toward employer that they
union monitors the workplace to ensure that the employer is not violating the
give the rights of employee in a workplace, and are in effect for a set number of years
not violet the agreement between employer and employee in c ollective agreement.
the union will not undertake strike action while the agreement is in effect. Strike
happen when two sides cannot agree often about issue like wages. owever, there
are a number of legal and illegal measures a union can utilize if issues with an
employer arise.
Last but not least, the effect of collective agreement toward employer is the
ability of employer to fire workers is limited, unless a case matches the condition set
down in the agreement. Usually the collective agreement included the issue of
section on wages, vacation time, health and safety, hours of work and many other
issues. Some of employer do not follo w the agreement that had negotiated with
employee in collective agreement from that company can not fire the employee
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unions are very important today as it was as a step for Malaysia to achieve the status
workers and union workers, this means that unions and employers can conclude t he
agreement. As stated in the Industrial Relations Law 1967 clearly led to one of the
best solutions among employers, employees and unions to resolve differences and
disputes between them that they were unable to resolve yourself to say the machine
to reach agreement and resolve the dispute either through the Department of
arbitration is statutorily and through industrial action by the parties involved in strikes
and lockouts. Finally, certain differences or disputes, for example, those over the
himself, with the help of the Director General for Industrial Relations. Furthermore,
employment contracts between workers and employers are bound by the award
which the wages payable to employees of employers should be parallel with the
award, unless they vary the following awards or agreement between the parties.
In Malaysia, a separate industrial relations system has been designed for the
public sector. Which this system is made up of the Commission Salaries and Salary
Committee, Department of General Services, the National Joint Council and the
Department of Joint Council, and the Court of Civil Service. Salaries and Wages
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Committee of the Commission appointed by the Federal Government to review
recommendations in whole or part of the Public Sector. In addition, there are also
constitutional and board fees are functioning and authority to appoint, confirm, place,
promotion, transfer and discipline of members of the public service for which authority
especially in dealing with matters relating to their work. On the other hand, collective
problems related to wages, holidays and so forth. In addition, this agreement can give
opportunity to employees in enforcing their rights and demand justice on the issue of
their work. The effect s of this collective agreement are also to promote the employee
to the employer, employees in the normal working hours and provide protection
against unfair dismissal, layoffs, and disciplinary action. In addition, employees can
also get flexible work arra ngements where there was none before. They can also
gain for better wages and scheduled pay increases and paid sick leave. Additionally,
they can ask for job longevity where it is important to them life outside of work
including to take out loans, buy home s, having children and making other life
In term of salary, employee can gain for better wages from their employer by
collective agreement. They also can get more incentive or benefits by collective
agreement with their employer. For example, some 2100 non -executive staff of
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Perodua Sales Sdn Bhd (PSSB) will enjoy new benefits following the signing of the
2011-2013 Collective Agreement (CA) between PSBBB and its employees union
recently. The new CA also provides for the majority of the 2100 employees to enjoy
salary increments and adjustments rang ing from 8% to 10%. According to Aminar
Datuk Rashid Salleh in his speech, he said that the collective agreement between
management and union have reached in four discussion sessions within two months
only. In addition, opportunities for salary increases can also lead to increased
productivity of workers in a company and should contribute in line with the salaries
received by them.
On the other hands, employees can get protection against unfair dismissal by
doing collective agreement with their employer. R egarding this issue, employee have
right to argue their employer relating issue of unfair dismissal. They also have right to
protect their self from unfair dismissal by their employer. It is because workers have
rights which are protected by statute. One o f the more important of these rights is that
The purpose of this paper is to establish a profile of employees who have been
dismissed and who seek reinstatement according to the procedures laid out in
Industry Workers (NUDMIW) have been dismissed by F&N Coca -Cola (Malaysia)
Sdn Bhd (FNCC). On top of that, the union¶s members claim the dismissal is unfair
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and aimed at intimidating wo rkers. The dismissal was the culmination of a series of
disputes between management and the workers, which started in July last year.
According to the union, it said that management had disallowed paid leave for union
business, a practice that had been enj oyed by top union officials for 20 years. In
response to this change, workers refused to work overtime from Jan 12 to 21, a busy
period right before the Chinese New Year. Instead of working a 12 hour shift, the
workers worked 8 hour shifts. The union said that overtime is non mandatory under
The union however, claims that FNCC used force and threatened the 36
workers involved in the incident. This led the deputy general secretary of the un ion to
lodge a police report against the company at the Seksyen 15 police station in Shah
Alam on Jan 14 2009. Of the 14 suspended union members, 8 of them were being
fired. The union has called the company¶s actions as blatant victimisation and an
unfair labour practise and have reported it to the Industrial Relation Department in
Shah Alam. This can be concluded that, employees have right against the employers
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As a conclusion, there are man y terms and condition that the trade union
need to fulfil to ensure that their collective agreement is approve by Industrial Court. If
there is absence of any of the stated essential terms, the Industrial Court may refuse
the collective agreement. The col lective agreement is very important to the trade
union and it also will give effects on the employers and employees in the
Through this they can voice out their dissati sfaction towards the organization. Under
the Industrial Relations Act 1967 , the rights of employers and workmen of employees
and their trade unions are protected through the collective agreement.
Through this agreement employees also can perform picketing that was
carried out at or near the place where employee works and where a trade disputes
exists. It will be illegal picketing and will lead to the peace. Every one of the members
of the union have the right to join it. Thus the Industrial Court cannot ta ke action on
them.
Without collective agreement also employees may refers in it what are their
rights in the organization. So that, the employers cannot take advantage towards their
employees on all matters relating to the employees rights and at the sam e time
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