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THE STUDY OF THE RELATIONSHIPS

BETWEEN WORKERS AND THEIR EMPLOYERS
ALSO KNOWN AS EMPLOYEE OR LABOUR
RELATIONS

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 THE

RELATIONSHIP BETWEEN EMPLOYERS

AND TRADE UNIONS
EMPLOYMENT LAW
DISCIPLINARY PROCEDURES AND
TERMINATION OF THE EMPLOYEMENT
CONTRACT

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LAWS AND RULES WHICH IMPACT ON THE WORK

ENVIRONMENT

TERMS AND CONDITIONS OF WORK

RIGHTS AND OBLIGATIONS OF EMPLOYERS AND

EMPLOYEES

PROCESSES BY WHICH THE RULES AND TERMS

ARE MADE, FOR EXAMPLE THE DECISION MAKING
PROCESS

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Workers to know their rights under the labor law

Trade union leaders know how to play their role
effectively so that workers will be protected from
exploitation by a greedy employer
Managers who deal directly with the workforce
must constantly try to upgrade their
understanding of IRshas direct link between
profitability and good IRs
Lawyers
Officers & executives in HR-IR department need
in-depth knowledge so that can carry out their job
responsibilities when called upon to do so.

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ALL IR SYSTEMS ARE MADE UP OF THREE

PARTIES (TRIPARTITE)
Tripartite components:
The employer
The employees
The government

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Acts as:
Legislator through parliament
Administrator through MOHR
Participant (the largest employer in the
country)

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KEY VARIABLE IN IR IS THE DECISION MAKING IN

AREAS THAT RELATES TO WORK LIFE
THE RULES AND REGULATIONS ON
COMPENSATION,WORKERS RIGHTS, DISCIPLINE
AND MANY OTHERS RELATED TO EMPLOYEES
CONCERN AND WELFARE ARE MADE IN ANY
THREE WAYS UNILATERALLY, BILATERALLY OR
TRIPARTITE

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IN MALAYSIA THE MACHINERY FOR THE TRIPARTITE

DISCUSSION IS THE NATIONAL LABOUR ADVISORY
COUNCIL(NLAC)
CHAIRED BY THE MOHR (MINISTRY OF HUMAN RESOURCE)
in which it will appoints the government representatives
Other members of the council are appointed after
consultation with the relevant bodies such as workers
organizations, MTUC (Malaysian Trade Union Congress), and
CUEPECS (Congress of Unions of Employees in Public and
Civil Service and the MEF (Malaysian Employers Federation)

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Roles:
To protect the welfare of workers (their
safety, health & rights)
To promote good employer-employee
relationships (a stable & peaceful IR
system)
To equip the unemployed with basic
industrial skills & to improve the skill level
of the workforce
To assist in maximizing the countrys
manpower resources
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Employment Act, 1955

Trade Unions Act, 1959
Industrial Relations Act, 1967
Factories and Machinery Act, 1967
Occupational Safety and Health Act, 1994
Workmens Compensation Act, 1952.
Employees Provident Fund Act, 1991

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Lay down provisions to protect workers from exploitation

and to provide minimum benefits for all workers covered by
the act, i.e, those who earn not more than RM1500 per
month, those who carry out manual labour or who
supervise such workers, or are employed to drive or
maintain vehicles for the transport of passengers or goods
and those engage as domestic servant. The benefits
provided include termination and maternity benefits the
right to a weekly rest day, annual leave and sick leave.

Benefits

Termination benefits
Maternity benefits
Overtime benefits
Sick leave
Annual leave pay
Public holiday pay

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Objectives:
Govern the relationship between the employer or
groups of employers and employees or trade union
Regulates the manner of the methods which the
employer and employees adopts in their
relationship covering issues like the recognition of
TU, collective bargaining, conciliation, trade
disputes, strikes, lockouts and etcetera
The prevention and settlement or any differences
or disputes arising from their relationship
Generally to deal with trade disputes and matters
arising there from

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Establishes guidelines and lays down the

responsibilities of the various parties in
industry in relation to safety and health

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Seeks to control the activities of trade

unions so that they can develop in an
orderly and peaceful manner.

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Definition:
Trade union or union means any association or
combination of workmen and employers, being
workmen whose place of work in West Malaysia,
Sabah, Sarawak, as the case may be, or employers
employing workmen in west Malaysia , Sabah,
Sarawak, as the case may be

a. within any particular establishment, trade, occupation or industry or

within any similar trades, occupations or industries, and
b. whether temporary or permanent, and
c. having among its objects one or more of the following objects

i. the regulation of relations between workmen and

employers,
for the purpose of promoting good industrial relations
between
workmen and employers, improving the conditions of
workmen
or enhancing their economic and social status, or increasing
productivity

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ii. the regulation of relation between workmen and

workmen, employers and employers
iii. the representation of either workmen or
employers in trade disputes
iv. the conducting of or dealing with trade
disputes
and matters related thereto; or
v. the promotion or organization or financing of
strikes or lock outs in any trade or industry or the
provision of pay or benefits for its members during
a
strike or a lock out.

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implications.tif
implications 002.tif

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To improve their economic situation, increased

wages and benefits, job security
To ensure their rights are protected, and to obtain
protection against unfair treatment
For social reasons, cooperation with fellow
workers
To influence the decision making and policy
making by their employers
Pressure from present union members or because
union membership is in force or peer pressure

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To promote the industrial, social and

intellectual interests of its members
To obtain and maintain for its member just
and proper rates of remuneration, security
of employment and reasonable hours and
conditions of work
To promote the material, social and
educational welfare of the members, and
To promote legislation affecting the
interests of the members in particular or
trade unionists in general

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The following classes of persons cannot join or be

members of a union:
Person below 16 years of age
Any student of an educational institution
established by law, unless he is a bona fide
employed and is over 18 years
Union members under 18 are restricted in union
activities, they are not entitled to vote on matters
involving strikes, imposition of a levy, dissolution
of the union amendment of the rules of the trade
union.
Union members under 21 are not eligible to be
elected as officers of the union.
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Those, Not working in a particular trade,

occupation or industry covered by the union
Any public officer example police, armed
forces, prison services, those engaged in
confidential or security capacity ( due to the
interests of the countrys security and
safety) or those holding any post in the
managerial and professional group unless
they are exempted by the Chief Secretary to
the Government.

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Required to apply for registration within a period of 1 month of

the date on which it was established.
If not can apply to the registrar for an
extension maximum of 6 months.
The application must fulfill the requirements:
- must be in a prescribed form
- must be accompanied by the prescribed fee
- must be signed by at least 7 members of
the union
- must be accompanied by a printed copy of the
rules of the union signed by the members making
the application
- must specify:
titles, names, ages, addresses and occupations of the
officers of the union
names, addresses and occupations of the applicants
name of the trade union and the address of its head office

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If the trade union is to be used for unlawful

purposes
If the objects of the trade union is unlawful
The trade union has not compiled with the
provisions of the Ordinance and of the regulations
If the rules of the trade union conflict with any of
the provisions of the ordinance
If the name of the trade union is undesirable or
identical to that of any other existing trade union
(NB: any person who is dissatisfied with the
refusal of the Registrar to register a trade
union may appeal to the Minister within 30
days from the date of the refusal.)

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Public sector employees unions

CUEPACS
NATIONAL UNION OF THE TEACHING PROFESSION
(PUBLIC SECTOR UNIONS DO NOT ENGAGE THEMSELVES
IN COLLECTIVE BARGAINING UNLIKE ITS COUNTERPART
THE PRIVATE SECTOR UNIONS)

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Private sector employees union

IN HOUSE
MEMBERS AREE ALL EMPLOYED BY THE SAME EMPLOYER

NATIONAL
COVER ALL WORKERS IN THE SAME INDUSTRY, TRADE OR
OCCUPATION

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Better management union relations

because no interference from outsiders
In-house union has more understanding of
companys needs and workplace problems
rather than a full time union official of a
nation wide occupational union
They feel in-house union leaders are more
likely to adopt a cooperative rather than a
confrontational approach to negotiations
with management

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In-house unions will keep out more effective national

unions
Many unions in the same trade occupations or industry
are divided into tiny organization and may promote
unhealthy rivalry, jealousies, and weakening of the
trade union movement
Employers may use sabotage tactics to promote rival
unions to justify non-recognition of existing unions for
negotiation
Susceptibility to manipulation and control by
employers
They have less practice at collective bargaining and
therefore may not be able to improve terms for their
members

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 Generally weak because membership is limited

and confined to workers in one particular
company
The leadership of this union must be chosen
from the smaller number of
employees/members which may give rise to the
possibility of the employer trying to exploit
those leaders
Financial strength will not be enough
Fear of victimization among union leaders
Will not be able to provide scholarships and
other social benefits due to financial limitations
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Also called Employers Association

A union comprise of employers
Main objectives are to promote and protect
the interests of their members, to negotiate
and deal with trade unions of employees
and to represent their members in any
trade dispute between an individual
member and the employees union

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Also have the rights to unions which are

known as association
Employers associations are necessary:
- challenge legislation affecting employers
- act as a group to counter demands by
trade unions
- inform and advise members on new
legislations passed
- promote interest and welfare of fellow
members
- represent members in trade disputes

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The MTUC is a federation of trade unions

and registered under the Societies Act,
1955. It is the oldest National Centre
representing the Malaysian workers. The
Unions affiliated to MTUC represent all
major industries and sector with
approximately 500,000 members.

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a. To do everything to promote the interest of its affiliated

organizations, to improve the economic and social conditions
of
workers and render them assistance.

b. To ensure that policies are developed and action taken to

ensure
full employment, to work towards the establishment of a
minimum
wage a legal maximum working week of 44 hours and to
establish training centers and extension of training facilities
for
workers.

c. Provision for legislated Social Security measures to provide

protection against sickness, unemployment, old age, injury,
invalidity and retiring benefits and promotion of high
standards of
health, hygiene and welfare in all places of employment and
seek
adequate compensation for workers disabled by accidents and
diseases.

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Federation of trade unions of government workers

Serves as the spokesman for the public service
workers
Objectives:
- to promote the interests and improve the
workings of its affiliate trade unions
- to protect the interests of the affiliate trade
unions and their members
- to endeavor to improve the conditions of
employment of the members of the affiliate trade
unions and
- to promote legislation affecting the interest of
the member unions in particular or trade unionists
in general

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A registered society consisting of individual

companies and the employers association.
Objectives:
- secure the organizations of all employers
- coordinate and present the opinions of the
employers on labor matters
- promote, protect and defend the interests of
employers in general
- inform and advise members on the
implementation of labor laws
- advise members on the settlements of trade
disputes
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To carry out research needed by its

members especially for collective
bargaining purposes
Conduct training such as seminars and
lectures relating to labor legislation and
industrial relations services for members
Provide industrial relations services to
members such as:

- represent members at the industrial court

- advise members during collective bargaining
process

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Definition:
The right to establish and join unions
Recognition is a starting point for collective
bargaining

Recognition means the employers

recognizes the trade union to be
legitimate representative of his workers
and has the right to speak on their behalf.

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Procedure for recognition;

- before collective bargaining can be carried out
, union serves a claim for recognition on the
employer which must be in prescribed form and
in writing
- within 21 days after claim has been served the
employer is required to do the following:
- accept recognition
- refuse recognition
- apply to DGIR to determine membership

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Should the employer refuses to grant

recognition, the union can report to the
DGIR.
- The DGIR may carry out a membership check
to see if the union represents more than 50% of
the companys employees.
- if the employer rejects the advice of the DGIR
to grant recognition, the DGIR will report the
matter to the minister who will make the final
decision

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Recognition provides the following advantages:

The union can represent individual
members who have a grievance or
complaint
The union can negotiate for better terms
and conditions on behalf of all workers in
the workplace who are eligible to
members of the union, whether or not
they are members of the union.

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General recognition

Limited recognition

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3 years from the date when the claim was

granted

Rejected cannot make another for a period

of 6 months

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An agreement in writing, concluded

between an employer or employer union on
the one hand, and a workmens union on
the other, relating to the terms and
conditions of employment, or concerning
relations between the two parties.

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To provide machinery or method by which

workers can peacefully improve their terms
and conditions of employment

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Either union/employer invites the other to begin bargaining (in

writing) . Invitation is accompanied by a set of proposals, demands
for a collective agreement
Employer must reply within 14 days
If employer agrees to begin the bargaining sessions must start
within 30 days
A series of negotiation meetings are held
Once agreement is reached, the collective agreement is signed
and sent to industrial court for approval
If employer refuses to begin negotiations after agreeing to do so
or if there is a deadlock, the DGIR can be called upon to conciliate
If there is still refusal to begin a trade dispute is said to exist. The
Minister is empowered to invoke the machinery for compulsory
arbitration by referring the dispute to the Industrial court for
settlement

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Employment
Placement
Promotion
Termination
Suspension
Demotion
Dismissal
Reinstatement
Transfer
Lay off

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Must be in writing and signed by the parties to the

agreement or by an unauthorized persons
Must set out terms of the agreement and where appropriate
Name the parties
Specify effective period which must not be less than 3 years
from the date of the commencement of the agreement
Prescribe the procedure for its modification and termination
Prescribe the procedure for the adjustment of any question
that may arise as to the implementation/interpretation of the
agreement
Sent to court within 1 month of signing
The minimum period of a collective agreement is 3 years
Review the terms of a collective agreement with this period
(3 years) by mutual consent

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If collective bargaining is successfully concluded

the end result is collective agreement.
If it is not the end result is Trade Dispute on those
matters on which the bargaining failed to result in
an agreement.
A collective agreement which has been approved
by the Industrial Court is deemed to be an award
of the court and is binding:
- the parties to the agreement, including employers, all
members of the trade union, their successors, assignees or
transferees
- all workmen who are employed or subsequently
employed in the undertaking to which the agreement
relates

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All collective agreement must be sent to

the court within 1 month of signing
Court checks through to ensure validity
Court ensures the agreement follows
requirements of the IR Act section 14
Court can require parties to a mend any
parts of the agreement which do not
comply with section 14
Once agreement has cognizance it
becomes binding

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Any dispute between an employer and

workmen which is connected with the
employment or the non-employment or the
terms of the employment or the conditions
of work of any such workmen.

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Wrong dismissal of a non-unionized member

Trade disputes
Difference of opinion as to the interpretation
of a collective agreement or industrial
award
Non-implementation of an agreement or
award

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Picketing-workers may attend at or be

near their workplace when they have a
trade dispute for the purpose of peacefully
giving information to the public and other
workers and to persuade other workers not
to work is a strike has already been
declared
Normally the first attempt at industrial
action by employees

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 Must be peaceful
Purpose must be to communicate or to persuade
workers to abstain from working
Must be at or near workers place of work
Must not obstruct exit or entrance
Must not intimidate anyone
Do not require police permit
They neither can be dispersed by police officers
Prominent displays of banners and placards
Often held during lunchtime or after working hours

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Strikes any act or omission by a body of

workers, which is intended or which does
result in any limitation, restriction,
reduction, delay in the performance of their
duties connected to their employment.

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The cessation of work by a body of workmen

acting in combination, or a concerted refusal or a
refusal under a common understanding of a
number of workmen to continue work or to
accept employment and includes any act or
omission by a body of workmen acting in
combination or under a common understanding
which is in tended to or does result in any
limitation, restriction, reduction or cessation of or
dilatoriness in the performance or execution of
the whole or any part of the duties connected
with their employment.

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Consequences !!!!!!!

Fines
imprisonment
BOTH (FINED AND IMPRISONED)
ISA

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Requires union have a trade disputes.

A secret ballot with not less than two thirds of the
workers involved is required.
The director general has to be informed
The employer must be informed of the date of the
strike
If the minister should refer the case to the industrial
court before the strike occurs then the strike must
not be carried out.
If it is a public sector union then the Minister
refers the disputed matter to the industrial
court only with the consent of the Agong or
the state ruler if it is a state body in question.
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implications 004.tif

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Lock-out- as the closing of the place of

employment, the suspension of work, or the
refusal by an employer to continue to
employ any number of workers employed
by him in furtherance of a trade dispute,
done with a view of compelling those
workers to accept terms or conditions of
work or affecting employment

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Direct negotiation voluntarily entered into

Conciliation
Arbitration
Committee of investigation
Board of enquiry

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Ideal method
Two parties involved (employer and the union)
are willing to come together for discussion until
satisfactory compromise is reached
Decisions are mutual
No involvement from an outsider
Mature and harmonious way of settling any
dispute
Encouraged
However if no understanding and decision is
derived, DGIR may impose conciliation

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A process of arriving at a settlement of a trade

dispute with the help of third neutral party
Carried out by officers of the department of IR
Can be voluntarily, requesting by either of the
disputing parties or
the DGIR may intervene in the public interests,
requiring the parties to attend a conciliation
meeting known as compulsory conciliation
IR officer will meet the parties either
separately or jointly, after a brief meeting
of which they will help the parties to arrive
at a compromise acceptable to both parties
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VERY RARE
But occasionally used
Similar to conciliation
Neutral third party is called in by the parties of
dispute to help them find a settlement
But mediator is not from the government
But a person considered to be un-bias and
impartial and is sufficiently respected and trusted
by both parties
Can be a politician or local leader

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An impartial third party is given the

authority to settle the dispute by examining
the information given by both sides and
making a judgement
In Malaysia, the Industrial Court has the
power to arbitrate labour disputes

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To carry out the function of arbitration a

peaceful and unbiased means of settling
disputes between employers and
employees

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Courts role is to arbitrate such disputes ie

make settlement which is final and cannot be
appealed
Disputes are either referred to court by the
Minister of HR or brought directly to it by the
parties of concerned
The court hears representation from both
parties
The court makes decisions which are in the
interests of the company concerned, the
industry concerned or the country as a whole.

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President appointed by A gong

Assisted by 4 chairman
The president have at least 7 years of
experience as a lawyer/judicial service
before his appointment
2 panel members representing employers
and employees interests, chosen by the
president of the court from a list submitted
by the MEF and the MTUC

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Unfair dismissal claims by a non-unionized

employee
Trade dispute
Interpretation of collective agreement
Complaints of non-compliance with the
collective agreement

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Award means to a decision by the Industrial

Court in respect of any trade dispute or
matter referred to it. It is binding on the
parties involved and cannot be challenged
or appealed except on the question of law
which can be referred to the high court

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Order that any party be joined, substituted or struck off

Summon before it the parties to the dispute and any other
person who in its opinion is connected with the proceedings
Take evidence on oath or affirmation and compel the
production before it of books, papers, documents, and things
Hear and determine the dispute even though a party has
failed to submit any written statement within such time as
may be prescribed by the president or in the absence of any
party to the dispute who has been served with a notice or
summons to appear
Conduct any of its proceedings or any part of them in private
Call for the assistance of any experts after consultation with
the minister
Generally direct and do all such things as are necessary or
expedient for the expeditious determination of the dispute

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