Relationship between

employers & employees and

ways & means of handling
those relations
A tripartite system

Government

Employers Employees

I.R
INTERPRETATION (S2. I.R Act 1967)

• EMPLOYER
– Any person or body or persons, whether
corporate or unincorporate, who
employs a workman under a contract or
employment, and includes the
Government and any statutory authority,
unless otherwise expressly stated in this
Act
• WORKMAN
– Any person, including as apprentice,
employed by an employer under a
contract of employment to work for hire
or reward and,
– for the purpose of any proceedings in
relation to a trade dispute includes any
such person has been dismissed,
discharged or retrenched in connection
with or as a consequences of that dispute
or whose dismissal, discharge or
retrenchment has led to that dispute
• TRADE UNION
– Any trade union registered under
any law relating to the registration of
trade unions
 The Importance Of I.R
• It is importance to
– the employers,
– employees,
– and country

• It is importance as a field of study

 Importance to the employers, employees
and country
1. Can influence production or the value of
service in a firm
2. Company’s profit depends on industrial
relations
3. Cost of labour depends on employer-
employee relation (industrial relations)
4. I.R can help fulfilled the welfare needs of a
country
5. In the long run, it’s capable to influence the
politics & economic pattern of the country
Importance as a field of study
1. Tries to explore and explain the
relations between employers &
employees

2. Important to one who wants to have

career in I.R that handles, manages,
or involve in the management

3. To keep an open mind

In Malaysia the employers-employees relations (in the
private sector) are governed by the IR Act 1967 that
establishes the principles on which the relations are
founded.
 Conts..

Trade unionism Union Collective Dispute Resolution

Recognition Bargaining •Attempt to offer the
• Workmen (and
employers too) are • Guides how employee effective resolution
• Employee unions
entitled to basic unions may negotiate of conflicts between
must be recognized with employers the terms disputing parties.
trade union rights to by employers as a and conditions of
form unions, the right legal or offical employment and work
to join unions and representative of workmen, and may
the right to before they conclude with
participate in the employers binding and
represent employees enforceable written
actrivities of unions to bargain whether agreement
individually or incorporating the terms
collectively and conditions agreed
upon
 Harmonious industrial relations

successful dispute
peaceful relationship number of disputes and
resolutions at the early
industrial actions are
between employers or stage also indicates the
minimal and choose
management and peaceful ways to settle
availability of
employees. harmonious industrial
the conflict.
relations
Effects of harmonious industrial relation

Effect on the country Effect on the industry Effects on the

• National productivity organization
• Improve productivity,
and prosperity continuous employment •Reduce wastage of
• Political stability, and full utilization of machines, materials and
men
economic development capacity
and social well-being • Save cost
among people and •Make employees feel
appreciated, motivated and
country enables them to work with
sincerity and industrial action
Effects of industrial harmony
Effects of non-harmonious industrial relationship
Types of decision making in the industrial relation

UNILATERALLY

BILATERALLY

TRIPARTITE
 Roles of Government in I.R

Administer all matters

Third party in thru the Ministry of
the tripartite Human Resource ;
industrial •The Trade Union Dept.,
The
relation •The Industrial Relations Dept.,
& largest
system •The Labour Dept. employer

Formulates, Where
governs and disputes
failed to be
enforces the
solved,
laws among govt. will
employers & give advice
employees or
settlement
So…What is
YOUR
conclusion?
 Conclusion
• The establishment of Malaysian
industrial relations is based on certain
principles. The ultimate aim is to
achieve peaceful relationship
between employers and employees in
both sectors. In addition, government
has specific roles pertinent to ensure
sound industrial relations
Thank You

Q&A
Tutorial Task
• Form into 4 groups. Each group need to select one
subtopic from the following;
a. Definitions of IR & Harmonious IR
b. Discuss four major roles played by the Malaysian
government in relation to IR.
c. Explain the concept of ‘tripartite’ in IR?
d. Harmonious IR facilitate the development of a country
socially, economically and politically. Discuss.

• Find at least 5 reading materials to find answers.

• With creativity, present your answers using a sheet
of A4 paper and colors. [Marks will be given to the
most creative answer sheet.]
 Chapter 2 : Trade Union
• Definitions of trade unions
• Objectives of trade unions
• Types and categories of trade unions
• Composition of trade unions
• Issues on the registration and de
registration of trade unions
 References
Anantaraman, V. (1997) Malaysian Industrial Relations: Law and
Practice. Kuala Lumpur : UPM press.
Ayadurai, Dunston. (2004) Industrial Relations in Malaysia. Kuala
Lumpur: Malayan Law Journal
Mohamed Samsudeen, Elizabeth Caroline and Norhayati Mohd
Salleh.(2010). Industrial Relations. Institut Perkembangan
Pendidikan (InED). UiTM Shah Alam
Maimunah Aminuddin. (2013). Industrial Relations Employment
Law. 8th eds. Kuala Lumpur : McGraw-Hill