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TRADE UNIONS

PN NIK SARINA NIK MD SALLEH

 Why Do Workers Join Unions?
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 Influence of unions go beyond their membership.
 Collective agreements do not cover union members
only.
 Trade unions act as pressure group on the
government, pushing for legislation & systems which
will benefit workers in general.
 Workers join unions for his or her own unique
reasons:

a. To improve their economic situation.

b. To ensure their rights are protected.
c. For social reasons.
 a. Economic Motive
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 Join unions to improve their terms & conditions of service – pay &
benefits.
 If on their own – there is limited bargaining power.
 By joining unions, workers join together & acquire strength.
 The law protects them as a group, too (unions). They come together in
unity & help each other to fight for their rights.
 They have voice to express their needs & demands to the government.
 Trade unions improve terms & conditions of employment of workers
through the process of collective bargaining.
 Once agreed, collective agreement is signed by both parties.
 Unions also give benefits to members. Depends on strength of unions.
This depends on the membership of the union & quality of its financial
management.
 Benefits can be in the form of a union building; funeral benefits for
members; scholarships for members’ children; group insurance
schemes etc.
 b. Protection of Rights
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 Workers join unions to increase their pay. They
expect unions to protect them against discrimination
by employers.

 Unions are hoped to eliminate discrimination, unfair

practices, & favoritism.

 Unions believe that managers should promote

workers based on seniority rather than merit.

 Unions protect workers’ job security.

 c. Social Reasons
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 Workers join unions to show solidarity with fellow workers & be
protected.

 Relate to Maslow’s hierarchy of needs.

 Some may have intense peer pressure to become member.

 Employers cannot force workers not to become members of unions.

This is illegal.

 Workers join unions because they believe they have the attributes of a
leader & see opportunities to exercise their leadership qualities in the
union hierarchy.

 They hope to help members to get better terms & conditions of

employment.
 Reasons of Joining Unions
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 Increased wages and benefits
 Job security
 Protection against unfair treatment
 Cooperation with fellow workers
 Peer pressure
 Trade Union
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Objectives
 To promote industrial, social, & intellectual interests
of its members.
 To obtain & maintain for its members just & proper
rates of remuneration; security of employment, &
reasonable hours & conditions of work.
 To promote material, social, & educational welfare of
the members.
 To promote legislation affecting the interests of
members in particular or trade unionists in general.
 Trade Union Definition
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Section 2 – Trade Unions Act:

“ any association or combination of workmen or employers,

being workmen whose place of work is in West Malaysia, Sabah
or Sarawak, as the case may be, or employers employing
workmen in West Malaysia, Sabah or Sarawak as the case may
be”

1. Within any particular establishment, trade, occupation, or

industry or within similar trades, occupations, or industries and

2. Whether temporary or permanent

 Trade Union Definition
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3. Having among its objects one or more of the following:

 Regulation of relations between workmen & employers for
purposes of promoting good industrial relations between
workmen & employers, improving working conditions, or
enhancing their economic & social status or increasing
productivity.
 The regulation of relations between workmen & workmen, or
between employers & employers.
 The representation of either workmen or employers in trade
disputes.
 The conducting of or dealing with trade disputes & matters
related.
 The promotion or organization or financing of strikes or
lockouts in any trade or industry or the provision of pay or other
benefits for its members during a strike or lockout.
 Trade Union Definition – Implications
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 Trade union need not be called a union. Can be referred to as
associations.

 Membership is limited geographically. In Peninsular Malaysia

may only have members from here. Sabah from Sabah &
Sarawak from Sarawak.

 Can have duplication of unions confined to each area. Does not

refer to birthplace, his/her home or nationality.

 Foreign workers with valid permits can join.

 Unions of a general nature is not allowed. Members must be

homogeneous – work in particular establishment, trade,
occupation, or industry.
Trade Union Definition – Implications
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 Employers & employees both have rights to form

& join unions but they must be separated from
each other & must satisfy the conditions
explained earlier.

 The members must conform to all legislative

requirements of a trade union.
 Membership of a Trade Union
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 Workers have rights to join unions. Rights are protected in the IR
Act.

a. No employer shall prevent a worker from joining a union by

putting conditions in contract of employment.

b. No employer shall refuse to employ a worker on the grounds he is

a trade union member or officer.

c. No employer shall discriminate against a worker on the grounds

he is a trade union member or officer.

d. No worker shall be threatened with dismissal or dismissed if he

proposes to join a trade union or if he participates in union
activities.
 Membership of a Trade Union
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 Any complaints can be brought to DGIR – investigate & advise.

 If unable to settle, make report to Minister of HR – who may then refer

to Industrial Court for a hearing.

Who can join a union?

 -Any worker over 16 yrs of age is eligible to apply & join the union
relevant to his trade, occupation, or industry.
 -Worker is defined as any worker employed under a contract of
employment.
 -Union members under 18 years of age are restricted in their union
activities. They cannot vote on matters involving strikes, imposition of
levy, dissolution of union, or amendment of rules of trade union.
 -Union members under 21 are not eligible to be elected as officers of
unions.
 Membership of a Trade Union
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 Students cannot join trade unions unless they are bona

fide workers & over the age of 18.

 Students on study leave by employer at a local

university or college would still be eligible for union
memberships as would a worker who is studying part–
time.

 Public sector workers can join unions formed by

workers in same occupation, department, or ministry.

 Similar restrictions apply to statutory bodies & local

authorities.
 Membership of a Trade Union
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 Certain groups of government servants are not allowed to join

unions at all.

 They are the police, prison service, the armed forces, and those in
confidential or security work.

 Employees in professional & managerial group in the public

sector also cannot join a trade union unless exempted by the Chief
Secretary to the Government.

 Membership is not allowed from different categories.

 Employers’ Attitudes to Unions
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 How do employers perceive trade unions?

a. Conflict or open hostility - manager consider unions as a “3rd party”
intervening in the worker – employer relationship. So the managers believe they
would rather close down the business rather than allow union interference in
the running the business.
b. Controlled hostility - manager recognizes that employees have the right
to form and join unions. However discreet attempts are made to discourage
from joining and being active in a union.
c. Accommodation – employer is prepared to compromise with the union,
tolerate it and be as reasonable as possible.
d. Co–operation – management works closely with the TU to promote the
welfare of the organisation.
 Creating a Non–Union Environment
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 Pay higher wages & give better benefits compared to other
organizations.

 Involve employees in all levels of decision–making &

effectively implement an open–door policy by the
elimination of barriers of status.

 Offer training, development, & a measure of security of

tenure.

 Develop a climate of trust & loyalty in the organization.

 Registration of TU
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- To form TU, employees must apply to DGTU for registration within 1

month of the establishing of union.
- If not sufficient, a request for an extension – up to 6 months from
DGTU
- Application must be signed by at least 7 members of TU.
- Then, submit application form with the required fees and a printed
copy of the rules or constitution of the union.
- Application form includes;
i) name and address of union
ii) name, address and occupation of the TU members
iii) name, ages, address, occupations of the union’s officers.
- The Department of Trade Union may also require other information
such as copy of the minutes of inaugural meeting of the works who
wish to establish the union.
 Rejected Registration
1. Unlawful of union’s objectives.
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2. Union’s constitution conflicts with the TU act.
3. Undesirable name of union @ identical to another already
existing.
4. Union formed to against law.
Deregistration of TU
 When there are 2 or more registered TU representing the same group of
workers in a trade, occupation, industry or individual place of
employment.
 A union issued by fraud or mistake.
 Union being used for unlawful purposes.
 It does anything to contravene or against the TU Act.
 Unlawful composition of executive.
 The funds of the union have been unlawfully used.
 Recognition of TU
A formal acknowledgement by an employer that a particular union has the right to
represent his workers at collective bargaining (CB).
Steps :
 Union fills out a claim for Recognition Form (Form A in the Schedule to the IRA).
 Presents to the employer.
 A copy forwarded to DGIR.
 Employer must reply within 21 days EITHER agree the recognition OR refuse the
recognition.
 ( If reply to refuse; he must inform and give reason to refuse the recognition OR
request DGIR to verify whether the union is the registered union for particular
industry and whether the workers concerned are in fact the members of the
union.)
 If refuse to give recognition or to reply the union’s claim, union can report to
DGIR. DGIR will investigate and take decision to settle the trade dispute.
 If employer still refuses to give recognition, DGIR will report to Minister of HR.
The Minister will decide whether or not the union should be recognized, at
Industrial Court.
 The decision made by Industrial Court is final and cannot be questioned.
 During claiming recognition, employees cannot go on strike or picket.
 And employer cannot declare lock-out / terminate employees.