CASE STUDY

JUNE 2016

PART A (Q1)

a)

Every trade union is required to apply for registration from the DGTU within 1 month from the date
of its establishment. This period may be extended at the discretion of the DGTU but it must not
exceed 6 months (TUA 1959, Section 8).

Similar establishment is an establishment is a shop, business or organisation occupying a specific

building or location. A similar establishment can be referred to an entity with similar reach,
principles or characteristics of key activities. They can be premises with features similar to hotels,
motels, inns or boarding houses. It includes premises which provide furnished sleeping
accommodation, with or without a board or food preparation facility, and which are used or
maintained as suitable for use by visitors or travellers. Similar facilities also include hostels, guest-
houses, bed and breakfast, rest-houses, resorts, chalets and lodging-houses, private residence clubs,
service apartments and home-stays. It does not, however include premises that are used to house
students in connection with an educational institution, such as residential colleges on university
campuses.

b)

i) Have collective bargaining

According to the case study, CLBEU acted as a collective bargaining body for all workers of Chocolate
Lazaria (M) Bhd and was recognized as a legal representative of its staff. It thus indicates that CLBEU
had already obtained recognition from Chocolate Lazaria because if there is no recognition, the
union cannot enter into collective bargaining. Therefore, CLBUE is easily recognized because the
employer has provided recognition to the trade union

ii) Have sufficient members

The union needs to have enough members. This is to ensure that the President of the Union will
serve as a representative of his employees and has the right to speak on their behalf. The
percentage of employees involved must be 50 per cent greater than the total number of workers in
the company, in order to be easily recognized in this situation. CBLEU has enough members to
include more than 50% of eligible employees in the company. Not only did the representatives
already have a legitimate delegate to represent a member of the Union.

iii) Solidarity of union members

The solidarity of the members of the union is very necessary to prevent the employer from opposing
the union by refusing to give all their demands. If the employer is aware that the employees are
divided among themselves and are unable to agree on the demands to be made of the employer, it
will help the employer to refuse to comply with the demands of the employee. The employer of
Chocolate Lazaria is also aware that the employee is not split among them and is in a position to
consent on the proposal to be made to the employer.
iv) Adequate financial strength

A union must have a strong financial position, because the larger the number of union members, the
higher the amount of money used to pay their income. If the union has a low budget to hold a strike
fund and this problem is known to the employer, the union will face difficulties in persuading the
employer at the bargaining table. In this case study, CBLEU has a good financial position that can
persuade the employer to do CB.

c) Discuss the procedure(s) for changing the union’s name to Lazaria (M) Bhd Employees Union

The procedure(s) for changing the union’s name to Lazaria (M) Bhd Employees Union is firstly, a
notice of change of name must be issued in writing to the Director General and signed by the
Secretary and seven members of the registered trade union. If the proposed name is the same as
any other current trade union, or is almost the same as the name of another trade union, the
Director General will refuse to register a change of name. Then, if the Director General is satisfied
that this Act is complied with by changing the name, the trade union will register the name in a
specified manner which will have effect from the date of registration.

d) List two (2) reasons for the subsidiary companies to reject LBEU’s application for recognition.

 The similarity in the trade union’s name. The name of LBEU union is similar to CBLEU as the
Director General may refuse to register a trade union if the name is similar to the existed trade
union.

 Both subsidiaries do not have the same scope of employment as CLBEU, therefore, the claim for
recognition are being rejected.

e) Comment on Kareem’s action

According to Section 7 of the IRA 1976, it is prohibited for a worker or trade union of workers and its
agent to carry out activities which persuade an employer to join or refrain from joining a trade union
during working hours, except with the consent of the employer and threatening any person to
refrain from being a member or officer of trade union by offering some advantage to any person.

Therefore, Mr. Kareem has no right to be angry when he realizes that there is another attempt in the
company to set up another employee union, because every worker in Malaysia has the right to form
and join a trade union that is protected by Section 5 of the IRA 1967, where is state that no
individual shall interfere with, restrict a worker or employer assist in the formulation of and join a
trade union and to participate in its lawful activities.

Hence, no employee of a trade union or employer shall be in dispute with each other in the
establishment, functioning or administration of that trade union. Mr Kareem has induced and
threatened individuals who have initiated a movement to set up another union of employees
because he knew that if more than one union is registered under the union, the DGTU may cancel
the registration certificate of the union, as specified in Section 15 TUA 1959.
JUNE 2019

PART A (Q1)