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What is industrial relations?

Industrial relations is the relationship
between an employer and his employees, especially where the employees are members

of a trade union.
Industrial relations is also known as: Employment relations Labour relations

The purpose of the industrial relations is to unite the group of employees and employer as one big, happy family. One of the important principles behind the Industrial Relations is the collective bargaining between the employees union and the employer to achieve a collective agreement.

In Malaysia, the Industrial Relation is governed by the Industrial Relation Act 1967, which serves the purpose to regulate the relations between employers and the workers/employees, as well as preventing trade disputes that can burst out of control.

The focus of industrial relations

Industrial Relations

Relationship between employers & trade unions

Laws relating to employment

Disciplinary procedures & termination of employment

Importance of IR
Uninterrupted production

Reduced Wastage

Reduction in Industrial Disputes

Mental Revolution

High Morale

Who needs to study industrial relations?

Trade union leaders


Human resource management specialists

Tripartite industrial relations systems: 3 parties, all inter-related


Employees & their trade unions

The Government

Key players in Malaysian industrial relations

National Labour Advisory Council (NLAC)
Ministry of Human Resources

Malaysian Trades Union Congress (MTUC)

Malaysian Employers Federation (MEF)

International Labour Organisation (ILO)

Role of the government in IR

To protect welfare of workers To promote good employer-employee relationships through a peaceful IR system To assist the unemployed find employment To conduct national level human resource


Ministry of Human Resources

Departments which play a key role in IR: Department of Labour Department of Industrial Relations Department of Trade Union Affairs Department of Occupational Safety and Health

Other key agencies

The Employees Social Security Organisation
The Employees Provident Fund The Industrial Court