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 THE STUDY OF THE RELATIONSHIPS BETWEEN WORKERS AND THEIR EMPLOYERS  ALSO KNOWN AS EMPLOYEE

THE STUDY OF THE RELATIONSHIPS BETWEEN WORKERS AND THEIR EMPLOYERS

ALSO KNOWN AS EMPLOYEE OR LABOUR RELATIONS

 THE RELATIONSHIP BETWEEN EMPLOYERS AND TRADE UNIONS  EMPLOYMENT LAW  DISCIPLINARY PROCEDURES AND TERMINATION

THE RELATIONSHIP BETWEEN EMPLOYERS AND TRADE UNIONS

EMPLOYMENT LAW

DISCIPLINARY PROCEDURES AND TERMINATION OF THE EMPLOYEMENT CONTRACT

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

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 IRs…has 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.

 ALL IR SYSTEMS ARE MADE UP OF THREE PARTIES (TRIPARTITE)  Tripartite components: The employer

ALL IR SYSTEMS ARE MADE UP OF THREE PARTIES (TRIPARTITE)

Tripartite components:

The employer The employees The government

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

Acts as:

Legislator through parliament Administrator through MOHR

Participant (the largest employer in the country)

 KEY VARIABLE IN IR IS THE DECISION MAKING IN AREAS THAT RELATES TO WORK LIFE

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

 IN MALAYSIA THE MACHINERY FOR THE TRIPARTITE DISCUSSION IS THE NATIONAL LABOUR ADVISORY COUNCIL(NLAC) 

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)

Roles:  To protect the welfare of workers (their safety, health & rights)  To promote

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 country’s manpower resources

 Employment Act, 1955  Trade Unions Act, 1959  Industrial Relations Act, 1967  Factories

Employment Act, 1955 Trade Unions Act, 1959 Industrial Relations Act, 1967 Factories and Machinery Act, 1967 Occupational Safety and Health Act, 1994 Workmen’s Compensation Act, 1952. Employees Provident Fund Act, 1991

 Lay down provisions to protect workers from exploitation and to provide minimum benefits for all

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

Objectives:  Govern the relationship between the employer or groups of employers and employees or trade

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

 Establishes guidelines and lays down the responsibilities of the various parties in industry in relation

Establishes guidelines and lays down the responsibilities of the various parties in industry in relation to safety and health

 Seeks to control the activities of trade unions so that they can develop in an

Seeks to control the activities of trade unions so that they can develop in an orderly and peaceful manner.

 Definition: Trade union or union means any association or combination of workmen and employers, being

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

ii. the regulation of relation between workmen and workmen, employers and employers iii. the representation of

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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 To improve their economic situation, increased wages and benefits, job security  To ensure their

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

 To promote the industrial, social and intellectual interests of its members  To obtain and

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

The following classes of persons cannot join or be members of a union:  Person below

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.

 Those, Not working in a particular trade, occupation or industry covered by the union 

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 country’s 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.

 Required to apply for registration within a period of 1 month of the date on

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

 If the trade union is to be used for unlawful purposes  If the objects

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.)

 Public sector employees’ unions ◦ CUEPACS ◦ NATIONAL UNION OF THE TEACHING PROFESSION ◦ (PUBLIC

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)

 Private sector employees’ union ◦ IN HOUSE  MEMBERS AREE ALL EMPLOYED BY THE SAME

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

 Better management union relations because no interference from outsiders  In-house union has more understanding

Better management union relations because no interference from outsiders

In-house union has more understanding of company’s 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

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

◦ Generally weak because membership is limited and confined to workers in one particular company ◦

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

 Also called Employers’ Association  A union comprise of employers  Main objectives are to

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

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

 The MTUC is a federation of trade unions and registered under the Societies Act, 1955.

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.

a. To do everything to promote the interest of it’s 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.

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

 A registered society consisting of individual companies and the employers’ association.  Objectives: - secure

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

 To carry out research needed by its members especially for collective bargaining purposes  Conduct

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

 Definition:  The right to establish and join unions  Recognition is a starting point

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.

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

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 company’s 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

 Recognition provides the following advantages: ◦ The union can represent individual members who have a

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.

 General recognition  Limited recognition ROHAYA MOHD HUSSEIN 5/10/10 41

General recognition

Limited recognition

 3 years from the date when the claim was granted  Rejected – cannot make

3 years from the date when the claim was granted

Rejected – cannot make another for a period of 6 months

 An agreement in writing, concluded between an employer or employer union on the one hand,

An agreement in writing, concluded between an employer or employer union on the one hand, and a workmen’s union on the other, relating to the terms and conditions of employment, or concerning relations between the two parties.

 To provide machinery or method by which workers can peacefully improve their terms and conditions

To provide machinery or method by which workers can peacefully improve their terms and conditions of employment

 Either union/employer invites the other to begin bargaining (in writing) . Invitation is accompanied by

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

 Employment  Placement  Promotion  Termination  Suspension  Demotion  Dismissal  Reinstatement

Employment Placement Promotion Termination Suspension Demotion Dismissal Reinstatement Transfer Lay off

 Must be in writing and signed by the parties to the agreement or by an

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

 If collective bargaining is successfully concluded the end result is collective agreement.  If it

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

 All collective agreement must be sent to the court within 1 month of signing 

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

 Any dispute between an employer and workmen which is connected with the employment or the

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.

 Wrong dismissal of a non-unionized member  Trade disputes  Difference of opinion as to

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

 Picketing -workers may attend at or be near their workplace when they have a trade

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

 Must be peaceful  Purpose must be to communicate or to persuade workers to abstain

Must be peaceful Purpose must be to communicate or to persuade workers to abstain from working Must be at or near worker’s 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

 Strikes – any act or omission by a body of workers, which is intended or

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.

 “The cessation of work by a body of workmen acting in combination, or a concerted

“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.”

 Consequences !!!!!!!  Fines  imprisonment  BOTH (FINED AND IMPRISONED)  ISA ROHAYA MOHD

Consequences !!!!!!!

Fines

imprisonment

BOTH (FINED AND IMPRISONED)

ISA

 Requires union have a trade disputes.  A secret ballot with not less than two

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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 Lock-out - as the closing of the place of employment, the suspension of work, or

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

 Direct negotiation – voluntarily entered into  Conciliation  Arbitration  Committee of investigation 

Direct negotiation – voluntarily entered into Conciliation Arbitration Committee of investigation Board of enquiry

 Ideal method  Two parties involved (employer and the union) are willing to come together

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

 A process of arriving at a settlement of a trade dispute with the help of

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

 VERY RARE  But occasionally used  Similar to conciliation  Neutral third party is

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

 An impartial third party is given the authority to settle the dispute by examining the

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

 To carry out the function of arbitration – a peaceful and unbiased means of settling

To carry out the function of arbitration – a peaceful and unbiased means of settling disputes between employers and employees

 Courts role is to arbitrate such disputes ie make settlement which is final and cannot

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.

 President appointed by A gong  Assisted by 4 chairman  The president have at

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

 Unfair dismissal claims by a non-unionized employee  Trade dispute  Interpretation of collective agreement

Unfair dismissal claims by a non-unionized employee

Trade dispute Interpretation of collective agreement

Complaints of non-compliance with the collective agreement

 Award means to a decision by the Industrial Court in respect of any trade dispute

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

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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