DISPUTE RESOLUTIONS

- NEGOTIATION
- FACT-FINDING (INVESTIGATION)
- CONCILIATION
1 - ARBITRATION
INTRODUCTION
 The resolution of disputes between employers,
employees & their TUs by peaceful means is the key
way of maintaining harmonious industrial relations.

 It is the preamble of the IRA which declares the principal

objectives, namely:
 The regulation of the relations between employers,
employees & their trade unions; and
 The prevention & settlement of any differences or disputes
arising from their relationship.

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INTRODUCTION
 While the first objective provides for CB and CA, the
second objective makes available a number of ways to
resolve trade disputes peacefully – by way of
negotiation, fact-finding, conciliation & arbitration.

 The Act also acknowledges industrial actions as another

way of resolving trade disputes.

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DEFINITION OF ‘TRADE DISPUTE’

Section 2 IRA:
Any dispute between an employer and his workmen /
which is connected with the employment / or the non-
employment / or the terms of employment / or conditions
of work of any such workmen.

*Two elements:
(1) The dispute occurs between employer & a number of
employees; and
(2) It is about employment or non-employment.
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CASE
 Teluk Anson Enterprise Sdn Bhd (Arcadia Estate) v
Nat. Union of Plantation Workers:
Non-employment will arise ‘when the employer dismisses an employee,
or declines to employ him, or contemplates turning him out who is
already in employment, or refuses to give work to an employee who is
entitled to work, or suspends him; it includes constructive dismissal.’

 Hagemeyer Industries S/B v Nat. Union of

Commercial Workers
 The definition covers every dispute between an employer & his workmen
which is connected with the service of the workmen or with the benefits &
privileges incidental to that service.
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PARTIES TO THE DISPUTES

 ‘Party’, with reference to a trade dispute can only be:

 The employer involved in the dispute or the employer union;
and
 An employee union acting for all or any members involved in
the dispute (not the employees)
 Cargo handling Corp v Cargo Handling Corp Staff
Union – “an employee union is indispensable in a trade
dispute”.

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DISPUTE RESOLUTIONS

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NEGOTIATION
 A first step of settling disputes.
 Between employers & trade union for the employees.

 Negotiation is based on the terms of the CA.

 Win-win situation.

 Speedy, cheap & easy way.

 The best way of settling dispute.

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FACT FINDING / INVESTIGATION
 Part VIII IRA
 S.34 – the Minister may appoint a Committee of
Investigation / Board of Inquiry and may refer to the
committee any matter appearing to him to be connected
to the dispute.
 S.35 –
 (1) a Committee shall consist of one or more persons
(appointed by the Minister).
 (2) the committee shall investigate the causes and
circumstances of the dispute and report to the Minister.

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CONT
 S 36 –
a Board shall consist of a chairman and other person/s as the
Minister thinks fit.
 the Minister may make rules regulating the procedure; he
may also call witness, quorum and request for document/s.
 representation in proceeding before a Board can be made
with the permission of the chairman.
 a Board may require any person to furnish particulars as the
board may require and to attend before the board and give
evidence.

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CONT
 S.37 –
 A Board shall report to the Minister.
 any report shall be laid before the Dewan Rakyat
 the Minister may publish any information or conclusion
arrived at by the Board (but no disclosure without the consent
of the relevant organisation, business or union).
 any Board member who discloses any information in
contravention of this section shall be guilty of an offence.

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CONCILIATION (PART V)
 The meeting of two disputed parties is arranged by a
conciliator.
 Both parties should negotiate & make arrangement as
agreed between themselves (without interference of the
conciliator).
 Hence, the conciliator acts as a middle-man for
arranging the meeting of the disputed parties.
 DGIR or the Minister (S.19A) may become the
conciliator.

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CONT.
 S18 –
 (1) a trade dispute may be reported to the DG by an employer
/TU of employer or a TU of workmen.
 (2) the DG shall consider the dispute and take necessary steps
for promoting an expeditious settlement. (For dismissal case,
it shall be referred to s 20).
 (3) if a trade dispute is not likely to be settled by negotiation,
the DG may, in the public interest, take a necessary steps to
promote a settlement whether or not the trade dispute is
reported to him.
 S.18(5) – DG shall notify the Minister if satisfies there is
no likelihood of the dispute being settled.
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PROCESS & REPRESENTATION
 S19 (1) & (2) – the parties shall furnish all the necessary
information relating to the matters in dispute to the DG; the
DG may also direct any person connected with the dispute
to attend.
 S.19B – In conciliation proceedings, representations are as
follows:
 Employer –
 Represent himself/ represented by authorised employee; or
 If member of TU, represented by officer/employee of TU; or

 Any official of an organisation of employers.

 TU –
 Officer/employee of TU; or 14
 Official of organisation of workmen.
ARBITRATION
 A means of settling dispute by engaging a third party to
make a decision.
 This may take place whenever negotiation & conciliation
failed; any party then may make an application to the
Minister to refer the matter for arbitration.
 Agency for arbitration – Industrial Court.

 At this stage, both disputed parties must accept the

decision made.

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COMPOSITION & JURISDICTION
 Composition of IC:
a president;
 a number of chairmen; and
 two panels – representing employers & employees.

 Jurisdiction: Over all trade disputes.

 S 26 – Reference of trade disputes to the Court may be
made:
 On joint request in writing to the Minister;
 Of his (Minister) own motion;
 Upon receiving notification of the DG (the dispute cannot be
settled)
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