TRADE UNION CONSTITUTION AND

MANAGEMENT

ADS465
 Student Learning Outcomes
By the end of this chapter, student should be able to:
• Identify the elements in trade union constitution
• Explain duties and powers of trade unions
• Discuss on union membership, officers and employees
• Explain the management of union funds and account
• Describe the powers of Director General of Trade Unions
 Trade Union Constitution
• Union Constitution - internal rules and regulations of a union.

• The purpose of adopting constitution for a trade union:

 Provide clear guidelines to the members of trade unions
 Establish a principle or standard to guide the behaviour of
parties in trade union
 Provide solution in resolving conflict between members of a
union
 Common Contents of Trade Union Constitution
• The union constitution may include the following:
 Name of the union
 Objectives and principles
 Membership classification
 Structure of the union
 Powers, rights and duties of union, union executive and its members
 Management of unions fund
 Dissolution
 Amendment of the constitution
Union constitution Accordance to TUA 1959
• Membership of minors , public officers and employees of
statutory authorities
• Officers
• Employees of trade union
• Change of name
• Amalgamation
• Registered Office
• Union rule
• Trustee
 Duties and powers of a registered trade
union under TUA 1959
• A registered trade union may employ and pay a
secretary, treasurer or any other persons necessary for
the union - Sec 29

• Union also may change its name - S 31

– by at least 50% of members agreed to the changes
 Duties and powers of a registered trade
union under TUA 1959

• Amalgamation - any two or more trade union whose

members under similar trades, occupations or industries -
may become amalgamated (unite to form one union) -
Sec 32
 Duties and powers of a registered trade
union under TUA 1959

• Transfer of engagement - in the case of transfer of

membership, transfer of property and etc . It requires to
pass special resolution. Sec 33
– Passing special resolution required:
• notice call for meeting must specify the intention to the
resolution 'transfer of engagement'
• Pass resolution by 2/3 of the members present or entitled to
vote
 Duties and powers of a registered trade
union under TUA 1959
• Establish a registered office situated in West Malaysia,
Sabah or Sarawak - Sec 37

• Union must establish union rule and the rules must

contain the provision in the First Schedule - Sec 38
 Duties and powers of a registered trade
union under TUA 1959
• Trade union shall take secret ballot to make decision on the
following matters, such as election of delegates to general
meeting, election of officer, dissolution of union,imposition of
levy and etc - Sec 40

• A registered trade union also may impose a levy (mandatory

contribution other than entrance fee e.g. fine or extra fees) on
its members. However, any imposition of levy must agreed by
at least 50% members votes in favour of that. - Sec 40A
 Duties and powers of a registered trade
union under TUA 1959
• A registered trade union need to exhibit prominently in its
registered office - the names and titles of the officers and
employees of that union ( Sec 41)

• A registered trade union shall has at least three trustees,

unless the union use a corporation that is approved by the
DGTU as sole trustee - Sec 43
 Duties and powers of a registered trade
union under TUA 1959
• A registered trade union may invest its fund at the
following purposes (Sec 49):
– purchase any land or building
– invest in any securities
– deposit its funds in the Bank Simpanan Nasional, any bank
incorporated in Malaysia or any finance company
– in any registered cooperative society or in any commercial,
industrial or agricultural undertaking or banking enterprise
(incorporated in Malaysia)
Union membership, officers and employees
Union membership

• A person under age of 21 and above age of 16 - may be

members.
• Employed in particular establishment, trade, occupation or
industry.
• Exempted several category of public officers from joining a union.

• Union density- the percentage of workers joining trade union is

declining in Malaysia (Maimunah Aminuddin, 2011)
Union membership, officers and employees
Union officers / executives
• Unions are led and managed by executives elected by the
members at biennial or triennial conferences
• If the union has branches (largest unions) - council member
can be appointed to represent each of branches
• Criteria to be executives:
– Malaysian citizen who have been employed at least 1 year
in the related trade, occupation or industry
– office bearers or employees of a political party
– convicted of any criminal offences or have been
adjudged bankrupt
Union membership, officers and employees
Union employees
• Large trade union will employ full-time staff to run daily
business of union.
• Criteria to be employees:
– Malaysian citizen
– officer or employees of other trade unions
– office bearers or employees of a political party
– convicted of any criminal offences or have been
adjudged bankrupt
 Management of Funds and Accounts
• The use of union fund is confined to purposes as set out
under Sec 50 and the rules of a trade union.

• Under Sec 50, the funds can be used on the following

purposes:
– payment of salaries, allowances and expenses to officers and
employees of the trade union
– payment of costs and expenses of the administration of the
trade union
 Management of Funds and Accounts
• Under Sec 50, the funds can be used on the following
purposes (con't):
– prosecution or defence of any legal proceeding
– expenses related to the settlement of trade disputes
– compensations to members for losses of trade disputes (e.g.:
strike allowance)
– allowance to members and their families due to death, old age,
sickness, accident and unemployment
– expenses related to the publishing of newsletter
– expenses related to union/members' activities
 Management of Funds and Accounts
• Law prohibit the use of fund for :
– any political purposes

• Unions are required to submit annual, audited account to

the Department of Trade Unions for checking
Powers of Director General of Trade Union
• The TUA 1959 provides wide power to DGTU. The
powers of DGTU as follows:

1. Register or refuse to register a union.

2. Cancel the registration of a union.

3. Suspend any branch of a trade union.

Powers of Director General of Trade Union
4. Register the change of name for a union.

5. Carry out investigation in the case of strike or lock-out

carried out contravene with the Act.

6. Accept dissolution of union which performed in

accordance to the rules of trade union.
Powers of Director General of Trade Union
7. Hear and determine any disputes between union with any
other parties.

8. Order the account books and other records of a trade

union to be made available for inspection or audit.

9. Summon witnesses in giving any information.