MALAYSIAN INDUSTRIAL RELATIONS

& EMPLOYMENT LAW

Author: Maimunah Aminuddin

Chapter Five
Trade Unions

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Preview
 Reasons for joining a trade union
 Purpose of trade unions
 Definition of “trade union”
 Membership of a trade union
 Registration of trade unions
 Control of trade unions
 Current status of trade unions
 The MTUC and the MEF
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Reasons for joining a trade union
Employees join trade unions:
 To improve their economic situation
 To ensure their rights at work are protected
 For social reasons

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Purpose of trade unions
 To promote the interests of their members
and working people in general
 To promote employee-friendly legislation
 To promote the economic, social and
educational welfare of their members
 To protect the rights of their members at
the workplace

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Definition of trade union
The legal definition of “Trade Union” in the Trade
Unions Act has implications:
 Membership of a union is limited to workers
working in Peninsular Malaysia, or Sabah or
Sarawak
 Unions with membership from a variety of
industries not permitted
 Employers can form unions

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Membership of a trade union
Trade unions of workers
Membership open to:
 Employees over age of 16
 Employees working in the relevant trade,
occupation or industry
 Public sector workers can only join a union whose
members work in the same Ministry or Department
 Statutory body employees can only join an in-
house union
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Membership of a trade union, cont.

Police, Armed Forces and Prison service

employees canNOT join any trade union.

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Membership of a trade union, cont.

Managers, Executives, Confidential Staff and

Security Staff can only join a union whose
members are in the same category.

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Registration of a trade union
 All trade unions must apply to be registered
within one month of formation.
 Registration is controlled by the Director

General of Trade Unions (DGTU), Ministry of

HR.
 DGTU has extensive powers to register,
reject an application and de-register an
existing union.

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Control of trade unions
Other than registration, unions activities are
controlled through:
 Limitations on use of union funds and need to
submit audited annual accounts to DGTU
 Rules relating to who can be elected as a union
executive officer
 Rules relating to who can serve as an employee of a
union

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Current status of trade unions in
Malaysia
 Number of unions steadily growing
 Number of members increasing
 Density reducing
 Most unions have less than 500

members
 Two types of union – national and

in-house

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Key players other than employee
TUs
Employers’ Associations:
 The Malaysian Trades Union Congress
 The Malaysian Employers Federation

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Key players other than employee
TUs, cont.
Employers’ Associations
Some employers have formed and joined a
trade union, e.g.:
 MAPA
 MCBA
 AIE

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Key players other than employee
TUs, cont.
The Malaysian Trades Union Congress (MTUC)
 The MTUC is NOT a trade union. It is
registered under the Societies Act.
 The MTUC’s members are trade union from
a variety of industries.
 The MTUC speaks on behalf of unions and
workers on issues related to the welfare of
workers.
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Key players other than employee
TUs, cont.
The Malaysian Employers Federation (MEF)
 The MEF is NOT a trade union.
 The MEF speaks on behalf of employers.
 The MEF carries out research.
 The MEF advises its members on
employment related issues.
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Review
 Reasons for joining a trade union
 Purpose of trade unions
 Definition of “trade union”
 Membership of a trade union
 Registration of trade unions
 Control of trade unions
 Current status of trade unions
 The MTUC and the MEF

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