INDUSTRIAL DISPUTES AND

INDUSTRIAL ACTIONS
CHAPTER 7
LEARNING OUTCOMES:
• At the end of the session, students should be able to:
1.Describe the meaning, causes and effects of trade disputes.
2.Compare various types of dispute resolutions.
3.Distinguish employees’ from employers’ industrial actions.
Industrial disputes
• DEFINITION
• “ Trade disputes means any disputes between an employer and his
workmen which is connected with the employment or the non-
employment or the terms of the employment or the conditions of work
of such workmen.”
(Sec.2, IRA)

• “ Industrial disputes refers to any type of labour-management conflicts /

disputes, including trade disputes.”
INDUSTRIAL DISPUTES
• Disputes / conflicts / disagreement –relationships are full of tensions,
differences, controversies, arguments, contradictions.
• * the term ‘non-employment’ is not defined in the IRA but it is the
negative form of employment. It can occur in the various forms such as
dismissal, termination, lay-off, and suspension of an employee by
his/her employer.
FACTORS INFLUENCE
TRADE DISPUTES
• Several factors/causes have been associated with the occurrence of
industrial disputes as follows:
i. The failure of the grievance procedures to conclude satisfactory results.
ii.A difference of opinion as to the appropriate terms and conditions of service
for workers.
iii.A difference of opinion as to the interpretation of a collective agreement or
Industrial Court Award.
iv.The non-implementation of an agreement or award.
v.The refusal of any party to commence collective bargaining.
vi.The refusal of any employer to accord recognition.
vii.Disciplinary actions taken by an employer which are considered as unfair or
unwarranted.
METHODS TO RESOLVE
TRADE DISPUTES
• The methods involve bilateral negotiation between
employer and employees.
• Initiatives taken by the industrial relations
department / MoHR.
• Adjudication by the Industrial Court.

adjudication = make official decision about problem or disagreement

METHODS TO RESOLVE
TRADE DISPUTES
• The IRA, 1967 recognizes either implicitly or explicitly a number of ways
for that purposes:
• It specifically makes available three methods:
1.Conciliation
2.Fact finding
3.Arbitration
• Other methods recognized by IRA are the following:
1.Direct negotiation
2.Direct action
3.Executive action
4.Administrative action
5.Mediation
Dispute resolution: conciliation
• “Conciliation is the process of arriving at a settlement of a trade dispute
with the help of a third, neutral party.”
(Marilyn A.: 2013 : pg. 206)
• “Conciliation also means bringing together the two parties involved to
resolve their problems.”
• Agency –Department of Industrial Relations
• Provision–Part V, IRA (Section 18 -19)
Dispute resolution: conciliation
• PROCESS
1.It can be voluntary or compulsory.
2.The parties are encouraged to resolve their problems.
3.It is up to the parties concerned to reach the agreement.
4.The conciliator merely arranges the meeting or advice the
parties because he has no authority to insist that the parties
accept any particular recommendation.
Dispute resolution: conciliation
• Situations that require conciliation (compulsory):
1.If a trade dispute has not been resolved, it must be referred
to the DGIR by any party to it for conciliation.
2.The DGIR may also refer a trade dispute for conciliation if in
his opinion the dispute is not likely to be resolved and public
interests demand. (Sec. 8 IRA)
Dispute resolution: conciliation
• In practice,
1.Conciliation is carried out by Industrial Relations Officer(s) who will
meet the parties, either separately or jointly.
2.The conciliator will:
i. give explanation on the problem
ii. help the parties arrive at a compromise which is acceptable to both parties.
iii. give advice
iv. He has no authority to insist any party or the parties to accept any
recommendation.
• * This method is important because 70-80 per cent of trade disputes are
settled in this way annually.
Dispute resolution: fact finding
• It refers to investigation and inquiry carried out by specific
agencies on any matter that are related or relevant to the
dispute.
• Agencies/ machineries –Board of Inquiry and Committee of
Investigation (both are appointed by the Minister of Human
Resources).
• Provision-Part VIII, IRA 1967.
Dispute resolution: fact finding
• COMMITTEE OF INVESTIGATION
i.It consists of one or more persons appointed by the
Minister.
ii.It has jurisdiction over any trade dispute referred to it by
him.
iii.It has the power to investigate the causes of and the
circumstances surrounding the dispute.
iv.It is required to make a report to the Minister ‘as soon as
possible’.
Dispute resolution: fact finding
• BOARD OF INQUIRY
i. It consists of one or more persons appointed by the Minister.
ii.It has jurisdiction over any trade dispute referred to it by him for fact
finding.
iii.It has more power than the committee, as follows;
• The power to inquire into the dispute referred to it.
• The power to summon witnesses to give evidence on oath or affirmation.
• The discretion to sit in private or public.
• The discretion to make Interim Report that must be laid down before the
Dewan Rakyat ‘as soon as may be’.
Dispute resolution: fact finding
• Limitation of the agencies
1.A board cannot include in its Report(s) any information, which are confidential in
nature, obtained by it in its inquiry about trade union, business or organization
without consent.
2.Both agencies are not the bodies that settle the disputes referred to them.
i. The Act requires them to investigate or inquire causes and circumstances
surroundings the dispute.
ii.But, in their proceedings before a Board or a Committee-they can permit or not
permit a person to be represented by someone else.
iii.So far, no cases of appointment of a Committee or a Board (since the
introduction of IRA)
• Reason?… the Government prefers to refer/ use other methods to settle the
disputes.
Dispute resolution:
ARBITRATION
• “ Arbitration is a method of settling a dispute whereby the two
parties involved request the third party, or are compelled by law to
use a third party to make decision for them”.
• “…is where an impartial third party is given the authority to settle
the dispute by examining the information given by both parties and
making a judgement.”
i. Agency –Industrial Court.
ii.Provision –Part VII, IRA.
iii.Types –compulsory or voluntary.
Dispute resolution:
ARBITRATION
• IRA 1967 identify only one agency for arbitration of trade
disputes i.e. Industrial Court
• Industrial Court –composition, jurisdiction, powers, awards &
appeal. (This topic will be covered in Topic 9)
Other methods: DIRECT
NEGOTIATION
• “ … is a method of settling the dispute whereby the two parties involved
are willing to come together for discussion until a satisfactory
compromise is reached or concluded.” (Marilyn A.: 2016 : pg. 208)
• Agency –parties to the disputes.
• Provision –none
• It is seen as a mature and harmonious way of settling the dispute.
Other methods: DIRECT
NEGOTIATION
• It is quick, cheap, save ‘faces’, and very effective way (for settlement/
arriving resolution without involvement the third person).
• It is more likely to result in the permanent resolution of the dispute than
resolution arrived through the intervention of a third person.
Other methods: mediation
• Mediation is similar to conciliation whereby the third neutral party is
called in by the parties to the dispute to help them find a settlement.
(Marilyn A.: 2016 : pg. 209)
• It is relatively rare method of settling a trade dispute.
• It is not mentioned in the labour laws, but is, occasionally used.
• But, the mediator is not usually from the government (a person who is
considered unbiased, impartial and is sufficiently respected and trusted
by both parties).
Other methods: executive and
administrative action
• The IRA, 1967 makes available two agencies for:
i. Executive action i.e. the Minister of Human Resources
• Sec. 19A, IRA authorises the Minister to resolve trade dispute i.e. to
conciliate a trade dispute.
• Sec.9, IRA authorises him to resolve recognition dispute (by giving
decision).
ii.Administrative action i.e. the DGIR
• Sec.19, IRA authorises the DGIR to resolve the trade dispute.
• Sec.9, IRA authorises him to resolve recognition dispute (i.e. to take
any step or make inquiry)
Other methods: direct actions
• These methods refer to industrial actions by employers or
employees via:
1.Lockouts
2.Picketing
3.Strikes
• These actions are taken to ensure that the disputes are
settled quickly
Industrial actions

• It refers to a direct action carried out by either employers or employees

resulted from trade disputes. It is considered as an aggressive and
threatening method to settle trade disputes.

• CAUSES
1.The failure of peaceful dispute resolution methods for resolving any
trade/ industrial disputes.
2.The attempts of a party to force the other party to give in.
3.Employers and employees attitudes such as intolerable etc.
Types of indusctrial actions
• The types or industrial action can be divided into main
categories namely:
• Industrial action by employees such as picketing, strikes,
boycott and sabotage but, the only forms of employees’
industrial action permitted by the labour laws are picketing
and strikes.
• Industrial action by employers i.e. lockouts
Industrial action: PICKET

• It refers to a situation whereby “ one or more

persons may attend at or near the place where the
workman works and where a trade disputes
involving such worker exists only for the purpose of
peacefully: -
i. Obtaining or communicating information, or
ii.Persuading or inducing any workman to work or
abstain from working (if a strike has taken place)
(Sec. 40 (1), IRA)
• * Picketing : taking part in protest outside a building.
• * * Picketing : is the most common form of industrial
action in Malaysia.
Industrial action: PICKET

• CONDITIONS
• Picketing must not: -
i. in the workplace
ii.intimidate any person
iii.lead to breach of the peace
iv.obstruct the entrance or exit
v.allow workers who are not directly involved in the
trade dispute to take part.(Sec. 40 (1)(2)
Industrial action: PICKET

• OBJECTIVES
• The main objectives are the following:
i. To pressurize the employers to settle the dispute or
to fulfill their claims quickly.
ii.To inform/ communicate certain issue to public.
iii.To give the employer a lesson.
• * Picketing is an early stage towards more serious
action.
• * Usually picketing is carried out during lunch hour,
before or after working.
Industrial action: PICKET

• UNLAWFUL PICKETING
• The employees’ action of picketing become unlawful
if they do not conduct it according to the
requirements of the said provision i.e. Sec. 40. IRA.
• PUNISHMENT:
• Any contravention can be convicted the following: -
a)An imprisonment for a term not exceeding one year,
or
b)A fine not exceeding RM1,000/-or both (Sec.40 IRA)
Industrial action: strike
• A strike means 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 to 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 intended to or does result in any limitation,
restriction, reduction or cessation or a dilatoriness in the
performance or execution of the whole or any part of the
duties connected with their employment.
(Sec.2, IRA 1967)
Industrial action: strike
• A strike can be defined as “ an action carried out by the employees
collectively whereby they withdraw themselves from work or, refuse
to continue performing their present works/ jobs or, refuse to
perform the jobs assigned by the employers or, stop/ delay their
work which result in lower performance which affect the
organisation’s production”.
• In brief, “ a strike is any stopping of work by a group of workers,
including any attempt to limit or slow down production on purpose.”
(Maimunah Aminuddin, 2013 : pg.193)
• Strikes are only legal if they comply with the regulations in the
Industrial Relations Act and Trade Unions Act. As such, the right to
strike is only extended to members of a registered trade union.
Industrial action: strike
• FORMS OF STRIKE
• Illegal strikes which refer to actions such as lightning/
wildcat strike, sympathy strike, political/ general strikes.
• Types of illegal strikes :
1.Sympathy strike
2.Wildcat strike/ Lightning strikes
3.General strike
4.Political strikes
• Legal strike –follows and fulfils labor laws
Industrial action: strike
• PROCEDURE
• There is no specific procedures to be followed to ensure the
legality of a strike.
• But, various requirements and restrictions are found in both
the Trade Unions Act and Industrial Relations Act. The
requirements and restrictions are the following:
Industrial action: strike
• SEC. 45, IRA
• This section deems a strike or lockout illegal if: -
a)it is declared or commenced or continued in contravention of Sec. 43 or
Sec. 44, or of any provision of any other law; or
b)it has any other object than the furtherance of a trade dispute:
• between the workmen on strike and their employer or
• between the employer who declared the lockout and his workmen.
• However, the Act declared the consequence of an illegal lockout, which
is deemed illegal by the Act.
Industrial action: strike
• SEC. 43, IRA
• It restricts a strike or a lockout in the “Essential Services”.
• It does not prohibit a strike or a lockout in these services but requires
only appropriate notice of them.

• SECTION 44(B), IRA

• (prohibition)
• “ No workman shall go on strike and no employer of any such workman
shall declare a lock-out after a trade dispute or matter involving such
workman and such employer has been referred to the Court and the
parties concerned have been notified of such reference.
Industrial action: strike
• SEC. 46 TO 48, IRA
• These sections make an offence, punishable on conviction by fine and/
or imprisonment (consequence),
• i.e. for an employee or an employer to participate in, or to instigate
others to participate in, or even to support (by financial means) a strike
or a lockout deemed illegal by it.

• SECTION. 49, IRA

• This Act protects union members who refuse to participate in any illegal
strikes or lockout.
Industrial action: strike
• SECTION 25(A)1, TUA
• This Section prohibits an employee union from calling a strike or an employer
union from declaring a lockout under the following circumstances:
i. without first obtaining the consent from majority of members (at least two
thirds)
ii.before the expiry of 7 days after submitting to the DGIR (Sec. 40(5) TUA)
iii.if the secret ballot become invalid (by virtue of Section 40 (2), (3), (6) or (9)
TUA
iv.in contravention or without complying with the rules of the union
v.in respect of matter covered by a direction or a decision of the Minister
vi.in contravention or without complying with the TUA or any other law.
Industrial action: strike
• SECTION 40, TUA
• This section requires a trade union to take a secret ballot to make a
decision (a secret ballot must held by those eligible to strike).
• The results of this ballot must be sent to the Director General of Trade
Unions by the union secretary within 14 days of taking the ballot.
• The strike can only take place if two-thirds of those entitled to vote
agree to the action and,
• after waiting 7 days after the ballot results have been sent to the
Director General.
Industrial action: lock-out
• Sec. 2 IRA defines a lockout as,
• “ the closing of a 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 to
compel those workers to accept terms or conditions of work or affecting
employment.”
• *The procedure for lock-out are the same as those for a strike:
i. IRA Sec. 43, 44, 45, 46, 47, 48 & 49
ii.TUA, Section 25(A)1 & 40
REFERENCE
• The Industrial Relations Act 1967.
• The Trade Unions Act, 1959.