Chapter Five Trade Unions MALAYSIAN INDUSTRIAL RELATIONS & EMPLOYMENT LAW Author: Maimunah Aminuddin Chapter Five Trade Unions Malaysian Industrial Relations & Employment Law

Malaysian Industrial Relations & Employment Law 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 Malaysian Industrial Relations & Employment Law

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 Malaysian Industrial Relations & Employment Law

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 Malaysian Industrial Relations & Employment Law

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 Malaysian Industrial Relations & Employment Law

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 Malaysian Industrial Relations & Employment Law

Membership of a trade union, cont. Police, Armed Forces and Prison service employees canNOT join any trade union. Malaysian Industrial Relations & Employment Law

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. Malaysian Industrial Relations & Employment Law

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. Malaysian Industrial Relations & Employment Law

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 Malaysian Industrial Relations & Employment Law

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 Malaysian Industrial Relations & Employment Law

Key players other than employee TUs Employers’ Associations: The Malaysian Trades Union Congress The Malaysian Employers Federation Malaysian Industrial Relations & Employment Law

Key players other than employee TUs, cont. Employers’ Associations Some employers have formed and joined a trade union, e.g.: MAPA MCBA AIE Malaysian Industrial Relations & Employment Law

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. Malaysian Industrial Relations & Employment Law

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. Malaysian Industrial Relations & Employment Law

Malaysian Industrial Relations & Employment Law 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 Malaysian Industrial Relations & Employment Law