1. INDUSTRIAL RELATIONS By: Dr. Khairunneezam Mohd Noor Chapter10

2. PREVIEW  The importance of industrial relations.  The role played by the Ministry of Human Resources in industrial relations.  The functions of trade unions, including the legal requirements to form and join a union.  The process of collective bargaining.  The legal forms of industrial action that may be taken by employers and trade union members.  The processes by which industrial disputes are settled—conciliation and arbitration.

3. INDUSTRIAL RELATIONS Industrial relations is the relationship between an employer and the trade union which represents his workers. An industrial relations systems consists of:  Employers and their associations  Employees and their trade unions  The government

4. PARTIES IN THE INDUSTRIAL RELATIONS SYSTEM  International Labour Organization  International trade union bodies  The Malaysian Trades Union Congress  The Malaysian Employers Federation  The Ministry of Human Resources  Individual trade unions  Individual employers

5. CREATING AN ENVIRONMENT OF INDUSTRIAL HARMONY CREATING AN ENVIRONMENT OF INDUSTRIAL HARMONY CREATING AN ENVIRONMENT OF INDUSTRIAL HARMONY The Minister of Human Resources The Minister of Human Resources The Department of Trade Union Affairs The Department of Trade Union Affairs The Department of Industrial Relations The Department of Industrial Relations

6. INDUSTRIAL HARMONY AND CONFLICT Industrial harmony is necessary for the success of the individual enterprise and the success of the national economy. Conflict is the antithesis of industrial harmony. An industrial relations system must find ways to manage conflict.

7. TRADE UNIONS Why do workers join trade unions?  To have a voice.  To gain bargaining power and fight for more wages, more benefits and less work.  To ensure their employment rights are protected.  To show their solidarity with other workers.  To have an opportunity to socialise with other workers.

8. Why do workers join trade unions? 1.Economic reasons A union, by virtue of representing a large group of workers in an establishment, will be in a stronger position to negotiate terms and conditions of employment than any individual worker will ever be. Typically, individuals have little bargaining power. When offered wages and other benefits as a package by the employer, their ability to bargain other items is strictly limited, because generally, workers need a job more than an employer needs any particular worker. Unless labour is in very short supply, or the employee has some special skills not widely available in the labour market, he has little choice but to accept the compensation offered by the employer. Trade unions can conduct collective bargaining on behalf of the workers in an establishment to improve the terms and conditions offered, or at the very least, if there is a financial crisis, they will endeavour to maintain the current terms and not allow the employer to reduce them.

9. Why do workers join trade unions? 2. Protection of rights Unions will try to ensure their members are not exploited by their employers. One of the most important rights to employees is security of employment. Unions try to protect jobs. They will negotiate with employers to save jobs if the company is facing a financial crisis and they may lobby the government on policies which impact on the right of an employer to retrench. When an employee is faced with dismissal on the grounds of misconduct, his union will try to defend him as far as possible.

10. Why do workers join trade unions? 3. Social reasons. Workers, as with all other persons, have social needs. This can be met by joining with other workers in a trade union which also provides opportunities for workers to exercise leadership and to give assistance to their fellow workers.

11. THE RIGHT TO ESTABLISH A TRADE UNION All trade unions must be registered with the Department of Trade Unions BEFORE they can begin any activities. Applications to register must be made within one month of the first meeting held at which it was agreed to start a trade union. A temporary committee may be appointed to carry out the necessary paperwork.

12. THE RIGHT TO JOIN A TRADE UNION  The Royal Malaysian Police  The Prison Service  The Armed Forces Any employee above the age of 16 has the right to join a trade union, except employees in:

13. THE RIGHT TO JOIN A TRADE UNION (cont.) Restrictions  Employees in public and private sectors cannot join the same union.  Employees in statutory bodies can only join in- house unions.  Employees may only join a union covering workers in either Peninsular Malaysia, Sabah or Sarawak (depending on where the employee is working). Combinations are not permitted.

14. THE RIGHT TO JOIN A TRADE UNION (cont.)  Employees can only join a union representing the trade, occupation or industry in which they are working, unless the union is in-house.  Managers, executives, confidential and security staff can only join a union whose members are in the same category as themselves.

15. CONTROL OF TRADE UNIONS  The Trade Unions Act has provisions on who is eligible to be elected as an officer of a trade union (as President, Vice-President, Honorary Secretary, Treasurer and Council Members).  Trade union funds may only be used for purposes stipulated in the Trade Unions Act.

16. TYPES OF TRADE UNIONS TYPES OF TRADE UNIONS TYPES OF TRADE UNIONS National Unions of Employees National Unions of Employees In-house Unions of Employees In-house Unions of Employees Employers’ Associations Employers’ Associations

17. Sector 19961999 2005 2013 No.MembersNo.MembersNo.MembersNo.Members Private292407,303328406,773390379,493462381,839 Government136241,411125244,388127311,618244516,982 Statutory Bodies and Local Authorities 8879,5328474,1619169,39614673 Total516728,246537725,822608760,507720899,494 EMPLOYEE UNIONS 1996–2013

18. MALAYSIA’S LARGEST EMPLOYEE UNIONS 2009 UNIONMEMBERSHIP  NU Teaching Profession 175,000  NU Bank Employees 31,000  NU Plantation Workers 33,000  Kesatuan Guru-guru Melayu 30,000  Sarawak Teachers Union 17,000  Electrical Industry Workers Union 14,000  Telekom Bhd. Employees Union 10,000

19. MALAYSIA’S LARGEST EMPLOYEE UNIONS (cont.) UNION MEMBERSHIP  Non-metallic Mineral Products Mnfrg. Employees Union 13,000  Malayan Nurses Union 13,000  Metal Industry Employees Union 12,000  Kes. Guru-guru Lepasan Maktab 11,000  NU Commercial Workers 11,000  NU Petroleum & Chem. Workers 10,000  Tenaga Nasional Employees Union 10,000  Transport Workers Union 10,000

20. COLLECTIVE BARGAINING Collective bargaining is a process whereby a trade union negotiates with an employer or association of employers over the terms and conditions of service of employees. A trade union can only invite an employer to commence collective bargaining once it has been recognized by the employer as the legitimate representative of the employer’s workers.

21. THE COLLECTIVE BARGAINING PROCESS Once a trade union has been recognized by an employer, either party may initiate the collective bargaining process. Bargaining sessions will be held between teams of negotiators appointed by the employer and the union respectively.

22. COLLECTIVE AGREEMENTS A collective agreement is a written agreement between a trade union and an employer, or association of employers, concerning the terms and conditions of employment of the employer’s workers. A collective agreement is the outcome of collective bargaining.

23. COLLECTIVE AGREEMENTS (cont.) Duration: A minimum of 3 years. Contents:  Terms and conditions of employment of the workers concerned  Special provisions/facilities for the trade union Scope: Collective agreements cover ALL employees in the company concerned who are eligible to join the union.

24. COLLECTIVE AGREEMENTS (cont.) Procedures, for example:  Procedure for settling grievances  Procedures for settling disputes  Procedures for transfer of workers  Procedures for retrenchment of workers

25. THE RIGHT TO TAKE INDUSTRIAL ACTION Employees who belong to a trade union have the right to:  Picket and strike, when a trade dispute occurs. Employers have the right to lockout the workers when a trade dispute occurs.

26. What’s the differences between picket and strike ?

27. Nak tau keliq sinun… http://www.mohr.gov.my/docz/JPP/TINDAKAN_ PERUSAHAAN.pdf

28. PICKETS A picket is legal providing:  The workers involved are members of a trade union.  A trade dispute between the employees and their employer exists.  It is held at or near the employees’ workplace.  It does not obstruct the entrances or exits to the workplace.  It is peaceful and does not intimidate anyone.

29. STRIKES A strike is legal providing:  The strikers are members of a trade union.  The strikers have a trade dispute with their employer.  A secret ballot is held prior to starting the strike.  Two-thirds of the workers agree to strike.  The ballot papers must be sent to the Department of Trade Unions for verification.  The workers must wait for at least 7 days before commencing the strike.

30. STRIKES (cont.)  Over an issue relating to the question of recognition of a union  Relating to matters in a collective agreement which has been taken cognizance of by the Industrial Court A strike will be illegal in the following situations:

31. STRIKES (cont.)  Relating to the managerial prerogatives of recruitment, transfer, promotion, termination of a worker and the allocation of duties to a worker.  After a trade dispute has been referred to the Industrial Court for arbitration.

32. THE COOLING OFF PERIOD  Conciliation meeting(s) will be held at the Department of Industrial Relations.  If conciliation unsuccessful, the Minister of Human Resources will refer the dispute to the Industrial Court for arbitration.  Once a dispute has been referred to the Industrial Court, it is illegal for the workers to strike on the issues under dispute.

33. REVIEW  The importance of industrial relations.  The role played by the Ministry of Human Resources in industrial relations.  The functions of trade unions, including the legal requirements to form and join a union.  The process of collective bargaining.  The legal forms of industrial action that may be taken by employers and trade union members.  The processes by which industrial disputes are settled—conciliation and arbitration.