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OVERVIEW ON MALAYSIAN IR SYSTEM

MALAYSIAN IR SYSTEM

Its sometime known as Labor Relations/Employee Relations

relationship between employer and employees, particularly in unionizedenvironment

IR concerns on these particular areas:

Legislation affecting working environment

Terms and condition of work

Employer/employee right

Process by which the rules and terms are made in the organization

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MALAYSIAN IR SYSTEM

Generally IR systems are Tripartite ie. They are made up of threeparties:

The employer representative;

The employees representative (unions); and

The government representative.

The most important machinery is the National Labor Advisory Council(NLAC 14 workers rep, 14 employers rep and 12 govt. rep. Alsoinvolve are MTUC, CUEPACS and MEF. Meet twice a year)


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THE ROLES OF HR MINISTRY

Responsible for administering and overseeing IR system in

Malaysia.

The Objectives of the Minist ry are:

To protect the welfare of the workers

To promote harmonious employer employees relationship

T equip work force with basic industrial skill and furtherimprove their level of skills

To assist in maximizing and fully utilizing the countrys

manpower resources


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Department of Labor (Peninsular Malaysia)

Department of Labor (Sabah)

Department of Labor (Sarawak)

Department of Industrial Relations

Department of Trade Union

Department of Occupational Safety and Health

Manpower Department

DEPARTMENT UNDER HR MINISTRY


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Headed by DG and assisted by DDG

Enforces EA, WCA, CYP Employment Act,

Settle dispute of non-payment of wages, allowances,retrenchment and retirement benefits through Labor Court

Department of Labor

Department of Industrial Relations

Headed by DG and assisted by DDG. Enforces IR Act

Settle employers and employees dispute i.e. conciliation

Department of Trade Union

Headed by DG and assisted by DDG. Enforces TU Act

To register & de-register TU, checks union account, investigatecomplaint with regards to the management of TU



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Department of OSH

Headed by DG. Previously known as Dept. of F&M

Enforces OSHA, F&M Act, and Part of Petroleum Act (Safety Measure)

OSHA Act, 1994 empowers the DOSH:

- To carry out safety inspection at workplace,

- To organize promotional activities on safety working culture.

- To carry out activities at improving safety and health at workplace

- To provide effective safety management

Manpower Department

Headed by DG and assisted by 2 directors

To develop competitive workforce, to develop national trainers skill and

improve workforce skill



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VARIOUS LABOR LEGISLATIONS AFFECTING IR SYSTEM

There are various Legislation affecting the Labor Law in Malaysia.The major employment-related legislation are:

Employment Act, 1955

Trade Union Act , 1959

Industrial Relations Act, 1967

Occupational Safety and Health Act, 1994

Factories and Machinery Act, 1967

Employees Provident Fund Act, 1991

Employees Social security Act, 1969

Workmens Compensation Act, 1952


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VARIOUS LABOR LAWS AFFECTING IR SYSTEM

This Act generally only applies to Western Malaysia,

Provides conditions relating to employment, contracts of service

and termination.

Sets minimum conditions of employment which include provision

of public holidays, paid annual and sick leave, normal workinghours, overtime rates and maternity allowances.

Coverage of the Act, Sec. 2, EA (1955) First Schedule:

- Wages do not exceed RM1,500 pm (regardless of position)

- Regardless of wages if:

- Engaged as a manual laborer

- Supervises employees engaged in manual labor

- Engaged in the operation or maintenance of any vehicle

for the transport of passengers or goods- Engaged as a domestic servant

EMPLOYMENT ACT, 1955

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VARIOUS LABOR LAWS AFFECTING IR SYSTEM

TRADE UNION ACT, 1959

Seeks to control the activities of TU in Malaysia

Lay down rules and regulation of establishing TU, who can

become member of TU, rights of TU and any other rules in which

unions are required to follows

INDUSTRIAL RELATION ACTS, 1967

Regulate the relations between employers and workmen and TU.

Laying down rule to prevent and settle dispute between them.

The overall goal is to promote harmonious industrial relations

system in Malaysia

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OTHER RELATED ORGANIZATIONS

Established by IRA (1967) with the purposes of providing apeaceful and unbiased means of settling trade disputes betweenemployer and employees

To grant cognizance to the Collective Agreement which have beenjointly deposited by the employers/Unions

Headed by the Court President. There are 21 Chairmen ie. 15 inKL, 2 in Penang, 1 in Ipoh, 1 in JB and 2 in Sarawak and Sabah.

INDUSTRIAL COURT

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Legisl ative Power of IC

Summon parties

Call in witness and documents

Hear and determine disputes inthe absence of any partysummoned to the proceedings

Conduct proceeding in private

Call in the aid of experts

To regulate the procedure andproceedings of the court

Make an award

Jurisdiction of IC

Unfair dismissal claim

Trade disputes

Interpretation of CA orawards

Contravention of unionrights or complaint of noncompliance

Amendments of CA

INDUSTRIAL COURT

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National Vocational Training Council

Established in May 1989 to coordinate on vocational trainingsystem through the restructuring of Lembaga LatihanPerindustrian dan Persijilan Ketukangan Kebangsaan (LLPPKK).

Represented by 10 private sectors 10 public sectorsrepresentative with 2 additional members. Chaired by General

Secretary of MOHR.

Main objectives to formulate, promote and coordinate vocational

training strategy

OTHER RELATED ORGANIZATION

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(1) an employee shall be allowed in each week a rest day

of one whole day.

(1A) in the case an employee engaged in shift work any

continuos period of not less than 30 hours shall

constitute a rest day

(2) the employer shall prepare a roster informing an

employee of the days appointed to be his rest days

therein.

LAWS ON WORKING HOURS

REST DAY Sec 59

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(1) Every employee shall be entitled to a paid holiday at hisordinary rate of pay on the following days in any one

calendar year;

(a) Entitle for at least 10 public holiday, 4 of which shall be:

(i) the National Day

(ii) the Birthday of the Yang DiPertuan Agong

(iii) the Birthday of the Ruler, or Yang DiPertuan

Negeri of the state where the employee is

employed

(iv) the Workers Day

(b) On any day declared as a public holiday under section 8of Holidays Act 1951


PUBLIC HOLIDAY Sec 60D

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(1)(a) 8 days for every 12 months of continuos service with the

same employer for a period of less than 2 years

(b) 12 days for every 12 months of continuos service with the

same employer for a period of 2 years or more but less

than 5 years

(c) 16 days for every 12 months of continuos service with thesame employer for a period of more than 5 years


ANNUAL LEAVES Sec 60E

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LAWS ON WORKING HOUR

NORMAL WORKING HOUR

Hours of Work Sec. 60A(1) an employee shall not be required

under his contract of service to work:

a) More than 5 consecutive hours without a period of leisure of

not less than 30 minutes duration

b) More than 8 hours per day

c) In excess of a spread over period of ten hours in one day

d) More than 48 hours in one week

{Subject to provisions under Sec. 60A(2)}

Cont.

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Sec. 60A(2) employee may be asked to work more than what is

prescribe in subsection (1) or to work on rest day in the case of:

a) Accident, actual or threatened with respect to his place of work;

b) Work is essential to the life of the community;

c) Work essential for the defense or security of Malaysia;

d) Urgent work to be done to machinery or plant;

e) An interruption of work which is impossible to foresee;

f) Work essential to the economy of Malaysia

(refer to Sec. 2 IRA Schedule)

NORMAL WORKING HOUR (Cont.)

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SHIFT WORK

Working Hour System: Shift Work Sec.60C

(1)(a) an employee may be required to work > 8 hours / day or >

48 hours / week but the average number of hours workedover any period of 3 weeks shall not exceed 48 per week

(2) no employer shall require an employee in shift work towork for more than 12 hours in any one day

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SHIFT WORK


Shift work involves:

Hours of work include hours outside the normal or

traditional working hours such as 8 4 or 9 5,

Two or more groups of workers who take turns to man thework station

The most common patterns of shift work

Double day shifts

Three shift works

Split shift (working early, break and continue spreadover cannot be more than 10 hours)

Rotating and permanent shifts

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PROBLEMS OF SHIFT WORK


Legal constraint on women working at night Sec 34 EA

Increase in cost

Workers health

Stress and psychological problems

Reasons for Shift Work:

Work nature of continuous basis

Meeting the targets or quota

Production technologies need to run continuously

To meet demands of the products

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FLEXI TIME

Flexi time is a system of working hours where the starting and

stopping times are decided by the individual worker within the

number of limitations set by employer (Maimunah)

Key term in a flexi time system: Bandwidth the daily opening hours

Core hours time where workers must present

Flexi band hours before and after core hours

Settlement period total hours required for certain period

Eg:

7 am 9 am Noon

Core Time

3 pm5 pm

Core Time

Flexi timeFlexi time

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ADVANTAGES OF FLEXI TIME


Some of the benefits of implementing flexi time:

Higher productivity

Reduction in overtime

Better customer service

Fewer transport problems

Raised employee morale

Reduced absenteeism

Problems of Flexi time

Feasibili ty

Supervision and communication

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COMPRESSED WORK WEEK

Any arrangement of work hours that allows workers to fulfill theirwork obligation in fewer days than the normal working of 5 or 6day week. This will result in the numbers of hours per day will bemore than 8 hours.

Types of Compressed Week Schedules:-

a) 4/40 ; 10 hours per day for 4 days in a week & 3days off

b) Floating 4/40 ; 10 hours per day for 4 days with 4 days off, in acycle

c) 4 /40 ; 9 hours per day & 1four hour days with 2 days off

d) 5/45 4/36 ; 9 hours per day, alternating between five day &

four day weeks

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PART TIME WORK

A part time worker can be temporary or permanent worker BUT must

be working less than the normal working hours.

EA defines part time workers as those whose average hours of workdo not exceed 70% of normal working hours of full time workers doing

the same job in the same organization.

Who wants to work part time?

a) Students

b) Housewives

c) Pensioners

d) Moon lighters (those full timers who wants extra income)

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(3)(a) any overtime work carried out in excess of the normal

hours of work, the employee shall be paid at a rate not

less than one and a half times his hourly rate of payirrespective of the basis on which his rate of pay is fixed

(3)(b) .... overtime means the number of hours of

work carried out in excess of the normal hours of work

per day


OVERTIME Sec 60A

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(3)(a) in the case of an employee employed on a daily, hourly or

other similar rate who works on a rest day, he shall be

paid for any period of work -

(i) which does not exceed half his normal hours of

work, one days wages at the ordinary rate of pay

(ii) which is more than half but does not exceed his

normal hours of work, two days wages at the

ordinary rate of pay


OVERTIME Sec 60

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(3)(b) in the case of an employee employed on a monthly rate of

pay who works on a rest day, he shall be paid for anyperiod of work -

(i) which does not exceed half his normal hours of

work, wages equivalent to half the ordinary rate ofpay for work done on that day

(ii) which is more than half but does not exceed his

normal hours of work, one days wages at the

ordinary rate of pay for work done on that day


OVERTIME Sec 60

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(3)(c) for any work carried out in excess of the normal hours of

work on a rest day by an employee mentioned in paragraph

(a) or (b), he shall be paid at a rate which is not less thantwo times his hourly rate of pay

(d) in the case of an employee employed on a piece rates who

works on a rest day, he shall be paid twice his ordinary rate

per piece


OVERTIME Sec 60

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(3) (a) Employee required to work on any paid holiday is entitled tofor that day-

(i) in the case of an employee employed on a monthly,weekly, daily, hourly, .. be paid two days wages

(ii) in the case of an employee employed on a piecerates, be paid twice the ordinary rate per piece

(aa) for any overtime work carried out by an employee referred toin paragraph (a)(i) in excess of the normal hours of work oa paid public holiday, he shall be paid at a rate which is notless than three times his hourly rate of pay

(aaa) for any overtime work carried out by an employee referred toin paragraph (a)(ii) in excess of the normal hours of work on

any paid holiday, he shall be paid not less than three timesthe ordinary rate per piece


OVERTIME Sec 60D

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The Organization

(through the manager)

Establishes Rules

And Standards

Communicate those

rules and standards

Assesses Behavior

and Performance

Attempts to Change

Inappropriate

Behaviors

EMPLOYEE

INDUSTRIAL DISCIPLINE A ND TERMINTATION

THE DISCIPLINARY SYSTEM

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Organizational Culture Regarding Discipline

If the norms is to avoid penalizing problem employees,

then managers more likely not to use discipline

Lack of Support

Managers fear that their decisions will not be supported byhigher management.

Feel Guilty

Prior to become a manager, they themselves commit thesame violations as their employees.


WHY DISCIPLINE MIGHT NOT BE USED

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Loss of Friendship

managers who are too friendly with their employees mayfear losing those friendship if discipline is used.

Time Loss

Discipline when properly applied, requires considerabletime and effort. Managers tries to avoid the process

Fear of Lawsuits

Managers are increasingly concerned about being sued for

disciplining someone particularly in dismissal.


WHY DISCIPLINE MIGHT NOT BE USED

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Red Hot Stove

Introduced by Douglas Mc Gregor. Disciplinary action should havethe following criteria:

1. Immediate to take as soon as possible

2. Give Warning to remind workers.

3. Consistent to have standard operating procedure

4. No Personal Agenda avoid bias


APPROACHES TO DISCIPLINE

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Positive Discipline:

Focus on fact-finding and guidance to encourage desirable

behaviors instead of using penalties to discourage undesirablebehaviors.

Steps in Positive Discipline:

1. Counseling opportunity to identify employee work behaviorproblems and discuss solutions.

2. Written Documentation If the counseling fails to change, asecond meeting is conducted and solution is documented.

3. Final Warning If no improvement, a final meeting is heldand emphasizes on correcting inappropriate actions.

4. Dismissal If problems still persists after final warning, thendismissal actions is taken.



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Progressive Discipline

Incorporates a sequence of steps into the shaping of employeebehavior

First Offence Verbal Warning

Second Offence Wri tten Warni ng

Thi rd Of fence Fi nal Writ ten Warn ing

Fourth Offence Demotion /Suspension/Dismissal



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Steps in Progressive Discipline:

Employee is notified of the problem and given a verbalwarning

If matters still not resolved, the employee receives a writtenwarning

If problems persists, the employee is suspended without payfor certain period of time

Finally, should all attempt to rectify problem fails, theemployee services is terminated.

Note: Immediate termination in case of Intoxication at work,fighting, theft, drug abuse at work, possession of weapons andfalsifying employment application.



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Resignation

EA Sec 12 a contract to employ and to serve may be terminatedby either party by giving the other party a 4 weeks notice if work forless than 2 years

6 weeks notice if work for more than 2 years but less than 5 years

8 weeks notice if work for more than 5 years

Termination of contract may be done without notice and indemnityif due to breach of terms of contract.

Retirement

Leaving an organization voluntarily upon reaching certain age.Some organizations provides for retirement benefits, such aspensions. Others may just have to depends on EPF.


TERMINATION OF SERVICE

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Dismissal

Unsatisfactory Performance

- negative attitudes, absenteeism, wastage, etc

Misconduct

- theft, insubordination, fighting, etc

Lack of Qualifications

- unable to complete tasks assigned even after training

Changes in the Requirements of the Job

- changes in technology, work process, redundant, restructuring



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Major Misconduct

Insubordination, sleeping while at work

Fighting, intoxication, theft, punch, absent without prior permission

Punching card for others

Falsifying documents, malingering

Minor Misconduct

Incompetent, come late for work

Abuse of office equipment, personal work during office hour

Negligence (depend on case, could also be major misconduct)


MISCONDUCT

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Retrenchment

a non-disciplinary terminations and can only be done due tobusiness or economic reasons.

Sec 60M No local employee can be terminated for thepurpose of employing foreign employee

Sec 60N the employer shall not terminate the services ofa local employee unless he has first terminated theservices of all foreign employees employed by him in acapacity similar to that of a local employee



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Refers to a properly conducted pre-dismissal inquiry by theemployer.

Sec.14(1) EA 1955 employer may terminate contract ofservice on the ground of misconduct after conducting dueinquiry.

Sec. 20(1) Industrial Relations Act 1967 workmen maymake representation for reinstatement, to the DGIR if theyconsider themselves have been dismissed without justcause

Defective inquiry may be one in which basic principles ofNatural Justice are not observed.

DUE INQUIRY

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The rule of PNJ ensure fairness & impartiality through governingthe manner of arriving at decisions by judicial process.

2 essential elements in PNJ are:

The rule against bias

Hearing of both sides

Any person or body exercising judicial or quasi-judicial functionsfails to observe the rules of PNJ, its orders or decisions would beliable to be quashed on certiorariby the superior court.


PRINCIPLE OF NATURAL JUSTICE (PNJ)

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It requires the adjudicator not only to be impartial & neutral, butalso to appear to be above board.

Bias Due to Pecuniary Interest interest relating to money

Bias Due to Personal Interest family relationship, grudges

Bias Due to Official Interest

This principle is based on twin requirements:

No man should be a judge in his own cause

Justice must not only be done, but be seen to be done


THE RULE AGAINST BIAS

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The Rule of Hearing Both Sides

This rule is expressed through Latin maxims:

Audi alteram partem - hear the other side

Audiatur el altera pars - no man should be condemned unheard.

Any party involves in the proceeding should be given prior noticeand opportunity to be heard

The adjudicator should receive all relevant material which aparty wishes to produce in support of its case

All evident should be taken in his presence

Each party be given opportunity to rebut and cross examine


THE RULE OF HEARING BOTH SIDE

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TU as any association or combination of workmen or employerswhose place of work is in West Malaysia, Sabah or Sarawak..

Implication of the definition:

A TU need not be called a union eg: MITASA

Employers union is separated from employees union

Membership confined either in Peninsular Malaysia orSabah or Sarawak only

Trade union must be within specific trade, occupation orindustry only.

No general nature is allowed. Members of the union mustbe homogenous i.e. possess common interest

Any organization form to achieve objectives stated in theact is considered having form a union and must follow allrules related to TU

TRADE UNIONS

DEFINITION OF TU Sec 2 TUA (1959)

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TRADE UNION

WHY WORKERS JOINT TU

1. To improve terms and conditions of employment

2. Collective Bargaining (Collective Agreement) - CB / CA can only

be negotiated through unions3. Financial Benefits

4. Protection of Rights

5. Security & Social Needs

WHY EMPLOYERS REFUSE

1. Union members tends to have higher salaries than non-unionworkers due to demands

2. Agreements in CB/CA restrains employers from flexibility in workassignments

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MEMBERSHIP OF TU

TRADE UNION

Workers in this country have the right to form and joint TU:

1. Any workmen over 16

2. Any person who is employed under contract of employment

3. Under 18 are restricted in their union activities not entitle to voteon matters involving strike, imposition of a levy, dissolution ofunion, amendment of the rules of TU

4. Under 21 cannot be elected as officer of TU

5. Students cannot joint TU unless they are bona fide workers andover 18 (those on study leave or still eligible for TU membership)

6. In Public Sector

Can only joint union by workers in the same occupation/

ministry/department Police, Prison service, Armed Force and those in confidential

service cannot joint TU

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TRADE UNION

REGISTRATION OF TU

Registration of a Trade Union:

1. Must apply for registration to the Registrar of TU within 1 month ofestablishment.

2. Application must fulfill following requirements: made in the prescribe form and signed by at least 7 members

of the union

accompanied by the prescribed fee

attached with the rules and constitution of the union

specify the name and headquarters address of the union

titles, names, address, ages and occupation of the officers ofthe TU

names, address, ages and occupation of the members makingthe application

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PROCESS FLOW FOR CLAIMING RECOGNITION

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TRADE UNION

RECOGNITION OF TU

The procedures as prescribe by IRA (1967) are as follows:

1. TU must apply in writing in the prescribe form a claim forrecognition in respect of the workmen or any class of workmenemployed by such employer

2. Employer must response within 21 days and give an answer of anyof these:

Agree to give recognition

To refuse recognition, with reasons given

The employer can request the DGIR to verify on certainparticulars of the TU.

3. If employer refuse to accord recognition, the TU can report the

matters to the DGIR.Cont.

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TRADE UNION

4. Even after instruction from DGIR, the employer still refuse torecognize the TU, the matter would be referred to Human ResourceMinister for a binding decisions. This decision is final and cannot be

questioned by any court.5. During this recognition process, employees cannot go on strike and

employers also cannot declare lock-out or terminate the services ofan employee.

6. If TU has been given recognition, nor other TU can claim in respectof same class of workmen for a period of 3 years.

7. Where recognition has been rejected by DGIR or Minister such TUcannot make a claim for a period of 6 months from the date ofrejection.

RECOGNITION OF TU (Cont.)

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TRADE UNION

TYPES OF TU IN MALAYSIA

1. Public Sector Employees Union. Eg. MITASA, NUTP, KesatuanSekerja Kakitangan MIDA, ANULAE etc.

2. Private Sector Employees Union

National Union attempts to cover all workers in the sameindustry/trade/occupation, thus members may come fromvarious organizations. Eg. NUBE, NUPW etc

In-house Union members are all employed by the sameemployer. Eg. Malaysian Airline Employees Union, TelekomBhd Employees Union and TN Employees Union

3. Employers Union any groups of employers within the sametrade/industry/occupation joint together to form a union ofemployers. Eg. Association of Insurance Employers (AIE),Malayan Agricultural Producer Association (MAPA) and MalayanCommercial Banks Association (MCBA

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TRADE UNION

MTUC

MTUC is not a TU but it is a society registered with the

Registrar of Society. Members are individuals TU which

choose to joint as an affiliate.

One of the functions is to act as a spokes person for TU both

at national and international levels. Represented the

workers in the NLAC and EPF Board

Objectives:

Provide advisory services to it affiliate

Present the labor viewpoint to the government

Present workers view on national issues

Help to organize workers who do not belong to a TU

Represent the Malaysian labor movement abroad etc

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TRADE UNION

CEUPACS

CEUPACS is a federation of TU of civil servants and as such

recognized as spokesperson for the public sector.

Membership is open to all registered TU in the publicsector in West Malaysia. Any TU wants to joint must

conduct secret ballot to decide in joining.

Objectives:

to promote the interests working of it affiliate TU

to protect the interest of its members

to promote legislation affecting the interest of the members

to improve the conditions of employment of the members

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TRADE UNION

MALAYSIAN EMPLOYERS FEDERATION (MEF)

It is the employers equivalent to the MTUC and represented

the employers at the NLAC, EPF Board, SOCSO Board and

also the NPC and also National Council for OSH.

Registered under the Registrar of Society

Objectives:

to secure the organization of all employers

to present the opinions of employers on labor matters

to promote and protect the interest of employers

to advise members on implementation of labor laws

to advise members on settlement of disputes

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MALAYSIAN LA BOR ORGANIZATION (MLO)

TRADE UNION

Established in 1989 and registered in 1989 as an

alternative to the MTUC

MLO was formed as a result of certain union such as

NUBE were unhappy with the political and aggressive

stance of MTUC at that time.

The objectives are somewhat similar to the objective of

MTUC

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COLLECTIVE BARGAINING AND COLLECTIVE AGREEMENT

DEFINITION AND PURPOSE OF CB

Collective Bargaining

Sec. 2, IRA (1967) defines collective bargaining as negotiating with aview to the conclusion of a collective agreement.

The process involve the employer and the employees represented bytheir respective TU sit together to discuss the term and condition ofemployment.

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Promotion from a lower grade to a higher grade

Transfer of an employee by an employer within the organization.

The employment of any person by an employer that he mayappoint in the event of a vacancy

Termination of an employee by an employer due to reasons of

redundancy or re-organization of an employers profession,business, trade or work.

Dismissal and reinstatement of an employee by an employer

The assignment or allocation of duties and tasks by an employer to

an employee

MANAGEMENT PREROGATIVES

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PROCEDURE FOR CB

The procedures as prescribe by IRA (1967) are as follows:

After recognition, either party at any time may invite in writing theother party to commence CB and set forth the proposal forCollective Agreement. (CA)

The invited party must response in writing within 14 days whetherto accept or reject the invitation.If accepted CB must start within 30days from the date of acceptance.

If no response within 14 days, or refuse to to accept, or CB doesnot start after 30 days of acceptance, the party making theinvitation may report to DGIR for necessary instruction.

If after the instruction from DGIR, CB still does not start a tradedispute is deemed to exist.

The TU cannot include management prerogative in its proposal

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COLLECTIVE AGREEMENT

Collective Agreement is defined as a conclusion of a collectivebargaining process.

Shall be in writing and signed by employer an employees TU

relating to the terms and conditions of employment. It mustprescribe:

The parties to the agreement

The period the agreement shall continue to be in force whichshould not be less than 3 years

The procedure for modification

The procedure for termination

The machinery for the settlement of any disputes regardinginterpretation, implementation including reference of suchdisputes to the Industrial Court

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COLLECTIVE AGREEMENT


Once CB is successful, both parties will deposit a copy of

CA to Registrar of Industrial Court within 30 days.

Industrial Court is authorized to approve or reject the

agreement

Industrial Court may also requires either party to amend

the agreement in the manner directed by it.

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TRADE DISPUTES

TRADE DISPUTE

Sec 2 - IRA: any dispute between an employer and his employee

which is connected with the employment or the non-employment

or the terms of employment, or the conditions of work of any such

employee.

There are few types of Industrial Actions:

Stri ke

Lock out

Picketing

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TRADE DISPUTES

CAUSES OF TRADE DISPUTE

These are some of the causes of Trade Dispute:

Unfair labor practices by the employer such as wrongful

dismissal, discrimination, and so on which give rise togrievance

Breach of , or non-implementation of a CA or Court Award

Deadlock in CB

Difference of opinion on the terms and conditions of

employment or interpretation of the Collective Agreement

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TRADE DISPUTES

STRIKE

... the cessation of work by a body of workmen acting

in combination or concerted refusal or a refusal under commonunderstanding of a number of workmen to continue work or toaccept employment..

It includes stoppages of work, go s low, restriction, reduction,limitation in the performance or execution of the whole or any partof the duties connected with their employment

(In simple word, strike is any stopping of work by a group ofworkers, including any attempt to limit or slow down production onpurpose)

Cont.

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TRADE DISPUTES

The procedures as prescribe by the law are as follows:

1. The workers to go on strike must belong to a registered TU. Nonunionized workers are not allowed to go on strike.

2. There must exist a trade dispute between employees andemployer. Strike is for the purpose of the furtherance of tradedispute. Strike for any other reasons is illegal i.e. sympathystrike or political strike.

3. Secret ballot must be conducted setting out clearly the issuesleading to the proposed strike. To go on strike, TU must obtain2/3 majority voting in favor of the strike.

4. The result of this secret ballot must be sent to the DGTU within14 days of the secret ballot.

Cont.

PROCEDURE FOR A LEGAL STRIKE

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TRADE DISPUTES

5. No strike can be organized under these following circumstances:

Before the expiry of the 7 days of cooling period after submitting thesecret ballot result to DGTU (Sec. 26A TUA)

If the secret ballot becoming invalid because not following procedures,

upon expiring of 90 days after the date of the ballot, if the DGTU thinksit contravenes any law (Sec. 40A TUA)

During and 7 days after the proceeding of a Board of Inquiry which isappointed by Minister (Sec. 44 IRA)

Matters pertaining to management prerogatives (Sec. 41 IRA)

In respect of any matters covered under a valid CA taken cognizanceby the Industrial Court (Sec. 44 IRA)

In the public sector where the King has withheld consent to thereference of a dispute to the industrial court (Sec. 44 IRA)

Workers under essential services cannot strike without giving 42 daysnotice, or within 21 days of giving such notice or before the expiry ofthe date of strike specified in s uch notice.

PROCEDURE FOR A LEGAL STRIKE (Cont.)

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TRADE DISPUTES

LOCK OUT

1. Almost similar to strike only this time action is by the

employer. IRA defines as: the closing of a place of employment

the suspension of work

the refusal by any employer to continue to employ any

number of employee employed by him

2. Purpose of a lockout is to force employee to accept the

terms and conditions or as a tool to counter the industrial

action taken by the trade union of the employees.

3. Procedures for lockout is almost similar to strike.

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PICKETING

TRADE DISPUTES

1. Can be conducted by one or more employees at or nearplace of work and where trade dispute involving such

employee exists.

2. Reasons for picketing:

to obtain or communicate information

to persuade or induce other employees to stop work

3. Picketing is lawful as long as:

it does not intimidate anybody

it does not obstruct the exit or entrance of the workplaceor traffic

conducted peacefully

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TRADE DISPUTE SETTLEMENT

SETTLEMENT OF TRADE DISPUTE

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DIRECT NEGOTIATION

1. This is the ideal method of settling dispute where both

parties come to the negotiation table to solve the disputeamicably.

2. This negotiation process is seen as a matured andharmonious way of settling dispute. This method is highlyencouraged in the Industrial Relation Act.

3. If both party fail to settle the dispute, the solution may haveto go to the third party

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CONCILIATION

1. After negotiation fails to provide settlement next bestmethod is conciliation where 3rd and neutral party is calledto help. It may be:

Voluntary conciliation both parties agreed to call forconciliation

Compulsory conciliation the intervention from the DIRoffice because of public interest

2. The 3rd party is normally officers from the Dept of IndustrialRelation. The officers may meet and discuss with thedisputing parties either separately or jointly.

3. The conciliator identifies issues and promote settlement andnot merely listening to the parties.

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TRADE DISPUTE SETTLEMENT`

ARBITRATION

1. If even after the intervention of officers from the DIR, thedispute cannot be settled, arbitration may be the only way tosettle the issues.

2. This method, and impartial 3rd party is given the authority tosettle the dispute examining information and evidence givenby both party before making judgment.

3. In Malaysia only Industrial Court has the power to arbitrate.

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MEDIATION

1. Rare methods of settling dispute between employers and

employees. Not mentioned in the Act

2. Similar to conciliation. The neutral 3rd party is called tomediate the settlement is not from the government. Thismediator is considered unbiased and impartial and isrespected by both disputing parties.

Poli ti cian

Local leader

2nn

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