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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)
OVERVIEW ON MALAYSIAN IR SYSTEM
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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
OVERVIEW ON MALAYSIAN IR SYSTEM
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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
OVERVIEW ON MALAYSIAN IR SYSTEM
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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
DEPARTMENT UNDER HR MINISTRY
OVERVIEW ON MALAYSIAN IR SYSTEM
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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
DEPARTMENT UNDER HR MINISTRY
OVERVIEW ON MALAYSIAN IR SYSTEM
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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
OVERVIEW ON MALAYSIAN IR SYSTEM
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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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OTHER RELATED ORGANIZATIONS
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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OTHER RELATED ORGANIZATIONS
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
LAWS ON WORKING HOURS
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
LAWS ON WORKING HOURS
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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LAWS ON WORKING HOUR
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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LAWS ON WORKING HOUR
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
LAWS ON WORKING HOUR
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
LAWS ON WORKING HOUR
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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LAWS ON WORKING HOUR
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
LAWS ON WORKING HOUR
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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LAWS ON WORKING HOUR
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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LAWS ON WORKING HOUR
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
LAWS ON WORKING HOURS
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
LAWS ON WORKING HOURS
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
LAWS ON WORKING HOURS
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
LAWS ON WORKING HOURS
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
LAWS ON WORKING HOURS
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.
INDUSTRIAL DISCIPLINE A ND TERMINTATION
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.
INDUSTRIAL DISCIPLINE A ND TERMINTATION
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
INDUSTRIAL DISCIPLINE A ND TERMINTATION
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.
INDUSTRIAL DISCIPLINE A ND TERMINTATION
APPROACHES TO DISCIPLINE
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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
INDUSTRIAL DISCIPLINE A ND TERMINTATION
APPROACHES TO DISCIPLINE
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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.
INDUSTRIAL DISCIPLINE A ND TERMINTATION
APPROACHES TO DISCIPLINE
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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.
INDUSTRIAL DISCIPLINE A ND TERMINTATION
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
INDUSTRIAL DISCIPLINE A ND TERMINTATION
TERMINATION OF SERVICE
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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)
INDUSTRIAL DISCIPLINE A ND TERMINTATION
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
INDUSTRIAL DISCIPLINE A ND TERMINTATION
TERMINATION OF SERVICE
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INDUSTRIAL DISCIPLINE A ND TERMINTATION
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.
INDUSTRIAL DISCIPLINE A ND TERMINTATION
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
INDUSTRIAL DISCIPLINE A ND TERMINTATION
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
INDUSTRIAL DISCIPLINE A ND TERMINTATION
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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COLLECTIVE BARGAINING AND COLLECTIVE AGREEMENT
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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COLLECTIVE BARGAINING AND COLLECTIVE AGREEMENT
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 BARGAINING AND COLLECTIVE AGREEMENT
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
COLLECTIVE BARGAINING AND 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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TRADE DISPUTE SETTLEMENT
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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TRADE DISPUTE SETTLEMENT
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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TRADE DISPUTE SETTLEMENT
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
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