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10.1 INTRODUCTION
This lesson concentrates on the important aspects in the administration of
Malaysian Industrial Relations. It comprises six main parts. The first part
elaborates on the unionism in public sector by highlighting union characteristics
and membership restriction. The second part is about Public Service Department
particularly on its functions related to public sector workers employment. Part
three describes the salary commission and salary committees. Part four outlines
the roles of National Joint Council. Part five illustrates the relevance of General
Order in managing public servants. Part six highlights differences between public
and private sectors industrial relations. This will help you to widen your
understanding of this topic.

Please note that the term industrial relations and industrial relations system is
used interchangeably in this lesson.

10.2 UNIONISM IN THE PUBLIC SECTOR

The Industrial Relations Act 1967 prohibits public servants from joining or
becoming members of any trade union unless exemption is conferred by the
Yang di- Pertuan Agong.

Characteristics Of Union
Some of the distinctive features of public sector unions are the following:
I. No public officer can join or form union unless exempted by the Yang di-
Pertuan Agong.

II. The formation and membership is confined within the same ministry,
department or occupation.

III. The union formed must consist of employees from civil service, statutory
bodies or local authorities.

IV. Wages and other term of service for public sector employees are
discussed at the national level between the government and CUEPACS.

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 V. Numbers of unions are dropping as many government bodies/agencies
have been privatized e.g. TELEKOM, Lembaga Letrik Negara etc

Membership Restriction
The above part explains that exemptions conferred by the Yang di-Pertuan
Agong will enable public sector employees to form and join trade unions.
However, Trade Union Act has outlined some restrictions imposed on union
membership in public sector as the following:

I. Any public sector employees who wants to become a member of a trade

union can only join those formed by employees in the same department,
ministry or occupation

II. Certain groups of public sector employees are not at all permitted to join
trade unions i.e. employees in the police force, armed forces, prison
services and those in the confidential or security work,

III. Employees in the professional and managerial group in the public sector
are also not allowed to join trade union unless they are exempted by the
Chief Secretary to the Government.

IV. An employee of a statutory authority whose membership is not confined

exclusively to employees of that particular statutory authority;

V. An employee of a financially autonomous local authority whose

membership is not confined exclusively to employees of one or more
financially autonomous local authorities;

VI. Employees who are employed in a confidential or security capacity

cannot be a member of a union; or

VII. Employees who hold any post in the Managerial and Professional Group
cannot be a member of a union, unless he has been permitted to be a
member of one by the Chief Secretary to the Federal Government.

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10.3 PUBLIC SERVICE DEPARTMENT
The Public Service Department (PSD) is one of the important federal agencies
headed by the Director General of Public Service. It serves as human resource
department of the federal government. It looks after practically all public sector
employees. The main function is to implement the recommendations of Salaries
Commissions and Salaries Committees once accepted by the Government.
Other functions performed by PSD is to negotiate any anomaly arising from the
implementation of these recommendations with any public sector employees
who is affected by it, or with any organization of public sector employees whose
members are affected by it; and to supervise the operation of the National Joint
Councils and Departmental Joint Councils.

10.4 SALARY COMMISSIONS AND SALARY COMMITTEES

Salaries Commissions and Salaries Committees are wages councils in the public
sector. They are ad-hoc establishments appointed periodically by federal
government. The main responsibility is to review salaries and other terms and
conditions of service in public sector, and make recommendations on those
matters. Several commissions were established in the previous decades and
resulted in several reports such as the Suffian Report (1967), Tun Aziz Report
(1971), Abdul Aziz Report (1971), Harun Report (1973), Ibrahim Ali Report
(1975) and Cabinet Committee Report to examine the Ibrahim Ali Report (1977).
In 1992 the Special Committee of the Cabinet on Salaries for the Public Sector
has introduced the New Remuneration Scheme. This Scheme has introduced
some improvements in regards to terms and conditions of employment. The year
2002 witnessed major changes to the system and the Malaysian Remuneration
Scheme has been accepted by the Government.

10.5 NATIONAL JOINT COUNCILS

This machinery is a modification of the Whitley Council machinery of the United
Kingdom. The design is to be consultative and not negotiative in nature. Two
levels of JCs i.e. the National Joint Councils and the Departmental Joint
Councils. The National Joint Councils consists of three councils i.e. one council

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 for those in the Managerial and Professional Group; and two councils for
employees in the Support Group. However, such councils are not available for
Police Forces and Armed Forces, Senior Managerial Group and public servants
where SSB / SSM do not apply. The Councils serves as for consultation between
representatives of the federal government and of public sector employees on
matters related to remunerations, allowances, perquisites etc of public sector
employees as a whole. On the other hand the Departmental Joint Councils are
the councils constituted to serve as for a consultation between representatives
of the ministry/department/statutory authority/local authority concerned and staff
representatives of that ministry. Items involved are on all matters affecting work
efficiency and staff welfare in the unit involved.

10.6 GENERAL ORDERS

General Orders refer regulations or instructions cover about appointment and
promotion, emoluments in service, leaves, public officers’ conduct and discipline
regulations, government’s house and building, medical and time of working and
overtime. The regulation applies to all Malaysian civil servants. It consists of
seven Chapters i.e. Chapters A. B. C. D. E. F and G. Chapter A illustrates the
guidelines and conditions of appointment, promotion and termination of civil
servants. Chapter B describes the regulations related to allowances for civil
servants. Chapter C explains on leave benefits provided to public servants in
service. Chapter D elaborates on the guidelines pertinent to public officers’
conducts and discipline. Chapter E is on public servants’ entitlement for
government’s house and building. Chapter F concerns on medical benefits civil
servants are entitled to. Chapter G is about guidelines on working hours and
overtime conferred to civil servants.

10.7 DIFFERENCES BETWEEN PUBLIC AND PRIVATE SECTOR

INDUSTRIAL RELATIONS
The differences between the industrial relations system in the public sector and
in the private sector can be seen from the following: -

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 I. Principles Underlying The Systems
The principles underlying industrial relations in both sectors are different.
Industrial relations in the public sector does not fall under the jurisdiction of
Industrial Relation Act in regards to protection of rights, recognition,
collective agreement, dispute resolution, representation and termination.
Meanwhile those principles only apply to private sector unions.

II. Parties Engaged

The parties engaged in the both sectors industrial relations are different.
There is non existence of employers union in the public sector. Only
employers in the private sector have such unions.

III. The Necessity For Unions

Employees in the private sector must group themselves in trade unions to
enjoy any of the benefits of union representation. While in the public sector,
employees may group themselves in unions or in associations and still
enjoy any of the benefits of union representation.

IV. The Ways Industrial Relations Are Managed

The management of industrial relations is different. The public sector
relations are managed by respective ministry, department, occupation,
statutory authority and local authorities. While in the private sector is
managed by establishment, industry, trades and occupations.

V. Machineries Established For Industrial Relations In

The Public Sector.
Public sector has its own machineries, which do not exist in the private
sector such as Salaries Commissions and Salaries Committees, the Public
Service Department, and The Joint Councils.

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10.8 SUMMARY
Industrial relations established in the public sector are different from the one in
the private sector. The characteristics of public sector unions are unique.
However, its unique characteristics do not deny the rights of civil servants from
union representation.

This is one of commonly ask questions for this lesson.

Explain the characteristics of public sector industrial relations. (10 marks)

At this point you should be able to:

9 to explain restrictions imposed on civil servants to join any trade union.
9 to distinguish public from private sector industrial relations.

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 PART A : DEFINITION
Define the following terms:
1. Unionism 4. Prohibitions
2. Exemptions 5. Necessity
3. Restrictions

PART B : SHORT ANSWER

Answer the following questions:
1. Outline the characteristics of public sector unions.
2. Differentiate the necessity for unions among public and private sector
employees.

FEEDBACK TO QUESTION SAMPLE

Explain the characteristics of public sector industrial relations

a. Principles underlying the public sector industrial relation systems are not
subjected to Industrial Relations Act 1967

b. Parties engaged in the system are between employees union and the
government (no employers union in the public sector)

c. The necessity for unions is low in the public sector.

d. The public sector industrial relations are managed by respective ministry,

department, occupation, statutory authority and local authorities.

e. Public sector has its own machineries, which do not exist in the private
sector such as Salaries Commissions and Salaries Committees, the Public
Service Department, and The Joint Councils.

( 2 marks x 5 points with appropriate explanation = 10 marks )

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FEEDBACK TO STUDY QUESTIONS

PART A : DEFINITION
1. Unionism – the principles and policies of forming and joining trade unions.
2. Exemptions – exclusions from certain conditions
3. Restrictions – constraints or limitations in terms of rights or conducts
4. Prohibitions – preventions in terms of conducts or ban
5. Necessity – need or inevitability

PART B : SHORT ANSWER

1. Outline the characteristics of public sector unions.
a. Public servants can only join and form trade unions by exemptions
conferred by the Yang di-Pertuan Agong.

b. The formation and membership is confined within the same ministry,

department or occupation.

c. The union formed must consist of employees from civil service,

statutory bodies or local authorities.

d. Wages and other term of service for public sector employees are
discussed at the national level between the government and
CUEPACS.

e. Numbers of unions are dropping as many government

bodies/agencies have been privatized e.g. TELEKOM, Lembaga
Letrik Negara etc

2. Differentiate the necessity for unions among public and private sector
employees.
Employees in the private sector must group themselves in trade unions to
enjoy any of the benefits of union representation. The public sector
employees may or may not group themselves in unions or associations but
they still enjoy any of the benefits of union representation.

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