INDUSTRIAL RELATIONS IN MALAYSIA

AN OVERVIEW
Andrew Lo, MTUC

LABOUR LEGISLATIONS
TRADES UNION Act 1959 INDUSTRIAL RELATIONS Act 1967 EMPLOYMENT Act 1955 STATE LABOUR ORDINANCES EMPLOYEES PROVIDENT FUND Act SOCIAL SECURITY Act OSAH Act

Tripartite mechanism
NLAC NJC Code of Conduct for Industrial Harmony Code of Conduct for prevention of Sexual Harassment at Workplace

RIGHT TO ORGANISE
No person shall interfere with, restrain or coerce a workmen in the exercise of his rights to form or assist in the formation and to join a trade union and to participate in its lawful activities
Section 4(1) IRA 1967

PROTECTION
SECTION 5 IRA 1967 UNFAIR LABOUR PRACTICE INMUNITY FROM CIVIL SUIT LEAVE ON TRADE UNION BUSINESS

Restrictions
Separate Unions for P Mysia, Sabah & Sarawak Separate unions for establishment, trades, occupation or industry Exclude certain categories Cannot organise in place of work without consent

Restrictions
Secret ballot Use of union funds check off Registration

Structure of Trade Unions in Malaysia

Trade Unions 510 Employer Unions Employee Unions 510 Private Sector 268 W Mysia 212 Sabah 16 Sarawak 43

Trade

Occupation

Industry

Establishment

Public Sector 242

W Mysia 186 Sabah 18 Sarawak 28

Statutory Bodies

Ministry

Occupation

Department

Local Authorities

Collective Bargaining
Recognition Scope

Recognition
Must be a registered union Must be competent to representestablishment, trade, industry or occupation Must be an appropriate union - blue collar/white collar Must have the majority

Scope
Successors transferees, assignees cannot be less favourable that statutory requirements 2/3 principle Management prerogatives

Dispute Resolution

Fact finding Conciliation Arbitration Industrial Action

Section 20 IRA
Security of tenure of employment Just cause and excuse No contractual termination Due inquiry General Orders for Civil servants

Trade Union Centres MTUC CUEPACS Federation of Trade Unions

MEMBERSHIP 100 AND LESS 101-200 201-500 501-1000 1001-2000 2001-5000 5001-10000 ABOVE 10000 TOTAL

NO OF UNIONS % OF TOTAL 110 85 95 86 62 39 17 16 510 21 17 19 16 12 9 3 3 100

MEMBERSHIP 7255 13588 31698 61500 87500 115300 110432 295400 722673

% 1 2 4 9 12 16 15 41 100

MALAYSIA - EMPLOYMENT & UNION MEMBERSHIP

SECTOR PERSONS EMPLOYED NO % OF TOTAL 1821900 40700 1699100 547500 872200 2770900 7752300 23,50% 0,50% 21,90% 7,10% 11,30% 35,70% 1 TRADE UNIONS DENSITY NO MEMBERSHIP % OF WORKFORCE 34 4 119 5 221 127 510 84415 3117 149549 3062 320719 161747 722609 4,6% 7,7% 8,8% 0,6% 36,8% 5,8% 9,3%

AGRICULTURE MINING MANUFACTURING CONSTRUCTION GOVT SERVICES NON GOVT SERVICES TOTAL