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CHAPTER 8 INDUSTRIAL RELATION

Sub Topic

Industrial Relation in Malaysia


Collective Bargaining

Need for Establishing Trade Union Types of Trade Union Relevant Acts with regards to industrial relation Roles of Trade Union, Employer Unions and the Government Reasons why workers join Trade Union Steps in collective bargaining process Pickets Strikes Lock out

Industrial action

Solving procedure

Direct negotiation Conciliation Mediation Arbitration

DEFINITION: INDUSTRIAL RELATION


Referring

to the relationship that exist between employees and trade union that represented where it is more touching aspects of employee participation through a process of collective bargaining

DEFINITION: EMPLOYEE RELATION


Referring

to the relationship between the employee in the organization for which it is more emphasis on communication, harmonious work environment and fair treatment.

Need for Establishing Trade Union


Not

satisfied with management Field for social Opportunity to become leaders Protection Health and safety Communication Tradition Political belief Solidarity Pay and condition

Types of Trade Union

TYPES OF TRADE UNIONS

National Unions of Employees

In-house Unions of Employees

Employers Associations

National & Regional Unions


Workers from different companies in the same industry/trade/occupation Most of the major industries have a national union Example

The National Union of the Teaching Profession (NUTP) The National Union of Bank Employees (NUBE) The Transport Workers Union (TWU) Congress of Union of Employees in the Civil Service and Government Department (CUEPACS)-public sector

In- house Unions of Employee


Formed

by workers in a company whereby membership is confined to employees Workers of statutory bodies and local authorities are limited by law to forming this type of union Example Northport (M) Bhd Employees Union & Keretapi Tanah Melayu Bhd Employees Union

Employer Associations
A

well-organized employees union exist, the employers are likely to form an association of their own Commonly called association Example Malayan Commercial Bank Association (MCBA) & Malayan Agricultural Producers Association (MAPA)

Relevant Acts with regards to industrial relation


Trade

Union Act 1959 Communication Act 1967 Industrial Relation Act 1967

Roles of : Trade Union, Employer Unions and the Government


Trade

Union

Negotiate and collective bargaining on behalf employee To push for higher wages and better terms of employment To protect members right

Employer

Union

Negotiate with employee as needed To protect employers right

The

Government

By Ministry of Human Resource Prepare legislation which establishes the rights of employers and employees Enforce implementation the law about industrial relation, labour standards, encouragement of safe practices at work, training for workforce etc Involved in settling trade dispute, thus ensuring the maintenance of a harmonious relationship between workers and their employers.

Reasons why workers join Trade Union


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.

Collective Bargaining
Steps :
1 2 3 4 5 6 7 Make preparations before collective bargaining Setting the bargaining issues Begin the collective bargaining process Assess the status of negotiations Resolve the impasse Signing of agreement Implementing the agreement

INDUSTRIAL ACTION

Pickets

Strikes

Lockout

Industrial Action: 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.

Industrial Action: 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.

Industrial Action: Strikes (cont)

A strike will be illegal in the following situations:


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 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.

Industrial Action: Lockout


Workers are not the only party who resort to industrial action Employers must know the weapon of locking out their workers to force them to accept the employers demand The legal requirement similar to strike Strike activity - to settle inefficient way between employers and employees The damage done to the companys financial situation can backfire on the workers

DIRECT NEGOTIATION

CONCILIATION

SOLVING PROCEDURE

MEDIATION

ARBITRATION

Solving Procedure: Direct Negotiation


An

ideal technique to settle a dispute.- In this technique, parties that involved in trade dispute are willing to discuss until mutual resolution is reached. Trade dispute settlement that reached without any third party intervention will maintain a harmonious relationship between employer and employees.

Solving Procedure: Conciliation


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.

Solving Procedure: Mediation


It

is a process in which the parties to a dispute, with the assistance of a dispute resolution practitioner (the mediator), identify the disputed issues, develop options, consider alternatives and endeavour to reach an agreement.

Solving Procedure: Arbitration


Settlement

of a dispute between an employer and unions by a neutral third party Malaysias industrial court has the power to resolve the dispute and the decision by the court The purpose is to provide a means for the peaceful

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