TOPIC 2

TRADE UNIONS

UPON COMPLETING THIS TOPIC, STUDENT

SHOULD BE ABLE TO:

Explain the term trade union.

Classify the types of trade union.
Explain on the process of registration and its
importance.
Identify the implications of registration and
de registration.
Elaborate on the powers of DGTU re
registration, de registration and other matters
related to trade union.
PAD 365

2.1 DEFINITION
Many definitions have been given to this term.
Part III of the Trade Union Act (TUA) 1959 defines;
a trade union as any association or
combination of employers (being employers
employing employees in West Malaysia,
Sabah or Sarawak) or of employees (whose
place of work is in West Malaysia, Sabah or
Sarawak), as the case may be:
whether temporary or permanent; and
within any particular trade, occupation or
industry or within any similar, and
PAD 365

DEFINITION . Contd

having one or more of the following objectives:

the regulation of relations between employers and
employers or between workmen and workmen; or
the representation of either employers or workmen
in trade disputes; or
the conducting of or dealing with trade disputes and
matters related thereto; or
the promotion or organization or financing of strikes
or lockouts in any trade or industry, or the provision
of pay or other benefits for its members during a
strike or a lockout.
(SEC. 2, TUA 1959)
PAD 365

2.1.1 IMPLICATION OF DEFINITION

Several interpretations can be made as the following:

a union can be a temporary or permanent association

or combination of employers or of employees;

a union must be an association or combination of

employers or of employees, and cannot be an
association or combination of both employers and
employees;

a union (whether of employers or of employees) must

be confined to Malaya or Sabah or Sarawak, and
cannot embrace Malaysia as a whole;

an employer union must be confined to a particular

industry or trade or to similar industries or trades
(similar in the opinion of the Director General of
Trade Unions);
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IMPLICATION OF DEFINITION contd

an employee union must be confined to a particular establishment

or industry or trade or occupation or to similar industries or trade or
occupations (again similar in the opinion of the Director General);
and
any association or combination of employers or of employees which
fits the definition would be a union whether or not it has been
registered as one.
Furthermore, the union must be confined to the private sector or to
the public sector and, cannot embrace both sectors at once.

Therefore:

an employer union must be confined to either one of the two

sectors; and

an employee union must also be confined to one of the two sectors.

(Ayadurai: 1998: pg 30-32)
PAD 365

2.1.2 OTHER IMPLICATIONS OF THE

DEFINITION

a trade can also be called by other name as

associations;
membership of unions is limited geographically;
unions must be homogenous;
both employers and employees have the right to
establish and join union; and
any organization or group of workmen established to
achieve one or more objectives stated in the TUA is
considered to have formed a trade union, and must
therefore conform to all legislative requirements of a
trade union.
(Maimunah Aminuddin : 2006 : pp. 112 113)
PAD 365

2.1.3 OBJECTIVES AND FUNCTIONS

The general objectives and functions of trade unions are the
following:

to promote the industrial, social and intellectual interests

of their members;

to obtain and maintain for its members just and proper

rates of remuneration, security of employment and
reasonable hours and conditions of work;

to promote the material, social and educational welfare

of the members; and

to promote legislation affecting the interests of the

members in particular or trade unionist in general.
(Maimunah Aminuddin: 2006: p.110)
PAD 365

2.1.4 REASONS FOR JOINING TRADE

UNION

There are three main reasons that explain why workers

establish and
join a trade union as the following:
(i) Economic Motive

To improve their terms and conditions of service, i.e.,

their pay and benefits.
(ii) Protection of Rights

To protect them from discrimination, exploitation and

unfair treatment by their employer.

To protect job security for workers.

To ensure members receive the benefits they are

entitled under the labour legislation.
PAD 365

REASONS FOR JOINING TRADE UNION contd

(iii) Social Reasons
To show solidarity with their fellow workers and to be
protected.
To show their support for the colleagues activities.
To take opportunities and exercise leadership quality in the
hierarchy.
(Maimunah Aminuddin: 2006: pg 105 -110 )
(iv) Political/ leadership Reasons
trade unions may be used by some members to gain support
for political leadership (e.g. Labour Party)
Trade unions can also be used as a tool to shape leadership
quality among individuals.
PAD 365

2.2 TYPES OF UNIONS

There are basically three (3) categories of unions in Malaysia:
(i) Public sector employees unions
Consists of the civil service, the statutory bodies and the local authorities.
(ii) Private sector employees unions
are either national or in-house unions.
National union covers all workers in the same industry, trade or
occupation.
In-house union is one where members are all employed by the same
employer.
(iii) Private sector employers unions
consists of employers that employ employees in the private sector.
in response to the large and powerful national trade unions of
employees.
(Maimunah Aminuddin: 2003: pg 136-140)
PAD 365

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2.3 REGISTRATION OF TRADE

UNION
This is a process where a trade union applies for
registration and a certificate of registration will
be issued by the authority.
The definition is silent on this matter (issue of
registration).
But, registration is necessary for a union under
the TUA 1959 (TUA does insist on the
registration of every union).

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2.1.1 the necessity of registration

The importance of / necessity of registration can be
seen from the following:
1. SECTION 8, TUA
Any organization that fits the definition is required
by the Act to apply for registration as a union
within one month of its establishment.
(Sec.8, TUA)
If the DGTU thinks fit he can extend as to exceed
a period of six month in the aggregate.
(Sec. 8(2), TUA)
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the necessity of registration contd

2. SECTION 12, TUA

It is related to the powers granted to the
DGTU as the following:
the powers to register a union by giving a
certificate of registration.
the powers to reject the application by a
trade union (with valid reasons).
the powers to withdraw or cancel the
registration of trade union (with reasons).
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the necessity of registration

contd
3. SECTION 19, TUA
It is related to consequences of an unregistered
or a de registered trade union as the following:
1. Shall be unlawful association and shall cease to
enjoy any rights, privileges and immunities.
2. Shall not take part in any trade disputes or
promote, organize or finance any strike or lockout
or provide benefits for its members during a strike
or lockout.
3. Shall be dissolved and its funds disposed.
4. Only those assigned for the purpose of dissolving
the union and disposing the funds can take part in
its management or organization.
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the necessity of registration contd

4. SECTION 59, TUA

It is related to the prohibited acts done
prior to registration.
Prior to its registration a trade union is
prohibited from any act in furtherance of
any of its objectives specified in the
definition of a trade union except any act
done in a good faith in the course and for
the purpose of establishing the trade
union.
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the necessity of registration contd

5. SECTION 67, TUA
It is related to the prohibition from seeking
registration under other law.
This section prohibits an organization falling
within the definition of trade union from seeking
registration as a society or company under any
law (relating to the registration of societies or
companies).
But, the Act permits any such organization
whose objective is to regulate relations between
employers and employees or between
employers and employers to seek registration as
a society under related law.
PAD 365

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2.3.2
APPLICATION FOR
REGISTRATION

An established trade union must fulfill several requirements to be

registered as the following:

It must be signed at least by 7 members of the union,

It must be made in the prescribed form,

It must be accompanied by the prescribed fee,

It must be accompanied by a printed copy of the rules of the

union signed by the members making the application, and

It must specify:
The name of the union and the address of its head office;
i. The titles, names, ages, addresses and occupations of the
officers of the unionand such other information regarding
such officers as the DGTU may in any particular case require
to be furnished and
ii. The names, addresses and occupations of the members
making the application.
(Sec. 10, TUA)
PAD 365

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2.4 THE POWERS OF THE DGTU

The
DGTU has enormous powers regarding registration, de
2/8/2006

registration of and any other matters related to trade union.

They are the following:
2.4.1 REGISTRATION
TUA 1959 gives powers to the DGTU regarding
registration of trade union as follows;
To register a trade union in the prescribed manner. (Sec.
12(1), TUA)
To issue a certificate of registration in the prescribed
form. (Sec. 13, TUA)
To call for further information for the purpose of satisfying
himself. (Sec.14, TUA)
To extend the period of registration from one month as to
exceed a period of six month.
(Sec. 8, TUA)
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2.4.2 DE REGISTRATION
TUA also gives powers to the DGTU regarding this
matter as follows:
(1)
To reject any application by a trade union if:
He is satisfied that there is a trade union (exists) in
respect of the particular trade, occupation or industry
and in the interest of the workmen in that particular
trade, occupation or industry.
(Sec. 12(2), TUA)
(2)
Shall refuse to register a trade union if:
(a) In his opinion the trade union is likely to be used for
unlawful purposes or for purposes contrary to or
inconsistent with its objectives and rules; or
(b) He is not satisfied that the trade union has complied
with the provisions of this Act and of any regulations
made thereunder; or
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Shall refuse to register contd

(c) He is satisfied that the objectives, rules and constitution
of the trade union conflict with any of the provisions of
this Act or of any regulations made thereunder; or
(d) The name under which the trade union is to be
registered is:

Identical to that of any other existing trade union, or so

nearly resembles the name of such other trade union
as, in the opinion of the DGTU, is likely to deceive the
public or the members of either trade union; or

In the opinion of the DGTU, undesirable unless the

trade union alters its name to the one acceptable to
the DGTU.
(Sec.13, TUA)
PAD 365

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DE REGISTRATION contd
3.

To cancel or withdraw a certificate of registration

of a trade union (to revoke the registration)
under the following circumstances: (a)
At the request of a trade union; or
(b)
If he is satisfied that:

the certificate was issued by fraud or mistakes;

any one of the objectives or rules of the trade union is
unlawful;
the constitution of the trade union or its executive is unlawful;
the trade union has been contravened any provision of this
Act or of any regulations made thereunder;
the funds of the trade union has been expended in unlawful
manner or unlawful objectives or on an objective not
authorized by the rules of the union; or
the union has ceased to exist.

(Sec. 15(1), TUA)

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DE REGISTRATION contd
(c) In the case where two or more trade unions registered in
respect of particular trade, occupation, industry or place
of employment exist, the DGTU may:
cancel the certificate of registration of the trade union
or trade unions other than the trade union which has
the largest number of workmen; or
issue an order requiring the trade unions other than
the trade union which has the largest number of
workmen in the said as its members to remove from
the membership register those members as are
employed in thatand thereafter the trade union/
unions ordered shall not enroll as members in any
except with the permission in writing of the DGTU
(Sec. 15(2), TUA)
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DE REGISTRATION contd

4.To order a suspension of a branch of a

trade union

If he is satisfied that the branch of a

union has contravened the provision of
this Act or the rules of the union
concerned.
* The suspension of an entire union or the
entire class of union is in the hand of the
Minister of Human Resources.
(Sec.17, TUA)
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2.5 OTHER POWERS OF THE DGTU

Furthermore TUA also provides the DGTU

with powers which are related to trade
unions as follows:

Funds and accounts

Memberships

Executives or officers or employees of

a union
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2.5.1 FUNDS AND ACCOUNTS

TUA 1959 empowers the DGTU as the following:
To ensure that funds of trade union must be
expended only for approved objectives.
(Sec. 54, TUA)
To direct the secretary of a trade union
submits to him an audited general statements
of the receipts, funds, effects and expenditure
of the union in the 12 months (ending on the
31st March in each year); before 1st October
of each year.
(Sec.56, TUA)
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OTHER POWERS OF THE DGTU contd

To order a trade union to make account books or other
records of a trade union be available for inspection or for
audit by a fit and proper person approved by him.
(Sec.57, TUA)
To order any person to deliver to him any documents or
accounts relating to the investment of funds.
(Sec. 49(2A), TUA)
To take action on those who contravene or violate the
above provisions of this Act.
(Sec.49 (2A), Sec. 56(4) & (5), Sec. 57(4), TUA)
To direct any person appointed to audit the general
statement of a trade union to attend before him.
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2.5.2 MEMBERSHIPS
Workers in Malaysia have the right to form and join trade
unions. This is known as the freedom of association and
the right is protected in the Industrial Relations Act
(Sec.5).
The Act states that: i. no employer shall prevent a worker from joining a union
by putting a condition in his contract of employment.
ii. no employer shall refuse to employ a worker on the
grounds he is a trade union member or officer.
iii. no employer shall discriminate against a worker (i.e. in
term of promotion) on the grounds he is a trade union
member or officer; and

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MEMBERSHIPS contd
iv. no worker shall be threatened with dismissal or
dismissed if he proposes to join a trade union or if he
participates in union activities.
Workers also have the rights not to join a trade union.
Workers may not be forced to join a union. (Sec 7, IRA).
So, the concept of closed shop is not applied in Malaysia
but in certain countries such as United States and United
Kingdom.
(Maimunah Aminuddin: 2006: pg 114 115)
Closed shop/ union shop means, some unions make
agreement with employer that only union members shall
be employed in particular organizations.
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MEMBERSHIPS contd
The Trade Unions Act, 1959 regulates the right of
employees to membership in trade unions. In
some cases the Act merely restricts this right, but
in other cases it completely negates it. This
regulations affects public sector employees more
than private sector, and among public sector
employees, it more affects government employees
more than statutory and local authority employees.
(Dunston Ayadurai: 1998: pg 34)
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MEMBERSHIPS contd

Classes of persons prohibited from joining a trade union

Any non-citizen (excluding a permanent resident) and any person
below the age of 16 years;
Any student of an educational institution (school, polytechnic,
college, university, etc.) established under any written law, unless he
is also employed as an employee and is over the age of 18 years;
Any person not engaged or employed in the establishment or
industry or trade or occupation in respect of which the union is
registered; and
Any public officer ( a person in the permanent or temporary
employment of any government (federal or state) in Malaysia). But,
TUA adds that the Yang Di-Pertuan Agong may, by notification in the
Government Gazette, exempt any public officer or any group of them
(i.e. any government employee or any group of them) from this
prohibition, except:
(i) members of the armed forces, the police force, any prison service;
(ii) public officers prohibited under any law from forming or joining a
union;
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MEMBERSHIPS contd
(iii) public officers employed in a confidential or security capacity; and
public officers holding any post in the Managerial and Professional
Group, unless they have been permitted to be members of a union by
the Chief Secretary to the Federal General Government.

An employee of a statutory authority can be a member

only of a union whose membership is confined
exclusively to employees of that particular statutory
authority; even then, an employee of a statutory
authority:
(i) who is employed in a confidential or security
capacity cannot be a member of a union; or
(ii) who holds 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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MEMBERSHIPS contd

An employee of a financially autonomous local

authority can be a member only of a union whose
membership is confined exclusively to employees of
one or more financially autonomous local authorities;
even then, an employee of a financially autonomous
local authority:
(i) who is employed in a confidential or security
capacity cannot be a member of a union; or
(ii) who holds 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.
(Dunston Ayadurai: 1998: pg 34 35)
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2.5.3 OFFICERS OF THE UNION

After the rules of the union have been

accepted by the members, officers may be
elected in accordance with the rules.
This must be done through secret ballots.
The rules of the union must ensure that
every member has an equal right and a
reasonable opportunity to record his vote
freely, and that the secrecy of the ballot is
properly secured.
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OFFICERS OF THE UNION contd

According to Section 28 TUA, the following persons
are disqualified for election to be the executive of the
union or federation of trade unions:
(a) He is not a citizen of the federation;
(b) He has not been engaged or employed for a period
of at least one year in any establishment, trade,
occupation or industry with which the trade union or
federation is connected.
(c) A person who has been a member of the executive
of any trade union the registration of which has been
cancelled or withdrawn under certain circumstances.
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OFFICERS OF THE UNION contd

(d) An office-bearer or employee of a political party;
office-bearer refers to a person holding the position of
president, vice-president, secretary, assistant secretary,
treasurer or any position analogous to any of those
mentioned. The disqualification also applies to any
person who holds any office or position in the political
party whereby he exercise management or control of the
affairs of the political party.
(e) He has been convicted by any court of law of criminal
breach of trust, extortion, or intimidation, or of any
offence which in the opinion of the Director General
renders him unfit to be an officer of a trade union; or
(f) He is a bankrupt.
(g) Age below 21 years old.
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Discussion Questions:
1. Explain the procedures to apply for the registration
of a trade union.
2. Explain any four (4) problems in a registration
process.
3. Discuss any five (5) factors that can lead to small
size of trade union in Malaysia.
4. Discuss the arguments for and against the small
size of unions.
5. Identify and explain seven (7) conditions that qualify
an individual to be an officer of a trade union.
6. Elaborate on the causes and effects of a deregistered trade union.
PAD 365

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