MALAYSIAN INDUSTRIAL

RELATIONS & EMPLOYMENT LAW,

Ninth Edition
Author: Maimunah Aminuddin

Chapter Seven
Trade Disputes
and Industrial Action

Malaysian Industrial Relations & Copyright © 2016 by McGraw-Hill 1

Employment Law Education (Asia). All rights reserved.
Preview
 Definition of trade dispute
 Industrial action
 Pickets
 Strikes
 Strike procedures
 Penalties for illegal strikes
 Settlement of trade disputes
Malaysian Industrial Relations & Copyright © 2016 by McGraw-Hill 2
Employment Law Education (Asia). All rights reserved.
Trade disputes
 Trade disputes are disputes between an
employer and his workers related to the
employment, non-employment or the terms
and conditions of employment of the
workers.
 For a trade dispute to exist, the workers
must be members of a trade union.
Malaysian Industrial Relations & Copyright © 2016 by McGraw-Hill 3
Employment Law Education (Asia). All rights reserved.
Trade disputes, cont.
Trade disputes may concern:

 A grievance of an individual worker, or

 A group of workers who are not satisfied

with their terms and conditions of service

Malaysian Industrial Relations & Copyright © 2016 by McGraw-Hill 4

Employment Law Education (Asia). All rights reserved.
Industrial action
When a trade dispute exists, a trade union
may take industrial action to force an
employer to give in to its demands.

Industrial action by a union of

employees may be in the form of:
 A picket, and/or
 Strike

Malaysian Industrial Relations & Copyright © 2016 by McGraw-Hill 5

Employment Law Education (Asia). All rights reserved.
Industrial action, cont.
“Unofficial industrial action” may include:
 An organised mass visit of employees to the
doctor
 A boycott of company products
 Wearing of protest clothing
 Possibility of sabotage of employer’s
business

Malaysian Industrial Relations & Copyright © 2016 by McGraw-Hill 6

Employment Law Education (Asia). All rights reserved.
Pickets
Members of a registered trade union have the

right to picket at or near their workplace

when a trade dispute occurs.

Malaysian Industrial Relations & Copyright © 2016 by McGraw-Hill 7

Employment Law Education (Asia). All rights reserved.
Pickets, cont.
 A picket must not obstruct the entrance or
exit to the workplace.

 A picket must be peaceful.

 No police permit is required for a picket.

Malaysian Industrial Relations & Copyright © 2016 by McGraw-Hill 8

Employment Law Education (Asia). All rights reserved.
Strikes
 Members of a registered trade union have
the right to strike in the event of a trade
dispute.

 For a strike to be legal, it must comply with

the requirements laid down in the Industrial
Relations Act and the Trade Unions Act.

Malaysian Industrial Relations & Copyright © 2016 by McGraw-Hill 9

Employment Law Education (Asia). All rights reserved.
Strikes, cont.
Only members of a registered trade union
have the right to strike.

A trade dispute must exist in order for

workers to have the right to strike.

Prior to strike action, the workers concerned

must:
 Hold a secret ballot
 Determine whether at least 2/3
of the workers agree to strike
Malaysian Industrial Relations & Copyright © 2016 by McGraw-Hill 10
Employment Law Education (Asia). All rights reserved.
Strikes, cont.
 Send the ballot papers to the DGTU within
14 days

 Undergo a 7-day cooling off period before

commencing the strike

 Workers in essential services must wait 21

days before commencing a strike

Malaysian Industrial Relations & Copyright © 2016 by McGraw-Hill 11

Employment Law Education (Asia). All rights reserved.
Strikes, cont.
Strikes are not permitted:
 Over a collective agreement
 Over the management prerogatives
 During the proceedings of a Board of
Inquiry
 Over a recognition dispute
 Once the dispute has been referred to the
Industrial Court

Malaysian Industrial Relations & Copyright © 2016 by McGraw-Hill 12

Employment Law Education (Asia). All rights reserved.
Strikes, cont.
Penalties for Illegal Strikes
 Workers involved may be dismissed
 Workers may be removed from union
membership roll by order of DGTU
 Union leaders may be fined and/or
imprisoned
 Union may be dissolved

Malaysian Industrial Relations & Copyright © 2016 by McGraw-Hill 13

Employment Law Education (Asia). All rights reserved.
Settlement of trade disputes
Trade disputes may be settled by:

 Negotiation between the union and the

employer

 Conciliation offered by the Department of

Industrial Relations

 Arbitration by the Industrial Court

Malaysian Industrial Relations & Copyright © 2016 by McGraw-Hill 14

Employment Law Education (Asia). All rights reserved.
Review
 Definition of trade dispute
 Industrial action
 Pickets
 Strikes
 Strike procedures
 Penalties for illegal strikes
 Settlement of trade disputes
Malaysian Industrial Relations & Copyright © 2016 by McGraw-Hill 15
Employment Law Education (Asia). All rights reserved.