Any organization, whose membership consists of employees, which seeks to organize and represent their interests both in the workplace and society and in particular seeks to regulate the employment relationship through the direct process of collective bargaining with management

Trade Union - Definition• Any organisation:- Whose membership consists of employees- Which seeks to organise and represent their interests in the workplace and/or society

- In particular, seeks to regulate employment relationship through the direct process of collective bargaining

• Different Forms- Trade unions, staff associations, professional associations

- UK Legal distinction: independent, recognised

Legal definition

In the Malaysian context, The Trade Union Act 1959 (TUA) defined a trade union as any temporary or permanent association or combination of employers or of employees within a particular establishment or industry or trade or occupation or within similar industries or trades or occupations

Characteristics of union

Trade unions have been described as utilitarian

- unions provided members with the benefits of collective bargaining (e.g. Job security, wages, fringe benefits, and access to grievance procedures)

Trade unions have also been described as normative organizations

- The existence of unions is predicated on members wanting to belong to a union and wanting to fulfill their roles in the organization, that is in the moral involvement in the union

Union members may want to display their leadership qualities through positions in the union

There are several differences between unions and the workplace.

- Lack of authority over members and the need for members’ voluntary participation.

- The lack of formal authority over its members stems from the difference in the nature of the exchange between the workers, the union and the working organization.

For instance, the worker is paid by and works for the organization. In contrast, union members pay and expect the union to work for them.

This difference in dynamics means that the union must convince union members of its usefulness and also emphasize the importance of member commitment to increase the union’s effectiveness.

Objectives of union

To improve the terms of employment

To improve the physical environment at work

To achieve security of employment and income

To achieve industrial democracy To achieve fair shares in national income and wealth

Trade Union Function• Power – collective strength to act as counter force to management and pressure group in society

• Economic regulation – maximize wages, terms and conditions, and employment of members (and workers generally)

• Job regulation – Establish joint rule making system which protects members from arbitrary management actions and allows participation in organisational decision making.

Trade Union Function• Social change – express the social cohesion, aspirations and/or political ideology of membership and seek to develop a society and government policies which reflect this view

• Benefits and service – e.g. advice, insurance, collective purchasing power

• Self-fulfilment – opportunity for individual to develop outside confines of his/her job

Trade Union Function (power)Inherent conflict in function

•Individualistic-Satisfy individual’s aspirations-Instrumental reasons for joining (protection, service and benefits, better pay)•Collectivistic-Develop individual’s willingness to subordinate his/her interests to the collective interests-Altruistic reasons for joining (counter balance to management power, joint regulation of work situation, reduce competition between workers)Sectional interest of union vs wider interests of trade union movement

Trade Union Function (economic)• Major union activity for members• Optimise achieving higher ‘real’ wages with maintaining employment levels

- Only members or all employees?• Political nature of wage policy- Comparability and differentials• Effect of wages on employment- Cost-push or demand-pull?• Effect on distribution of national income

Trade Union Function (job regulation) Protect and enhance members’ position in employment relationship

Expansion of job regulation function through organisational-level bargaining

Limited legislative support- Role of Works Councils Challenged by management HRM strategies

Trade Union Function (social change)• Social segregation between ‘capital’ and ‘labour’

• Societal class conflict reduces to industrial conflict

• Political role for unions- Influence social change- Influence government policy- Definition of ‘political’ activity- Differing relationships to political parties and political system

Trade Union FunctionMember services•Mutual insurance•Plastic-card unionism (emphasis on individualism)

Self-fulfilment•Participate in decision making-Internal union government-Collective bargaining system

Trade Union FunctionTrade union

Self-fulfilment

Member serviceSocial changeJob

regulationEconomic regulation

IndividualPower

Section 5(1) Industrial Relations Act 1967 states that no employer or trade

Union of employer or any person representing employer or union of employer shall:

1. Impose any condition in a contract of employment seeking to restrain the right of a person who is a party to the contract to join a trade union or to continue his membership in a trade union.

2. Refuse to employ a person on the ground that he is or is not a member or an officer of a trade union.

3. Discriminate against any person in regard to employment, promotion, any condition of employment or working conditions on the ground that he is or is not a member or officer of a trade union.

4. Dismiss or threaten to dismiss a workman or injure or threaten to injure him in his employment or alter or threaten to alter his position by reason that the workman is or proposes or persuade other person to become member or officer of trade union or participates in a promotion or formation or activities of trade union.

5. Induce a person to refrain from becoming or to cease to be a member or officer of a trade union by conferring or offering to confer any advantages on or by procuring or offering to procure any advantage for any person.

Members of a trade union also cannot persuade or force other

workers to join the trade unionSection 7 Industrial Relations Act 1967

indicates that no workman or trade union of workmen and no

person acting on behalf of such trade union shall1. Except with the consent of the employer,

persuade at the employer’s place of business during working hours a workman of the employer to join or refrain from joining a trade union.

2. Intimidate/threaten any person to become or refrain from becoming or to continue to be or to cease to be a member or officer of a trade union.

3. Induce/persuade any person from becoming or cease to become a member or an officer of a trade union by conferring or offering to confer on any person or by procuring or offering to procure any advantages.

Based on these acts, employees may claim for victimization if they are restrain from joining or become an officer in a trade union by an employer. However, in many cases it is not easy to prove the occurrence of victimization and unfair labour practices.

Cancellation of Trade Union Registration (S15 Trade Union Act 1959)

S15(1) A certificate of registration of a trade union may be cancelled or

withdrawn by the Director General: a. At the request of the trade union upon its

dissolution to be verified in such manner as the Director General may require, or

b. If he is satisfied thati. The certificate of registration was obtained with fraud or mistakeii. Any one of the objects or rules of the trade union is unlawfuliii. The constitution of the trade union or of its executive is unlawful.iv. The union is being or has been or is likely to be used for any unlawful purpose or for any purpose contrary to its objects or rules.v. The trade union has contravened any provision of this Act or any regulations.vi. The fund of the trade union has been expended in unlawful manner.vii. The trade union has ceased to exist.

Who can join a union? Section 26(1) specified a workman who is eligible to

join a trade union :1. A person above the age of 16 can join a union that

is related to his trade, employment and industry. However the involvement of a person who is above 16 but less than 18 years of age in the union activities is limited.

2. A person who is under 21 cannot become a member of the executive or a trustee of a registered trade union.

3. A member who is below the age of 18 shall not be entitled to vote on the matters regarding strike and lock-out and all related matters, the imposition of a levy, dissolution of the trade union or of the federation with which it is connected, amendment of the rules of trade union where such amendment results in increasing the liability of the members to contribute or in decreasing the benefits to which members are entitled.

4. Persons who are in education institution for example school, polytechnic, college, university, college university or any institution providing education established under any written law are prohibited from joining a trade union unless he is a bona fide employed as a workman and above 18 years of age.

5. A workman can only join a trade union or become the executive of the trade union that is established in the similar trade or occupation where he work.

According to Section 9 Industrial Relations Act 1967 – workmen that belong to these categories are not allowed to join a trade union:

1. Managerial capacity2. Executive capacity3. Confidential capacity4. Security capacity

Recognition of Trade Union An important prerequisite for trade unions in order to commence collective bargaining with its employer

Is a starting point for collective bargaining

The IRA 1967 requires union to attain recognition before they can proceed to invite the employer to commence CB

Recognition means the employer concedes that the union is the legitimate representative of his workers and has the right to speak on their behalf.

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Recognition of Trade Union Once a union has been given recognition by the employer it gains the following advantage The union can represent employees who have a grievance or complaint

It can negotiate for better terms and conditions on behalf of all workers in the workplace who are eligible to be members of the union. A collective agreement by law covers all bargainable employees in a particular workplace

Registration of TU gives it legal right to exist but recognition means an individual employer is willing to accept the union as the rightful representative of his workers.

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Recognition Procedure Fills out Claim for recognition form (Form A) and presents

it to employer. – a copy will be submitted to the DGIR – name, address, specify the workers for whom the union is requesting recognition, include a copy of the union’s constitution.

Upon receiving such claim, employer must reply within 21 days with 3 possible responses Voluntarily give recognition Refuse to grant recognition – must inform the union of this decision and give reason for it. The union has 14 days to report to DGIR in the IR Department. If not, deemed that the application is withdrawn.

Reject application because they question whether the union is the correct one to represent its employees – an investigation will be carried out by the Trade Unions Department which will examine job duties and the nature of the business of the company and use its discretion in determining this.

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Recognition Procedure• The IR Department will also determine whether a majority of

the workers in the company are union members – membership check, If more than 50% are members recognition can be granted

An officer from the IR Department will visit the workplace that has made recognition claims

A secret ballot will be held to determine voluntary members. If after advising employer of the outcome of the membership

check recognition is still not granted The DGIR will report the matter to the Minister of HR who has

the power to (under section 9 of IRA) decide whether the union should be recognized.

Usually if more then 50% are members the minister will order recognition.

If union’s claim fore recognition is rejected after intervention by the Minister, it must wait 6 months before submitting another claim- has to gather more members to reach 50% membership.

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Conditions for Recognition The union must be registered

It must be registered as a trade union under the Trade Unions Act 1959 which provide the guidelines for registration of trade unions.

The union must be competent to represent the workers involved i.e. it must be confined to the same establishment, industry, trade or occupation as those employees (or to an industry, trade or occupation similar to theirs).

The union must be the appropriate union to represent the workers involved White-collared workers can only join white-collared unions

The union must be sufficiently representative of the workers At least 50.1% of the workers are members or are willing to be represented by the union for the purpose of collective bargaining.

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Example of unions (workers)- National Union of Plantation Workers (NUPW) – Plantation industry

- National Union of Banking Employees (NUBE) – Banking industry

- Malayan Agricultural Producers’ Association (MAPA) – Plantation industry

- Malayan Commercial Banks’ Association (MCBA) – Banking industry

Public sector Congress of unions of employees in the public and civil service (CUEPACS)

A federation of trade unions of government workers. It serves as spokesman for the public service workers and was first registered in 1959.

The Trade Union Act, sec 72, permits unions in a similar trade, occupation or industry to form a federation.

The objectives of CUEPACS To promote the interests and improve the working environment of its affiliate trade unions

To improve the conditions of employment of the members of the affiliate trade unions

To promote legislations affecting the interest of the member unions in particular or trade unionists in general.

Malaysian Trade Union Congress (MTUC) The Malaysian Trade Union Congress (MTUC) plays an important , although sometimes controversial, role in the industrial relations system.

MTUC is not a union, but a society registered with the Registrar of Societies.

Members of the MTUC are individual trade unions which choose to affiliate to it.

Objectives of the MTUC Providing an advisory service to its members

Presenting the labour viewpoint to the government

Presenting workers’ views on national issues e.g. Development plans and educations

Representing the Malaysian labour movement at forums abroad

Providing trade union education Carrying out research on matters of trade union interest.