Dispute Resolution (2)

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    DISPUTERESOLUTIONS- NEGOTIATION

    - FACT-FINDING (INVESTIGATION)

    - CONCILIATION

    - ARBITRATION1

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    INTRODUCTION

    The resolution of disputes between employers,

    employees & their TUs by peaceful means is the

    key way of maintaining harmonious industrial

    relations.

    It is the preamble of the IRA which declares the

    principal objectives, namely:

    y The regulation of the relations between employers,

    employees & their trade unions; and

    y The prevention & settlement of any differences or

    disputes arising from their relationship.

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    INTRODUCTION

    While the first objective provides for CB and CA,

    the second objective makes available a number of

    ways to resolve trade disputes peacefully by

    way of negotiation, fact-finding, conciliation &arbitration.

    The Act also acknowledges industrial actions as

    another way of resolving trade disputes.

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    DEFINITION OF TRADE DISPUTE

    Section 2 IRA:

    Any dispute between an employer and his

    workmen / which is connected with the employment

    / or the non-employment / or the terms ofemployment / or conditions of work of any such

    workmen.

    *Two elements:(1) The dispute occurs between employer & a number

    of employees; and

    (2) It is about employment or non-employment. 4

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    CASE

    Teluk Anson Enterprise Sdn Bhd (Arcadia

    Estate) v Nat. Union of Plantation Workers:

    Non-employment will arise when the employer dismisses anemployee, or declines to employ him, or contemplates turning

    him out who is already in employment, or refuses to give workto an employee who is entitled to work, or suspends him; it

    includes constructive dismissal.

    Hagemeyer Industries S/B v Nat. Union ofCommercial Workersy The definition covers every dispute between an employer &

    his workmen which is connected with the service of the

    workmen or with the benefits & privileges incidental to that

    service.

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    PARTIES TO THE DISPUTES

    Party, with reference to a trade dispute can only

    be:

    y The employer involved in the dispute or the employer

    union; and

    y An employee union acting for all or any members

    involved in the dispute (not the employees)

    Cargo handling Corp v Cargo Handling Corp

    Staff Union an employee union isindispensable in a trade dispute.

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    DISPUTE RESOLUTIONS

    Settlement of TradeDispute

    Negotiation Fact-finding Conciliation Arbitration

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    NEGOTIATION

    A first step of settling disputes.

    Between employers & trade union for the

    employees.

    Negotiation is based on the terms of the CA. Win-win situation.

    Speedy, cheap & easy way.

    The best way of settling dispute.

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    FACT FINDING / INVESTIGATION

    Part VIII IRA

    S.34 the Minister may appoint a Committee of

    Investigation / Board of Inquiry and may refer to

    the committee any matter appearing to him to beconnected to the dispute.

    S.35

    y (1) a Committee shall consist of one or more persons

    (appointed by the Minister).

    y (2) the committee shall investigate the causes and

    circumstances of the dispute and report to the

    Minister.

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    CONT

    S 36

    y a Board shall consist of a chairman and other

    person/s as the Minister thinks fit.

    y the Minister may make rules regulating the

    procedure; he may also call witness, quorum and

    request for document/s.

    y representation in proceeding before a Board can be

    made with the permission of the chairman.

    y

    a Board may require any person to furnishparticulars as the board may require and to attend

    before the board and give evidence.

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    CONT

    S.37

    y A Board shall report to the Minister.

    y any report shall be laid before the Dewan Rakyat

    y

    the Minister may publish any information orconclusion arrived at by the Board (but no disclosure

    without the consent of the relevant organisation,

    business or union).

    y any Board member who discloses any information in

    contravention of this section shall be guilty of anoffence.

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    CONCILIATION (PARTV)

    The meeting of two disputed parties is arranged

    by a conciliator.

    Both parties should negotiate & make

    arrangement as agreed between themselves(without interference of the conciliator).

    Hence, the conciliator acts as a middle-man for

    arranging the meeting of the disputed parties.

    DGIR or the Minister (S.19A) may become theconciliator.

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    CONT.

    S18

    y (1) a trade dispute may be reported to the DG by an

    employer /TU of employer or a TU of workmen.

    y (2) the DG shall consider the dispute and take

    necessary steps for promoting an expeditioussettlement. (For dismissal case, it shall be referred to

    s 20).

    y (3) if a trade dispute is not likely to be settled by

    negotiation, the DG may, in the public interest, take

    a necessary steps to promote a settlement whether ornot the trade dispute is reported to him.

    S.18(5) DG shall notify the Minister if satisfies

    there is no likelihood of the dispute being settled.13

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    PROCESS & REPRESENTATION

    S19 (1) & (2) the parties shall furnish all the

    necessary information relating to the matters in

    dispute to the DG; the DG may also direct any

    person connected with the dispute to attend.

    S.19B In conciliation proceedings, representations

    are as follows:

    y Employer

    Represent himself/ represented by authorised employee; or

    If member of TU, represented by officer/employee of TU; orAny official of an organisation of employers.

    y TU

    Officer/employee of TU; or

    Official of organisation of workmen.14

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    ARBITRATION

    A means of settling dispute by engaging a third

    party to make a decision.

    This may take place whenever negotiation &

    conciliation failed; any party then may make anapplication to the Minister to refer the matter for

    arbitration.

    Agency for arbitration Industrial Court.

    At this stage, both disputed parties must accept

    the decision made.

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    COMPOSITION & JURISDICTION

    Composition of IC:

    y a president;

    y a number of chairmen; and

    y

    two panels representing employers & employees. Jurisdiction: Over all trade disputes.

    S 26 Reference of trade disputes to the Court

    may be made:

    y On joint request in writing to the Minister;

    y Of his (Minister) own motion;

    y Upon receiving notification of the DG (the dispute

    cannot be settled)16