OVERVIEW OF MALAYSIAN

INDUSTRIAL RELATIONS

CHAPTER 1

What is Industrial Relation?

Interaction between employee and employer or the

member of the trade union in the workplace.

Role:

1) To strengthen the harmonious

relation between er and ee

2) To avoid any form of

exploitation and discrimination in the workplace or

outside work place.

EMPLOYER EMPLOYEE

Any person whether

corporate or incorporate,

who employs a workmen

under a contract of

employment which includes:

Manager, agent or any person

responsible for the payment of

wages.

groups of persons whether or

not statutory or incorporated,

government, local authorities

or other bodies

Any person who has

attained the age of sixteen

years old and employed

under a contract of

service or apprenticeship,

whether written or oral

and expressed to work for

an employer

Employer and employee relation

PRINCIPLES OF IR:

There are 4 principles of IR:

Principles of trade Unionism

Principles of Trade Recognition

Principles of trade Dispute Resolution

Principles of Collective Bargaining/ Collective

Agreements

Purpose of principle IR:

to overcome the problems from all parties relating

to dissolution, trade unionism and so on.

Importance of IR:

To justify the relationship between the er and ee

To promote a conducive environment to both

parties.

HOW DOES IR OPERATES??

•The er makes decision

•Ee is not member of trade union

Unilateral

•Representation of er (MEF) and ee (MTUC or NUPW)

Bilateral

• Interaction between three parties:

• Private sector : er represented by MEF

• Private sector: ee represented by MTUC or NUPW

• Government sector: represented by CUEPACS

Tripartite

ROLE OF GOVERNMENT IN IR SYSTEMS

Provide legislator (labour law) either for the worker

or er in the private, public and government.

Examples:

Employment Act 1955

Trade Union act 1959

Industrial relation Act 1967

Occupational Health and Safety Act 1994

Compensation Act 1952

Employees Provident Fund Act 1991

Administration: Minister of Human Resource

Objectives:

To protect the welfare and safeties of workers and

the rights to form or organized TU activities

To promote the good industrial relationship

between the ee and the er

To protect worker safe in work place, health and

rights

To train the basic industrial skill of the unemployed

school

To restructure a

balanced

distribution of

manpower

Assist in utilizing

to the max.

manpower of the

nation

To equip ee wth

basic industrial

skilll & improve

skill labor

Promote good

will btw ee

and er

Protect & promote

welfare and well

being of worker

Preserve health

and safety of

worker regard

pollution

Provide data on

manpower

needed by nation

Roles of MHR

in M’sia

ASSIGNMENT:

Differentiate

between

Department of

Labor and

Department of

Industrial

Relation

TRADE UNION:

Registrar: Headed by Director General

Enforces Trade Union Act 1959

Objectives: Development of healthy and responsible and

democratic trade union movement

Effective law enforcement

Proper advisory services

Close liaison with department of labour and industrial relation

Giving view pertaining to the labour needs in the country

TRADE UNION AFFAIRS:

•To be credible & effective agency in the supervision of trade union movement

•To ensure that trade unions operate in a democratic orderly and responsible manner in order to assist in achieving the objectives.

•To ensure that TU develops in a healthy with a view to creating a contented, disciplined, dynamic, progressive and productive workforce towards achieving the socio-economic development

•Employee in the public, private and government sectors.

TU AFFAIRS FUNCTIONS:

1. To enforce Trade Unions Act 1959 &Trade Union regulations 1959

2. To supervise, direct and control all matters relating to TU

3. To consider application for registration of TU

4. To ensure registered TU accordance to TU legislation

5. To advise officers and members of TU on administrative, financial and constitutional of TU

6. To advise the MHR on matter relating to TU legislation and policies.

CODE OF CONDUCT FOR INDUSTRIAL

HARMONY (CCIH)

Established: 9th Feb 1975

Between Malayan Council of employer’s Organization (Employer) and Malaysian Trade Union Congress (employee) and Minister of Labour and Manpower

Aim: Lay down principles and guidelines to employers and workers on the practices of IR for achieving harmonious IR

Both er and ee must comply with provision of

CCIH:

1. Refrain from taking unilateral action

2. Resolved all differences, grievances and disputes

are dealt with strictly accordance with procedures

CA or if no agreement by negotiation, conciliation

and arbitration.

3. Ensured all matters dealt with proper machinery

such as negotiation, conciliation and arbitration

4. Promote constructive and positives cooperation

5. Established procedures which will ensure a

complete and speedy investigation of grievances

to a joint settlements

6. Comply with procedures for disposal of

grievances

7. Refrain from resorting to coercion,

intimidation, victimization and to avoid go-

slow, sit-down and stay in strike.

8. To educate management and workers of their

obligation to each other’s

ROLE OF EMPLOYER… NOT TO:

Interference with the affair of TU and the rights

of the workers to form or organized union

activities

Discrimination, restrain or

coercion againts any worker

because of legitimate TU activities

Abuse of authority or power

in any form

ROLE OF EMPLOYEE….NOT TO:

Negligence of duty

Damaging the company’s property

Insubordination

Interference with or disturbance to normal

working hours