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CHAPTER 1
OVERVIEW OF MALAYSIAN
INDUSTRIAL RELATIONS
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


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

EMPLOYEE


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??
Unilateral
•The er makes decision
•Ee is not member of trade union

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

Tripartite
• Interaction between three parties:
• Private sector : er represented by MEF
• Private sector: ee represented by MTUC or NUPW
• Government sector: represented by CUEPACS
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

Provide data on
manpower
needed by nation

Promote good
will btw ee
and er

Protect & promote
welfare and well
being of worker

Roles of MHR
in M’sia

To equip ee wth
basic industrial
skilll & improve
skill labor

Assist in utilizing
to the max.
manpower of the
nation

Preserve health
and safety of
worker regard
pollution
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.
2.
3.
4.
5.
6.

To enforce Trade Unions Act 1959 &Trade Union
regulations 1959
To supervise, direct and control all matters
relating to TU
To consider application for registration of TU
To ensure registered TU accordance to TU
legislation
To advise officers and members of TU on
administrative, financial and constitutional of TU
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.
2.

3.

4.
5.

Refrain from taking unilateral action
Resolved all differences, grievances and disputes
are dealt with strictly accordance with procedures
CA or if no agreement by negotiation, conciliation
and arbitration.
Ensured all matters dealt with proper machinery
such as negotiation, conciliation and arbitration
Promote constructive and positives cooperation
Established procedures which will ensure a
complete and speedy investigation of grievances
to a joint settlements
6.

7.

8.

Comply with procedures for disposal of
grievances
Refrain from resorting to coercion,
intimidation, victimization and to avoid goslow, sit-down and stay in strike.
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


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Indrustrial relation

  • 1. CHAPTER 1 OVERVIEW OF MALAYSIAN INDUSTRIAL RELATIONS
  • 2. 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.
  • 3. EMPLOYER  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 EMPLOYEE  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
  • 5. 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
  • 6.  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.
  • 7. HOW DOES IR OPERATES?? Unilateral •The er makes decision •Ee is not member of trade union Bilateral •Representation of er (MEF) and ee (MTUC or NUPW) Tripartite • Interaction between three parties: • Private sector : er represented by MEF • Private sector: ee represented by MTUC or NUPW • Government sector: represented by CUEPACS
  • 8. 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 
  • 9. 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
  • 10. To restructure a balanced distribution of manpower Provide data on manpower needed by nation Promote good will btw ee and er Protect & promote welfare and well being of worker Roles of MHR in M’sia To equip ee wth basic industrial skilll & improve skill labor Assist in utilizing to the max. manpower of the nation Preserve health and safety of worker regard pollution
  • 12. 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 
  • 13. 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.
  • 14. TU AFFAIRS FUNCTIONS: 1. 2. 3. 4. 5. 6. To enforce Trade Unions Act 1959 &Trade Union regulations 1959 To supervise, direct and control all matters relating to TU To consider application for registration of TU To ensure registered TU accordance to TU legislation To advise officers and members of TU on administrative, financial and constitutional of TU To advise the MHR on matter relating to TU legislation and policies.
  • 15. 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 
  • 16.  Both er and ee must comply with provision of CCIH: 1. 2. 3. 4. 5. Refrain from taking unilateral action Resolved all differences, grievances and disputes are dealt with strictly accordance with procedures CA or if no agreement by negotiation, conciliation and arbitration. Ensured all matters dealt with proper machinery such as negotiation, conciliation and arbitration Promote constructive and positives cooperation Established procedures which will ensure a complete and speedy investigation of grievances to a joint settlements
  • 17. 6. 7. 8. Comply with procedures for disposal of grievances Refrain from resorting to coercion, intimidation, victimization and to avoid goslow, sit-down and stay in strike. To educate management and workers of their obligation to each other’s
  • 18. 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 
  • 19. ROLE OF EMPLOYEE…. NOT TO: Negligence of duty  Damaging the company’s property  Insubordination  Interference with or disturbance to normal working hours 