Industrial Relations Act Quiz

Industrial Relations

• Industrial relations is the relationship between an employer and a trade union representing workers.
• An industrial relations system is tripartite, involving employers, employees (and their associations), and the government.
• The government's role is to regulate industrial relations, encouraging harmonious employer-employee relations.
• The Ministry of Human Resources is responsible for preparing legislation related to employers' and employees' rights.
• They are also responsible for enforcing labor standards, promoting safe work practices, and providing workforce training.
• They are actively involved in settling trade disputes.

Course Objectives

• Students should be able to identify the definition of industrial relations.
• Describe collective bargaining and collective agreements.
• Analyze the role of the Ministry of Human Resources in industrial relations.
• Discuss legal forms of industrial action.
• Explain reasons why workers join trade unions.
• Identify the settlement of industrial disputes.
• Determine the different types of trade unions.

Definition of Trade Unions

• A trade union is an association of workers.
• It represents workers' interests in negotiations with employers.
• These organizations are important in West Malaysia, Sabah, and Sarawak.
• Workers join trade unions for a voice, better wages, improved benefits, job security, showing support for fellow workers, and social connections.

Legal Requirements for Establishing a Trade Union

• Trade unions must be registered with the Department of Trade Unions before they can operate.
• A minimum of seven workers in the same trade, occupation, or industry can initiate a union.
• Registration applications must be filed within one month of the initial meeting where the decision to form the union was made.

Legal Requirements to Join a Trade Union

• Workers over 16 years old generally have the right to join a trade union.
• However, workers aged 16 to 21 cannot stand for union executive positions or participate in strike ballots.
• Members of the Royal Malaysian Police, prison service, and armed forces are excluded.

Types of Trade Unions

• National unions represent workers across different companies within the same industry or occupation.
• In-house unions represent employees within a single company.
• Employers' associations are formed by groups of employers.
• There are examples of national unions (e.g., NUTP, NUBE).
• Some in-house and employer union examples are given such as for the commercial banks.

Collective Bargaining

• Collective bargaining is a negotiation process between a trade union and an employer.
• During this process, the parties often negotiate terms and conditions of employment, including salaries, working hours, annual increments, public holidays, annual leave, sick leave, and maternity benefits.
• A trade union can invite an employer to begin collective bargaining once the union is recognized by the employer as a valid representative of its workers.

Process of Recognition

• A union applies for recognition by submitting necessary forms to the employer.
• The employer has 21 days to respond, either accepting or rejecting the application.
• If the employer rejects or fails to respond, the union can report the issue to the Director-General of Industrial Relations for further action.
• If the union represents more than 50% of the eligible workers, the DGIR may advise the employer to recognize the union.

Collective Agreements

• A collective agreement is a written agreement between an employer and a trade union.
• It details terms and conditions of employment.
• The agreement's duration is typically no less than three years.
• The agreement contains details about employment terms and worker conditions.
• It may include special provisions for the trade union.

Managerial Prerogatives

• Managerial prerogatives are the functions and rights of management.
• They are typically not included in collective bargaining agreements.
• The employer exercises discretion while managing the workplace.
• Examples include promotions, transfers, employment of people for vacancies, termination, and other business decisions.

Trade Disputes and Industrial Actions

• A trade dispute is a disagreement between an employer and workers.
• Industrial action is a measure taken to settle a workplace dispute, often focused on working conditions or employment terms.
• Common actions include picketing, strikes, and lock-outs.

Causes of Trade Disputes

• Wage demands frequently initiate labor disputes.
• Working conditions, hours, and facilities often cause worker dissatisfaction.
• Issues like managerial policies and automation of plant and machinery can also spark trade disputes.

Trade Dispute Settlement

• Dispute resolution methods include direct negotiation, conciliation, and arbitration.
• Direct negotiation occurs when both parties try to resolve the disagreement directly.
• Conciliation involves a third party, to facilitate a resolution between the parties in a case.
• Arbitration uses a neutral third party to decide on a solution if the other methods fail.

Direct Negotiation

• A direct method of resolving disputes, involving discussions between both parties.
• Direct negotiation is often seen as the ideal method, enabling amicable settlements.
• It is frequently encouraged by the Industrial Relations Act.

Conciliation

• A third party helps resolve a trade dispute through discussions.
• This process is sometimes compulsory in public utilities and critical industries, aiming for quicker dispute resolution, while avoiding undue hardship on the public.

Arbitration

• A neutral third party makes a binding decision to resolve a trade dispute.
• Arbitration is often used when other dispute resolution methods fail. In Malaysia, Industrial Courts hold the arbitration power.

Right to Take Industrial Action

• Malaysian law permits workers to engage in activities like picketing and strikes during trade disputes.
• Employers also have the right to impose lockouts in response to trade disputes.

Picketing

• Workers demonstrate collectively to exert pressure.
• Picketing is permitted when there's a valid trade dispute, at or near the workplace, avoiding intimidation or violence.

Strikes

• Workers collectively stop working to put pressure on their employer to meet demands.
• Legal strikes require proper steps, like a secret ballot with a majority vote supporting the strike.
• Certain sectors or workers may have exceptions.

Lockouts

• Employers close their facilities to pressure workers into meeting demands during a trade dispute.
• Lockouts follow similar legal procedures as strikes.

Summary

• Industrial relations define the relationship between employers and workers.
• These relationships can involve disputes that industrial relations departments handle; they're capable of managing disputes and ensuring amicable settlements.