Chapter 10 Industrial Relations PDF

Chapter 10 Industrial Relations Copyright © 2023 by McGraw Hill Malaysia. All rights reserved. Copyright © 2023 by McGraw Hill Malaysia. All rights reserved. ❑The importance of industrial relations....

Chapter 10 Industrial Relations Copyright © 2023 by McGraw Hill Malaysia. All rights reserved. Copyright © 2023 by McGraw Hill Malaysia. All rights reserved. ❑The importance of industrial relations. ❑The role played by the Ministry of Human Resources in industrial relations. ❑The functions of trade unions, including the legal requirements to form and join a union. ❑The process of collective bargaining. Preview ❑The legal forms of industrial action that may be taken by employers and trade union members. ❑The processes by which industrial disputes are settled—conciliation and arbitration. Industrial Relations Industrial relations is the relationship between an employer and the trade union which represents his workers. An industrial relations systems consists of: ❑ Employers and their associations ❑ Employees and their trade unions ❑ The government Copyright © 2023 by McGraw Hill Malaysia. All rights reserved.  Parties in the Industrial Relations Systems ❑International Labour Organization ❑International trade union bodies ❑The Malaysian Trades Union Congress ❑The Malaysian Employers Federation ❑The Ministry of Human Resources ❑Individual trade unions ❑Individual employers Copyright © 2023 by McGraw Hill Malaysia. All rights reserved.  Creating an Environment of Industrial Harmony Copyright © 2023 by McGraw Hill Malaysia. All rights reserved. Industrial Harmony and Conflict Industrial harmony is necessary for the success of the individual enterprise and the success of the national economy. An industrial relations Conflict is the system must find ways antithesis of industrial to manage conflict. harmony. Copyright © 2023 by McGraw Hill Malaysia. All rights reserved.  Trade Unions Why do workers join trade unions? To have a voice. To gain bargaining To have an power and opportunity to fight for more socialise with wages, more other workers. benefits and less work. To ensure To show their their solidarity with employment other workers. rights are protected. The Right to Establish a All trade unions must be registered with the Trade Union Department of Trade Unions BEFORE they can begin any activities. Applications to register must be made within one month of the first meeting held at which it was agreed to start a trade union. A temporary committee may be appointed to carry out the necessary paperwork. The Right to Join a Trade Union Copyright © 2023 by McGraw Hill Malaysia. All rights reserved. Any employee above the age of 16 has the right to join a trade union, except employees in: ❑The Royal Malaysian Police ❑The Prison Service ❑The Armed Forces  Restrictions Employees in public and private sectors cannot join the same union. Employees in statutory bodies can only join in- house unions. The Right Employees may only join a union covering workers to Join a in either Peninsular Malaysia, Sabah or Sarawak (depending on where the employee is working). Trade Combinations are not permitted. Union Employees can only join a union representing the trade, occupation or industry in which they are (cont.) working, unless the union is in-house. Managers, executives, confidential and security staff can only join a union whose members are in the same category as themselves. Copyright © 2023 by McGraw Hill Malaysia. All rights reserved. Control of Trade Unions The Trade Unions Act has provisions on who is eligible to be elected as an officer of a trade union (as President, Vice- President, Honorary Secretary, Treasurer and Council Members). Trade union funds may only be used for purposes stipulated in the Trade Unions Act.  Types of Trade Unions Copyright © 2023 by McGraw Hill Malaysia. All rights reserved. Copyright © 2023 by McGraw Hill Malaysia. All rights reserved.  Malaysia’s Largest Employee Unions (2022) UNION MEMBERSHIP NU Teaching Profession 189,000 NU Bank Employees 14,000 NU Plantation Workers 35,000 Electrical Industry Workers Union 14,000 NU of Telekoms Employees 9,000 Copyright © 2023 by McGraw Hill Malaysia. All rights reserved. Collective Bargaining Collective bargaining is a process whereby a trade union negotiates with an employer or association of employers over the terms and conditions of service of employees. A trade union can only invite an employer to commence collective bargaining once the employer has recognized it as the legitimate representative of the employer’s workers. Copyright © 2023 by McGraw Hill Malaysia. All rights reserved. The Collective Once a trade union has been recognized Bargaining by an employer, either party may initiate the collective bargaining process. Process Bargaining sessions will be held between teams of negotiators appointed by the employer and the union respectively. Copyright © 2023 by McGraw Hill Malaysia. All rights reserved. Collective Agreements A collective agreement is a written agreement between a trade union and an employer, or an association of employers, concerning the employer's workers' terms and conditions of employment. A collective agreement is the outcome of collective bargaining. Collective Agreements (cont.) Scope: Collective agreements cover ALL employees in the company concerned who are eligible to join the union. Duration: A minimum of 3 years. Contents: ❑ Terms and conditions of employment of the workers concerned ❑ Special provisions/facilities for the trade union Copyright © 2023 by McGraw Hill Malaysia. All rights reserved.  Collective Agreements (cont.) Procedures, for example: Procedure for settling grievances Procedures for settling disputes Procedures for transfer of workers Procedures for retrenchment of workers The Right to Take Industrial Action Employees who belong to a trade union have the right to: ❑Picket and strike, when a trade dispute occurs. Employers have the right to lockout the workers when a trade dispute occurs. Copyright © 2023 by McGraw Hill Malaysia. All rights reserved. Pickets A picket is legal providing: ❑ The workers involved are members of a trade union. ❑ A trade dispute between the employees and their employer exists. ❑ It is held at or near the employees’ workplace. ❑ It does not obstruct the entrances or exits to the workplace. ❑ It is peaceful and does not intimidate anyone. Copyright © 2023 by McGraw Hill Malaysia. All rights reserved.  Strikes A strike is legal providing: The strikers are members of a trade union. The strikers have a trade dispute with their employer. A secret ballot is held prior to starting the strike. Two-thirds of the workers agree to strike. The ballot papers must be sent to the Department of Trade Unions for verification. The workers must wait for at least 7 days before commencing the strike. Strikes (cont.) Relating to matters in Over an issue relating a collective agreement to the question of which has been taken recognition of a union cognizance of by the Industrial Court Relating to the managerial prerogatives After a trade dispute of recruitment, transfer, has been referred to promotion, termination the Industrial Court for of a worker and the arbitration. allocation of duties to a worker.  Conciliation meeting(s) will be held at the Department of Industrial Relations. The Cooling If conciliation unsuccessful, the Minister of Human Resources will refer the dispute to the Industrial Court Off Period for arbitration. Once a dispute has been referred to the Industrial Court, it is illegal for the workers to strike on the issues under dispute. Copyright © 2023 by McGraw Hill Malaysia. All rights reserved.