TRADE UNION

Workers in most sectors of the economy have been organised into unions.

To promote the industrial, social and intellectual interests of its members.

To obtain and maintain for its members just and proper rates of remuneration, security of employment and reasonable hours and conditions of work.

To promote the material, social and educational welfare of the members,

To promote legislation affecting the interests of the members in particular or trade unionists in general.

As being defined under section 2 of the trade Unions Act;“trade union" or "union" means any association or combination of workmen or employers, being workmen whose place of work is in West Malaysia, Sabah or Sarawak, as the case may be, or employers employing workmen in West Malaysia, Sabah or Sarawak, as the case may be - (a) within any particular establishment trade, occupation or industry or within any similar trades, occupations or industries; and (b) whether temporary or permanent; and (c) having among its objects one or more of the following objects -

(i) the regulation of relations between workmen and employers, for the purposes of promoting good industrial relations between workmen and employers, improving the working conditions of workmen or enhancing their economic and social status, or increasing productivity;

(ia) the regulation of relations between workmen and workmen, or between employers and employers:

(ii) the representation of either workmen or employers in trade disputes;

(iia) the conducting of, or dealing with, trade disputes and matters related thereto; or

(iii) the promotion or organisation or financing of strikes or lock-outs in any trade or industry or the provision of pay or other benefits for its members during a strike or lock-out;

Membership of unions is limited geographically. Workers in peninsular Malaysia may only join a union whose members work in Peninsular. Workers in Sabah can only join a union whose members work in Sabah, and the same applies to workers in Sarawak.

Unions of general nature are not permitted. They must work in the same trade, occupation or industry and therefore possess common interests.

Employers and employees both have the right to form and join unions, but they must be separate from each other.

Workers in Malaysia have the right to form and join the trade unions. This is known as the freedom of association and the right is protected in section 5 of the Industrial Relations Act. At the same time, workers also have the right not to join a trade union.

The Act states that:

i) No employer shall prevent a worker from joining a union by putting a condition in his contract of employment;

ii) No employer shall refuse to employ a worker on the grounds he is a trade union member or officer;

iii)No employer shall discriminate against a worker (for example in promotion) on the grounds he is a trade union member or officer;

iv)No worker shall be threatened with dismissal or dismissed if he proposes to join a trade union, or if he participates in union activities.

1. A worker who is employed by an employer under a contract of employment.

2. Any worker over 16years of age. But, those who are under 18 are not

entitled to vote on matters involving strikes, imposition of levy, dissolution of union or amendment of rules of the trade union. Union members under 21 years old are not eligible to be elected as officers of the union.

3. Certain groups of government servants are not allowed to join unions at all. These are employees in the police, prison Service and the Armed Force and those in confidential or security work.

4. Foreign workers also can join trade unions.

Workers wishing to form a trade union must apply to the Director –General of Trade Unions for registration within one month of establishing the union.

Must be signed by at least seven members, which is the minimum number needed to form a union.

The registration is by no mean automatic since it depends on the decision of the Director-General.

If there are two or more trade unions registered, which represent the same group of workers in a trade, occupation, industry, the Director General has the power to de-register the union which covers a minority of the workers.

The Director-general also has the powers to do de-register or cancel the registration of a union if it was obtained by fraud, if it is being used for unlawful purposes, or if it does anything to contravene the Trade Unions Act.

Collective bargaining is a type of negotiation used by the employees to work with the employer or a group of employers. During a bargaining period, a union of the employees will approach the employers to negotiate the contact which both parties can agree with.

For effective bargaining take place, there are two necessary pre-conditions;

i) workers must have the right to form and join trade unions.

ii) unions must have bargaining strength.

1. Be recognized by the employer2. Has adequate financial strength, and

members are united.

The Industrial relation Act requires unions to attain recognition before they can proceed to invite an employer to commerce collective bargaining.

1.The union must fill out a Claim for Recognition Form and presents it to the employer. A copy of this form must also forwarded to the Director-General of Industrial relations.

2.An employer must reply within 21 days. The responses; i) voluntarily recognize ii) Not recognize.

3. If the employers refuse to recognise, the Union can report to the Director-General who will investigate and take whatever means to settle the dispute. If the employer still refuse to give recognition, the Director-general will report this case to the Minister of human Resources. If more than 50 % of the workers belong to the union, the Minister will normally order recognition. The decision is final and binding on both parties.

Agreement is reached

Refuse to negotiate

Conciliation meeting

If no resolution, refer to Industrial court for arbitration

Must fulfill certain criteria; a) Must specify the parties to the agreements b) Must specify the duration of the agreement –

which cannot be less than 3 years, c) Must include the procedure for modification

of the agreement. d) must not include the managerial

prerogatives issues such as the promotion, transfer, recruitment, transfer, termination, assignment etc.

The agreement is binding on all workers even if they are not the members of the UNION.