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Labour laws and Industrial
Relations
Trade Unions Act 1959
Industrial Relations Act 1967
Industrial Court
• Composition
• Jurisdiction
• Expeditious settlement of disputes
• Decisions & powers
1
Trade Unions Act 1959
Definition of Trade Union
Section 2
“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-
(a) within any particular establishment, trade,
occupation or industry or within any similar
trades, occupations or industries;
2
Trade Unions Act 1959
(b) whether temporary or permanent; and
(c) having among its objects one or more of the
following objects;
• (i) the regulations between workmen and
employers for the purposes of promoting good
industrial relations between workmen and
employers, improving the working conditions
of the workmen or enhancing their economic
and social status or increasing productivity
3
Trade Unions Act 1959
(i)(a) the regulation of relations between
workmen and workmen, or between
employers and employers
(ii) the representation of either workmen
or employers in trade disputes
(ii)(a) the conducting of, or dealing with,
trade disputes and matters related
thereto; or
4
Trade Unions Act 1959
(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 out or lock-out
5
Implications of definition
A trade union need not be called a union.
Many unions call themselves associations e.g
University Malaya Academic Staff Assoc
Membership of unions is limited
geographicallly e.g Workers in Sarawak may
only join a union whose members work in
Sarawak.
6
Implications of definition
Unions of general nature disallowed. Members
of trade union must be homogeneous e.g they
must work in a particular establishment,trade
occupation or industry. If any doubt exists,
DGTR to decide which trade, occupation or
industry members belong to
7
Implications of definition
Employers and employees have the right to
join and form unions but they must be
separated from each other and must satisfy the
above conditions
Any organisation or group workers
established to achieve one or more of the
objectives in the Act is considered having
formed a union and must therefore conform to
all legislative requirements of a trade union
8
Industrial Relations Act 1967(IRA 1967)
Objective
“ An Act to provide for the regulation of
the relations between employers and
workmen and their trade unions and the
prevention and settlement of any
differences or disputes arising from their
relationship and generally to deal with
trade disputes and matters arising
therefrom.”
9
Industrial Relations Act 1967
“a piece of social legislation enacted with the
object of attaining social justice and industrial
peace, demands practical and realistic
interpretation wherever necessary, for the
purpose of maintaining good relationship and
fair dealings between employers and workers
and their trade union, and the settlement of
any differences or disputes from their
relationship.”
10
Industrial Relations Act 1967
as per Mohd Azmi J (as he then was) in
Dunlop Estate Bhd v All Malayan Estates Staff
Union [1980] 1 MLJ 243
endorsed by the Federal Court in Kesatuan
Kebangsaan Wartawan Malaysia & Anor v
Syarikat Pemandangan Sinar Sdn Bhd & Anor
[2001] 3 MLJ 705(FC)
11
Salient points of IRA 1967
Part II Protection of rights of workmen and
employers (Sections 3 to 8A)
• Contains provisions in relation to matters such as anti-
trade union activity and victimisation of union and
officials
• Section 5(2) accords certain rights to employers
notwithstanding that the employers are precluded from
victimising or penalising any workman who is
conducting trade union work or activity. The right of
the employer to discipline or dismiss or decide on the
growth of the undertaking is preserved
12
Salient points of IRA 1967
• Section 8 provides that any complaint regarding the
exercise of rights provided in this Part may be
reported to DGIR who will then endeavour to resolve
the issue: if this proves unsuccessful, DGIR is bound
to refer the matter to Minister of Human Resources
who may in the exercise of his discretion refer such
complain to the Industrial Court for hearing and
settling the dispute
13
Salient points of IRA 1967
Part III Recognition and scope of
representation of trade Union(Sections 9 to 12)
• Deals with the recognition of trade unions with a view
to resolving disputes and to avoid such disputes
developing into long drawn out hostilities with
attendant lock-outs or strikes
• Express provisions that there shall be no lock-out or
strike in respect of any dispute over the claim for
recognition of a trade union of workmen
14
Salient points of IRA 1967
• The provisions seek to resolve most questions that
might arise concerning the recognition of trade unions.
• Provisions is made for all disputes concerning
recognition to be referred to the Industrial Court for a
decision where the matter is not otherwise resolved
• Provisions is also made that if recognition is not
granted, trade union shall wait until 6 months have
lapsed to make another application for recognition
15
Salient points of IRA 1967
Part IV Collective bargaining and collective
agreement(sections 13 to 17)
• Procedures for the submission of claims and collective
bargaining; and for the form and content of collective
agreements are laid out
• Requires all collective agreements be deposited with
Industrial Court
• All collective agreements taken cognisance of by the
Court is binding on the parties the same manner as an
award of the Court
16
Salient points of IRA 1967
• Collective agreement is binding on successors of the
employer or trade union of employers; binding on all
workmen who are employed in the undertaking as well
as those who are subsequently employed in the
undertaking to which the collective agreement relates
17
Salient points of IRA 1967
Part v Conciliation (Sections 18 to 19B)
• Provides for conciliatory efforts of the Ministry of
Human Resources
• disputed parties invites MHR conciliatory body to solve
disputes
• If not invited, but case is of public interest, MHR may
intervene
• Also provisions for reserve powers where a party may
prolong disputes or refuse cooperation
18
Salient points of IRA 1967
Part VI Representations on dismissal (section
20)
• The fundamental provision relating to unfair dismissal
whereby a workman who considers that he has been
unfairly dismissed may make representations to DGIR
seeking to be reinstated to his former position
19
Salient points of IRA 1967
• If conciliation process fails, DGIR is to advise Minister
of HR and Minister in exercising discretion decides in
whether or not to refer the matter to the Industrial
Court. All representations have to be done within 60
days of the date of dismissal.
20
Salient points of IRA 1967
Part VII Industrial court (sections 21 to 33 B)
• The Industrial Court is established
• The constitution of court; permanent president with
panels of independent persons and employees &
workers rep who are appointed by the Minister
• Operative procedure relating to reference of disputes
to the Industrial Court
• Industrial court jurisdiction; trade disputes, complaints
and representations relating to private sector
21
Salient points of IRA 1967
• Award of Court final & conclusive and binding on
employer, employee, trade unions, successors.
• This ensures stability in the collective bargaining
process in the event of change of ownership
• Provisions for workman officials of trade union or other
organisation approved by the Minister, or with
permission of President, legal practitioners to appear
before Court on behalf of disputed parties
22
Salient points of IRA 1967
• Provisions to encourage the resolution of
disputes and allowance for the Court to
consider the terms of agreement before
proceedings in Court
• Provisions for the manner of settlement
disputes over interpretation or variation of
awards and agreements if necessary
• Order of Court us final & conclusive, not to be
challenged, appealed against, reviewed,
quashed or called in question in any court
23
The Industrial Court
Objective of Industrial Relations Act 1976:to
maintain an efficient labour force with
entrenched rights which would not impinge
upon or interfere with the growth of the
economy and the nation as a whole
Industrial Court to ensure adherence to the
above objective
24
Composition
• a President and 20 Chairmen each being in
charge of a particular court
• All presiding officers are appointed by YDPA,
on advice of MHR and Prime Minister
• President has overall responsibility for
administration of Industrial Court, assisted by
Registrar and Assistant Registrar
• 14 courts in Kuala Lumpur, 1 court each in
Kuching, K Kinabalu and Penang
25
Composition
• Sittings comprise the President or Chairman together
with three members appointed by MHR e.g one each
from panels from independent members, employers
and employees rep
• MHR selects rep of employers and employees ,
Registrar of Court assigns rep to adjudicate on a
dispute
26
Jurisdiction
Deals with complaints under Section 8, representation
under Section 20 and trade disputes under Section 26.
Court’s jurisdiction arises upon references from MHR and
not before
MHR may also refer issues of interpretation in relation to
an award or collective agreement of which the Court has
taken cognisance.
27
Jurisdiction
it is only event of non-compliance, an application for
variation or interpretation of an award or collective
agreement or in respect of question of law arising from an
award handed down that parties may make an
application directly to the Industrial Court ( sec 33 and 56)
Court has wide powers to vary, rectify and in special
circumstances, set aside disputed terms in award or
collective agreement
28
Expeditious settlement of disputes
Procedure less formal than civil courts, wide discretion to
decide mode of conduct of the dispute
Act is bound to “act according to equity, good conscience
and the substantial merits of the case without regard to
technicalities and legal form.”(sec 30.(5) Industrial
Relations Act 1967)
29
Decisions and powers
Adjudicating disputes by way of other awards through
precedent (not binding), authorities from India, U.K and
Australia
Section 20 referrals relating to dismissals main focus;
court has power to reinstate the workmen unlike civil
courts; however reinstatement rarely awarded but
compensation in lieu of reinstatement preferred esp if
dismissals was without just cause, discriminatory and
unfair
30
Decisions and powers
Mandatory for Collective agreements to be deposited to
Industrial Court within one month from date which it has
been entered
When court takes cognisance of such agreement it has
the force of an award and is binding on parties to the
agreement.
Collective agreement has to be in writing and specify the
period for which it takes effect(which is not less than 2
years from the commencement of agreement)
31
Decisions and powers
Collective agreement can be refused cognisance if it does
not comply with provisions of Industrial Relations Act, the
Employment Act or any other relevant law
Sec 33 B award shall be final and conclusive and they
cannot be challenged in any court of law. Neither is the
remedy of reinstatement be stayed under any provisions
of any law.
32
Decisions and powers
However the High Court has supervisory jurisdiction over
Industrial Court and such jurisdiction cannot be ousted if
there are errors of law justifying the grant of the remedy
of certiorari, mandamus or prerogative remedies under
powers of the High Court
33
Decisions and powers
From an application for certiorari to quash the award of
Industrial Court, a party can appeal decision of High
Court to Court of Appeal and then the Federal court but
only on points of law of novel importance that would affect
public interest
34
Case analysis:Format (Due date:25.2.2006)
1.What is the name of the case and
where can I find it?
Citation
2.Who decides the case
Court: Name the court and judge
3.What happened?
procedural history: Description of the
progression through the appeal system
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Case analysis:Format (Due date:25.2.2006)
issues before the court/grounds for appeal: these are the
questions the court is asked to decide
Material facts: these are the facts which the court bases
its reasoning
4.How did the Court( judge(s) approach the issue(s)?
reasons for the court’s decision: explanation (law) for
the decision.
5. What happens?
decisions: description of outcome & order(s) of Court:
who has to do what?
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