INDUSTRIAL RELATIONS IN MALAYSIA

							INDUSTRIAL RELATIONS
    IN MALAYSIA
      AN OVERVIEW

                    Andrew Lo, MTUC
    LABOUR LEGISLATIONS
•   TRADES UNION Act 1959
•   INDUSTRIAL RELATIONS Act 1967
•   EMPLOYMENT Act 1955
•   STATE LABOUR ORDINANCES
•   EMPLOYEES PROVIDENT FUND Act
•   SOCIAL SECURITY Act
•   OSAH Act
      Tripartite mechanism
• NLAC
• NJC
• Code of Conduct for Industrial
  Harmony
• Code of Conduct for prevention of
  Sexual Harassment at Workplace
    RIGHT TO ORGANISE
• No person shall interfere with,
  restrain or coerce a workmen in
  the exercise of his rights to
  form or assist in the formation
  and to join a trade union and to
  participate in its lawful activities

                  • Section 4(1) IRA 1967
          PROTECTION
•   SECTION 5 IRA 1967
•   UNFAIR LABOUR PRACTICE
•   INMUNITY FROM CIVIL SUIT
•   LEAVE ON TRADE UNION
    BUSINESS
              Restrictions
• Separate Unions for P Mysia, Sabah &
  Sarawak
• Separate unions for establishment, trades,
  occupation or industry
• Exclude certain categories
• Cannot organise in place of work without
  consent
         Restrictions
• Secret ballot
• Use of union funds
• check off
• Registration
                               Structure of Trade Unions in Malaysia

                                                   Trade Unions
                                                       510


                                 Employer Unions      Employee Unions
                                                           510


                                                                                Private Sector
                                                                                     268


                                                               W Mysia                Sabah              Sarawak
                                                                212                    16                  43



                                                      Trade              Occupation           Industry        Establishment

                              Public Sector
                                   242


                   W Mysia       Sabah               Sarawak
                    186           18                   28



Statutory Bodies   Ministry    Occupation          Department      Local Authorities
Collective Bargaining

      Recognition
        Scope
           Recognition
• Must be a registered union
• Must be competent to represent-
  establishment, trade, industry or
  occupation
• Must be an appropriate union - blue
  collar/white collar
• Must have the majority
                Scope
• Successors transferees, assignees
• cannot be less favourable that statutory
  requirements
• 2/3 principle
• Management prerogatives
Dispute Resolution
•   Fact finding
•   Conciliation
•   Arbitration
•   Industrial Action
          Section 20 IRA

•   Security of tenure of employment
•   Just cause and excuse
•   No contractual termination
•   Due inquiry
•   General Orders for Civil servants
     Trade Union Centres


• MTUC
• CUEPACS
• Federation of Trade Unions
 MEMBERSHIP    NO OF UNIONS % OF TOTAL   MEMBERSHIP   %

100 AND LESS       110          21          7255       1

101-200             85          17         13588       2

201-500             95          19         31698       4

501-1000            86          16         61500       9

1001-2000           62          12         87500      12

2001-5000           39          9          115300     16

5001-10000          17          3          110432     15

ABOVE 10000         16          3          295400     41

TOTAL              510         100         722673     100
MALAYSIA - EMPLOYMENT & UNION MEMBERSHIP
SECTOR              PERSONS EMPLOYED      TRADE UNIONS       DENSITY
                     NO     % OF TOTAL   NO   MEMBERSHIP % OF WORKFORCE

AGRICULTURE         1821900   23,50%     34     84415         4,6%

MINING                40700   0,50%      4       3117         7,7%

MANUFACTURING       1699100   21,90%     119    149549        8,8%

CONSTRUCTION         547500   7,10%      5       3062         0,6%

GOVT SERVICES        872200   11,30%     221    320719        36,8%

NON GOVT SERVICES   2770900   35,70%     127    161747        5,8%

TOTAL               7752300     1        510    722609        9,3%