TOPIC 1

INTRODUCTION TO INDUSTRIAL
RELATIONS

Learning Objectives
Upon completing this topic, students should be
able to:
Discuss the concept of industrial relations
Explain the importance of industrial relations
Discuss the impacts of harmonious and nonharmonious industrial relations on the country
Identify the roles of the government in
industrial relations
Explain the structure and roles of Ministry of
Human Resources
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1.0 definition and concept

1.1 definition

Several definitions can be given:

Ayadurai (1998 : pg.3) defines industrial
relations,
the relations between employees,
employers and their trade union.
In addition, Ayadurai (1998 : pg.4) said,
is a discipline that concentrates on the
management of unionised employees.

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Definition contd

Maimunah Aminuddin (2006 : pg. 2) defines industrial

relations,
as the relationship between workers and their
employers within the work environment.
Industrial relations is also known as employee, labour or
employment relations.
(Maimunah Aminuddin : 2006 : pg. 2)

Focused areas in industrial relations:

i. The relationships between employers and trade unions
ii. The framework provided by the employment law
iii. Disciplinary procedures and termination of the
employment contract.
(Maimunah Aminuddin : 2006 : pp. 2 3)
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1.2 elements
Industrial relations comprise several elements as
follows:
employers the party (person / body corporate /
unincorporated who employs workmen under a
contract of employment (includes the governments
and statutory bodies).
employees the party (including apprentices),
employed by an employer under a contract of
employment to work for hire or reward.
contract of employment any agreement whether
oral or writing (and whether express or implied),
whereby one person agrees to employ another as
employees, and other agrees to serve his employer
as a workman.
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Elements . Contd

trade unions organisations for protecting

workmen from exploitation by employers and for

promoting the economic interests of workmen.
labour legislations labour laws that govern
industrial relations such as the Employment Act
1955, the Industrial Relations Act 1967 and the
Trade Union Act 1959.
(Ayadurai : 1985 : pp 13 14)
unionism spirits among workmen to unionise
and carry out activities for protecting their
interests at work.

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1.3 the importance of industrial relations

Several groups of people need to understand the
theory and practice of industrial relations as follows:
Workers to make them know their rights and
obligations under the employment laws, aware of the
benefits can be gained or risks might be faced by
joining trade union and develop healthy attitude
towards workplace.

Trade union leaders to enable them perform their

roles effectively in protecting workers from greedy
employers.

Managers to ensure their effectiveness in dealing

with workforce, in improving productivity and
increasing profitability of the organisation.
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the importance of industrial relations

contd

Lawyers to ensure their competence in giving advise

to their clients, in representing employers/unions and
in drafting legally enforceable employment contracts.

Officers and executives in human resource and

industrial relations departments to carry out their

job responsibilities particularly in improving their
human skills in order to administer the system wisely .

(Maimunah Aminuddin : 2006 : pp 4 - 6)

Students they are future workers, trade unionists,

managers, lawyers, officers/executives and
employers.
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1.4

the systems of industrial relations

Almost all industrial relations systems are

tripartite, i.e. they are made up of three
parties/participants/groups as the following:
i. the employer
ii. the employee
iii. the government

These groups may interact differently (in different

countries) in making decisions related to work life.

The decisions can be made in any three of three ways
i.e. :
i. unilaterally
ii. bilaterally or
iii. tripartite manner
(Maimunah Aminuddin : 2006 : pp. 7 - 8)

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1.5 roles of the government in industrial

relations

Under the Malaysian Constitution, industrial relations

is the preserve of the federal government, as

opposed to the state governments.
Four roles are played by the federal government as
follows:
i. legislator through the Parliament (legislating laws)
ii. administrator through the Ministry of Human
Resources (enforcing labour legislations)
iii. participant through Minister of Human Resources
(in the NLAC and CCIH)
iv. employer the largest in the country (public
sector).
(Ayadurai : 1998 : pp. 223 240)
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1.6 impacts of harmonious industrial relations

The impacts of harmonious industrial relations can

be seen from several aspects as the following:
1.6.1 impacts upon a country
i. politics
ii. economics
iii. social
1.6.2 impacts upon an organisation
i. employers
ii. employees
iii. profitability
iv. productivity
v. compensation etc.
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1.7 the Ministry of Human Resources

1.7.1 introduction
This Ministry is responsible for administering and
overseeing the industrial relations system.
1.7.2 objectives
To protect the welfare of workers i.e. safety, health
and rights.
To promote good employeremployee relationships
through a stable and peaceful industrial relations
system.
To equip the unemployed with basic industrial skills
and to improve the skill-level of the workforce; and
To assist in maximising the countrys manpower
resources through manpower planning.
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the Ministry of Human Resources

contd
1.7.3 Structure
This Ministry comprises seven departments namely:
Department of Labour, Peninsular Malaysia.
Department of Labour, Sabah.
Department of Labour, Sarawak.
Department of Industrial Relations.
Department of Trade Union Affairs.
Manpower Department.
Department of Occupational Safety and Health.
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the Ministry of Human Resources

contd

1.7.4 Related organisations

Several categories of organisations namely:

(i) Independent organisations
These refer to independent organizations
that deal with labour matters such as:
The Social Security Organisation.

The Employee Provident Fund.

The Human Resource Development

Corporation/Berhad.
The Industrial Court.

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the Ministry of Human Resources

contd

(ii) Companies
The National Institute of Occupational
Safety and Health
(iii) Advisory Councils
The National Labour Advisory Council
The National Council for Occupational
Safety and Health
The National Vocational Training (
www.mohr.gov.my )
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PAD 365 INDUSTRIAL

RELATIONS
Lecturer

: Syahrizan Bin Zainan

Room No

: C103

Tel No : 06-5582207/016-5119117
E-mail : syahrizan@melaka.uitm.edu.my
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