CHAPTER

Trade Union
Enactment 1940
After WW 2
Trade Union
Enactment 1940
implemented in 1946
Trade Union
Enactment 1940
amended in 1948

TU must be
registered
TU members must
be from same trade,
occupation or
industry

Trade Union Enactment 1940

replaced by Trade Union
Ordinance in 1959
Trade Union Ordinance in 1959
renamed Trade Union Act 1959
after revision in 1981

 Cannot

interfere with, restrain or

coerce an employee or employer in
the exercise of his rights to:
Form

and assist in the formation of a TU

To join a TU
To participate in the lawful activities of a
TU

The Trade Unions Act 1959 (Section2) defines a trade union as follows:

any association or combination of workmen or

employers.whose place of work is in West Malaysia, Sabah or
Sarawak
a.

b.
c.

within any particular establishment, trade, occupation or industry

or within similar trades, occupations or industries; and
whether temporary or permanent; and
having among its objectives one or more of the following:
I.

II.

III.

IV.

V.

The regulation of relations between workmen and employers for the

purpose of promoting good industrial relations between workmen
and employers, improving the working conditions or enhancing their
economic and social status, or increasing productivity;
The regulation of relations between workmen and workmen, or
between employers and employers;
The representation of either workmen or employers in trade
disputes;
The conducting ofor delaling with trade disputes and matters
related thereto; or
The promotion, organization or financing of strikes or lockouts in any
trade or industry or the provision of pay or other benefits for its
members during a strike or lockout.

Objectives as stated in s2(1)(c) TUA 1959

From its definition we can conclude that:

Employers and employee can form TU

TU are divided on regional lines
TU are divided on sectoral lines
TU are divided on white collar or blue collar
lines
TU are divided on the basis of same or
similar* trade, industry or occupation
TU are specific for particular establishment

Negative impact:
Fragmented TU
Small TU

Positive impact:
Exists common
interest
Promotes orderly
development of
unions

1.
2.
3.
4.
5.
6.
7.

Protect interest of members

Manage the relationship between employer and
employee
Manage relationship among employees or
among employers
Conduct collective bargaining
Represent employer or employee in any trade
dispute
Manage a trade dispute
Manage industrial action in terms of absorbing
the costs

Economic motive

Protection of employee

Meet a social need

conflictual

controlled conflict

accommodating

cooperative

Those in managerial posts can be

union members only if TU represents
managerial workers
Employee handling confidential
matters pertaining to employees
cannot be members of a union

Member of Prisons Service

Member of Armed Forces
Government officer holding confidential position
pertaining to security
Government officer forbidden by any written law
from forming and becoming union member
Government officer holding a position in the
management and professional group

Unless exempted via written notice from the Chief

Secretary to the Government

Federation of TU

TU A

1.

Must be registered

2.

Can represent employees

in TD

3.

Can plan, promote and

absorb costs of Industrial
Action

TU B

1.

Members in A and B must be in the same

establishment , trade, occupation and industry

2.

Only A or B can enter into CB

TU A
(gov. employees)

TU B
(gov. employees)

Federation of TU

TU C
(gov. employees)

TU A
(employees of SB:
EPF)

TU B
(gov. employees)

TU C
(gov. employees)

MHRs
consent

Federation of TU

s27(3)(a) TUA

Form TU

After 1 month register

Seek additional
information
Allows registration
Refuses registration
-s12(3)TUA

Application form(7 persons)

Constitution&rules as per Schedule 1
Minutes of meeting
Registration fee

DGTU

Within 30 days
Appeal to MHR

If DG thinks TU used for unlawful purpose

Satisfied that objectives of TU are illegal
Not satisfied that TU has complied with TUA
1959
Satisfied that

Another TU representing the workers in the same

establishment, trade, occupation and industry
already exists
And it is not in the interest of the employees
concerned to have another TU

If TU seeks dissolution

Vote via secret ballot

Resolution for dissolution supported by 75% of members
entitled to vote

If registration certificate obtained via mistake or

fraud
Objects and rules of TU are illegal
Establishment of TU or its executive are illegal
TU used for illegal purpose
TU breaches provisions in TUA and rules
thereunder
TU fund used for illegal purpose

 Appointment

of TU officer

Case

of Selangor Club Employees

Union

TU account and funds

Non compliance with constitution
& regulation of TU

Workers in Malaysia have the right to form and join trade unions.
This is known as the freedom of association and the right is
protected in the Industrial Relations Act 67 (Section 5)
The Act states that:
I.
II.
III.

IV.

No employer shall prevent a worker from joining a union

by putting a condition in his term of employment
No employer shall refuse to employ a worker on the
grounds he is a trade union member or officer
No employer shall discriminate against a worker (for
example in terms of promotion) on the grounds he is a
trade union member or officer; and
No worker shall be threatened with dismissal or dismissed
if he proposes to join a trade union or if he participtes in
union activities.

However workers also have the right not to join unions. Workers
cannot be forced to join a union (Section 7 , Industrial Relations
Act)

Any group of seven or more workers can form a trade union providing
they work in the same trade, occupation or industry and the intended
membership all work either in the private sector or all in the public
sector.

Once a decision is made to form a union an application for registration

must be made within a month.

All unions are required to register with the Director-General of Trade

unions in order to operate legally.

The completed application form signed by at least seven members.

The application form must be accompanied by the required fees and

printed copy of the rules or constitution of the union.

The application must include the name of the union and its address,
the names, addresses and occupation of the members making the
application and the names, ages, addresses and occupations of the
unions officers.

The Department of Trade Unions may also require other information

such as a copy of the minutes of the inaugural meeting of the workers
who wish to establish the union.

The most important criteria for a union to be registered is that its

intended members must come from the same or similar trade,
occupation or industry (Trade Union Act 1959,Section 2)

The Director-General of Trade Unions has very wide powers in

respect of registration of trade unions. Section 12 of the Trade
Unions Act allows the Director General to refuse to register a
particular trade union. Registration of a union by the Director
General of Trade Unions is by no means automatic. The
DirectorGeneral will refuse registration in the following
circumstances:

If any of the unions objectives are unlawful.

If any part of the unions objectives, rules and constitution
conflicts with any of the provisions of the Trade Union Act or its
regulations.
If the name of the union is undesirable or identical to another
already existing, or if the name is deceiving
If the union is likely to be used for unlawful purposes.
If he is not satisfied that that the union has complied with the
Trade Unions Act or its regulations.
He can refuse to register a union if he satisfied that there is in
existence a union representing workers in the particular trade,
occupation or industry and if he believes that it is not in the
interests of the workmen concerned that there should be
another union.

Under Section 15 of the Trade Unions Act, the Director-General Of Trae

Unions has powers to de-register a union under certain circumstances, but
it is not mandatory for him to do so. Specifically, he may withdraw or
cancel the registration:
a.
b.

If the union has ceased to exist.

If he is satisfied that:
1.
2.
3.
4.

5.
6.
7.
8.
9.

The registration was obtained by fraud or issued by mistake

Any of the objects or rules of the union are unlawful
The constitution of the union executive is unlawful
The union has been or is being or is likely to be used for any
unlawful purpose or for any purpose contrary to its objectives
or rules
The union has broken any of the provision of the Trade union
Act or its regulations
A union has broken any of its rules
Allowed any rule contravening any provision of the Trade
uUnion act to continue
The funds of the union are unlawfully used
If there are two or more unions registered which represent the
same group of workers in a trade, occupation or industry or
individual place of employment, the Director-General of Trade
Unions has the power to deregister the union that covers a
smaller number of the workers or to order that union to
remove from its membership register the affected workers.

All workers over the age of 16 years have the right to join an
appropriate union i.e. one that represents workers in their trade.

Workers between ages 16 21 have lesser right to participate in

union activities in that they cannot stand for elections as an
executive of the union nor can they participate in a strike ballot until
they are 18.

Certain specified group of workers namely the police force, the

armed forces, the prison services and those in confidential or
security work are restricted from joining trade unions.

The rules or joining a union in the public sector is not the same as in
private sector. Public sector employees include those employed in
the civil service. In statutory bodies and local authorities. They can
only join unions which represent workers in the same occupation,
department or ministry. There are very few unions speaking for a
whole ministry.

In public service, the professional and managerial group can only

join unions with the permission of the Chief Secreatary to the
Government.

Employers have equal rights to form unions which are called

association
Employers unions are a response to the large and powerful national
trade unions of employees.
Their main objectives are to promote and protect the interests of their
members, to negotiate and deal with trade unions of empployees and
to represent their members in any trade disputes between an
individual member and the employees union.
The rules for forming and joining employers association are the same
as for employees trade unions.
Thus any group pf employers wishing to form a union must apply to
the Director-General of Trade unions and the members must be from
the same trade, industry or occupation.
In those industries where a well-organised union exists, the employers
are more likely to form an association of their own.

The Malaysian Commercial Banks Association (MCBA)

Malaysian Agricultural Producers Association (MAPA)
The Electrical Industry Employers Association (EIEA)
The Engineering and Machinery Employers Association (EMEA)
Association of Insurance Employers (AIA)

The Trade Unions Act 1959 is the

governments principal means of
control over organised labour, and the
epicentre of this control is in the
statutory requirements of compulsory
registration of trade unions.

Registration

Section 10 of the TU Act stipulates the following:

Registration must be made by at least seven members
Accompanied by a printed copy of the union rules signed by the
members
Should fulfill the objectives as stated in section 2

Section 12
The DGTU,on receiving the application can register the union only
subject to the provisions of section 12,which empowers the DGTU
to refuse registration under certain situations:
If any of the unions objective is unlawful;
If he is of the opinion that the union is likely to be used for unlawful
purposes;
If he is satisfied that the objects, rules and constitution of the union
conflict with any of the provisions of the TA Act
If the name of the union is undesirable or identical to another already
existing, or if the name is deceiving.

De-registration

Under section 15,the DGTU has powers to de-register a

union under certain circumstances. He may withdraw or
cncel the registration:
If the union has ceased to exist
If the registration was obtained by fraud or issued by
mistake
any of the objects of the union is unlawful

The funds of the union are unlawfully used

A union has contravened any of its rules
The constitution of the union executive is unlawful
The union has been or is being used for any unlawful
purpose

Requirements under the TU Act

Control over the name of the union
Control over the size of the union
Control over the objects of the unions
Control over who can be union officers and officials
Control over union funds
Control over the rules of trade unions
Control over industrial action

Recognition of Right to Strike:

Section 2 of the TU Act
Section 8 of the EA Act
Section 4 (1) of the IR Act
Section 25(A)
Sections 21,22,23

Limitations on the Right to Strike:

The definition of Strike encompasses
any refusal to work in concert resulting
in work stoppage, or limitation
,reduction, restriction, or dilatoriness in
work.the broadness of the definition
makes ut clear that lesser industrial
action like go-slow and work to-rule
would be considered as strike in
Malaysia.

Malaysian industrial law is not

concerned with a strike being justified
or not. The only consideration is
whether the strike is legal or illegal.
Section 44(e) of the IR Act prohibits
strikes in respect of any matter covered
under the management prerogative
clause under section 13(3) of the IR Act

Section 25(A) and 40 of the TU Act lay down

certain mandatory procedures to be observed
before a lawful strike can commence
Strike notice under section 43(1) of the IR Act.
(42 days)
Section 44 (a) a strike is prohibited during the
pendency of proceedings of a Board of Inquiry
appointed by the Minister and seven days after
the conclusion of such proceedings