Trade Unions Chapter 1

TRADE UNION OBJECTIVES

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; and to promote legislation affecting the interests of the members in particular or trade unionists in general.

WHY DO WORKERS JOIN TRADE UNIONS?

ECONOMIC REASONS - Workers join unions to improve their terms and conditions of service, like their pay and benefits. Alone, the individual worker has limited bargaining power compared with that of the employer. Unions not only negotiate with employers to achieve better terms for workers; but they also give benefits directly, to their members. Attractive benefits can help to persuade workers to join a union. The type of benefit given depends very greatly on the financial standing of the union. This, in turn, depends on the membership of the union and the quality of its financial management. The National Union of Bank Employees gives its members good service and insurance coverage

Protection of Rights Workers also expect unions to protect them against discrimination by their employer. In some organisations, management may try to discriminate against a group of workers or an individual. Social Reasons - Mankind's desire to belong to a group has been well described by Maslow in his" hierarchy of needs" theory. There is no doubt that the majority of people have social needs which extend to the work context and help them to decide whether to join a trade union. If many other workers in an organisation already belong to a union, it is quite likely that the new recruit will also join to show his support for his colleagues' activities.

WHY DO WORKERS JOIN TRADE UNIONS?

LEGAL DEFINITION OF A TRADE UNION

The Trade Unions Act (Section 2) 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. within any particular establishment, trade, occupation or industry or within similar trades, occupations. or industries; and b. whether temporary or permanent; and c. having among its objects one or more of the following: ii. the regulation of relations between workmen and employers for the purposes of promoting good industrial relations between workmen and employers, improving the working conditions or enhancing their economic and social status, or increasing productivity; iii. the regulation of relations between workmen and workmen, or between employers and employers; iv. the representation of either workmen or employers in trade Disputes; v. the conducting of or dealing with trade disputes and matters related thereto; or vi. the promotion organisation 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."

This definition has certain implications such as:

1. A trade union need not be called a union 2. Membership of unions is limited geographically. 3. Unions of a general nature are not permitted. Members of a trade union must be homogeneous, Le., they must work in a particular establishment, trade, occupation or industry and therefore possess common interests. The Director-General of Trade Unions will decide which trades, occupations or industries are similar should any doubts exist. 4. Employers and employees both have the right to form and join unions, but they must be separate from each other

Question

Look at the definition. Which part of the definition shows us that an in-house union is allowed. Are there any differences between in-house and national unions? National unions attempt to cover all workers in the same industry, trade or occupation. An in house union is one where members are all employed by the same employer. Members of such in- house unions can and will be involved in different occupations. Can employers form a trade union?

Total Unions and Membership in Malaysia 2003

Year 1995 1996 1997 1998 1999 2000 2001 2002 2003
Source: Human Resource Ministry

Number of Unions 504 516 526 532 537 563 578 581 581

Total membership 706,253 728,246 734,685 739,636 725,322 734,037 784,881 802,260 803,879

E. MEMBERSHIP OF A TRADE UNION

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 (Section 5). Who Can Join a Union? Any worker over 16 years of age is eligible to apply to join the union which is relevant to his trade, occupation or industry. "Workman" is the term used in the Trade Unions Act, and it refers to any person who is employed by an employer under a contract of employment. However, union members under 18 years of age are restricted in their union activities. They are not entitled to vote on certain matters.

Who Can Join a Union?

Public sector workers can only join unions formed by workers in the same occupation, department or ministry. Certain groups of government servants are not allowed to join unions at all. These are employees in the Police, Prison Service and the Armed Forces and those in confidential or security work. Employees in the professional and managerial group in the public sector also cannot join a trade union unless they are exempted by the Chief Secretary to the Government.

Question

Alice is a student who is 18 years old, she wants to join a union, can she? John is a police officer he wants to form a trade union can he?

G. EMPLOYERS' ATTITUDES TO UNIONS

a) Conflict or open hostility In the United States and United Kingdom, such attitudes were very common up to World War II. In Malaysia, there are some employers who are prepared to use a number of tactics some of which may be illegal, in order to prevent their workers joining unions. They consider unions to be a "third party" intervening in the worker-employer relationship. These employers may believe so strongly in their stand against unionisation that they will openly inform the workers that they would rather close down the business than allow union interference in, the running of their business.

G. EMPLOYERS' ATTITUDES TO UNIONS

b) Controlled hostility The employer recognises that employees have the right to form and join unions. However, discreet attempts are made to discourage workers from joining and being active in a union. Such action, if proven, would amount to interfering with the legitimate rights of workers and is an offence under the Industrial Relations Act.

Union Busting Activities By MISC

In December 2003, Malaysian International Shipping Corporation (MISC) embarked on a series of anti union activities to kill the newly established inhouse union for MISC Executives. A week after the union was registered on 22nd September 2003, MISC Management issued a transfer order to the union President, from Kuala Lumpur HQ to an Institute in Terengganu. Despite repeated plea and extenuating circumstances, MISC insisted that he whould comply with the transfer order or be dismissed. Accordingly Encik Abdul Majid was dismissed from employment. This was followed by another directive to the union Treasurer to report for work in a MISC subsidiary company in Malacca and a member of unions Executive Committee ordered to report for work in an Institute in Terengganu. Both complied under protest. In early Dec, another member of the unions Exco was asked to go on early retirement with full wages. On 8 December company suspended the Secretary of the union without stating any charge to justify their action. MTUC expressed dismay that MISC, a major corporation is engaging in such illegal action. They fail to realize that ultimately their conduct will reflect on Petronas as the owners of MISC.

G. EMPLOYERS' ATTITUDES TO UNIONS

c) Accommodation This attitude is one of realism. The employer is prepared to compromise with the union, tolerate it and be as reasonable as possible. This is a fairly typical attitude of most large companies today.

G. EMPLOYERS' ATTITUDES TO UNIONS

d) Co-operation The management works closely with the union to promote the welfare of the organisation. Joint effort is seen as essential for the survival of the enterprise.

Some companies take positive steps to reduce or eliminate the need for their workers to join unions. For example: 1. Pay higher wages and give better benefits than those prevailing in comparable companies that are organised in the same locality. Electronics companies are a good example of organisations using this strategy. Involve employees in all levels of decision-making and effectively implement an open-door policy by the elimination of barriers of status. People are encouraged to interact informally at break times. There will be no separate dining facilities for management and nonmanagement staff. Social occasions are organised to further foster better relations between staff.

CREATING A NON-UNION ENVIRONMENT

2. tenure. Investment in training by the company shows that it values its employees and is interested in their development. Develop a climate of trust and loyalty in the organisation. In the Malaysian context, the electronic factories situated in and around Kuala Lumpur have resisted unionisation for many years. The steps taken by these electronic factories to ensure a satisfied labour force include: payment of competitive wages; establishment of a large human resources department, responsible for the regular counselling of workers; providing pleasant and safe working conditions; giving subsidised, clean and air-conditioned cafeterias; and providing free transport to and from the place of employment.

CREATING A NON-UNION ENVIRONMENT of security of Offer training, development and a measure

ROLE OF THE GOVERNMENT IN INDUSTRIAL RELATIONS

The government plays three major roles in Malaysian industrial relations system. It acts as legislator through Parliament, administrator through the Ministry of Human Resources, and participant by way of being the largest employer in the country.

IMPORTANT BODIES IN INDUSTRIAL RELATIONS

CONGRESS OF UNIONS OF EMPLOYEES IN THE PUBLIC AND CIVIL SERVICE (CUEPACS) MALAYSIAN TRADES UNION CONGRESS (MTUC) MALAYSIAN EMPLOYERS FEDERATION (MEF)

IMPORTANT BODIES IN INDUSTRIAL RELATIONS

CONGRESS OF UNIONS OF EMPLOYEES IN THE PUBLIC AND CIVIL SERVICE (CUEPACS) CUEPACS is a federation of trade unions of government workers. It serves as the spokesman for the public service workers and was first registered in 1959. The Trade Unions Act, Section 72 permits unions in a similar trade, occupation or industry to form a federation. Such a federation must register with the Department of Trade Unions.

MALAYSIAN TRADES UNION CONGRESS (MTUC) www.mtuc.org.my

The Malaysian Trades Union Congress (MTUC) plays an important although sometimes controversial role in the industrial relations system. The MTUC is not a trade union, but a society registered with the Registrar of Societies. Members of the MTUC are individual trade unions which choose to affiliate to it. In 1998 it had some 180 members, most of which were unions in the private sector. Its function is to act as the spokesman for trade unions both at national and international levels. It runs training programmes to help union leaders understand their roles and responsibilities.

MEMBERSHIP OF THE MALAYSIAN TRADES UNION CONGRESS (MTUC): 2000 & 2002
2000 Type of Employee union Number Membership Number Membership 2002

Private Sector Employee unions Peninsular Malaysia Sabah and Sarawak

164 137 27 44 32 12 208

330,409 312,409 18,000 154,143 137,253 16,890 484,552

192 156 36 43 31 12 235

398,564 377,899 20,665 108,996 100,618 8,378 507,560

Public Sector Employee Unions Source: Malaysian Trades Union Congress Peninsular Malaysia Sabah and Sarawak

Total

IMPORTANT BODIES IN INDUSTRIAL RELATIONS

MALAYSIAN EMPLOYERS FEDERATION (MEF) www.mef.org.my The Malaysian Employers Federation (MEF) is the employers' equivalent of the MTUC. It is registered as a society: its members are individual companies and also employer's associations. An important function of the MEF is to carry out research needed by its members, especially for collective bargaining purposes.

MALAYSIAN EMPLOYERS FEDERATION (MEF)

To promote the development of excellence in human resource management to enable employers meet current and future business challenges. To promote productivity through inter alia harmonious employer/employee relationship. To promote and represent the interests of employers at national, regional and international fora.

Malaysian Government allows the employment of foreign workers from specific country for certain sectors: a) Construction: Indonesia, Nepal,
b)

PERMISSIBLE OF FOREIGN WORKERS

c)

d)

Thailand, Myanmar, Vietnam Agriculture & Plantation: Indonesia, Nepal, Thailand, Myanmar, Vietnam, India Manufacturing: Indonesia, Nepal, Thailand, Myanmar, Vietnam, Cambodia, Sri Lanka. Services: Nepal, Thailand, Myanmar, Vietnam, India

Foreign worker is granted the visit pass by Immigration Dept enable the worker to work up to 1 month. Before the expiry, the employer must apply for work permit in the form of sticker on passport via Form KDN/PA2/98. After clearance, the worker be picked by employer or agent from foreign workers transit centre set up by Ministry of Home Affairs. Once the worker at centre, the employer or agent have 5 hours to pick, failing to do so will be slapped with an hourly find RM10 & if not picked upon expiry (7) days, will be repatriated to their origin country.

ARRIVAL OF FOREIGN WORKERS

Duration of service

A foreign worker is allowed to work for (3) years for first time. A subsequent extension of (2) years. The employer has to send the foreign worker back at their expense. The work permit should be renewed annually with payment of the levy.

EMPLOYMENT CONDITIONS FOR FOREIGN WORKER

He must comply the period of employment stipulated in the work permit He must obtain a medical examination report in the source country before entering Malaysia He is not allowed to get married during his stay in Malaysia He is not allowed to bring in family to Malaysia He is not allowed to work with any employer other than employer specified in work permit.

EMPLOYMENT CONDITIONS TO THE EMPLOYER

Terms & conditions of employment for foreign worker should not less favourable than those provided under EA. Salary & benefits must be equivalent with local. Provide accommodation & basic amenities which Labour Dept ensure proper place to stay.

Employer ensure foreign worker undergo medical examination at panel under (FOMEMA). Employer responsible to send worker back to their country upon expiry of work permit. Compulsory employer keep the passport safely & returns to embassy.

Employer has to notify Immigration Dept if the worker runs away. Employer has to put the worker through Orientation Course to familiarise them with Malaysian culture. Employer must insured the foreign worker under Workmens Compensation Act

1952.

LEGISLATION ON FOREIGN WORKERS

The 1998 amendments introduced Sections into the EA which specifically apply to foreign employees. Sec. 60K: duty on employer to furnish the DGL with particulars of foreign employee within (14) days of his employment using prescribed form.
Furnish Data & information to MHR to monitor the employment situation of foreign employees in Malaysia

Section 60L: to prevent any form

of discrimination against foreign or local employee in respect of terms & conditions of employment The DGL empowered to inquire any complaints by workers. Section 60M: prohibits an employer from terminating the contract of service of a local employee for the purpose of employing a foreign worker.

Section 60N: an employer has to reduce his workforce by reason of redundancy is required first to terminate the services of all foreign workers employed by him before terminating local workers in a similar capacity.