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1/4/2010 1 DCE 5634 Employee, Organization & Community Relations Trade Unions: History & Developments The Union Movement The Union Movement In the year 2000 more than 700,000 In the year 2000 more than 700,000 Malaysian workers belonged to unions Malaysian workers belonged to unions This constitutes about 9% of total This constitutes about 9% of total workforce in the country workforce in the country The influence of unions goes beyond The influence of unions goes beyond their their membership. membership. Constitutional rights Constitutional rights – Freedom of Freedom of Association. Art 10(1) Association. Art 10(1)
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Trade Unions: History & Developments Teaching Profession (NUTP), the Malayan Nurses Union and the Malayan Technical Services Union The TUA provides that workers in the public sector

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Page 1: Trade Unions: History & Developments Teaching Profession (NUTP), the Malayan Nurses Union and the Malayan Technical Services Union The TUA provides that workers in the public sector

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DCE 5634 Employee, Organization & Community Relations

Trade Unions: History & Developments

The Union MovementThe Union Movement

�� In the year 2000 more than 700,000 In the year 2000 more than 700,000

Malaysian workers belonged to unionsMalaysian workers belonged to unions

��This constitutes about 9% of total This constitutes about 9% of total

workforce in the countryworkforce in the country

��The influence of unions goes beyond The influence of unions goes beyond

their their membership.membership.

��Constitutional rights Constitutional rights –– Freedom of Freedom of

Association. Art 10(1)Association. Art 10(1)

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What is a Trade Union?What is a Trade Union?

�� An organization of employees formed to An organization of employees formed to

bargain with the organization.bargain with the organization.

�� An economic organization which negotiate An economic organization which negotiate

pay and conditions of employment with pay and conditions of employment with

management on behalf of their membersmanagement on behalf of their members

�� An expression of the fundamental rights of An expression of the fundamental rights of

men & women to organize to protect & men & women to organize to protect &

promote their interest.promote their interest.

Legal definition of a trade unionLegal definition of a trade union

�� any association or combination of any association or combination of

workmen or employers…whose place of workmen or employers…whose place of

work is in West Malaysia, Sabah or work is in West Malaysia, Sabah or

Sarawak, within a particular establishment Sarawak, within a particular establishment

or industry or trade or occupation or within or industry or trade or occupation or within

similar industries trade or occupation similar industries trade or occupation

…(Section 2, Trade Unions Act 1959)…(Section 2, Trade Unions Act 1959)

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Legal definition of a trade unionLegal definition of a trade union

�� Implications:Implications:

�� A trade union need not be called a unionA trade union need not be called a union

�� Membership of unions is limited geographically Membership of unions is limited geographically –– West Malaysia, Sabah and SarawakWest Malaysia, Sabah and Sarawak

�� Unions of general nature are not permitted Unions of general nature are not permitted ––members of a trade union must be members of a trade union must be homogenoushomogenous

�� Both employees and employers have the right Both employees and employers have the right to form and join unionsto form and join unions

�� Trade unions must conform to all legislative Trade unions must conform to all legislative requirementsrequirements

Trade union objectivesTrade union objectives

�� To promote the industrial, social and intellectual To promote the industrial, social and intellectual interests of its membersinterests of its members

�� To obtain and maintain for its members just and To obtain and maintain for its members just and proper rates of remuneration; security of proper rates of remuneration; security of employment and reasonable hours and employment and reasonable hours and conditions of workconditions of work

�� To promote the material, social and educational To promote the material, social and educational welfare of the memberswelfare of the members

�� To promote legislation affecting the interests of To promote legislation affecting the interests of the members in particular or trade unionists in the members in particular or trade unionists in generalgeneral

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6 distinct aspect of trade union functions 6 distinct aspect of trade union functions

�� Power Power –– to protect & support the individual by providing a to protect & support the individual by providing a collective strength to act as a countervailing force to the collective strength to act as a countervailing force to the employer and a pressure group within society.employer and a pressure group within society.

�� Economic regulation Economic regulation –– to maximize the wages & to maximize the wages & employment of their members within the framework of the employment of their members within the framework of the wage/work contract of employmentwage/work contract of employment

�� Job regulation Job regulation –– establish a joint ruleestablish a joint rule--making system to making system to protect members form mgt arbitrary decision making and protect members form mgt arbitrary decision making and allow employee to participate in decision making. (No allow employee to participate in decision making. (No legislative support legislative support –– employee involvement programs)employee involvement programs)

�� Social change Social change –– express social cohesion, aspirations or express social cohesion, aspirations or political ideology (highly restricted in Malaysia)political ideology (highly restricted in Malaysia)

�� Member services Member services –– provide range of benefit or services to its provide range of benefit or services to its membersmembers

�� SelfSelf--fulfillment fulfillment –– to provide a mechanism whereby to provide a mechanism whereby individuals may develop outside the immediate confines of individuals may develop outside the immediate confines of their jobs and participate in the decision making process.their jobs and participate in the decision making process.

Historical BackgroundHistorical Background

General UnionismGeneral Unionism

� Unions were first formed in Great Britain as a result of the development of the factory system in the nineteenth century which led to the exploitation of workers, poor working conditions and job insecurity

� In Malaysia, organisations functioning as unions first emerged in the 1920s with the development of estates and tin mines.

� Predominantly initiated by Chinese laborers

� 1920s onward – Communist Party of Malaya deliberately set out to develop the labour movement, and thus it encouraged unskilled workers to unionise – resulted in several strikes in 1930s

� The employers’ insistence, the first laws relating to trade unions were implemented in 1940 (could not be enforced due to Japanese Occupation)

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contcont

�� Workers’ awareness on unionism increased after the warWorkers’ awareness on unionism increased after the war

�� The Communist Party of Malaya tried to take advantage The Communist Party of Malaya tried to take advantage on this by capturing the leadership of trade unionson this by capturing the leadership of trade unions

�� 1946 1946 –– Trade Union Advisers Department was set up and Trade Union Advisers Department was set up and Trade Union Enactment containing three important Trade Union Enactment containing three important clauses was passed:clauses was passed:

�� All trade unions had to be registeredAll trade unions had to be registered

�� Federations of trade unions could only be formed by Federations of trade unions could only be formed by unions in the same industryunions in the same industry

�� Union officials had to have been employed for a Union officials had to have been employed for a minimum of three years in the industry which they minimum of three years in the industry which they representedrepresented

�� The legislation was intended to limit Communist Party The legislation was intended to limit Communist Party involvement within trade unionsinvolvement within trade unions

Issue of Electronic WorkersIssue of Electronic Workers�� EIWU (Eletrical Industry Workers Union) EIWU (Eletrical Industry Workers Union) ––

include electronic workers. Rejected by RTU.include electronic workers. Rejected by RTU.

�� IMF (International Metalworkers Federation) & IMF (International Metalworkers Federation) & MTUC complained to ILO (1977 & in 1978).MTUC complained to ILO (1977 & in 1978).

�� Govt refused: electronic industry play an Govt refused: electronic industry play an important socio economic role in attracting important socio economic role in attracting foreign investorsforeign investors

�� MTUC apply to form industrial union exclusively MTUC apply to form industrial union exclusively for electronic workers since 1980. Application for electronic workers since 1980. Application to High Court was rejected.to High Court was rejected.

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Number of Unions

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Membership of a trade unionMembership of a trade union

�� Industrial Relations Act (Section 5):Industrial Relations Act (Section 5):

�� No employer shall prevent a worker from joining a No employer shall prevent a worker from joining a union by putting a condition in his contract of union by putting a condition in his contract of employmentemployment

�� No employer shall refuse to employ a worker on No employer shall refuse to employ a worker on the grounds he is a trade union member or officerthe grounds he is a trade union member or officer

�� No employer shall discriminate against a worker No employer shall discriminate against a worker on the grounds he is a trade union member or on the grounds he is a trade union member or officerofficer

�� No worker shall be threatened with dismissal or No worker shall be threatened with dismissal or dismissed if he proposes to join a trade union or if dismissed if he proposes to join a trade union or if he participates in union activitieshe participates in union activities

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Who can join a union?Who can join a union?

�� Any worker over 16 years of age is eligible to Any worker over 16 years of age is eligible to join union which is relevant to his trade, join union which is relevant to his trade, occupation or industryoccupation or industry

�� Union members under 18 Union members under 18 –– restrictions in trade restrictions in trade union activitiesunion activities

�� Union members under 21 Union members under 21 –– not eligible to be not eligible to be elected as officers of the unionelected as officers of the union

�� Public sector workers can only join unions Public sector workers can only join unions formed by workers in the same occupation, formed by workers in the same occupation, department or ministrydepartment or ministry

Who can join a union?Who can join a union?

�� Certain groups of government servants are not Certain groups of government servants are not allowed to join union at all allowed to join union at all –– Police, Prison Police, Prison Service and the Armed ForcesService and the Armed Forces

�� Employees in the professional and managerial Employees in the professional and managerial group in the public sector also cannot join a group in the public sector also cannot join a trade uniontrade union

�� Certain categories of employees are not Certain categories of employees are not permitted to join unions whose membership is permitted to join unions whose membership is not of the same category as themselves not of the same category as themselves (Industrial Relations Act, S.9) (Industrial Relations Act, S.9) –– managers, managers, executives and staffs in confidential or security executives and staffs in confidential or security positionspositions

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Registration of a trade unionRegistration of a trade union

�� Application must be made to DG of Trade Union Application must be made to DG of Trade Union within 1 month (can be extend up to 6 months)within 1 month (can be extend up to 6 months)

�� The application registration must be signed by at The application registration must be signed by at least 7 membersleast 7 members

�� Application must be accompanied by required Application must be accompanied by required fees and a printed copy of the rules or fees and a printed copy of the rules or constitutions of the unionconstitutions of the union

�� The application must also include: name of the The application must also include: name of the unions and its address, addresses and unions and its address, addresses and occupations of the members making the occupations of the members making the application and the names, ages, addresses and application and the names, ages, addresses and occupations of the union’s officersoccupations of the union’s officers

Registration of a trade unionRegistration of a trade union

�� The DG will refuse registration in the following The DG will refuse registration in the following circumstances:circumstances:

�� If any of the union’s objectives are unlawfulIf any of the union’s objectives are unlawful

�� If any part of the union’s constitution conflicts with If any part of the union’s constitution conflicts with the Trade Unions Actthe Trade Unions Act

�� If the name of the union is undesirable or identical If the name of the union is undesirable or identical to another already existing or if the name is to another already existing or if the name is deceivingdeceiving

�� If the union is likely to be used for unlawful If the union is likely to be used for unlawful purposespurposes

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Union FundsUnion Funds

� Members of trade unions have to pay an entrance fee and monthly subscription – between RM3.00 to RM8.00

� Union funds can only be used for [Section 50, Trade Union Act]:

� Expenses related to salaries for employees of the unions

� Expenses related to the upkeep of an office

� Expenses related to the settlement of a trade dispute

� Compensation to members for losses arising out of trade disputes (i.e. a strike allowance)

� Allowances to members and their families on account of death, old ages, sickness, accident or unemployment

� Expenses related to the publishing of a newsletter

� Expenses related to the organisation of social, sports, educational and charitable activities of the members

Union executivesUnion executives

�� Union leadership is confined to Malaysian Union leadership is confined to Malaysian

citizens who have been employed for at citizens who have been employed for at

least 1 year in the related trade, least 1 year in the related trade,

occupation or industry which union occupation or industry which union

represents, proved that they are not:represents, proved that they are not:

�� Office bearers or employees of a political Office bearers or employees of a political

partyparty

�� Convicted of any criminal offenceConvicted of any criminal offence

�� Adjudged bankruptAdjudged bankrupt

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Union EmployeesUnion Employees

�� Employees of unions must be Malaysian Employees of unions must be Malaysian

citizenscitizens

�� Those who are not Those who are not eligible include:include:

�� Those convicted of criminal offencesThose convicted of criminal offences

�� Those who are officer or employees in other Those who are officer or employees in other trade unionstrade unions

�� Those who are officeThose who are office--bearers or employees of bearers or employees of a political partya political party

Types of UnionsTypes of Unions

��Three categories of unions in Three categories of unions in Malaysia:Malaysia:

�� Public sector employees’ unionsPublic sector employees’ unions

�� Private sector employees’ unionsPrivate sector employees’ unions

�� Employers’ unionsEmployers’ unions

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Public Sector UnionsPublic Sector Unions

�� Public sector consists of the civil service, the Public sector consists of the civil service, the statutory bodies, and local authoritiesstatutory bodies, and local authorities

�� 212 unions in this sector (2000) including some of 212 unions in this sector (2000) including some of the largest unions in the country the largest unions in the country –– National Union National Union of Teaching Profession (NUTP), the Malayan of Teaching Profession (NUTP), the Malayan Nurses Union and the Malayan Technical Services Nurses Union and the Malayan Technical Services UnionUnion

�� The TUA provides that workers in the public sector The TUA provides that workers in the public sector can only form and join unions whose members are can only form and join unions whose members are in the same ministry, department or occupationin the same ministry, department or occupation

�� The number of union members in public sector is The number of union members in public sector is dropping due to government’s policy of dropping due to government’s policy of privatizationprivatization

�� One significant difference betw. public vs private One significant difference betw. public vs private sector unions sector unions -- public sector unions are not public sector unions are not involved in collective bargaininginvolved in collective bargaining

Private Sector UnionsPrivate Sector Unions

�� Private sector unions are either national or inPrivate sector unions are either national or in--househouse

�� National unions attempt to cover all workers in National unions attempt to cover all workers in the same industry, trade or occupationthe same industry, trade or occupation

�� An inAn in--house union is one where members are house union is one where members are employed by the same employer regardless of employed by the same employer regardless of occupationsoccupations

�� The number of inThe number of in--house unions has been house unions has been increasing rapidly in last few yearsincreasing rapidly in last few years

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Private Sector UnionsPrivate Sector Unions

�� Disadvantages of inDisadvantages of in--house unions:house unions:�� InIn--house unions are generally weak due to house unions are generally weak due to

limited membershiplimited membership

�� High possibility of employer exploitation on High possibility of employer exploitation on union leadershipunion leadership

�� Weak financiallyWeak financially

�� Fear of victimization among union leadersFear of victimization among union leaders

�� Unable to provide extra benefits such as Unable to provide extra benefits such as scholarship to membersscholarship to members

Types of Trade Unions in MalaysiaTypes of Trade Unions in Malaysia

Trade Unions

Employees’ Unions Employers’ Unions

Peninsular Malaysia Sabah

Government Sector

Particular

Department

Particular

Ministry

Sarawak

Private SectorStatutory Bodies/

Local Authorities

Particular

Enterprise

Particular

/Similar

Industry

Particular

/Similar

Occupation

Particular

/Similar

Trade

Particular

Statutory

Body or One

Or More

Local

Authorities

Maimunah (2007)

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Affiliation to Other BodiesAffiliation to Other Bodies

�� Trade unions in Malaysia are permitted to Trade unions in Malaysia are permitted to affiliate to other bodies affiliate to other bodies –– local and local and internationalinternational

�� Affiliation to foreign bodies requires the Affiliation to foreign bodies requires the express permission of the DG of Trade express permission of the DG of Trade UnionsUnions

�� Many union in this country join MTUC to Many union in this country join MTUC to get support and adviceget support and advice

Employers’ AssociationsEmployers’ Associations

�� Employers also have the right to form and Employers also have the right to form and join trade unions (normally known as join trade unions (normally known as associations)associations)

�� Employers’ unions are a response to the Employers’ unions are a response to the large and powerful national trade unionslarge and powerful national trade unions

�� The objectives: to promote and protect the The objectives: to promote and protect the interests of their members, to negotiate and interests of their members, to negotiate and deal with trade unions of employees, and to deal with trade unions of employees, and to represent their members in any trade represent their members in any trade disputes between an individual member and disputes between an individual member and the employees’ unionsthe employees’ unions

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Employers’ AssociationsEmployers’ Associations

�� The most active employers’ associations:The most active employers’ associations:

�� Malayan Agricultural Producers’ Association (MAPA) Malayan Agricultural Producers’ Association (MAPA)

–– Plantation industryPlantation industry

�� Commercial Employers’ Association of Peninsular Commercial Employers’ Association of Peninsular

Malaysia Malaysia –– Commercial industryCommercial industry

�� Malayan Commercial Banks’ Association (MCBA) Malayan Commercial Banks’ Association (MCBA) ––

Banking industryBanking industry

�� Association of Insurance Employers (AIE) Association of Insurance Employers (AIE) ––

Insurance industry Insurance industry

Congress of Unions of Employees in the Congress of Unions of Employees in the Public and Civil Service (CUEPACS)Public and Civil Service (CUEPACS)

�� CUEPACS is a federation of trade unions of CUEPACS is a federation of trade unions of government workersgovernment workers

�� Serves as the spokesman for the public service Serves as the spokesman for the public service workers and was first registered in 1959workers and was first registered in 1959

�� The objectives of CUEPACS:The objectives of CUEPACS:�� To promote the interests and improve the working of its To promote the interests and improve the working of its

affiliate trade unionsaffiliate trade unions

�� To protect the interests of the affiliate trade unions and To protect the interests of the affiliate trade unions and their memberstheir members

�� To endeavour to improve the conditions of employment To endeavour to improve the conditions of employment of the members of the affiliate trade unionsof the members of the affiliate trade unions

�� To promote legislation affecting the interest of the To promote legislation affecting the interest of the member unions in particular or trade unionists in generalmember unions in particular or trade unionists in general

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Malaysian Trades Union Congress Malaysian Trades Union Congress (MTUC)(MTUC)

�� The MTUC is not a trade union but a society The MTUC is not a trade union but a society registered with the Registrar of Societiesregistered with the Registrar of Societies

�� Members of the MTUC are individual trade Members of the MTUC are individual trade unions which choose to affiliate to it unions which choose to affiliate to it –– most from most from private sectorprivate sector

�� Acts as the spokesman for trade unions both at Acts as the spokesman for trade unions both at national and international levelsnational and international levels

�� Represents the workers’ viewpoint on tripartite Represents the workers’ viewpoint on tripartite bodies such as NLAC and the Employee bodies such as NLAC and the Employee Provident Fund BoardProvident Fund Board

Malaysian Trades Union Congress Malaysian Trades Union Congress (MTUC)(MTUC)

�� The objectives of the MTUC:The objectives of the MTUC:

�� Providing an advisory service to its membersProviding an advisory service to its members

�� Presenting the labour viewpoint to the governmentPresenting the labour viewpoint to the government

�� Presenting workers’ views on national issuesPresenting workers’ views on national issues

�� Helping to organise workers who do not belong to a unionHelping to organise workers who do not belong to a union

�� Representing the Malaysian labour movement at forums Representing the Malaysian labour movement at forums abroadabroad

�� Providing trade union educationProviding trade union education

�� Carrying out research on matters of trade union interestCarrying out research on matters of trade union interest

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Malaysian Trades Union Congress Malaysian Trades Union Congress (MTUC)(MTUC)

�� Involved in various controversies:Involved in various controversies:

�� Membership disaffiliationMembership disaffiliation

�� Conflict with CUEPACSConflict with CUEPACS

�� Formation of Malaysian Labour Organisation Formation of Malaysian Labour Organisation (MLO)(MLO)

�� Financial problemsFinancial problems

�� Involvement of its leaders in politicsInvolvement of its leaders in politics

�� Leadership problemsLeadership problems

Malaysian Employers Federation Malaysian Employers Federation (MEF)(MEF)

�� MEF is the employers’ equivalent of the MTUCMEF is the employers’ equivalent of the MTUC

�� It is registered as a society with membership from It is registered as a society with membership from individual companies and employer’s associationsindividual companies and employer’s associations

�� Has representatives on council and bodies such as Has representatives on council and bodies such as NLAC, EPF Board, the Social Security Organisation’s NLAC, EPF Board, the Social Security Organisation’s Board, the National Productivity Corporation and the Board, the National Productivity Corporation and the National Council for Occupational Safety and HealthNational Council for Occupational Safety and Health

�� Carry out research needed by its members Carry out research needed by its members –– collective collective bargaining, wage & benefits survey, CPI etc.bargaining, wage & benefits survey, CPI etc.

�� Published monthly newsletter entitled The Malaysian Published monthly newsletter entitled The Malaysian EmployerEmployer

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Malaysian Employers Federation Malaysian Employers Federation (MEF)(MEF)

�� The objectives of MEF:The objectives of MEF:

�� To secure the organisation of all employersTo secure the organisation of all employers

�� To coTo co--ordinate and present the opinions of the ordinate and present the opinions of the employers on labour mattersemployers on labour matters

�� To promote, protect and defend the interests of To promote, protect and defend the interests of employers in generalemployers in general

�� To inform and advise members on the To inform and advise members on the implementation of the labour lawsimplementation of the labour laws

�� To advise members on the settlement of trade To advise members on the settlement of trade disputesdisputes

Are Unions Good or Bad?Are Unions Good or Bad?

�� In the early days the image of unions was In the early days the image of unions was bad bad –– low class, criminal conspiracies etc.low class, criminal conspiracies etc.

�� Against unions Against unions –– making exorbitant wage making exorbitant wage demand that push up the cost of doing demand that push up the cost of doing business, causing inflation etc.business, causing inflation etc.

�� Support unions Support unions –– protect workers from protect workers from exploitation by the employersexploitation by the employers

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Why Workers Join Trade Why Workers Join Trade

UnionsUnions��Three main reasons which explain Three main reasons which explain

why workers form and join trade why workers form and join trade

unions:unions:

�� To improve their economic situationTo improve their economic situation

�� To ensure their rights are protectedTo ensure their rights are protected

�� For social reasonsFor social reasons

Economic MotiveEconomic Motive

�� To improve terms and conditions of serviceTo improve terms and conditions of service

�� To increase bargaining strength of To increase bargaining strength of employeesemployees

�� Unions give benefits directly to their Unions give benefits directly to their membersmembers�� Insurance, funeral benefits, scholarship etc.Insurance, funeral benefits, scholarship etc.

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Protection of rightsProtection of rights

�� Workers expect unions to protect them against Workers expect unions to protect them against discrimination by their employersdiscrimination by their employers

�� Workers expect the unions to protect their rights; Workers expect the unions to protect their rights; to protect them from exploitation and to protect to protect them from exploitation and to protect them from unfair treatment at workthem from unfair treatment at work

�� Job security is one of the most important rights Job security is one of the most important rights which unions try to protect which unions try to protect –– protection from protection from retrenchment and unfair dismissalretrenchment and unfair dismissal

Social ReasonsSocial Reasons

��Human nature to be part of groups Human nature to be part of groups –– Hierarchy of needsHierarchy of needs

��Intense peer pressure to join unionsIntense peer pressure to join unions

��Some join unions to exercise their Some join unions to exercise their leadership qualitiesleadership qualities

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Trade Unionism Trade Unionism –– the need to reassess their the need to reassess their

raison d’etreraison d’etre

�� Declining membershipDeclining membership

�� High unemployment rate in europeHigh unemployment rate in europe

�� DeDe--collectivization of employment relationscollectivization of employment relations

�� Development of new individualism strategies Development of new individualism strategies by mgt.by mgt.

�� Worldwide threat to jobs in industries which Worldwide threat to jobs in industries which traditionally have been mass employees.traditionally have been mass employees.

�� KK--worker in the global economyworker in the global economy

ContCont..�� Need to adapt to the development of HRM/HRD Need to adapt to the development of HRM/HRD

and changes in the employment relationship.and changes in the employment relationship.�� Hayman (in Salamon, 2004) suggest trade union Hayman (in Salamon, 2004) suggest trade union

identity stem from an interaction between identity stem from an interaction between interest of members. He suggest 4 alternative interest of members. He suggest 4 alternative identity for the future:identity for the future:�� Friendly society Friendly society –– focus on individual focus on individual

employee/member and the provision of services, employee/member and the provision of services, advice and individual representationadvice and individual representation

�� Company union Company union –– focus on cooperation with focus on cooperation with management to enhance organizational performancemanagement to enhance organizational performance

�� Social partner Social partner –– focus on govt and improvement of focus on govt and improvement of social wage element through political exchangesocial wage element through political exchange

�� Social movement Social movement –– focus on mass support and focus on mass support and campaigning on wider social and community issuescampaigning on wider social and community issues

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contcont

�� Salamon suggest for the union to broaden Salamon suggest for the union to broaden

their bargaining agenda:their bargaining agenda:

�� Quality of working life issues Quality of working life issues –– promote health promote health & safety, Training & dev., work re& safety, Training & dev., work re--design and design and flexible working pattern.flexible working pattern.

�� HRM strategy HRM strategy –– TU to encourage mgt to TU to encourage mgt to implement sound, effective & fair HRM implement sound, effective & fair HRM practicespractices

Strength of the Trade Union Strength of the Trade Union MovementMovement

�� Reasons why Malaysian unions are Reasons why Malaysian unions are

relatively weak:relatively weak:

�� The incompetence of the labor leadersThe incompetence of the labor leaders

�� The hostility of employers to unionsThe hostility of employers to unions

�� Government policiesGovernment policies

�� The legislation relating to unionsThe legislation relating to unions

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Employers’ attitudes to unionsEmployers’ attitudes to unions

��Conflict or open hostilityConflict or open hostility

��Controlled hostilityControlled hostility

��AccommodationAccommodation

��CoCo--operationoperation

Creating a nonCreating a non--union environmentunion environment

�� Steps to reduce or eliminate the needs for Steps to reduce or eliminate the needs for unions:unions:

�� Pay higher wages and give better benefits than Pay higher wages and give better benefits than those prevailing in comparable companies that those prevailing in comparable companies that are organized in same localityare organized in same locality

�� Involve employees in all levels of decision making Involve employees in all levels of decision making and effectively implement an open door policyand effectively implement an open door policy

�� Offer training, development and a measure of Offer training, development and a measure of security of tenuresecurity of tenure

�� Develop a climate of trust and loyalty in the Develop a climate of trust and loyalty in the organizationorganization

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ReferencesReferences�� MaimunahMaimunah AminuddinAminuddin (2007). (2007). Malaysian Industrial Malaysian Industrial

Relations and employment law. Kuala Relations and employment law. Kuala Lumpur:McGrawLumpur:McGraw

Hill.Hill.

�� AyaduraiAyadurai, D. (2004). Industrial relations in Malaysia: , D. (2004). Industrial relations in Malaysia:

Law and practice. (3Law and practice. (3rdrd eded) Selangor: Malayan Law ) Selangor: Malayan Law

Journal/LexisNexis.Journal/LexisNexis.

�� AnantaramanAnantaraman, V. (1997). Malaysian industrial relations: , V. (1997). Malaysian industrial relations:

Law and practice. Law and practice. Serdang:UniversitiSerdang:Universiti Putra Malaysia Putra Malaysia

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