2. Industrial Relations
• It is the relationship between workers and
their employers in the work environment.
• Also known as employee relations or labor
relations.
IR focuses on:
– laws & rules which impact on the work
environment.
– terms & conditions of work.
– rights & obligations of employers &
employees.
– processes by which the rules & terms are
made.
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3. Organizations must cope with lots of
changes: from trade unions;
Government; owner; customers;
public; suppliers; competitors.
Those who need to study IR are:
workers; trade union leaders;
managers; lawyers; officers &
executives in HR & IR depts.
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4. The IR in Malaysia is a tripartite system.
Three parties are involved: Employers,
Employees, & Government.
Uni-partite – decisions are made by
management on behalf of employer
without interference by workers/unions
or any other party.
Bipartite – decisions are made by both
management & workers/unions.
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5. National Labor Advisory Council (NLAC)
Consists of representatives from 3 sectors: 14
representatives from workers; 14 from employers, &
12 from Government.
The Minister of Human Resources chairs the discussion
& appoints the Government representatives.
Other members are appointed after discussion with
MTUC, CUEPACS, & MEF.
The council meets at least twice a year when there are
urgent matters to discuss.
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6. International Labor Organization (ILO)
Based in Geneva. It plays a role in the Malaysian IR
system. Malaysia joined as a member in 1957.
It provides an international forum for discussion on all
matters relating to labor by holding an annual meeting
every year in Geneva.
The ILO is run by a governing body or executive council
of 14 full members, 14 deputy members, and 14 reserve
members. They are made up of government, employers,
& trade union officials.
ILO is financed by members but mostly from 7 countries:
USA, Japan, Germany, France, Britain, Italy, & Canada.
Money is used for administrative purposes, research,
publications, & projects.
ILO does not use force on members – it uses moral
persuasion.
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7. Employment Legislation
The major employment related legislations
are:
a. Employment Act, 1955
b. Trade Unions Act, 1959
c. Industrial Relations Act, 1967
d. Factories & Machinery Act, 1967
e. Occupational Safety & Health Act, 1994
f. Etc.
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8. The Employment Act, 1955
Lays down the provisions to protect workers from
exploitation & to provide minimum benefits for all
workers covered by the Act, especially those
earning not more than RM 1,500 per month, those
doing manual labor, & those who supervise such
workers or are employed to drive or maintain
vehicles.
Benefits include termination and maternity
benefits, the right to a weekly rest day, annual
leave, & sick leave.
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9. OSHA
Establishes guidelines and lay down the
responsibilities of the various parties in industry in
relation to safety & health.
The Trade Unions Act
Seeks to control the activities of trade unions so
that they can develop in an orderly and peaceful
manner.
It lays down rules & regulations which unions are
required to follow.
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10. The Industrial Relations Act
Regulates the relations between employers &
workmen & their unions as well as laying down
rules to help prevent & settle disputes between
the 2 parties, thus ensuring peaceful IR as far as
possible.
The goal is to encourage harmonious relationship
between employers and employees in the interest
of nation’s productivity.
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11. Role of Government in Industrial Relations
It acts as Legislator through Parliament, Administrator through
the Ministry of Human Resources, & Participant as the largest
employer in the country.
Ministry of Human Resources
Responsible for administering & overseeing the IR system
Objectives are:
1. To protect welfare of employees.
2. To promote good employer–employee relationships.
3. To equip the unemployed with basic industrial skills & improve
skill level of work force.
4. To assist in maximizing country’s manpower resources through
manpower planning.
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12. Ministry of Human Resources
There are 7 departments in the ministry:
1. Dept. of Labor, Peninsular Malaysia
2. Dept. of Labor, Sabah
3. Dept. of Labor, Sarawak
4. Dept. of Industrial Relations
5. Dept. of Trade Unions
6. Dept. of Occupational Safety & Health
7. Manpower Dept.
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13. 7 Departments in The Ministry of Human Resources
Dept. of Labor, Peninsular Malaysia
DG (head), Deputy of DG, 4 Directors of Labors –
supervise the state level labor offices and sub-
offices.
Enforces the Employment Act, the Workmen’s
Compensation Act 1952, the Children & Young
Persons (Employment) Act 1966.
Settle trade dispute between employer and
employees relating payment or non-payment of
wages, allowances, retrenchment and retirement
benefits.
Dept. of Labor, Sabah
Dept. of Labor, Sarawak
Dept. of Industrial Relations
administers the IR Acts, 1967
to help settle dispute through conciliation.
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14. Dept. of Trade Unions
- acts as a central role in the growth of the TU
movement :
register newly formed unions
deregister unions found breaking the law.
Check a union’s account
Investigate complaints made by union.
Dept. of Occupational Safety & Health
Previously known as the Dpt. Of Factories and
Machinery
Responsible to implement OSHA
Manpower Dept.
-To help utilize to the maximize the nation’s manpower
opportunities for its citizen.
- To provide data on manpower needed by the nation
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15. Related Organisations to the Ministry of Human Resources.
1. Social Security Organisation (SOCSO) – implements the Employee’s
Social Security Act 1967, provides benefits to workers and their
dependents in the event of work-related accident.
2. Employees Provident Fund – requires the employees and employers
to make monthly contribution that is useful for their retirement
age.
3. Human Resource Development Fund – employers in certain sectors
of the economy are required to contribute 1% of their payroll to
the fund every month in order to conduct the trainings. They can
claim the reimbursement cost once after the training been
conducted.
4. Industrial Court – a specialized tribunal to arbitrate dispute
between employers and employees and an independent body
governed by the rules of the judiciary for the Malaysian industrial
relations system. 15
