industrial relations- industrial disputes and action.pdf

8/14/2019 INDUSTRIAL RELATIONS- INDUSTRIAL DISPUTES AND ACTION.pdf

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INDUSTRIAL RELATIONS

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Process

The perspectiveindustrialrelations

Approaches

Context

Industrial action

conciliation/arbitration

Collective

bargaining

Concept

Employee involvement

and participation

Trade unions andmanagement

Government

Industrial Relations

Participants

Arbitration Mechanism

Labor Court &

Industrial Court

Laws :Industrial

Relations Act

Trade Union Act

The EmploymentAct

2



INDUSTRIAL DISPUTES AND INDUSTRIAL

ACTIONSObjective of the lecture• Definition of industrial disputes and

industrial actions.• The causes of industrial disputes.• Methods to resolve industrial disputes.• Causes of industrial actions.• Procedures to carry out industrial actions

legally.• Penalties for conducting illegal industrial

actions.

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DefinitionTrade disputes…as any disputes between an employer and his workmen

which is connected with the employment or the non-

employment or the terms of the employment or theconditions of work of such workmen(Sec.2, IRA)

Note: Who are the parties to the dispute?Reason to the dispute?

Trade disputes are also known as Industrial disputes

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An individual worker’s complaint is termed

grievance . Only when his union is willing torepresent the worker, can a grievance leadto a dispute

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Causes

i. An individual who has grievance, who is representedby his union and who has exhausted the grievanceprocedure without getting satisfactory result

ii. A difference of opinion as to the appropriate termsand conditions of service for workers.

iii. A difference of opinion as to the interpretation of acollective agreement or Industrial Court Award.

iv. The non-implementation of an agreement or award.

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Dispute Resolution

• IRA makes available three methods (Four steps to settlementof disputes):

– Direct negotiation (parties involved) – Conciliation (Industrial Relations Officer) – Mediation (not mentioned in the employment laws) (DG or

Minister for Human Resources) – Arbitration (Industrial Court)

•

Other methods recognized by IRA are the following: – Fact finding machinery• Board of Enquiry• Committee of Investigation

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Direct Negotiation

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“ … is a method ofsettling the disputewhereby the two partiesinvolved are willing tocome together fordiscussion until asatisfactory compromiseis reached or concluded.”



Conciliation

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“ … the processof arriving atsettlement of atrade disputewith the help ofa third, neutral

party.”



Process Of Conciliation

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i. It can be voluntary or compulsory.ii. The parties are encouraged to resolve their

problems.iii. It is up to the parties concerned to reach the

agreement.iv. The conciliator merely arranges the meeting

or advice the parties because he has noauthority to insist that the parties accept anyparticular recommendation .



Situations That Require Conciliation

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i. If a trade dispute has not been resolved , itmust be referred to the DGIR by any partyto it for conciliation.

ii. The DGIR may also refer a tradedispute for conciliation if in his opinion thedispute is not likely to be resolved and

public interests demand . (Sec. 18 IRA)iii. Minister may also conciliate in any tradedispute. (19A IRA)



Conciliation In Practice

i. Conciliation is carried out by Industrial Relations Officer(s) who willmeet the parties, either separately or jointly.

ii. The conciliator will: –

give explanation on the problem – help the parties arrive at a compromise which is acceptable toboth parties.

– give advice – He has no authority to insist any party or the parties to accept any

recommendation.

i. His roles are to: – identify the issues – brief the problem – give advice

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70-80 per cent oftrade disputes aresettled in this way

annually



Mediation

13

“ …similar toconciliation

whereby the thirdneutral party iscalled in by theparties to thedispute to helpthem find asettlement”



Arbitration

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“…is where animpartial third party

is given the authorityto settle the disputeby examining theinformation given byboth parties andmaking a judgment.”



Power Of Industrial Court

• TD referred to it by Minister or by joint requestunder S26 IRA

• Essential services needs consent of YDPA• Contravention of trade union rights and

responsibilities section 4,5 or 7 (S8 IRA)• Representation of alleged unjustified dismissal (S20

IRA)• Cognisance of CA (S16 IRA)

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Power Of Industrial Court

• Make its award in 30 days if possible and actin equity and good conscience without regardto technicalities. (S30 IRA)

• Taking into consideration public interest,financial implications, national economy andimplication to the industry (S30 IRA)

• Decision is final and binding on all parties tothe proceeding.(S33B IRA)

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Powers Of The IC (S29 IRA)• Power to summon, join, substitute or strike off

parties• Take evidence on oath or affirmation• Compel for books, papers, documents and other

things deem necessary• Conduct proceedings in private• Call in the aid of experts• Do all such things to expedite the matter before it

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Committee of Investigation (S34, 35 IRA)

i. It consists of one or more persons appointed bythe Minister.

ii. It has jurisdiction over any trade dispute referredto it by him.

iii. It has the power to investigate the causes of andthe circumstances surrounding the dispute.

iv. It is required to make a report to the Minister ‘assoon as possible’.

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Board of Inquiry (S36 IRA)i. It consists of one or more persons appointed by the

Minister.ii. It has jurisdiction over any trade dispute referred to it by

him for fact finding.iii. It has more power than the committee, as follows;iv. The power to inquire into the dispute referred to it.v. The power to summon witnesses to give evidence on oath

or affirmation.vi. The discretion to sit in private or public.vii. The discretion to make Interim Report that must be laid

down before the Dewan Rakyat ‘as soon as may be’.

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Limitation Of The Agencies1. A board cannot include in its Report(s) any information, which are

confidential in nature, obtained by it in its inquiry about tradeunion, business or organization without consent.

2. Both agencies are not the bodies that settle the disputesreferred to them.

i. The Act requires them to investigate or inquire causes andcircumstances surroundings the dispute.

ii. But, in their proceedings before a Board or a Committee- theycan permit or not permit a person to be represented by someoneelse.

iii. So far, no cases of appointment of a Committee or a Board (sincethe introduction of IRA)Reason?… the Government prefers to refer/ use other methodsto settle the disputes.

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Executive And Administrative Action

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Executive actioni.e. the Minister ofHuman Resources



Executive And Administrative Action

23

Administrativeaction i.e. theDGIR



PEACEFUL METHOD FAIL TOSETTLE A DISPUTE……….

THENINDUSTRIAL ACTION BY

EMPLOYEES

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Industrial Action

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• a direct action carried outby either employers oremployees resulted fromtrade disputes

• It is considered as an

aggressive and threateningmethod to settle tradedisputes



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Types

i. Employees:picketing, strikes, boycott and sabotage

but, labour laws permits only:PicketingStrikes

ii. Employers:Lockouts



Picketing

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one or more personsmay attend at or nearthe place where theworkman works andwhere a tradedisputes involvingsuch worker existsonly for the purposeof peacefully:



29

Picketing - Conditions

Picketing must not: -i. be in the workplace

ii. intimidate any personiii. lead to breach of the peaceiv. obstruct the entrance or exitv. allow workers who are not directly involved in

the trade dispute to take part(Sec. 40 (1)(2)



30

Picketing - Objectives

i. To pressurize the employers to settle thedispute or to fulfill their claims quickly.

ii. To inform/ communicate certain issue to public(generate public sympathy and pressure).iii. To teach the employer a lesson.

* carried out during lunch hour, before or afterworking.



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Unlawful Picketing

The employees’ action of picketing becomeunlawful if they do not conduct it according to the

requirements of Sec. 40, IRA

Punishment:a. An imprisonment for a term not

exceeding one year, or b. A fine not exceeding RM1000



32

Example of Picket

KUALA LUMPUR, Nov. 21, 2002 (Xinhua) -- Less than 1,000 employees ofthe banking sector picketed outside Bank Bumiputra Commerce in KualaLumpur Thursday to protest against the decision by the banks to stopdeduction of union fees.The employees, who came from banks all over the city, carried colorfulballoons and placards with slogans like "Don't victimize us," "Stopunion-busting" and "We want unions" at the entrance to the bank onJalan Tun Perak in the downtown area.Picketing at lunch- time, the bank …



Strikes

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“ a strike is anystopping of workby a group ofworkers,including anyattempt to limitor slow downproduction onpurpose”



34

Strikes - Definitions

“ an action carried out by the employees collectivelywhereby they withdraw themselves from work or,refuse to continue performing their present works/

jobs or, refuse to perform the jobs assigned by theemployers or, stop/ delay their work which result inlower performance which affect the organisation’s production”

(Sec.2, IRA)



• a type of strike which is called withouttaking any ballot or following the

procedures.• workers make a decision to strike and do

so immediately.• Workers go on “down tools”, i.e. refuse

to go on with their work.• the strikes are not supported by theirunion

Wildcat strike/ Lightning strikes

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Occurs when a group of workers who are notinvolved in a trade dispute decide to go onstrike to show support and solidarity withanother group of workers who are legitimatelyon strike

Sympathy strike

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aimed not at employer but at thegovernment.

The striking workers hope to force thegovernment into giving in to certaindemands.

They assume that their strike may disrupt

the economy and, therefore, pressurethe government into giving in to them.

Political or General strike

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Strikes procedure

Section 25(A)1, TUA

a) without first obtaining the consent from majorityof members (at least two thirds)

b) before the expiry of 7 days after submitting to theDGTU (Sec. 40(5) TUA)c) if the secret ballot become invalid (by virtue of

Section 40 (2), (3), (6) or (9) TUAd) in contravention or without complying with the

rules of the unione) in respect of matter covered by a direction or a

decision of the Ministerf) in contravention or without complying with the TUA

or any other law



39

TUA, Section 40,

Secret ballot to make a decision on inter alia any matterrelating to a strike or a lockout (a secret ballot must held bythose eligible to strike)

The results of this ballot must be sent to the Director- Generalof Trade Unions by the union secretary within 14 days oftaking the ballot.

The strike can only take place if two-thirds of those entitled tovote agree to the action, and after waiting 7 days after theballot results have been sent to the Director General.



TUA, Section 40

(2) Secret ballot(SB)must contain issues leadingthe strike or LO and nature of acts.

(3) Valid for 90 days.(5) Submit to DGTU within 14 days after SB.(6) DGTU can investigate and stop intended

strike.(9) DGTU may declare SB invalid if it contravenes

TUA.

40



41

TUA, Section 40,

This compulsory “ cooling –off” period is intended not only toallow the Director General time to check the validity of theballot, but it also gives the union members time to changetheir mind.

With this threat of an impending strike, the employer maygive in to the employees’ demands or they themselves mayhave second thoughts, given the seriousness of theirimpending action.

This 7-day period allows the Minister of Human Resources tointervene and refer the dispute to the Industrial Court forarbitration, thus making a strike illegal.



IRA SECTION 44Prohibition of strike or Lock Out:a) During the pendency of BOI and 7 days after the

conclusion.b) Dispute has been referred to ICc) YDPA or state authority withheld consent for

dispute to be referred to IC in realtions to

government service.d) Matters covered by CAe) Matters covered by 13(3). Managerial rights

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IRA SECTION 43

Strike or LO in essential services:Shall not go on strike:

a) Without giving 21 days notice before strikeor LO

b) After 42 days of giving notice

• Essential services are listed in the Scheduleof the IRA

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Lock-out

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“ the closing of a place ofemployment, the suspension of

work, or the refusal by anemployer to continue toemploy any number of workersemployed by him, infurtherance of a trade dispute,done with a view to compelthose workers to accept termsor conditions of work oraffecting employment.”



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Example of Strike

Penang,Malaysia - The Malaysia Star, by BERNARD SEE, K. KASTURIDEWI and K. SUTHAKAR -February 6, 2008: --

Thousands of bus commuters rushing for work and last-minute Chinese New Year shopping were left strandedyesterday when striking Rapid Penang drivers broughttransport to a standstill...

The commuters were left standing for hours at bus stopsand terminals as the 100-odd bus drivers refused to starttheir engines after reporting for work at 6am yesterday...



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Example of Strike

Many commuters were late for work when 120 of the 150Rapid Penang buses did not leave the depot in SungaiNibong and bus terminals at Komtar, Weld Quay and Balik

Pulau.

However, Rapid Penang bus service in Seberang Prai wasunaffected...

(Going nowhere: The bus drivers gathering at the bus depotduring the strike in Sungai Nibong, Penang, yesterday)



http://busnews.blogspot.com/2008/02/strike-malaysia-bus-drivers-on.html

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HAVE A NICE DAY

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