TOPIC 1 OVERVIEW OF INDUSTRIAL RELATIONS

1
TOPIC 1OVERVIEW OF INDUSTRIAL RELATIONS

• Learning Objectives
• Upon completing this topic, students should be
  able to
• Define industrial relations
• Explain the principles of industrial relations
• Discuss harmonious industrial relations and its
  effects
• Describe types of decision making in the
  industrial relations system
• Discuss the roles and functions of government in
  the industrial relations

2
1.0 definition and concept

• 1.1 definition
• Several definitions can be given
• Ayadurai (1998 pg.3) defines industrial
  relations,
• the relations between employees, employers
  and their trade union.
• In addition, Ayadurai (1998 pg.4) said,
• is a discipline that concentrates on the
  management of unionised employees.

3
Definition contd

• Maimunah Aminuddin (2006 pg. 2) defines
  industrial relations,
• as the relationship between workers and their
  employers within the work environment.
• Industrial relations is also known as employee,
  labour or employment relations.
• (Maimunah Aminuddin 2007 pg. 2)
• Focused areas in industrial relations
• i. The relationships between employers and trade
  unions
• ii. The framework provided by the employment law
• iii. Disciplinary procedures and termination of
  the employment contract.
• (Maimunah Aminuddin 2007 pp. 2)

4
1.2 elements

• Industrial relations comprise several elements as
  follows
• employers the party (person / body corporate
  / unincorporated who employs workmen under a
  contract of employment (includes the governments
  and statutory bodies).
• employees the party (including apprentices),
  employed by an employer under a contract of
  employment to work for hire or reward.
• contract of employment any agreement whether
  oral or writing (and whether express or implied),
  whereby one person agrees to employ another as
  employees, and other agrees to serve his employer
  as a workman.

5
Elements . Contd

• iv. trade unions organisations for protecting
  workmen from exploitation by employers and for
  promoting the economic interests of workmen.
• v. labour legislations labour laws that govern
  industrial relations such as the Employment Act
  1955, the Industrial Relations Act 1967 and the
  Trade Union Act 1959.
• (Ayadurai 1985 pp 13 14)
• vi. unionism spirits among workmen to unionise
  and carry out activities for protecting their
  interests at work.

6
1.3 the importance of industrial relations

• Several groups of people need to understand the
  theory and practice of industrial relations as
  follows
• Workers to make them know their rights and
  obligations under the employment laws, aware of
  the benefits can be gained or risks might be
  faced by joining trade union and develop healthy
  attitude towards workplace.
• ii. Trade union leaders to enable them perform
  their roles effectively in protecting workers
  from greedy employers.
• iii. Managers to ensure their effectiveness in
  dealing with workforce, in improving productivity
  and increasing profitability of the organisation.

7
the importance of industrial relations contd

• iv. Lawyers to ensure their competence in
  giving advise to their clients, in representing
  employers/unions and in drafting legally
  enforceable employment contracts.
• v. Officers and executives in human resource and
  industrial relations departments to carry out
  their job responsibilities particularly in
  improving their human skills in order to
  administer the system wisely .
• (Maimunah Aminuddin 2007 pp 4 - 6)
• vi. Students they are future workers, trade
  unionists, managers, lawyers, officers/executives
  and employers.

8
1.4 the systems of industrial relations

• Almost all industrial relations systems are
  tripartite, i.e. they are made up of three
  parties/participants/groups as the following
• i. the employer
• ii. the employee
• iii. the government
• These groups may interact differently (in
  different countries) in making decisions related
  to work life. The decisions can be made in any
  three of three ways i.e.
• unilaterally
• bilaterally or
• tripartite manner
  (Maimunah Aminuddin
  2007 pp. 6 7)

9
1.5 roles of the government in industrial
relations

• Under the Malaysian Constitution, industrial
  relations is the preserve of the federal
  government, as opposed to the state governments.
• Four roles are played by the federal government
  as follows
• i. legislator through the Parliament
  (legislating laws)
• ii. administrator through the Ministry of
  Human Resources (enforcing labour legislations)
• iii. participant through Minister of Human
  Resources (in the NLAC and CCIH)
• iv. employer the largest in the country
  (public sector).
• (Ayadurai 1998 pp. 223 240)

10
1.6 impacts of harmonious industrial relations

• The impacts of harmonious industrial relations
  can be seen from several aspects as the
  following
• 1.6.1 impacts upon a country
• i. politics
• ii. economics
• iii. social
• 1.6.2 impacts upon an organisation
• i. employers
• ii. employees
• iii. profitability
• iv. productivity
• v. compensation etc.

11
1.7 the Ministry of Human Resources

• 1.7.1 introduction
• This Ministry is responsible for administering
  and overseeing the industrial relations system.
• 1.7.2 objectives
• To protect the welfare of workers i.e. safety,
  health and rights.
• To promote good employeremployee relationships
  through a stable and peaceful industrial
  relations system.
• To equip the unemployed with basic industrial
  skills and to improve the skill-level of the
  workforce and
• To assist in maximising the countrys manpower
  resources through manpower planning.

12
the Ministry of Human Resources contd

• 1.7.3 Structure
• This Ministry comprises seven departments namely
• i. Department of Labour, Peninsular Malaysia.
• Department of Labour, Sabah.
• Department of Labour, Sarawak.
• Department of Industrial Relations.
• Department of Trade Union Affairs.
• Manpower Department.
• Department of Occupational Safety and Health.

13
the Ministry of Human Resources contd

• 1.7.4 Related organisations
• Several categories of organisations namely
• (a) Independent organisations
• These refer to independent organizations that
  deal with labour matters such as
• The Social Security Organisation.
• The Employee Provident Fund.
• The Human Resource Development
  Corporation/Berhad.
• The Industrial Court.

14
the Ministry of Human Resources contd

• (b) Companies
• The National Institute of Occupational Safety and
  Health
• (c) Advisory Councils
• The National Labour Advisory Council
• The National Council for Occupational Safety and
  Health
• The National Vocational Training
  (www.mohr.gov.my)

15
Discussion Questions

• Explain any four (4) characteristics of
  harmonious industrial relations.
• Distinguish harmonious industrial relations from
  non-harmonious industrial relations.
• Elaborate on the consequences of non-harmonious
  industrial relations to a country.
• Evaluate on the practice of industrial relations
  system in Malaysia.
• Elaborate on the principles established by the
  Industrial Relations Act 1967 in the Malaysian
  industrial relations.