TOPIC 2 EVOLVEMENT OF INDUSTRIAL RELATIONS

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TOPIC 2EVOLVEMENT OF INDUSTRIAL RELATIONS

• UPON COMPLETING THIS TOPIC, STUDENTS SHOULD BE
  ABLE TO
• Discuss the origins of industrial relations
• Elaborate on Malaysian industrial relations
• Describe international evolvement of industrial
  relations
• Explain industrial relations in the Malaysian
  public sector

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2.1 Origins

• In Malaysia, industrial relations emerged as in
  other countries i.e. began within traditional
  organisations (between the owner and the
  employees). Features
• More to person-to-person relationship (personal)
• Employers conduct affairs personally or trough a
  managerial structure
• Peasant society informal relationship
• In agricultural sector typical negotiation on
  the terms and conditions of employment
• Employers were unhappy as employees bargained for
  better compensation

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ORIGINS . continued

• In modern industrial relations, the traditional
  features were disappearing.
• Employees began organising themselves into groups
• They worked through groups (in the form of trade
  unions) rather than as individuals
• The establishment of trade unions for both
  parties and the legislation of legal regulations
  change the relationship into formal and
  impersonal

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2.2 Malaysian industrial relations

• The emergence of Malaysian industrial relations
  is associated with immigrant labourers and
  British colonialism.
• The Chinese and Indian workers involved in the
  commercial industries i.e. mines, plantations,
  business, trades, services etc
• The Chinese workers organised themselves into
  triad societies, secret societies etc

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Malaysian industrial relations contd

• Chinese and Indian workers (indentured) were
  influenced by political development in their home
  country
• E.g. clashes between Kuomintang and Chinese
  Communist Party also affected local situations
• This can be seen from a series of demonstrations,
  strikes and riots from pre war until post war
  e.g. Batu Arang Coal Strike 1935.

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Malaysian industrial relations contd

• Labour movement was related to communist
  influence e.g. General Labour Union (head office
  in Singapore) after war strikes and
  demonstrations increased and led to political
  unrest in the country.
• 1947 registration of trade unions became
  compulsory
• 1948 amendment on Trade Unions Enactment
  (tighter control on trade unions)
• Please read Wu Min Aun (2006) Industrial
  Relations Law of Malaysia (3rd Edition), Pearson
  Malaysia, Petaling Jaya - introduction

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2.3 International evolvement of industrial
relations

• The evolvement of Malaysian industrial relations
  can be seen from external influences.
• The influence of Chinese Communist Party (CCP)
  and General Union before 1957 proved the
  development of trade unions and industrial
  relations (although led to negative impacts)
• The International Labour Organisation (ILO)
  located in Geneva, under the United Nations plays
  important roles in the Malaysian industrial
  relations (member since 1957)

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International evolvement contd

• Some international bodies (esp. affiliation
  bodies) also play a role in the Malaysian
  industrial relations e.g. the Airlines Employee
  Union and the Malaysian airlines System (MAS) and
  the International Transport Workers Federation
  intervened the dispute in 1979.
• Please read Maimunah Aminuddin (2007),
  Malaysian Industrial Relations Law and Employment
  Act (6th Ed), McGraw Hill, Kuala Lumpur

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2.4 Industrial relations in the Malaysian
public sector

• Industrial relations in the public sector refer
  to the relationship between the government and
  the public sectors employees.
• It is related to the role of the government as an
  employer in this sector.
• Employers refer to the federal government, the
  state governments, the federal statutory
  authorities, the state statutory authorities and
  the local authorities.
• The federal government is necessarily involved in
  industrial relations in this sector.

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2.4.1 DIFFERENCES

• The differences between the industrial relations
  system in the public sector and in the private
  sector can be seen from the following -
• Principles underlying the systems
• Parties involved
• The way employees unions are organized
• The ways employees are grouped
• Machineries cater for industrial relations in the
  public sector. (Dunston Ayadurai 1985)

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DIFFERENCES CONTD

• 2.4.1.1 Principles underlying the systems
• The principles underlying industrial relations in
  both sectors are different. In the private
  sector these principles are embedded in the
  statue i.e. IRA 1967.
• Sec 52, IRA declares that Parts II, III, IV and
  VI shall not apply to any public sector services
  (GO and JPA).
• The principles are trade unionism, union
  recognition, collective bargaining and dispute
  resolutions.

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DIFFERENCES CONTD

• 2.4.1.2 Parties Involved
• The parties involved in industrial relations in
  the both sectors are not constituted in the same
  way.
• Only a few employers in the private sector some
  are unionised.
• No employer union in the public sector.

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DIFFERENCES CONTD

• 2.4.1.3 The way employees are grouped
• The employees in the public sector may group
  themselves in unions or in associations and still
  enjoy any of the benefits of union representation
  
• (unlike in the private sector, where they must
  group themselves in trade unions to enjoy any of
  the benefits of union representation).

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DIFFERENCES CONTD

• 2.4.1.4 The way employees unions are organised
• Employees unions in the public sector are
  organized along ministry/ department/ occupation/
  statutory authority/ local authority lines.
• Employees unions in the private sector are
  organized along establishment/ industry/ trade/
  occupation lines.

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DIFFERENCES CONTD

• 2.4.1.5 The machineries catering for industrial
  relations in the public sector
• The machineries in the public sector is unique
  and has no equivalent in the private sector as
  follows
• i. Salaries Commissions and Salaries
  Committees.
• ii. The Public Service Department.
• iii. The Public Service Tribunal and
• iv. The Joint Councils

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The machineries catering for industrial relations
in the public sector

• Salaries Commissions and Salaries Committees
• Are appointed periodically by federal government
• To review salaries and other terms and conditions
  of service in public sector
• To make recommendations on those matters
• E.g. 1991 the Special Committee of the Cabinet on
  Salaries for the Public Sector (Report/recommendat
  ion was the New Remuneration System)
• Followed by the Malaysian Remuneration System
  (2001)

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The machineries catering for industrial relations
in the public sector contd

• ii) The Public Service Department (PSD)
• PSD is one of the important federal agencies
• Headed by the Director General of Public service
• It serves as human resource department of the
  federal government
• It looks after practically all public sector
  employees

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The Public Service Department (PSD) contd

• Its main function is to implement the
  recommendations of Salaries Commissions and
  Salaries Committees once accepted by the
  Government
• Other functions
• i. negotiates any anomaly arising from the
  implementation of these recommendations with any
  public sector employees who is affected by it, or
  with any organisation of public sector employees
  whose members are affected by it and
• ii. Supervises the operation of the national
  joint councils and departmental joint councils

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The machineries catering for industrial relations
in the public sector contd

• iii) The Public Service Tribunal (PST)
• PST is an arbitration tribunal
• It is constituted by the Public Service Tribunal
  Act 1977
• Its main function was to determine any dispute in
  regard to any anomaly arising from the
  implementation of the recommendations of
  salaries commissions and salaries committees
  referred to it under the Act.
• It has been abolished in the year 2000.

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The machineries catering for industrial relations
in the public sector contd

• iv) The Joint Councils (JCs)
• It is a machinery i.e. modification of the
  Whitley Council machinery of the United Kingdom
• The design is to be consultative and not
  negotiative in character
• Two levels of JCs i.e. the National Joint
  Councils and the Departmental Joint Councils

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The Joint Councils (JCs) contd

• the National Joint Councils
• Constituted three councils i.e.
• a. one council for those in the Managerial and
  Professional Group and
• b. two councils for employees in the Support
  Group
• Not available for Police Forces and Armed Forces,
  Senior Managerial Group and public servants where
  SSB / SSM does not apply
• To serve as fora for consultation between
  representatives of the federal government and of
  public sector employees on matters related to
  remunerations, allowances, perquisites etc of
  public sector employees as a whole.

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The Joint Councils (JCs) contd

• the Departmental Joint Councils
• The councils were constituted to serve as fora
  for consultation between representatives of the
  ministry/department/statutory authority/local
  authority concerned and representatives of that
  ministry
• Items involved on all matters affecting work
  efficiency and staff welfare in the unit
  involved.

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Discussion questions

1. Elaborate on the impacts of colonialism in the
   Malaysian industrial relations.
2. Evaluate the roles of foreign workers in the
   development of Malaysian industrial relations.
3. Critically evaluate the influence of
   international bodies upon Malaysian industrial
   relations.
4. Discuss the uniqueness of Malaysian public sector
   industrial relations.
5. Elaborate on the Salaries Commissions and
   Salaries Committees in Malaysia.