Industrial Relations• It is the relationship between workers andtheir employers in the work environment.• Also known as employee relations or laborrelations. IR focuses on:– laws & rules which impact on the workenvironment.– terms & conditions of work.– rights & obligations of employers &employees.– processes by which the rules & terms aremade. 2
Organizations must cope with lots ofchanges: 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. 3
The IR in Malaysia is a tripartite system.Three parties are involved: Employers,Employees, & Government.Uni-partite – decisions are made bymanagement on behalf of employerwithout interference by workers/unionsor any other party.Bipartite – decisions are made by bothmanagement & workers/unions. 4
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. 5
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. 6
Employment Legislation The major employment related legislations are:a. Employment Act, 1955b. Trade Unions Act, 1959c. Industrial Relations Act, 1967d. Factories & Machinery Act, 1967e. Occupational Safety & Health Act, 1994f. Etc. 7
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. 8
OSHAEstablishes guidelines and lay down theresponsibilities of the various parties in industry inrelation to safety & health. The Trade Unions ActSeeks to control the activities of trade unions sothat they can develop in an orderly and peacefulmanner.It lays down rules & regulations which unions arerequired to follow. 9
The Industrial Relations ActRegulates the relations between employers &workmen & their unions as well as laying downrules to help prevent & settle disputes betweenthe 2 parties, thus ensuring peaceful IR as far aspossible.The goal is to encourage harmonious relationshipbetween employers and employees in the interestof nation’s productivity. 10
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. 11
Ministry of Human Resources There are 7 departments in the ministry:1. Dept. of Labor, Peninsular Malaysia2. Dept. of Labor, Sabah3. Dept. of Labor, Sarawak4. Dept. of Industrial Relations5. Dept. of Trade Unions6. Dept. of Occupational Safety & Health7. Manpower Dept. 12
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. 13
Dept. of Trade Unions- acts as a central role in the growth of the TUmovement : 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 OSHAManpower Dept.-To help utilize to the maximize the nation’s manpoweropportunities for its citizen.- To provide data on manpower needed by the nation 14
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
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