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CHAPTER 1: OVERVIEW OF INDUSTRIAL RELATIONS IN MALAYSIA - Coggle Diagram
CHAPTER 1:
OVERVIEW OF INDUSTRIAL RELATIONS
IN MALAYSIA
HARMONIOUS IR
CHARACTERISTICS/ELEMENTS OF INDUSTRIAL HARMONY
Have two-way communication -> One party gives stimuli,
other party responds to the stimuli. Both the employers and employees must have good communication between them.
Strong trade unions -> It help to promote the status of labour without jeopardising the interest of management.
Economic satisfaction of workers -> reasonable wages and benefits in commensurate with other industries must be paid by the employer. Employer should give incentives for employee motivation
IMPORTANCE OF HARMONIOUS IR
ECONOMY
Increase productivity of workers -> they are more motivated and committed to contribute towards the overall productivity of the organization.
Minimization of wastage -> Good IR ensures reduced wastage as the resources.
Attract more investment opportunities -> increase the organization's profit and growth
SOCIAL
Reduce unemployment -> workers will stay longer in company that have harmonious industrial relations.
Increased morale -> harmonious industrial relations boost the morale level of the employees as they feel that their interest coincides with that of the employer’s.
POLITICS
Political stability -> reduces industrial disputes and prevent conflicts.
EFFECTS OF INDUSTRIAL HARMONY
TOWARDS EMPLOYEES
Improved safety -> no exploitation or discrimination towards employees at the workplace.
Better working conditions -> workers are happy to work and perform their task.
TOWARDS EMPLOYERS
Improved quality of products or services -> increases the output and reduce errors or defects.
Better working relationships -> productivity between employer and employees will increases and easy to achieve organization's goals.
NON-HARMONIOUS IR
DEFINITION OF NON-HARMONIOUS IR
Non-harmonious industrial relations are happen when there is an unsatisfactory scene of employer-employee relations and it can be seen from strike attacks, gherao, locking and other forms of industrial disputes.
CHARACTERISTICS OF NON-HARMONIOUS IR
Bad communication among the employer and employees.
Low wages and long working hours.
Abusive supervisory practices
Dangerous work
MINISTRY OF HUMAN RESOURCE (MOHR)
MOHR INFO
YB Datuk Seri M. Saravanan a/l Murugan - Minister of Human Resource
YB Tuan Haji Awang bin Hashim - Deputy Minister of Human Resource
ROLES OF DEPARTMENTS UNDER MOHR
1) Department of Labor, Peninsular Malaysia,
Sabah and Sarawak
Enforces Employment Act 1955, Workmen’s Compensation Act 1952, Wages Council Act 1947, Young Persons Act 1966, Employment Restriction Act 1968 and Workers Minimum Standards of Housing & Amenities Act 1990.
It also settles disputes between employers and employee over payment/non-payment of wages, retrenchment and retirement benefits.
2) Department of Industrial Relations
Administers Industrial Relations Act 1967 and attempts to help settle disputes between employers and employees through conciliation.
3) Department of Trade Unions
Enforces Trade Union Act 1959 and play central role in the growth of the trade union movement.
4) Department of Occupational Safety and Health
Responsible for enforcing the Occupational Safety and Health
Act (OSHA) 1994 and the Factories and Machinery Act 1967.
The department also inspects workplaces and investigates major accidents.
5) Department of Skills Development
Responsible for the co-ordination and control of skills training as well as career development in skills training, in line with the implementation of the National Skills Development Act.
It researches and develops standards to evaluate job expertise and competency.
6) Industrial Court of Malaysia
It is a specialized tribunal established under the Industrial Relations Act 1967.
Responsible to hear and hand down decisions or awards in industrial disputes referred to it by the Minister or directly by the parties.
To grant cognizance to the collective agreements which have been jointly deposited by the employers or trade union of employers and trade union of employees.
WHO NEEDS TO STUDY IR
WORKERS
To know their rights under the labor law..
To be aware of benefits they can gain by joining a trade union, and to understand that there may be certain risks associated with being a member to a union.
Workers should know to whom they could complain if their employer fail to provide them with benefits provided under the law.
TRADE UNION LEADERS
Trade unionists must know how to play their role effectively so that workers will be protected from exploitation by greedy employers.
MANAGERS
Industrial relations is important to managers because there is a direct link between profitability and good industrial relations.
Bad management will cause conflict, miscommunication, negative attitudes, high turnover rates as workers leave to look for more satisfying workplaces else where.
Hence, productivity will be lower amongst those who stay and staff morale will be poor.
Therefore good management requires good industrial relations.
LAWYERS
Lawyers' involvement in industrial relations often begins when they are called upon to represent workers or employees at the Industrial Court or at Labor Department hearings, High Court, Court of Appeals or Federal Court.
They are also advise employers who may wish to draft legally enforceable employment contracts or they may have clients who want to terminate the services of an employee without causing legal problems.
OFFICERS & EXECUTIVES IN HR & IR DEPARTMENTS
They need to have strong working knowledge of principles, concepts and laws so that they can carry out their job responsibilities well.