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CHAPTER 2: EVOLVEMENT OF INDUSTRIAL RELATIONS - Coggle Diagram
CHAPTER 2:
EVOLVEMENT OF INDUSTRIAL RELATIONS
Situation of Malaysian IR Now
Malaysia is in a state of industrial harmony where the employees can participate in decision making and they have the rights where their voice is being heard.
Malaysia has tripartite system of Industrial Relations where Federal Government is empowered to make a decision on policies and legislation with advice from trade unions and employers
Differences between the IR System in the Public & Private Sectors
Actors
Public Sector
- 1) Government (the largest employer)
2) Employees (public servants)
Private Sector
- 1) Employers
2) Employees
The way they organize
Public Sector
- 1) Hire employees to fulfill official functions and perform public services, such as law enforcement, public education and public safety. Public sectors carries those activities that cannot be finance by private and those related to social welfare
2) Do not have collective bargaining but government establishes a number of special commissions to aid their decision making.
3) Have the Congress of Unions of Employees in the Public and Civil Services (CUEPACS) to discuss about wages and other terms of services in public sector.
Private Sector
- 1) Not controlled by the state and usually act for profit
2) Have collective bargaining
3) Employees have the rights to join trade union - private sector have the Malaysian Trades Union Congress (MTUC)
Job Security
Public Sector
- Public sector employers generally cannot discipline, demote or fire employees unless there is "cause," such as the violation of work rules, dishonesty, misconduct or poor performance. Government employees who are not "at-will" get to present at a hearing evidence and reasons why there exists no basis for firing or other disciplinary action.
Private Sector
- Most private-sector workers are "at-will" employees and may be fired for any reason other than race, gender, exercising rights provided by statutes such as workers' compensation or truthfully testifying in court. Private sector employers can generally demote or fire employees based upon the views they express.
Work Environment
Public Sector
- Working with a public agency provides a more stable work environment free of market pressures, unlike working in the private sector.
Private Sector
- Working in a more competitive marketplace often means longer hours in a more demanding environment than working for the government.
Differences between the IR System Before & After Independence
Before Independence
1920’s
Emergence of trade union
Development of estates and tin mines
Labour movement by Communist Party of Malaya
-> Historical background of IR in Malaysia is related to the British administration, immigrant workers (China & India) and the development of estates and mines
-> The establishment of Chinese Workers Guild- resembling the characteristics of trade union
-> 1912 labour departments were formed in the Straits Settlement and Federated Malay States.
-> Laws relating to labour was for those in the mining and plantation sector.
1930’s
Newly formed unions
Several strikes
No legislation on trade union and trade union activity
-> 1923 and 1927 – the cooperation the
communist and nationalism party
-> Communist leaders were chosen as leader
for workers movement
-> In 1937, strike occurred among Chinese workers on a British owned estate in Kajang
-> The Selangor Rubber workers Union call for general strike of all rubber workers in the state
1940’s
Employers exert for law
1940 first law but not enforced due to Japanese invasion
-> 1938 – 1941 most organizations for workers come into existence and function as societies
-> Trade Union Enactment 1940 – delayed
implementation due to Japanese invasion
-> 1945 – numerous trade unions and
association were formed by workers
1946
Government
set up:
-> Trade Union Advisor Department
-> Appoint Registrar of Trade Union
-> Trade Union Enactment (3 clauses)
-> July 1946, Trade Union Enactment come
into force
-> Due to the enforcement of Trade Union Enactment, some 100 unions were de-registered and disbanded
-> It limit the involvement of Communist Party and Control trade union movement
After Independence
Prior to 1965
the voluntary system of IR patterned along the British system
the concept of self-government and autonomy within industry was the key to industrial harmony.
-> The two sides of industry were encouraged to regulate their collective relationship
-> To settle any dispute arising there from through their own efforts and through mutually agreed procedures, with minimal State intervention
-> Intervention confined mainly to providing a legal frame-work in accordance with the Industrial Courts Ordinance,1948 and the Trade Disputes Ordinance 1949.
September 1965
The Essential (Trade Disputes in Essential
Services) Regulations, 1965 was publicize
-> Designed to ensure that trade disputes in certain scheduled services would not lead to disruption of such services.
-> These Regulations vested in the Minister of Labour certain powers to intervene of his own decision in such disputes and if necessary, to refer them to the Industrial Arbitration Tribunal for settlement.
-> No strike or lock-out could be declared or where already declared could continue once the Minister had so intervened.
-> The award of the Tribunal was final and legally binding on the parties to the dispute.
The Reasons of International Evolvement of IR
The driving forces for the International Labour Organization, ILO's creation arose from security, humanitarian, political and economic considerations.
The founders of the ILO recognized the importance of social justice in securing peace, against a background of the exploitation of workers in the industrializing nations of that time.
There was also increasing understanding of the world's economic interdependence and the need for cooperation to obtain similarity of working conditions in countries competing for markets.