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Chapter 7: Collective Agreement, What is collective agreement?, Must…
Chapter 7: Collective Agreement
Industrial Relation Act 1967
Agreement in writing
Between employer or a trade union of employers
Relating to terms and conditions of employment and work of workmen
Concerning relations between such parties
2 Ways Collective Agreement May Exists
Mutual agreement
Award handed down by the Industrial Court pursuant to a reference under S26(1) or S26(2) of IRA 1967
Contents of Collective Agreement
In writing and signed by parties to the agreement/by persons authorized in that behalf
Set terms of agreement
Specify name of the parties to the agreement
Specify duration of the agreement (cannot less than 3yrs)
Include procedure for modification & termination of agreement
Specify procedure to be used to settle any dispute
Not include items of managerial prerogatives
Items to be included in CA
:check: Recognition
:check: Union security
:check: Compensation & benefits
:check: Existing benefits
:check: Procedures:
internal advertising for job posting
Disciplinary and dismissal
Processing grievance
Consultation on workforce issue
Claims of sexual harassment
Items to be considered in CA
:star: Clause states that any current agreement will remain in force until new agreement is signed
:star: Signed supplementary memoranda with a covering letter
:star: Simple & unambiguous wording
:star: Language must be understandable
Deposit of CA
Parties must be jointly deposited with the Registrar of the IC under S16 within 1 month from date of agreement
IC may at its discretion
S16(3) of IRA, any party fails to carry out modification as directed by the IC, Court may amend copy of agreement in the manner directed
Amended agreement shall be deemed to be the CA between such parties
Effect of CA
S17 of IRA & S32(1), CA that has been taken cognizance shall be deemed to be an award and shall be binding on
Parties to the agreement including in any case where a party is a TU of employers
All workmen who are employed or subsequently employed by employer
As from the date & for such period specified in CA, shall be implied term of the contract unless varied by subsequent agreement
CA Awarded by the Industrial Court
S26(1), refer dispute to the IC on joint request in writing
S26(2), upon receiving notification of DGIR, refer dispute to IC if he is satisfied that is expedient to do so
Industrial Court will hear & adjudicate upon the dispute
After hearing the case, IC will hand down an award
Mis-interpretation of CA
S33(1) if question arises as to the interpretation of any award, the Minister may refer the question
S33(2) IC may upon application of any party, vary any terms of an award or agreement if it consider desirable
-Decision by Court shall be binding in the same manner as original award
Non-compliance of CA
-S56 of IRA, any complaint that any term of the award or agreement has not been complied with, may be lodged in writing by aby TU or person bound by such award
Penalty
-S56(3) of IRA, person who fails to comply shall be guilty of an offence & shall on conviction
Liable to fine not exceeding RM2,000
Or imprisonment for a term not exceeding 1 year or both
Further fine of RM500 for every day during which such offence continues
Enforcement
S56(4) of IRA, a person fails to comply with order, pay any sum 9of money
The Registrar of the IC may send a certified copy of the order to High Court or Session Court to be record
Order shall for all purposes be enforceable as a judgement of the High Court or Session Court
What is collective agreement?
Must fulfill certain conditions