Chap11 employee relation

Chapter 11DYNAMICS OF EMPLOYEE

RELATIONS

Chapter 14 in Ab. Aziz & Tan (2014)

1 Copyright © [2014] Pearson Education

Learning ObjectivesAt the end of this chapter, you should be able to:

1. Define industrial relations.2. Discuss industrial relation system.3. Identify the role of trade unions.4. Discuss collective bargaining and its process.5. Define grievance.6. Describe grievance procedure.7. Describe the legal forms of industrial action.8. Identify the methods of trade dispute settlement.


Industrial Relations System• Also known as labour relations or employee relations.• Refers to the relationship between an employer and his

employees or union.• A good industrial relation system involves complex

relationships between:1. Employers (and their professional associations, managers, and

formal organisations like trade).2. Workers (and their formal and informal groups such as

organisations and their representatives and trade union).3. The government, government agencies, independent agencies,

Advisory Conciliation, and Arbitration Service.


4

Harmonious workplace

Management Labour (employees/union)

Government agencies

Environmental factors

Environmental factors

Environm

ental factors

Environm

ental factors

Figure 14.1 Industrial Relations System

Copyright © [2014] Pearson Education

The Roles of Union

• Trade Union is an organisation whose membership consists of workers and union leaders, united to protect and promote their common interests.

• The principal purposes of a trade union are to: Negotiate wages and working condition terms; Regulate relations between workers and the employer; Take collective action to enforce the terms of collective

bargaining; Raise new demands on behalf of its members; and Help settle their grievances.


• The common roles that trade unions have undertaken can be summarised as:

a) Regulationb) Representation and Negotiationc) Information and Service


Types of Unions

a) National and Regional Unions Recruit members from workers in different companies in

the same industry or workers in the same trade or occupation.

Their membership is not restricted to a particular establishment but geographically, a national union can

only recruit its member from Peninsular Malaysia, or Sabah, or Sarawak.


b) In-House Unions In-house unions are formed by workers in a company or

organisation whereby membership is confined to employees in that particular company.

c) Employer Associations Employers can also form unions or associations as they

are commonly called. Examples: The Association of Hotel Employers; The

Malaysian Association of Human Resource Consultants.


Collective Bargaining• Section 2 of the Industrial Relation Act 1967: Collective

bargaining means negotiating with a view to the conclusion of a collective agreement.

• Collective bargaining will not be in existence without the formation and recognition of trade union in an organisation.

• The main terms and conditions of employment that are always negotiated in the collective bargaining involve: a) Wages and benefitsb) Hours of workc) Working conditions.


The collective bargaining process consists of three phases:

Phase 1: Preparation for negotiation• Begins when a trade union submits a proposal for a

collective agreement to an employer. • The employer must respond to the invitation within 14 days

from the date of proposal.


Phase 2: Bargaining• Collective bargaining must be carried out within 30 days from

the date of invitation acceptance. • If the employer refuses to negotiate, or fails to reply within the

stipulated time, the union may notify the Director of General Industrial Relations to take steps towards conciliation.

• If the parties (either representative of employees or employer) are still unable to agree on terms, the Minister of Human Resources may refer their dispute to the Industrial Court for arbitration.


Phase 3: Signing and administration of collective agreement.

• When a consensual agreement is reached, the agreement must be signed by representatives of the organisation and the union.

• The outcome of collective bargaining is collective agreements.

• Collective agreement is a written agreement between employers and employees that regulates the employment terms and conditions of employees in the workplace.


Grievance

• Refers to any matter raised by employees to show their dissatisfaction towards management practices.

• Grievance may exists when there is unfairness of rewards allocation, performance evaluation, discrimination, lack of appreciation, neglected promotion chances, as well as sexual harassment or unsafe working conditions.


Grievance Procedure

Step1: Make a complaint to his/her immediate supervisor who is responsible to solve the complaint.

Step 2: If the immediate supervisor is unable to settle the complaint within the determined time, he/she may refer it to the Head of Department.

Step 3: If the Head of Department fails to settle it within the stipulated time, the employee may bring the matter to the attention of Chief Executive Officer (CEO) of the organisation for the settlement.


Industrial Actions

• In the event the organisation fails to resolve the grievances, a dispute is created.

• Trade dispute is any disagreement between the employer and employees, which is connected with the employment or non-employment matters leading to industrial actions.

• Industrial actions is taken by employees or employer to force/persuade either parties to give into their demands.


• The only forms of employee or employer industrial action recognised by the labour laws in Malaysia are:

a) Picket Workers can picket at or near their place of

work, provided: (a) They do not obstruct the exits or entrances (b) They do not intimidate anyone (c) Their activities are peaceful


b) Strike The strike arises when a large number of workers stop working in protest. Only members of a registered trade union may

strike. They must have an unsettled trade dispute with their

employer. They must take a secret ballot to find out what

percentage of those involved in the dispute agree to

holding a strike.


c) Lock-out Is an industrial action initiated by the employer. Employer withholds the work from employees by disallowing them access to the work station for a period until certain terms are agreed to.


Procedure for Settling Disputes

• There are three main methods for settling trade disputes:

a) Direct negotiation Occurs when two or more conflicting parties meet

together by means to resolve their conflict by reviewing the terms of their interdependence. Direct negotiation is the fundamental form of dispute resolution.


b) Conciliation This method can only be taken when the direct negotiation fails. Either the employer or the union can report the matter to the Director General of Industrial Relations to appoint a neutral party, that is, the officers of the Department of Industrial Relations to serve as the mediator. The officer only can act as an advisor and cannot force the parties to accept his/her proposals for agreement.


c) Arbitration Arbitration is the final process of trade dispute

settlement. Can only be taken when the conciliation fails. The Industrial Court is empowered to settle trade

disputes. Once the dispute is in the process of hearing, both

parties can no longer try to reach an agreement on their own outside the court.

Industrial Court’s decisions are final and both parties have to comply with its awards.


Chap11 employee relation

Business

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