Industrial Relation

O LYMPIA B USINESS S CHOOL Advanced Diploma In Business Administration F ILO -T EXT INDUSTRIAL RELATIONS October, 1998 R AFFLES E DUCATION G ROUP Kuala Lumpur w Petaling Jaya w Penang w Singapore w Jakarta w Bangkok w Beijing w London w New-York School Of Business & Marketing Industrial Relations T ABLE OF C ONTENTS TABLE OF CONTENTS ………………………………………………………………………………………………………………. 2 INTRODUCTION………………………………………………………………………………………………………………………… HOW TO USE THE FILO-TEXT? ………………………………………………………………………………………………… 4 ASSESSMENT …………………………………………………………………………………………………………………………….. 5 Individual Assignment………………………………………………………………………………………………………………… 5 Mid-term Examination………………………………………………………………………………………………………………… Team Project …………………………………………………………………………………………………………………………….. 5 FINAL E XAMINATION…………………………………………………………. ……………………………………………………….. 6 ATTENDANCE……………………………………………………………………………………………………………………………. 6 FEES…………………………………………………………………………………………………………………………………………… CONTACT TIME ………………………………………………………………………………………………………………………… 7 Full-time ………………………………………………………………………………………………………………………………….. 7 Part-time ………………………………………………………………………………………………………………………………….. 7 THE ACADEMIC TEAM …………………………………………………………………………………………………………….. SUBJECT PLANNER…………………………………………………………………………………………………………………… 9 WEEK 1 ……………………………………………………………………………………………………………………………………. 10 WEEK 2 ……………………………………………………………………………………………………………………………………. 12 WEEK 3 ……………………………………………………………………………………………………………………………………. 4 WEEK 4 ……………………………………………………………………………………………………………………………………. 16 WEEK 5 ……………………………………………………………………………………………………………………………………. 18 WEEK 6 ……………………………………………………………………………………………………………………………………. 20 WEEK 7 ……………………………………………………………………………………………………………………………………. 2 WEEK 8 ……………………………………………………………………………………………………………………………………. 24 WEEK 9 ……………………………………………………………………………………………………………………………………. 25 WEEK 10 ………………………………………………………………………………………………………………………………….. 27 WEEK 11 ………………………………………………………………………………………………………………………………….. 9 WEEK 12 ………………………………………………………………………………………………………………………………….. 31 Olympia Business School Page 2 School Of Business & Marketing Industrial Relations INTRODUCTION THE SUBJECT INDUSTRIAL RELATIONS Olympia Business School Page 3 School Of Business & Marketing Industrial Relations HOW TO USE THE FILO-TEXT? The Filo-text is a tool to guide in this subject. It provides you general information on the following: • • • • • • Assessment Attendance Fees Contact time The academic team The academic planner

For every week, it then provides you with the following information: • • • • • • • • • The lecture Topic The objective(s) of the lecture The textbook and the chapter(s) and page(s) related to the given topic The other reference books available to you in the library Additional reference material for your own research The objective(s) of the tutorial Questions to prepare for discussion during the tutorial Questions for your personal assessment Use the Filo-text to prepare yourself prior to the lecture, between the lecture and the tutorial and after the tutorial.

Olympia Business School Page 4 School Of Business & Marketing Industrial Relations ASSESSMENT Student assessment will be evaluated based on the following: 1) 2) 3) 4) Individual Assignment Mid-Term Examination Team Project Final Examination 15 % 15 % 20 % 50 % 100 % Total Individual Assignment An individual assignment will be given to the student on week 2 and will have to be returned no later than week 6. The marked assignment will be returned to the student by no later than week 8. The assignment will be related to the topics covered between week 1 and week 4 inclusive.

It will comprise a written report of no more than 1000 words. Should the student fail to submit his/her assignment on week 6, the result will automatically be nil. Mid-term Examination A mid-term examination will be conducted during week 8. It will assess the students’ knowledge and understanding of the topics covered up to week 6. The results, together with the answer scripts, will be returned to the students no later than week 10. Should a student be absent without a valid apology, the result will automatically be nil.

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Team Project A specific team project will be assigned. Any one of the team projects submitted for any one of the other subjects of the course will be assessed as a tool of Business Communication. Olympia Business School Page 5 School Of Business & Marketing Industrial Relations FINAL EXAMINATION The final examination will be conducted week 13 or week 14 and its duration will be 3 hours. Registration for the examination is open from week 3 onwards and will close as per notification. Make sure you register on time. No late registration will be entertained.

The format of the examination is as follows: • • • Section A Section B Total Short Essay Questions Essay-type Questions 5 * 4 Points Any 4 out of 6 *20 Points 100 Points ATTENDANCE Attendance for both the lectures and the tutorials is compulsory. Any student not attending a class should provide a medical certificate or a written justification (signed by a parent or guardian in the case of a full-time student). Should a student fail to do so, he / she will be considered truant. Should a student’s attendance for a given subject be lower than 80%, he / she will not be allowed to sit for the final examination.

Punctuality is equally important. The lecturer is entitled to refuse entry into the classroom to any student who is late. FEES The registration fee is to be paid upon registration. The course fee is paid either in full, per semester or by installments. For payments made in full, the payment is due before the first lecture. For payments made by semester, the payment per semester is due on the first day of the semester. For monthly instalments, the first payment is due on the first day of classes while the subsequent payments are due on the first day of each subsequent month.

Should any student have difficulty to pay his / her fees on time, he / she must meet with the (Deputy) Principal to arrange an alternative. Any student who has not settled his / her fees and did not met with the (Deputy) Principal will not be allowed to attend classes or sit for an examination. Olympia Business School Page 6 School Of Business & Marketing Industrial Relations CONTACT TIME Full-time The duration of the classes on 12 weeks. Contact time consists of 1 1/2 hours of lecture and 1 1/2 hours of tutorial per week. Part-time The duration of the classes is 12 weeks. Contact time consists of 1 ? hours of lecture per week.

For each hour of contact, the student is expected to spend at least 2 hours of unsupervised work, be it individually or in-group. Olympia Business School Page 7 School Of Business & Marketing Industrial Relations THE ACADEMIC TEAM At the beginning of the first lecture, please fill-in the following: • • Your Lecturer is The lecture takes place on the room . . between and in • • Your Tutor is The tutorial takes place on room . . between and in The lecturer and tutor are always there to help you. You are advised to consult them on a continuous basis. • • Your Class Lecturer is Your Class Lecturer consultations take place on in room • . between and The Lecturer-in-Charge of the School of Business & Marketing in your centre is . • The (Deputy Principal is . Olympia Business School Page 8 School Of Business & Marketing Industrial Relations SUBJECT PLANNER INDUSTRIAL RELATIONS WEEK 1 2 3 4 5 6 7 8 9 10 11 12 DATE TOPIC An Overview of Malaysian Industrial Relations The Employment Laws I The Employment Laws II The Law on Occupational Safety & Health Trade Union I Trade Union II Collective Bargaining I Mid Semester Examination Collective Bargaining II Trade Dispute & Industrial Actions The Industrial Court Industrial Discipline FINAL EXAM

Olympia Business School Page 9 School Of Business & Marketing Industrial Relations WEEK 1 Subject Objective : : • • • • • • An Overview Of Malaysian Industrial Relations Understanding what is Industrial Relations; Describing the Industrial Relations System : Unilateral, Bilateral and Tripartite system; Identifying who needs to study Industrial Relations; Realizing the influence of International bodies; Government departments and agencies; Industrial Court Textbook(s): Malaysian Employment Law and Industrial Relations by Maimunah Aminuddin, 2nd ed, 1990 Chapter 1 Page No. 1 – 15

Reference Books & Journals 1. 2. Industrial Relations in Malaysia Law & Practice by Dunston Ayadurai, 2nd Edition 1996 Malaysian Newspaper Olympia Business School Page 10 School Of Business & Marketing Industrial Relations Tutorial Questions 1. How far would it be correct to argue that the incidents of industrial conflicts is dependent on the presence of a positive legal framework assigned principally to regulate the actions of employers and trade unions. 2. Conflicts are not necessarily good or bad but must be evaluated in term of its individual and organizational function and dysfunction. Discuss. . Suppose you’re the HR Manager and are having the following problems. For each problem, which government agency would you turn to for assistance? a) An employee complains that the union will not allow members to speak up at the local union’s meeting. b) The company and the union are deadlocked over the term of a new labour agreement. Self Assessment Questions 1. 2. 3. 4. Who are the parties involved in the industrial relations system? Malaysia has a tripartite system of industrial relations. What does this mean? What is the role of the Ministry of Human Resources in the industrial relations system?

List the major labour laws. What is the purpose of each? Which department of the Ministry of Human Resources is responsible for enforcing each of these laws? Olympia Business School Page 11 School Of Business & Marketing Industrial Relations WEEK 2 Subject : The Employment Laws I Objectives : • • • • • • Understanding the Malaysian Employment Act; The Enforcement of Employment Act; Describing the functions of Labour Court; Determining the issues covered by the Employment Act; Learning what is a Contract of service, Written and Oral Contracts; Duration of the Employment Contract;

Textbook(s): Malaysian Employment Law and Industrial Relations by Maimunah Aminuddin, 2nd ed, 1990 Chapter 2 Page No. 18 – 27 Reference Books & Journals 1. 2. Industrial Relations in Malaysia Law & Practice by Dunston Ayadurai, 2nd Edition 1996 Malaysian Newspaper Olympia Business School Page 12 School Of Business & Marketing Industrial Relations Tutorial Questions 1. 2. 3. 4. 5. Should industry conflict be regarded as inevitable in an industry society? Why? What are the causes of industrial Conflicts? Evaluate the Contribution of the Human Relations school to an understanding of industrial Conflict. Over – emphasis on strikes results in an inability to detect the symptoms of Conflict other than strike symptoms and inappropriate policy Prescriptions’’. Discuss. Why are some industries more strike – prone than others? Self Assessment Questions 1. 2. 3. 4. What is the main purpose for the existence of the Employment Act? Which workers are protected by the Employment Act? What are the main matters that can be settled by the Labour Court? What is Contract of service? Olympia Business School Page 13 School Of Business & Marketing Industrial Relations

WEEK 3 Subject : The Employment Laws II Objectives : • Understanding the process of termination of contract, Notice; • Realizing Payment of Wages: Wage periods, Advances deductions, Truck system; • Explaining the employment of Women • Describing the Children and Young Persons Act, 1966 Textbook(s): Malaysian Employment Law and Industrial Relations by Maimunah Aminuddin, 2nd ed, 1990 Chapter 2 Page No. 29 – 41 Reference Books & Journals 1. 2. Industrial Relations in Malaysia Law & Practice by Dunston Ayadurai, 2nd Edition 1996 Malaysian Newspaper

Olympia Business School Page 14 School Of Business & Marketing Industrial Relations Tutorial Questions 1. An industrial relations Professor once stated: “ The Union business agent is the most important member of your personnel department”. Comment. 2. What is the proper role or first-line management in Contract administration? How can the first-line supervisor be made more effective in handling Grievance? 3. From the perspective of society, is there an argument to be made in favor of strikes? Is a strike ever in the public’s best interests? 4.

Why should governments be regarded as important party to any system of industrial relations? 5. Explain the machinery, which the Federal Government has established for regulating the conditions of employment of its own employees? 6. “Public service employment can never be fully depoloticised”. Discuss the industrial relations implications of this statement. Self Assessment Questions 1) 2) 3) Explain the process of Contract termination. Outline the termination benefits. Describe the Children and Young Persons Act Olympia Business School Page 15

School Of Business & Marketing Industrial Relations WEEK 4 Subject : The Law on Occupational Safety and Health. Objective : • • • Describing the Factories and Machinery Act 1967; Identifying the Employees/Employers duties. Understanding the: – Notification of Accident and Occupational Diseases; – Improvement and prohibition Notices; Describing the: – Employees Social Security Act 1969; – Workmen’s Compensation Act 1952; • Textbook(s): Chapter Malaysian Employment Law and Industrial Relations Maimunah Aminuddin 3 Page No 43 – 55 Reference Books: 1. 2.

Industrial Relations in Malaysia Law & Practice by Dunston Ayadurai Second Edition 1996 Malaysian Newspaper Olympia Business School Page 16 School Of Business & Marketing Industrial Relations Tutorial Questions 1. 2. What are the reasons behind its (Occupational Health and Safety) becoming a more prominent issue in the 1980’s? In 1979, Gunningham and Creighton wrote that for Unions “Safety comes a good third behind wages and the maintenance of employment, and such attention as it does get is largely concentrated on compensation rather than prevention:.

Is this still an accurate assessment of Union priorities? Do employees and their Unions have a role to play in promoting health and safety? 3. Olympia Business School Page 17 School Of Business & Marketing Industrial Relations WEEK 5 Subject: Objectives: • • • • • • Introduction to Union Movement; Explaining the legal definition of trade union; Find out why do workers join trade union? Realizing the Trade Union objectives; Illustrating the right to form and join a trade union; Explaining the registration process of a trade union; Trade Union 1

Textbook(s): Chapter Malaysian Employment Law and Industrial Relations Maimunah Aminuddin 4 Page No 57-76 Reference Books: 1. Industrial Relations in Malaysia Law & Practice Dunston Ayadurai Second Edition 1996 2. Malaysian Newspaper Olympia Business School Page 18 School Of Business & Marketing Industrial Relations Tutorial Questions 1. 2. 3. 4. In your own words, explain why Unions usually file the most grievance? How are local and national unions effected by International Competition? When an employee has a Complaint about a Management action in a unionized operation, how does he or she go about resolving us?

What factors have led to the formation of employer associations? Self Assesment Questions 1. 2. 3. 4. 5. 6. Why do workers join trade unions? What are the main implications, which can be deduced from the legal definition of a trade union? What actions can employers take to discourage their employees from joining a trade union? Who can join a union? Who cannot join a union? Comment on the strength of the trade union movement today? Why do employers join unions? Olympia Business School Page 19 School Of Business & Marketing Industrial Relations WEEK 6 Subject: Objectives: •

Trade Union II Identifying the Worker’s Unions; – Number of Unions; – Size of Union; – Types of Unions: In-house Union, National Union and Public union; Explaining the Employer’s Associations; Describing the MTUC, its functions and objectives; Explaining other trade union; – Malaysian Employers Federation functions and objectives; – Malaysia Labor Organization • • • Textbook(s): Chapter(s) Malaysian Employment Law And Maimunah Aminuddin Reference Book & Journals 1. Industrial Relations in Malaysia Law & Practice Dunston Ayadurai, Second Edition1996 2. Malaysian Newspaper Industrial Relations 4 Pages 77-96

Olympia Business School Page 20 School Of Business & Marketing Industrial Relations Tutorial Questions 1. 2. 3. 4. What factors unite and divide the employer associations? Has there been any trend towards wider union involvement in social and political issues? Has the government any real business in interfering with the internal decision making process of trade union? To what extent can government regulations be successful in guaranteeing democracy within unions? Self Assessment Questions 1. 2. 3. 4. What is an in-house Union? Outline the difference between National and Public Union.

What are the functions of the Malaysian Trade Union Congress? Outline the Malaysian Employers Federation objectives. Olympia Business School Page 21 School Of Business & Marketing Industrial Relations WEEK 7 Subject: Lecture Objectives: • • • • • Understanding what is a Collective Bargaining; Find out the objectives in conducting a Collective Bargaining; Describing the Union Bargaining Strength: Recognition; Financial strength; Solidarity; Explaining the recognition and de-recognition procedures; Identifying the collective bargaining procedure and process; Collective Bargaining 1

Textbook(s): Chapter Malaysian Employment Law and Industrial Relation Maimunah Aminuddin 5 Page No 99-111 Reference Books & Journals 1. 2. Industrial Relations in Malaysia Law & Practice, Dunston Ayadurai Second Edition 1996 Malaysian Newspaper Olympia Business School Page 22 School Of Business & Marketing Industrial Relations Tutorial Questions 1. GPL is a company employing between 100 and 200 skilled engineers and electricians backed by about twice as many unskilled and semi – skilled workers in each of 4 major urban areas. The head office employs about 300 clerks and three’s a substantial transport section.

About half the drivers and no craft workers are members of union called General Transport Union and similar proportion of all the other workers are member of other union. GPL has been growing fast. Its management has hitherto determined salaries and condition of work without actually involving union officials and although in the past, there have not been any labour problems. There have been a number of occasions in the last year or when a dispute has only just been avoided. Recently management was approached by General Trade Union official with a view to obtaining sole negotiating rights.

Assuming GPL grants sole negotiating to the GTU, you’re required to a) Give 4 benefits, which may result from such representative system. b) Give 4 benefits of collective bargaining in such a situation. 2. Outline and explain unfair labour practiced by: a) Unions; b) Management. 3. Explain the main industrial actions that can be taken by a trade union. 4. What are guidelines for an effective negotiation? Self Assessment Questions 1. What is a collective bargaining? 2. What are the different between unilateral and bilateral decision making? 3. Describe the step in the collective bargaining process? . What factors influence the outcome collective bargaining? Olympia Business School Page 23 School Of Business & Marketing Industrial Relations WEEK 8 MID SEMESTER EXAM Olympia Business School Page 24 School Of Business & Marketing Industrial Relations WEEK 9 Subject : Collective Bargaining I Objective : i Find out the characteristic of offective negotiators; – Communication skills; – collections of information; – Deciding objective, strategies and tactic; i Understanding Collective Agreement; i Identifying Items Commonly Found in Collective Agreement; i Public Sector;

Textbook(s): Chapter Malaysian Employment Law and Industrial Relation Maimunah Aminuddin 5 Page No 113 129 Reference Books & Journals 1. Industrial Relations in Malaysia Law & Practice, Dunston Ayadurai Second Edition 1996 2. Malaysian Newspaper Olympia Business School Page 25 School Of Business & Marketing Industrial Relations Tutorial Questions 1. Since labor–management co–operation is important to the economic success of the business and eventually to the union ability to negotiate wage gains and other benefits for members, what are some of the ways you could recommend improving labor management co- opera 2.

Describe the major incidences of strike? 3. Assume your company has properly conducted compensation program. If several employees ask you why they receive different hourly pay rates even though they perform the same job, how will respond? Self Assessment Questions 1. What are the characteristics of an effective negotiators? 2. Describe the item commonly found in the collective agreements. 3. Why is the wage – setting system in the sector public sector different from that in the private sector? Olympia Business School Page 26 School Of Business & Marketing Industrial Relations WEEK 10

Subject : Trade Disputes and Industrial Action Objective : iUnderstanding the trade disputes; iFind out the different between Picketing , strike; iDescribing the industrial action could be taken by the employer; iExplaining the settlement of trade disputes: – Direct negotiations; – Conciliation; – Arbitration Textbook(s): Chapter Malaysian Employment Law and Industrial Relation Maimunah Aminuddin 6 Page No 131 – 154 Reference Books & Journals 1. 2. Industrial Relations in Malaysia Law & Practice, Dunston Ayadurai Second Edition 1996 Malaysian Newspaper Olympia Business School Page 27

School Of Business & Marketing Industrial Relations Tutorial Questions 1. Should all workers have the right to strike? (Consider special groups such as doctors, post office staff and banking employees) 2. The Union of Transport Employees (UTE) had for the last six months been negotiating with XYZ Bus Company on proposals for their third collective agreement. However, after five meetings the company refused to continue negotiations. Advise the union representatives what actions they might take to solve this problem. Make sure you inform them of the possible consequence of their actions. 3.

What are the economic consequences of strike action? 4. In case of impending strike action by employees what preparations might an employer make? Questions available for self-assessment: 1) 2) 3) 4) 5) 6) 7) 8) 9) What is a trade dispute and what causes such disputes? List the types of industrial action that may be taken by workers Are a picket and a demonstration the same? What is a lock-out? How can an employer continue production once a strike has been called? Under what conditions would a strike be illegal? What is the role of the Ministry of Human Resources in setting labor disputes?

Explain the difference between voluntary and compulsory arbitration. What are the differences between conciliation and arbitration? Olympia Business School Page 28 School Of Business & Marketing Industrial Relations WEEK 11 Subject: Objectives: • • • • Understanding the structure and proceedings of the Court, Awards of the Court; Find out what is unfair dismissal claims; Explaining the code of conduct for Industrial Harmony Describing the cognizance of Collective Agreements. The Industrial Court Textbook(s): Chapter Malaysian Employment Law and Industrial Relation Maimunah Aminuddin 7 Page No 155 – 176

Reference Books & Journals 3. 4. Industrial Relations in Malaysia Law & Practice, Dunston Ayadurai Second Edition 1996 Malaysian Newspaper Olympia Business School Page 29 School Of Business & Marketing Industrial Relations Tutorial Questions 1. For a trade dispute that will be settled by Industrial Court to exist, the employer or employee concerned must be represented by the union. However, there are two exceptions to this rule. What are those exceptions? Why has there been a recent trend towards co-operation between Union/Management? Outline the Industrial actions that can be taken by Employers. . 3. Questions for self-assessment: 1. 2. 3. 4. 5. 6. 7. What is the main purpose for having an arbitration system? What is the main function of the Industrial Court? Describe the structure of the Industrial Court? Who can represent the parties during Court proceedings? Can Court awards be appealed against? Describe the type of cases the Court has the jurisdiction to hear. What type of cases can be referred direct to the Court by the parties concerned? Olympia Business School Page 30 School Of Business & Marketing Industrial Relations WEEK 12

Subject: Objectives: • • • • Find out the importance of Disciplinary Action Understanding the Disciplinary Actions, Disciplinary Action for Unsatisfactory Performance Illustrating the Guidelines for an effective Disciplinary Action Explaining Industrial court Award and unfair dismissal Misconduct / Industrial Discipline Textbook(s): Chapter Malaysian Employment Law and Industrial Relation Maimunah Aminuddin 8 Page No 177 – 193 Reference Books & Journals 5. 6. Industrial Relations in Malaysia Law & Practice, Dunston Ayadurai Second Edition 1996 Malaysian Newspaper Olympia Business School

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