MGT 340 TRADE DISPUTE AND INDUSTRIAL ACTION

PRESENTED BY: GROUP 4

SITI NOR ATIKAH MD AFFENDI HANI ZAHIRAH ZURAINAN SYAZA AQILAH KAMARUDIN FATIN NADRAH BINTI RAMLI WAN RITAELFERA

Introduction of Industrial dispute.

Disputes with your workforce and/or their representatives - and any resulting industrial action - are costly and damaging to both your business and workers alike. Therefore, you should seek to avoid any conflict with your workforce arising in the first place. However, if conflict does arise, you should have procedures in place for resolving the source of the conflict as soon - and as amicably - as possible. This will reduce the financial cost of the dispute, minimize the damage done to employer-worker relations and your business' reputation, and help maintain productivity. This guide gives advice on how to avoid industrial disputes in the workplace. It also explains the different forms of industrial action and the legal issues that may arise if such action is threatened or actually takes place.

Definition of trade dispute by industrial act 1967:any dispute between employers and his workers which is connected with employment or non employment or term of employment or non employment or the terms of employment or the condition of work of any such worker

Industrial Act 1967

These law are fully applicable in Malaysia and provides for the regulation of relations between employers and workmen or employee and their trade union and the prevention and settlement of trade disputes. This act emphasizes on direct negotiation between employers and workmen or employees and their trade unions to settle their differences and to regulate their collective relationship and to settle any dispute arising there from through their own effort and through mutually agreed procedures with minimal government intervention. Where provides the procedure relating to submissions of claims for recognition and scope and representation of trade union and collective bargaining.

Cont
Under this Act, matters relating to promotion, recruitment, dismissal, transfer, retrenchment, reinstatement and allocation of duties and prohibition of strikes and lockouts over any of these matters are not allowed to be included in the proposal for collective bargaining.

Where direct negotiation between employers, workmen or employees and their trade unions fails, this Act provides for speedy and just settlement of trade disputes by conciliation or arbitration.
This Act provides the power to the Ministry of Human Resources to intervene and to refer at any stage any trade dispute to the Industrial court for arbitration.

Causes of dispute
A difference of opinion between a union and an employer as to the appropriate terms and conditions of service for the workers. An individual who has a grievance and is represented by his union and who has exhausted the grievance procedure without getting satisfactory result

A difference of opinion as to the understanding of collective agreement or industrial court award

the non-implement of an agreement or award

Sample procedure grievance

PURPOSE- It is desire of both parties to this agreement that grievance arising between an employee and the company or between the union and the company be settled as equitably and as soon as possible.

DEFINITION-A grievance shall be defined as a reasonable and legitimate complain by the employee concern which he brings to the attention of his immediate supervisor and which is subsequently not settled to the satisfaction of the employee.

PROCEDURE

PROCEDURE
Step 1 flow grievance in writing through the hierarchy of management up to HR manager

Step 2- flow in grievance in writing to the general manager or deputy.

Step 3- flow in grievance in writing to the company. Company will offer a meeting. Step 4-if the matter unresolved after this meeting, refer to the dispute settlement under provisions of act.

Sample Grievance Procedure

The following shall be considered as the XYZ Apartments official grievance procedure. Management staff and residents of this housing complex shall be expected to abide by the terms and conditions outlined herein.
a. When a tenant has cause to grieve due to inappropriate treatment or a dispute with another tenant or with management staff, the grievance must be submitted in writing. The grievance shall outline the problem, date of occurrence, any person(s) involved, and be dated and signed by the resident. The letter should be hand-delivered to the office during normal business hours, if possible, for the quickest resolution. Issues considered as an emergency or life threatening may be addressed to management by telephone, but residents should consider telephoning the Police instead. Management will review the grievance letter and clarify any missing or ambiguous issues with the resident. Within 72 hours, management will investigate the complaint to determine the factual elements of the grievance and make a determination of the best approach to deal with the grievance. The resident filing the grievance may be called upon to attend a conciliation meeting with management staff and the other resident(s) or person(s) outlined in the grievance letter. The outcome of the grievance will be documented by management and maintained as a part of the office records. Dissatisfaction with managements handling of a grievance should be voiced to management and the resident should request a me eting with the owner or owners representative (other than management staff).

b. c. d. e. f. g.

Preserving Industrial Harmony.

Have several method have to be done; Providing a training for plant union leaders Involving union leaders and members in company decision-making Training supervisors to work together with union representatives Providing the union with certain physical facilities.

INDUSTRIAL ACTION BY EMPLOYERS

LOCK-OUT Define as ;
Employer refuses employment on workers until the dispute settle or refusal to continue to employ any no. of workers. Done in view force worker to accept terms of work. Procedure are same as those for a strike. Ultimate weapon is the total closure of a factory and plant. The alternative is to fight a strike by keeping firm operating.

Now.i proceed to ATIKAH for the rest contents

Now.i proceed to ATIKAH for the rest contents

Direct negotiation

Meditation

Settlement

Arbitration

Conciliation Board of inquiry Fact finding machinery Committee of investigation

 Ideal method to enable both parties to come to acceptable compromise No involvement by outsider Smooth implementation without causing harm to the relationship Mature and harmonies to solve trade dispute Voluntary negotiation is the first course of action under IRA 1967

 A methode seldom use in solve trade dispute Usually will use the third person which normally not from government. A person that being consider by both parties as unbiased and impartial and command inadequate respect and trust. Often a politician or other local person of standing in the communities. Difficult to identify that kind of person which being acceptable by both parties.

 Only mean of resolving a dispute when negotiation and intervention by an official of the department is unsuccessfully. Impartial third parties granted authority to resolve the dispute by studying the information submitted by both side and arrived at a judgment. the IC is empower to arbitrate trade dispute

 Trade dispute resolution through assistance given by neutral third party. Conducted by the officer from the Department of Industrial Relation where the officer could meet both parties individually or jointly. Assist parties to come to acceptable compromise. Officer serve as kind as technical consultant with no authorities but can provide advice. Average success usually in range of 70 80 % Upon request by the disputant or intervention.

 To ease the resolution of trade dispute the IRA 67 provide two vehicle which are the board of inquiry and the community of investigation to perform this task. Appointed by MHR Conduct investigation and not take step to sole the dispute. Committee member-study the cause the trade dispute and make recommendation to MHR. Member of board conduct this activities to submit to House of Representation in Parliament.

Now.i proceed to ATIKAH for the rest contents

Now.i proceed to ATIKAH for the rest contents

JURISDICTION
DEFINITION as the authority given by law to a court to try cases and rule on legal matters within a particular geographic area or over certain types of legal cases UNFAIR DISMISSAL CLAIMS Most of the industrial court cases under IC involve the dismissal of employees, who claims for reinstatement under act 20 of the Industrial Relation Action (IRA). On the average, about 45% of cases of trade dispute claims has been settled and the rest are notified to the MHR who may refer the cases directly to the Industrial Court The workmen who claims their dismissal as unjustified, they might claims for: -> reinstatement -> dismissal without just cause and excuse -> retrenchment

Table 1; Claims for Reinstatement, 1995 2005

YEAR NO. OF CLAIMS PERCENTAGE OF TOTAL AWARDS (%)

1995 1996 1997

439 426 453

80 70 73

1998
1999 2000 2001

500
485 507 814

72
67 70 80

2002
2003 2004 2005

884
844 1719 2163

81
82 91 90

REINSTATEMENT
WHAT IS IT????? Most of the courts cases concern the dismissal of employee and
allowed to lodge a claim for those who has been dismissed for reinstatement with the Director General of Industrial Relation within 60 days of his dismissal

WHO IS DESERVED???? Only who has declared as a workman through the contract
deserved to claim for reinstatement. If not, the IC is not empowered to hear his/her claims at all.

THREE TEST FOR DECIDING HE/SHE IS WORKMAN OR NOT??!!

Under the IRA: the traditional control test the organization or integration test the mixed or multiple test

DISMISSAL WITHOUT JUST, CAUSE AND EXCUSE

HOW?????
when the claimant complaint that his dismissal was unjustified. It will decide whether or not the dismissal was indeed without just or excuse
COURT MAY ORDER REINSTATEMENT OF THE EMPLOYEE SUCH AS HE MUST BE GIVEN HIS JOB BACK WITH ALL PRIVILEGES

THE CLAIMANTS LODGE A REPORT COURT STARTED TO INVESTIGATE

IF FIND THAT THE EMPLOYEE ACTUALLY IS NOT DESERVE TO BE DISMISSED

COURT WILL ORDER THE EMPLOYER TO PAY THE DISMISSED BACK WAGES. THE PROPER PROCEDURE WILL BE FOLLOWED PRIOR TO THE DISMISSAL

IF FOUND THE CLAIMANT DESERVED TO BE TERMINATE

RETRENCHMENT
WHY IT HAPPEN???
- Usually occurred in times of recession or financial downturn WHAT DOES IS IT???

fall within the management prerogative categories and notice as an un bargainable matter however it could create the trade dispute between the union and employer, or a claim for unfair dismissal under section 20 of IRA. Term of benefits come under EA 1995 which is the employee cam claims for the non - adherence for the collective agreement Usually the employer likely to use common principle practices such as last in, first out (LIFO)

SPECIFIC CAUSES OF RETRENCHMENT

Relocation Relocation of company of company

Rise Rise production production cost cost

causes causes

Sale Sale of company of company

Closure Closure of company of company

CODE OF CONDUCT FOR INDUSTRIAL HARMONY

is an agreement made between the Ministry of Human Resources It laid down guidelines in a number of whole areas in an industry and it is acceptable by the Industrial Court as an ideal practice for achieving greater industrial harmony The Code lists 50 specific industrial relations practices under four broad areas for cooperation which are usually namely as :

TRADE DISPUTE IN JURISDICTION

Arbitration by the IC on trade dispute covers
An employee with a grievance and it is represented by his union or;

A union, covering employers in a company, undertakes a disputes with the employer over the employment terms and condition.
The majority of the cases are due to the breakdown in collective bargaining between the union and the employer. According to the history of passed cases, the issues that commonly involved are:

ISSUES OF TRADE DISPUTE INVOLVE

COMPLAINTS OF NON - COMPLIANCE

Cover the non adherence to a collective agreement or a Court awards Complains turned to increase during financial crisis where the employer unable to pay the wages and salary increments and no bonuses given at all In award no.156 in 1987, the IC has reluctant to the permit variations due to inadequate ground but as the company survival is at slake, the consideration from IC will be given

THATS ALL FROM US..HOPE WE HAVE SHARE SOME BENEFICIAL KNOWLEDGEMENTS WITH YOUTQ SO MUCHHHH