TOPIC 5

RECOGNITION OF TRADE
UNIONS
Learning Outcomes
At The End Of This Lecture, Student Should Be Able To:
Meaning of recognition
Scope of recognition
Types of recognition
Requirement of recognition
Procedures of recognition
Problems in the recognition process
Effects of recognition
 INTRODUCTION

• Recognition is related to reasons why employees form and join trade union namely:
i.To protect themselves from any exploitation by their employers.
ii.To improve and obtain better terms and conditions of service.
• These can be done throughgrievance processing and collective bargaining
• Therefore, a trade union must be recognized by the employer before they can do so –
as a pre requisite.
 MEANING OF RECOGNITION
Maimunah Aminuddin says,
• “Recognition means an individual employer is willing to accept the union as a rightful representatives of his
workers. Representation is so important in the collective bargaining process and in the interest of harmonious
industrial relations.”(2007: pg. 148 -49)

General definition;
• “Recognition can be defined as the acceptance of an employer towards a workmen’s union as being representative
of either at least some of his employees or majority of his employees to bargain collectively or as an exclusive
bargaining agent”.

• Recognition is also “the acknowledgement by the employer that a trade union has the right or, the locus stand to
represent part or the whole workforce of the organization in collective bargaining”.

• Unions make application to the employer for recognition.

 WHY RECOGNITION?

• A trade union needs to be recognized by the employer BEFORE collective bargaining

can begin.

• Recognition towards the trade union enable them to act as the representative to
enhance stable and harmonious IR.

• Without proper recognition, a trade union cannot commence contract negotiation with
its employer.
 SCOPE OF REPRESENTATION
• Recognition is related to types of employees’ union namely:
i.White–collar employees’ union
ii.Blue collar employees’ union
Interpretation
i) A Blue–collar union is restricted from seeking recognition in respect of white-collar union.
ii) A white-collar union is restricted from seeking recognition in respect of blue-collar union. (Sec.9 (1), IRA)
•But, IRA 1967 does not provide any resolution of disputes over the status of particular union whether blue or white-
collar.
•It authorizes the DGIR to“…take such steps…to resolve the matter”. (Sec. 9 (1A), (4A) & (5)
•In order to resolve the matter “the DGIR can ask further particulars from parties involved.” (Sec. 9 (4B), IRA)
 PURPOSE OF RECOGNITION
• To grant a locus stand or the right of appearance for the purpose of collective
bargaining with the employer.

• In Malaysia, the main purpose of securing recognition, whether general or limited,

from an employer or a TU of employers is to enable the TU of employees to
commence CB with the employer or its TU on behalf of the workers in the enterprise
or industry.
TYPES OF RECOGNITION
• In considering whether to recognize a TU, an employer is normally guided by certain principles. (Lord
Denning MR)

• “if the members of a union are in minority in a factory, the union may well claim to represent its own
members in cases of individual grievances, But it cannot claim to bargain on behalf of all the workers
in the factory. In such case, the employers may afford the union with ‘limited recognition’ that is
limited to individual grievances.

• But, if the members of a union are in a majority, the union may claim to make representations on behalf
of everyone whether members or not and may claim full bargaining rights on general questions of
wages and working conditions. (general recognition)
 TYPES OF RECOGNITIONS (G & L)
i) GENERAL RECOGNITION (G)

- given to TU where its members represent the majorities of workers at the workplace.

- may be accorded to a TU when it can be proved that its members form the majority of
the workmen with respect of whom the union is representing.
- more than 50.1% workers join the union

i.e: ABC TU may seek general recognition if it has at least 51 members who are being
employed as technical workers by the organization
 IMPLICATIONS OF GENERAL
RECOGNITION
- The union can commence collective bargaining

- It can represent members and non-members

- TU has given the rights to claim, negotiate and discuss with employer on
general problems / issues related to working conditions
(i.e: working hours)
 II) LIMITED RECOGNITION (L)

• Implies that the union is entitled to make representations on individual grievances

and to negotiate on behalf of its members.

• The TU can only claim / ask to represent his own members in cases related to
grievances / personal satisfactions.
• Less than 50% workers join the union
 IMPLICATIONS OF LIMITED
RECOGNITION
• The union cannot commence collective bargaining (only for individual grievances)

• It can represent union members only.

• TU is prohibited to negotiate / bargain in order to help members to solve problems

on behalf of ALL WORKERS at workplace.
 REQUIREMENT OF RECOGNITION

• The union must be legally registered union

• The union must make formal application
• The union must be competent to represent the employees concerned
• The union must be appropriate union to represent the employees concerned
 IMPORTANCE OF RECOGNITION TO A TRADE UNION

i) Both parties may commence collective bargaining

ii) Trade union may set out the proposal for collective agreement on any matters
except on managerial capacity
iii) Trade union has the power to force employer to listen to the union members’
grievances, claims and suggestions.
iv) To represent workers in trade disputes
 ADVANTAGES OF RECOGNITION TO
EMPLOYEES’ UNION
i) Allow workers to invite employer for collective bargaining
ii) Indicate that employers are ready to listen to worker’s opinion
iii) Mechanism for discussion
iv) Hinder / avoid arbitrary action
 HOW THEY DO RECOGNITION?
RECOGNITION PROCESS
TU WRITE TO EMPLOYER EMPLOYER REPLY

POSSIBILITIES CB
1) Employer accord recognition

2) Employer refuse recognition TU REPORT TO DGIR

DGIR carry investigation.

Implications:
i) Inquire TU
ii) Inquire DGTU
iii) Refer to Ministry
3) Employer is applying to DGIR to check
members of TU and TU have to wait

4) Employer ignore claim TU report to DGIR

 PROCEDURES FOR CLAIMING RECOGNITION (REFER TO
THE PROCESS)
i) The claim must be made in writing and in the prescribed form by the union
( Claim for Recognition Form or Form A)

ii) The employer upon whom the claim is served must, within 21 days of its service, either accord
recognition or refuse to accord it.
if the employer does not accord, he is required to notify the union in writing of the grounds for not
according recognition. Sec 9(3)(a)(b) IRA

iii) The employer may also, within 21 days apply to DGIR to

ascertain whether or not the union fulfills the requirements for recognition.
iv) The union may file a complaint in a form of a written report to DGIR if the
employer either refuse to accord or fails to comply with the mentioned
requirements. S.9(4)IRA

v) The DGIR upon receiving either an application form from an employer or a

complaint from union:

a) is authorized to take any step to resolve the disputes

S.9A(1) IRA
b) is also authorized to compel the employer or an
employee to furnish information to resolve the
disputes.
S.9A(2)(a)IRA
vi) If, despite his efforts, the dispute is not resolved, the DGIR is required to
notify the Minister of HR and then, minister of HR is required to resolve it.
S.9(4c), IRA

vii) If the Minister decide that recognition is to be accorded

to the union involved, then the recognition shall seemed to be accorded by
the employer concerned as
from such date as the Minister may specify.
S.9(6),IRA
 PROHIBITION TO RECOGNITION
(S.9 IRA 1967)
• Not all members can apply for recognition, only certain TU which fulfill the requirements
can apply.

• Those who in managerial capacity, executive, confidential capacity may not seek recognition
for collective bargaining.
In order to carry out his function, the DGIR can use his Discretionary power as
follows:

i) Require the TU or the employer to provide the necessary information to

resolve the dispute

ii) Refers to the DGTU for his decision any question on the competence of
the TU of employees to represent the workers concerned.
S.9(4B), IRA
 PROBLEMS IN THE RECOGNITION PROCESS

i) The investigation by employer to check union membership.

- employers show hostility/ aggression response
- employees act negatively

ii) When two or more unions make a claim to represent workers in a workplace.

iii) Employers attitude and reactions in dealing with claim for recognition.
- For e.g. :usually done by calling and questioning employees with claim for recognition and support
(but they not encouraged)

CASE : The United Traction Co Sdn Bhd vs the Transport

Workers Union
 EFFECTS OF RECOGNITION

i) Enables individual members who have grievances or complaint to be represented by the

union

ii) Better terms and conditions on behalf of all workers in the workplace who are eligible to
be members of the union can be negotiated by the union

iii) Employees can be represented by the union in any trade dispute

iv) Employees can take part in the union activities including strikes and pickets

v) Employees can be protected from any exploitation or by their employers.

 THE PROHIBITED ACTS
Several acts are prohibited while a claim for recognition is pending. These prohibitions are applied to both parties.
i) Employers
•Declare lockout
•Termination of an employee’s service
Exception
•Disciplinary actions
Duration
•The prohibition applied until the claim is resolved.
ii) Employees
•Picketing
•Going on strikes
Duration
•Applied during the claim is pending.
•And after the claim has been resolved.
(Sec 10, IRA 1967)