Tuesday, April 29, 2008

Write-ups on Trade Unions (Part 1)

Malaysian trade unions of both employers and employees and their affairs are governed by federal law, viz. the Trade Union Act 1959 (which is referred to as TUA) and, to some extent, the Industrial Relations Act 1967 (which is referred to as IRA).

The right to form unions and to engage in their lawful activities are embodied in the Industrial Relations Act 1967 rather than the TUA. In particular, section 4(1) of the IRA declares:

"No person shall interfere with, restrain or coerce a workman or an employer in the exercise of his rights to form and assist in the formation of and join a trade union and to participate in its lawful activities"

That right is enjoyed by both employers and employees.

Why do Workers Join Trade Unions?

There are 3 main reasons which explain why workers form and join trade unions:-

  1. to improve their economic situation;
  2. to ensure their rights are protected; and
  3. for social reasons
The Economic Motive
Workers join unions to improve their terms and conditions of service, i.e., their pay and other benefits. Alone, the individual worker has limited bargaining power compared with that of the employer. He is easily replaceable. If he is not satisfied with what is offered by his employer, he is powerless in the bargaining process. It is only when workers join together and form trade unions that they acquire strength. Workers who associate themselves with the lawful activities of a trade union are given protection under the law. This gives them the power to effectively bargain with the employer for better terms and conditions.

Protection of Rights
By joining trade unions, workers also expect unions to protect them against discrimination by their employer. In some organisations, management may try to discriminate against a group of workers or an individual. Workers also needs protection from their unions from exploitation and unfair treatment at work. The union therefore acts as a 'watch-dog' over its members, and will take steps to rectify instances of unfair treatment. One of the most important rights which unions try to protect is job security for the workers. Without his job the worker cannot survive, so unions will try to protect from retrenchment and unfair dismissal.

Social Reasons
Workers may be influenced to join a trade union to show solidarity with their fellow workers and to be protected. In cases where many other workers in an organisation already belong to a union, it is quite likely that the new recruit will also join to show his support for his colleagues' activities. Some may join a trade union because they have the attributes of a leader and they see opportunities to exercise leadership qualities in the union hierarchy.

'Managers are people who do things right, while leaders are people who do the right thing'
~~~ Warren Bennis, Ph.D ~~~

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