MALAYSIAN INDUSTRIAL RELATIONS
& EMPLOYMENT LAW
Author: Maimunah Aminuddin
Chapter Five
Trade Unions
Malaysian Industrial Relations & 1
Employment Law
Preview
Reasons for joining a trade union
Purpose of trade unions
Definition of “trade union”
Membership of a trade union
Registration of trade unions
Control of trade unions
Current status of trade unions
The MTUC and the MEF
Malaysian Industrial Relations & 2
Employment Law
Reasons for joining a trade union
Employees join trade unions:
To improve their economic situation
To ensure their rights at work are protected
For social reasons
Malaysian Industrial Relations & 3
Employment Law
Purpose of trade unions
To promote the interests of their members
and working people in general
To promote employee-friendly legislation
To promote the economic, social and
educational welfare of their members
To protect the rights of their members at
the workplace
Malaysian Industrial Relations & 4
Employment Law
Definition of trade union
The legal definition of “Trade Union” in the Trade
Unions Act has implications:
Membership of a union is limited to workers
working in Peninsular Malaysia, or Sabah or
Sarawak
Unions with membership from a variety of
industries not permitted
Employers can form unions
Malaysian Industrial Relations & 5
Employment Law
Membership of a trade union
Trade unions of workers
Membership open to:
Employees over age of 16
Employees working in the relevant trade,
occupation or industry
Public sector workers can only join a union whose
members work in the same Ministry or Department
Statutory body employees can only join an in-
house union
Malaysian Industrial Relations & 6
Employment Law
Membership of a trade union, cont.
Police, Armed Forces and Prison service
employees canNOT join any trade union.
Malaysian Industrial Relations & 7
Employment Law
Membership of a trade union, cont.
Managers, Executives, Confidential Staff and
Security Staff can only join a union whose
members are in the same category.
Malaysian Industrial Relations & 8
Employment Law
Registration of a trade union
All trade unions must apply to be registered
within one month of formation.
Registration is controlled by the Director
General of Trade Unions (DGTU), Ministry of
HR.
DGTU has extensive powers to register,
reject an application and de-register an
existing union.
Malaysian Industrial Relations & 9
Employment Law
Control of trade unions
Other than registration, unions activities are
controlled through:
Limitations on use of union funds and need to
submit audited annual accounts to DGTU
Rules relating to who can be elected as a union
executive officer
Rules relating to who can serve as an employee of a
union
Malaysian Industrial Relations & 10
Employment Law
Current status of trade unions in
Malaysia
Number of unions steadily growing
Number of members increasing
Density reducing
Most unions have less than 500
members
Two types of union – national and
in-house
Malaysian Industrial Relations & 11
Employment Law
Key players other than employee
TUs
Employers’ Associations:
The Malaysian Trades Union Congress
The Malaysian Employers Federation
Malaysian Industrial Relations & 12
Employment Law
Key players other than employee
TUs, cont.
Employers’ Associations
Some employers have formed and joined a
trade union, e.g.:
MAPA
MCBA
AIE
Malaysian Industrial Relations & 13
Employment Law
Key players other than employee
TUs, cont.
The Malaysian Trades Union Congress (MTUC)
The MTUC is NOT a trade union. It is
registered under the Societies Act.
The MTUC’s members are trade union from
a variety of industries.
The MTUC speaks on behalf of unions and
workers on issues related to the welfare of
workers.
Malaysian Industrial Relations & 14
Employment Law
Key players other than employee
TUs, cont.
The Malaysian Employers Federation (MEF)
The MEF is NOT a trade union.
The MEF speaks on behalf of employers.
The MEF carries out research.
The MEF advises its members on
employment related issues.
Malaysian Industrial Relations & 15
Employment Law
Review
Reasons for joining a trade union
Purpose of trade unions
Definition of “trade union”
Membership of a trade union
Registration of trade unions
Control of trade unions
Current status of trade unions
The MTUC and the MEF
Malaysian Industrial Relations & 16
Employment Law
