CHAPTER TWO

THE HISTORY AND CURRENT STATE

OF TRADE UNIONISM IN MALAYSIA 1
 Trade Union
• A union is an organization that represents employees
interests to management on issues such as wage
negotiation, disciplinary rules and working
conditions.
• It is an organization which consists wholly or mainly
of workers of one or more descriptions.

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 Trade Union Legislation
• The main legislation governing trade union in
Malaysia is the Trade Union Act 1959 and the
relevant subsidiary legislations passed thereafter.

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 Definition of Trade Union
• Section 2 of TUA 1959:
 ‘Trade Union’ or ‘Union’ as any association or combination
of workmen or employers, being workmen whose place of
work in West Malaysia, Sabah, or Sarawak, or employers
employing workmen in West Malaysia, Sabah or Sarawak:
a) Within any particular establishment trade,
occupation or industry or within any similar trades,
occupation or industries
b) Whether temporary or permanent…….

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 Definition of Trade Union
c) Having among its objectives one or more of the
following:
i. regulation of relations between workmen and employers for the purpose
of promoting good industrial relations between workmen and employers,
improving working conditions or enhancing their economic and social
status or increasing productivity,
ii. regulation of relations between workmen and workmen or between
employers and employers.
iii. representation of either workmen or employers in trade disputes.
iv. conducting of, or dealing with, trade disputes and matters relating
thereto, or
v. promotion or organization or financing of strikes or lockouts in any
trade or industry or the provision of pay or other benefits for its members
during strike or lockout.

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 Implication of Definition
The legal definition of “Trade Union” in the Trade
Unions:

1. A trade union need not be called a union.

2. Membership of a union is limited to workers
working in Peninsular Malaysia, or Sabah or
Sarawak.
3. Unions of a general nature are not permitted.
4. Employers and employees both have the right to
form and join unions but must be separated from
each other.
5. Must conform to all legislative requirements of a
trade union.
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 Historical Background

• First emerged in 1920s with the development of

estates and mines.
• 1920s onwards PKM, deliberately set out to
develop the labor movement and encouraged
unskilled worker to unionize.
• The aggressive activity of the unions led
employers to exert pressure on the colonial
government to introduce laws which would curb
and restrict the unions.
• First law relating to trade union were
implemented in 1940.
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 Historical Background
• In 1946, two steps in response to increased union
activities:
o Trade Union Adviser Department was set up with the
appointment of a Registrar of Trade Union.
o Trade Union Enactment 1940 was passed:
 All trade union had to be registered.
 Federation of trade unions could only be formed by unions
in the same industry.
 Union officer had to have been employed for a minimum of
3 years in the industry which they represented.

• Intended to limit PKM involvement within the

trade unions, restrict their size and power, and to
control the union movement. 8
 Historical Background
• On June 1959, the Trade Union Ordinance 1959
which replace Trade Union Enactment and was
prepared in consultation in the National Joint Labour
Advisory Council. The Ordinance were extended to
Sabah and Sarawak in 1965 following the formation
of Malaysia
• All existing trade unions were required to apply for
registration.
• After its revision in 1981, the Ordinance was
renamed the Trade Union Act 1959.
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 Elements of ‘Trade Union-ness’
1. There is an organization- not just group of
individuals.
2. The organizations exists to represents its members
to employers, the press, the government and the
public.
3. Its primary interests are in the terms and conditions
of employment of its members.
4. The organization is not controlled by the employers.
5. The organization is prepared to bargain collectively
on behalf of its members with the employers.
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Services provided by Trade Union
1. Negotiations ie collective bargaining.
2. Representation – where members face difficulties
at work, they can seek their trade union
representative to sort out the issue with the
employer.
3. Information and advice such as advice on staff
entitlements.
4. Education of workers through courses, seminars
etc.

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 Reasons for joining a trade union
• Economic motives.
– Employees join union to improve their terms and
conditions of service.
– Unity gives employees the collective strength to negotiate
for better terms from employer and give them a voice to
express their needs to the government.
• Protection of rights.
– Employees expect union to protect their rights, to protect
them from exploitation and unfair treatment at work.

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 Reasons for joining a trade union
• Social needs.
– Employees may be influenced to join to show solidarity
with their fellow workers.
– There may be intense peer pressure to become a member,
particularly if the union is at a crucial stage of applying for
recognition.

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Reasons why employees decided NOT
to join Unions
 Satisfied with terms and conditions of
employment.
 Fear of discrimination by employers.
 There is already other employees represent
for them.
 Ineffective leader represent the employees.
 Mindset of young workers
• More educated and know about their rights.
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 Membership of a Trade Union
Who Can Join A Union?
• According to the definition of TU, a person who is
above the age of 16 is eligible to apply to join a TU
which is relevant to his trade, occupation or industry.
• Under the age of 18 are restricted in their union
activities – not entitled to vote on:
 Strikes and lock-outs and all related matters
 The imposition of levy
 Dissolution of the trade union or of the federation with
which it is connected
 Amendment of the rules of the trade union

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 Membership of a Trade Union
• Under the age of 21 are not eligible to be elected as
officers of the union unless:
 Bona fide (genuine) workers
 Over the age of 18
• Public sector – can only join unions which represent
workers in the same occupation, department, ministry,
body or authority.
• Police, Prison Service, Armed Forces and those in
confidential or security work- not allowed to join
unions at all.
• Professional and ,managerial group in the public
sector- not allowed to join unions unless they are
exempted by the Chief Secretary to the government.
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Employers’ Attitudes to Unions
 Conflict or open hostility
 Employer consider unions to be a “third party”
intervening in the employer-employee relationship.
Employer will openly inform the workers that they
would rather close down their business than allow
union interference in the running of their business.
 Controlled hostility
 Employer recognize that employees have the right to
form and join unions. However discreet attempts are
made to discourage from joining and being active in a
union.

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Employers’ Attitudes to Unions
 Accommodation
 Employer is prepared to compromise with the union ,
tolerate it and be as reasonable as possible
 Cooperation
 Management work closely with the union to promote
the welfare of the organization.

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 Creating a Non-union
Environment
There are some positive steps to reduce or
eliminate the workers from joining unions:
 Pay higher wages
 Give better benefits
 Involve employees in all levels of decision making and
effectively implement an open-door policy
 Offer training, development and a measure of security
of tenure
 Develop a climate of trust and loyalty in the
organization.

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