MALAYSIAN INDUSTRIAL
RELATIONS & EMPLOYMENT LAW
Author: Maimunah Aminuddin
Chapter Five
Trade Unions
Malaysian Industrial Relations &
Employment Law
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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 &
Employment Law
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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
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Employment Law
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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
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Employment Law
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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
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Employment Law
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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 inhouse union
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Employment Law
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Membership of a trade union, cont.
Police, Armed Forces and Prison service
employees canNOT join any trade union.
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Employment Law
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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.
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Employment Law
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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.

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Employment Law
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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
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Employment Law
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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
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Employment Law
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Key players other than employee
TUs
Employers’ Associations:

The Malaysian Trades Union Congress

The Malaysian Employers Federation
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Employment Law
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Key players other than employee
TUs, cont.
Employers’ Associations
Some employers have formed and joined a
trade union, e.g.:

MAPA

MCBA

AIE
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Employment Law
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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.
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Employment Law
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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 &
Employment Law
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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 &
Employment Law
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