1. TRADE DISPUTE & INDUSTRIAL ACTION
Picketing
Strike & Lock-out
Settlement of Trade Dispute

2. Trade Dispute
Trade dispute is any dispute between an employer and his employees which is connected with the employment or non- employment or the terms of employment of the condition of work of any such worker. (IRA)
Trade disputes are also known as industrial dispute.
An individual’s complaint is called a grievance. Only if the union is willing to represent the worker can a grievance leads to a dispute.
An aggrieved worker will bring his complain to his/her immediate supervisor. A time limit will be provided at all stages of the procedure to ensure no manager sits on the complaint.
If not settled, it will be passed up to a higher level until it is finally either settled or the union takes over as a dispute.

3. Dispute caused by:
individual who has a grievances
difference of opinion & interpretation
deadlock in Collective Bargaining
non-implementation of an agreement or award
A dispute must have employee or employer concerned represented by a union.

4. Two exceptions:
An individual has a complaint concerning alleged interference by an employer in the worker’s right to join a union or not join a union – the union can complain to DG of IR, who if unable to settle problem, can refer to Industrial Court.
Individuals who have a complain of unfair dismissal can request reinstatement by making a report to Dept. of IR. Minister can refer complaint to Industrial Court. Disputes need not be represented by union.

5. Grievances
Grievance is a reasonable & legitimate complaint by the employee
Procedure:
Obtain satisfaction from immediate supervisors / officer then with a union branch official within 5 working days. If not, directly / through union writing a grievances to Personnel Manager
If not settled within 7 working days, the union’s branch can write to the general manager / deputy. Meeting will be held within 10 working days
If not settled after meeting, union can write to the General Secretary within 10 working days of the final meeting. Meeting will be held within 10 working days which attended by senior officials of the Company
If unresolved, both parties agree to refer the dispute for settlement under provision of the IRA

6. Industrial Harmony
Employers always have to be proactive & take positive steps to avoid industrial disputes.
Can do this by providing training for union leaders & members; work together with union representatives, & provide union with physical facilities.
Union leaders can be asked to sit in various committees to show that their input is valued.
Supervisors need to be trained to understand the rights of management & union respectively. They need to be equipped with skills to handle grievances, talk to union site leaders, & ensure workers feel they are valued.

7. Industrial Action by Employees
Pickets and strikes are common. Used as last resort by unions.
Can call in sick or take emergency leave thus causing employer to be short–staffed.
Other creative ways: visiting bathrooms frequently thus reduces output.
Boycott – members refuse to use or buy a company’s product. Encourage other workers, supporters, & public to do the same.
Sabotage.

8. Picketing
Picketing is allow workers to attend at or near their workplace when they have a trade dispute for the purpose of peacefully giving information to the public and other workers and to persuade other worker not to work if a strike has already been declared and must not intimidate anyone, must not obstruct the entrance / exit to the organization and must be peaceful. (IRA, Section 40)
Picket is lawful as long as :
it does not intimidate anybody
does not obstruct the exit and entrance of the workplace or traffic
it is being conducted peacefully

9. Picketing must not frighten anyone, must not obstruct entrance or exit to organization, & must be peaceful.
Only workers directly involved in dispute can participate in picketing – but officers can be there to ensure picketing is carried out according to the law.
Picketers do not require police permit for their activities. They also cannot be dispersed by the police.
It is a legal activity. Used to communicate issues to public & to embarrass employer. Can use prominent display of banners & placards with comments about employers. Can request passers by to show support by pressing their car horns & give information to media.
In most cases, the mere threat of picketing in the mass media is enough pressure to force the employer to respond positively to union demands.

10. Strike
Occurs when a group of workers refuses to work until their employer accepts their demands.
The cessation of work by a body of workmen acting in combination or a concerned refusal or a refusal under a common understanding of a number of workmen to continue work or to accept employment and includes any act or omission by a body of workmen acting in combination or under a common understanding, which is intended to or does result in any limitation, restriction, reduction or cessation of or dilatoriness in the performance or execution of the whole or any part of the duties connected with their employment. (Section 2)
Can also be go–slow, work–to–rule, & a ban on overtime. All are not encouraged by Industrial Court.

11. Strike is defined as the withdrawal of work by a group of employees.
Strike is any stopping of work by a group of workers including any attempts to limit / slow down production on purpose.
Types of Illegal Strike:
a) wildcat strike c) political / general strike
b) sympathy strike d) sit in strike
When strike is illegal:
a) objective is other than furtherance of a trade dispute
b) union is not registered
c) carried out for political purposes
Wild cat strike without taking any ballot or following procedures. Workers make decisions to strike & do so immediately. These are illegal in Malaysia.
Economic Strikes = Strikes over economic issues (e.g., wages)
Unfair labor practice strikes = Strikes over illegal employer actions (e.g., refusal to bargain)
Wildcat strikes = Strikes not approved by the union
Jurisdictional strikes = Strikes in dispute over the ownership of work
Sympathy strikes = Expressions of support for other unions

12. Legal requirement of a Strike:
Workers to go on strike must belong to a registered trade union
Strike must be for the purpose of a trade dispute
Union must carry out a secret ballot (2/3) and must be sent to Director General of Trade Union (DGTU) within 14 days of the ballot
Worker are not allowed to strike under the following conditions:
Consent by secret ballot of 2/3
Before the expiry of the 7 days of cooling period
Secret ballot for the proposed strike has become invalid upon the expiry of 90 days after the date of the ballot
During & after 7 days after the proceeding of a Board of Inquiry which is appointed by the Minister
After a dispute has been referred to Industrial Court by the Minister for arbitration
Over matters pertaining to Managerial Prerogatives
Any matters covered under a valid Collective Agreement
In the public sector, Agong has withheld consent to the references of a dispute to the Industrial Court

13. Workers under category of Essential Service cannot go on strike:
Without giving notice of strike within 42 days before striking
Within 21 days of giving such notice
Before the expiry of the date of strike specified in such
notice
Essential services comprises the following services:
Banking, Electricity, Fire, Port, Postal, Prison, Production of Fuel & Lubricants, Public Health, Radio Communication, Telephone & Telegraph, Water
Public Sector in Chemistry, Civil Aviation, Custom & Excise, Immigration, Marine, Meteorology & Printing
Services connected with the functioning of the Armed forces & Police
Business & Industries connected with the defense & security of Malaysia
Any service in connection with the safety of the employees / establishment

14. Lock-Out
Employer taking action against workers. Employer refuses to allow workers to work until the dispute between them is settled.
Can be declared in response to an illegal strike by workers.
Lock-out is the closing of a place of employment, the suspension of work or refusal by an employer to continue to employ any number of workers employed by him. (IRA, Section 2)
Purpose:
a) force worker to accept the terms & conditions
b) tools to encounter industrial action taken by the employees

15. Settlement of trade dispute
Direct Negotiation
Conciliation
Mediation
Arbitration

16. Direct Negotiation
Ideal method of settling dispute. Both parties are involved. They meet face to face. Compromise can be reached.
There is mutual decision between them without involvement of outsider. Seen as a mature & harmonious way of settling dispute. Encouraged by Industrial Relations Act.

17. Conciliation
Process of arriving at a settlement of a trade dispute with help of a third, neutral party.
It is carried out by officers of Dept. of Industrial Relations.
Can be voluntarily requested by either of disputing parties or DGIR may intervene in a dispute in public interest – requiring parties to attend a conciliation meeting.
This is called “compulsory conciliation”.

18. Compulsory conciliation is common in public utilities & other important industries where public might be inconvenienced if a settlement is not found quickly.
The DG cannot intervene until he is sure the parties’ efforts to settle the problem themselves through negotiations have failed.
Conciliation is carried out by Industrial Relations Officer(s) who will meet the parties either separately or together. After a briefing on the problem, he will help them arrive at a compromise which is acceptable to both.
They only advise the employer & employees involved in dispute.

19. Mediation
A relatively rare method of settling dispute. A neutral third party is called in by the parties to a dispute to help them find a settlement but the mediator is not usually from the government.
A politician or other local leader may intervene in a dispute & be able to bring a settlement.
It is difficult for the parties to find a suitable mediator acceptable to them both.

20. Arbitration
An impartial third party is given the authority to settle the dispute by examining the information given by both sides & making a judgment.
In Malaysia, it is the Industrial Court.

21. Industrial Court Functions: Structure:
Hears & decide dispute / cases on non-compliance of awards & collective agreements
Inspect & take cognizance of collective agreement
Structure:
1 President & 4 chairman appointed by Agong
2 Panel (MEF, MTUC) appointed by Court president
Court cannot proceed without President or Chairman

22. Types of cases referred:
request of both parties to a disputed after dispute resolution have failed
unfair dismissal of non-unionized workmen
request to interpret the approved Collective Agreement / awards by any party / minister
hear complaint over alleged contravention of trade union right / non-compliance of awards / collective agreement
require the parties involved to amend a collective agreement

23. Power of Industrial Court
a) summon parties
b) call in witness & documents
c) hear & determine dispute
d) conduct its proceedings in private
e) call in the aid of expert
f) to regulate the procedure & proceeding of the court
g) make an award

24. Any awards given by the Court is binding on the following conditions & persons:
All parties to the dispute
Any successor, assignees / transferee of any employers or its union and any successors to any trade union of workmen which is a party to the dispute
All existing & future employees who are employed in the organization related to the trade union
To all members of the trade union of employers to whom the dispute relates to & to which the dispute the trade union is a party and the successors, assignees / transferees of the members
Understood term of the contract between the employees & the employer bound by the award will be accordance with the award