SETTLEMENT OF TRADE DISPUTES

1 Procedure for dispute settlement (C4, P2, LL)

 There are four methods to settle the disputes. 1) Direct negotiation 2) Conciliation 3) Mediation 4) Arbitration

 The ideal method for settling a dispute.  Solutions arrived by mutual decision between two parties, employer and the trade union, without the involvement of third parties.  For example; a collective agreement must include a grievance procedure, i.e. a method the parties can use to settle any dispute arising out of the implementation of the agreement.

The Industrial Relations Act emphasize the importance of voluntary negotiation in which there is a condition in the Act that only allow for compulsory conciliation only if the parties have failed in their attempts at direct negotiation.

 Conciliation is the process of arriving at a settlement of a trade dispute with the help of a third, neutral party.  In trade disputes, conciliation is carried out by officers of the Department of Industrial relations.

 2 types; 1) Voluntarily requested by either the disputing parties. 2) Compulsory conciliation where the Director general intervene ‘in the public interest’ requires the parties to attend a conciliation meeting. It is common in public utilities and other important industries.

 Conciliator will meet the parties, either separately or jointly. He will help the parties arrive at a compromise which is acceptable to both parties.  However, the conciliator only can advise but not to insist the parties to accept any recommendations.

 Mediation is a rare method of settling a dispute. It is not mentioned in the employment laws but is occasionally used.  Mediation is similar to conciliation in that a neutral party is called by the employer and the trade union to help them find a settlement.  The mediator is not usually from the government, but a person considered unbiased and impartial and is trusted and respected by both parties.

 It is possible for the parties to engage a professional mediator who has knowledge of industrial relations and has sufficient skill to be able to bring the parties to settlement.  However, the parties need to pay for the services of a mediator whereas conciliation is provided for free by the Department of Industrial relations.

 When the disputing parties and union cannot find a solution by themselves or with the help of the Department of Industrial Relations, arbitration may be the only way to settle the dispute.  In Malaysia, only the Industrial Court has the power to arbitrate labour disputes.