1. 1 Unit 6 Creating a proactive workforce through effective employee relations

2. 22 At the end of this unit, students should be able to:  Appreciate the concept of employee relations and the key features, players and factors that can affect management-employee relations;  Appreciate the various different ER perspectives and its view of conflict and the preferred conflict resolution approach;  Trace the origin of trade unions in Malaysia and appreciate its role as well as the reasons for the decline in trade unionism;  Understand the meaning, philosophy and context of collective bargaining;  Understand the legal provisions pertaining to collective bargaining and collective agreements; and  Gain an insight into the legal issues relating to occupational safety and health. Unit 6 Unit Objectives

3. 33  Introduction to Management-Employee Relations  Origin and Role of trade unions  Collective bargaining and Agreements  Occupational Safety and Health Unit 6 Contents

4. 4 INTRODUCTION TO MANAGEMENT – EMPLOYEE RELATIONS

5. 55 Unit 6 Industrial Relations Vs Employee Relations Industrial Relations The study of the regulation of relations between employers, employees and their trade unions Encompasses both the regulation of relations between employers and employees as well as employers and trade unions but concentrates on the latter rather than the former Employee Relations All aspects of the relationship (social, economic and legal) between those who manage (managers) and those managed (employees/trade unions) within the broader nature of economic activity and society embracing all activities of HRM and industrial relations

6. 66 Unit 6 Parties to the Relationship (1) Then (Bi-Partisan Master & Servant) Two party relationship Man to Man Personal and informal Seldom regulated by law Present day (Tripartite) Three party relationship Between organisations Formal and impersonal Regulated by law (Voluntary or compulsory arbitration)

7. 77 Present day Actors Employers Hierarchy of managers or their representatives STATE ( By way of specialised agencies like the Industrial Relations Department, Industrial Court, etc Trade Unions Hierarchy of workers and their representatives (formal and informal) Parties to the Relationship (2) Unit 6

8. 88 The State Product market Employers/ Managers (Driving force: Cost Discipline) Employees/ Unions (Driving force: Price Effort Equity Labour market Collective bargaining Unit 6 Analysis of the Relationship

9. 99  THE PARTIES Employees / Trade unions (Bargaining strength) Employers / Employers’ Associations The State INTERNAL FACTORS Employee expectations Nature of exchange (Qualification and Wages) Work and work organisation EXTERNAL FACTORS Broader societal policies Shift away from PM to HRM Globalisation and Technological changes (ICT) Market (Product / labour) 1 2 3 Factors that impinge the relationship Unit 6

10. 10 Social Creation / maintenance of harmonious IR climate Protection of rights and promotion of equitable relationship Legislative Setting of standards and policies Introduction of legislation Enforcement Enforcement of standards and legislation Administrative Conflict / dispute resolution and settlement Roles of the State Unit 6

11. 11 Traditional perspective Unitary Pluralist Systems Marxist Contemporary perspective Fordism/Post Fordism Post Modernism Feminism Employee Relations Perspectives (1) Unit 6

12. 12 Areas of Comparison  General Philosophy  Management style  Role of Parties  View of trade unions and preferred ER perspectives  View towards industrial conflict  Weaknesses / criticisms Unit 6 Comparison of Perspectives

13. 13 Unit 6 Unitary Perspective (1) General philosophy Based on social order theories, argues that despite differences, individuals will ultimately maintain social order and that despite conflicts, employers and employees will be united in the pursuit of common goals Management style A partnership based integrated approach where power and authority rests with Management and employees do as directed as power concentration is viewed as legitimate and rational Role of partiesManagement: To provide strong leadership and good communications Employees: To be loyal to organisation and management in recognition of common objectives

14. 14 Unit 6 Unitary Perspective (2) View of Union Viewed as enemy as will compete with organisation for employee loyalty and commitment (Union avoidance) View of conflict Mot inherent in workplace. If any, seen to be as a result of faulty communication, work of agitator where defiance has to be dealt with appropriately or a failure of employees to grasp commonality of interests and organisational objectives ER Perspective Harmonious workplace / process arrangements with strong emphasis on commonality and organisational commitment. Trade union avoidance and even marginalisation in extreme cases. WeaknessesA narrow approach that neglects causes of conflict and which fails to recognise differing interests. Assumes that all management decisions are rational and that management will take care of employees

15. 15 Unit 6 Pluralist Perspective (1) General philosophy Based on the belief that an organisation contains people with a variety of differing and sometimes conflicting interests, aims and aspirations where power is said to be evenly diffused among the main bargaining groups in such a way that no one group dominates the other. Hence consensus has to be negotiated and if no consensus, State may intervene. Management style Consensus based approach but Management may ignore other interests if it is irreconcilable with organisational Role of parties Management: Will not suppress any conflicting ideas but will attempt to reconcile conflicting opinions and keep conflict with acceptable bounds so that it does not destroy organisation. Employees: Constantly push for their own goals but will accept mutual adjustment (middle of road)

16. 16 Unit 6 Pluralist Perspective (2) View of Union Viewed as legitimate representative of employee interest at work with right to challenge management right to manage (Union tolerance) View of conflict Viewed as inevitable and legitimate consequence of variety of interests at workplace ER Perspective Resolution of differences via consensus building strategies (HRM) to win over competing interests through voluntary negotiations and if that fails through conciliation / arbitration mechanisms WeaknessesIgnores reality that workplace is not a democracy as power is actually not evenly diffused with inequalities of power and control often weighted towards Management. Over emphasis on rational approach to conflict management (which is a form of managerialism) and also the fact that despite conciliation, ill-feeling will linger.

17. 17 Unit 6 Systems Perspective (1) General philosophy Based on the belief that there exists fundamental and conflicting interests between management and employees. And also that the ER system is a sub-system of industrial society and that parties will interact to establish a network of rules that is mutually agreeable to govern their relationship (Dunlop’s System Theory) Management style Focus on administration and enforcement of rules on the assumption that independent rule formulation approach where management accepts inputs of all parties and environmental factors such as values, market condition, technology, etc Role of parties Management: Make workplace rules after due consultation with others Employees: Contribute inputs towards rule formulation

18. 18 Unit 6 Systems Perspective (2) View of Union Viewed as part of system with Management hoping that the Unions will work towards the maintenance of rules as they had a say in the formulation View of conflict Should not happen due to the existence of rules and if it does happen, it is due to non-compliance with rules ER Perspective A balance between the unitary and pluralist approach. i.,e consensual but through a web of rules with the underlying assumption that the rules are not only accepted but also supported WeaknessesDisregards the decision making dynamics that exists in workplaces Assumption that all players will not only accept rules but will support them is highly unlikely

19. 19 Unit 6 Radical / Marxist Perspective (1) General philosophy Divergent economic interests of parties and class struggle will create irreconcilable differences and conflicts (Marx’s Inevitability of Class Conflict Theory) Argues that in the workplace there will always exist fundamental and inherent conflicting interests between management and employees and that there exists uneven power distribution between bargaining groups (not necessarily management due to show of strength) Management style Purely capitalist approach where labour is treated as a factor of production from which maximum output must be extracted at lowest possible costs, either through coercion, threat of dismissal or HRM managerial applications that downplay individual goals and develop agreement to corporate goals Role of parties Management: Extract as much labour as possible Employees: Demand and obtain as much as possible by challenging managerial control

20. 20 Unit 6 Radical / Marxist Perspective (2) View of Union Enemy to the State and Management and must be avoided at any cost (Union bashing) View of conflict Viewed as a manifestation of unequal distribution of income and wealth in society ER Perspective Purportedly joint regulation but seldom so in reality as interests of capital remain dominant, balance of power is illusionary and relationship is really exploitative with each party using its strength and power to obtain best deal WeaknessesHeavily focused on conflict and ignores modern day society where capitalism is balanced Ignores countervailing forces such as legislation, organised labour and State intervention designed to address labour exploitation and unfair practices

21. 21 Unit 6 Fordism, Neo and Post Fordism (1) General philosophy Based on Scientific Management School which assumes that effective calculation and control of production and labour costs and employee behaviour enables organisation to be efficient. Subscribes to pluralism but Management controls decision making, work organisation and appropriate technology Management style Low trust relationship with heavy emphasis on Taylorist such as work standardisation, centralisation, bureaucracy, deskilled jobs, hierarchical lines, etc Role of parties Management: High degree of control but will allow workers to earn enough wages to purchase mass produced goods Employees: Attempt to obtain best deal vide collective bargaining

22. 22 Unit 6 Fordism, Neo and Post Fordism (2) View of Union Acceptance and recognition as a collective bargaining body that facilitates institutionalisation of employment terms through collective bargaining View of conflict Similar to Pluralist, viewed as inevitable and legitimate consequence of variety of interests at workplace but one that can be managed vide Union discussion ER Perspective Standardisation and collectivisation of employment terms with job security either at national, industry or enterprise level WeaknessesHighly collective nature creates rigidity and increases costs although mitigated in recent times through emphasis on TQM, flexibility, outsourcing, productivity schemes, etc Decline since 70s due to decline in trade union strength and emergence of new form of unitarism with stress on individual nature of employment relationship and alignment of employees to organisational goals

23. 23 Unit 6 Post Modernism General philosophy Rejects all conceptual discourses and argues that everything is relativist. i.e. human beings are not homogeneous and respond differently to different organisational structures depending on their personalities, experience, value system, etc Management style Modern unitarism with Management retaining and exercising control and authority through various HRM mechanisms but with an hidden agenda of control. High usage of practices or language that makes sense to the individual (deconstruction of language to local level) ER Perspective As with Unitarism, seemingly collaborative and harmonious with view to obtain buy-in and get employees to accept legitimate management power, authority and commonality of goals WeaknessesHighly rhetoric that employees sometimes regard management action as propaganda. Anyway in real life not practical to cater to each individual

24. 24 Unit 6 Feminism General philosophy Early patriarchy based theories and chauvinistic attitudes justified and legitimised inferior treatment accorded to female in terms of type of jobs, wages, etc. Now growing trend and legislation that women must be treated equally. Management style Initially under-valuation of women’s work (though it still exists in some societies and instances) but of late gradual change due to societal pressure, changing societal values and legislation ER Perspective Initially inferior treatment with no bargaining strength as unions were male dominated Female dominated industries generally not organised and also receives less wages relatively.

25. 25 ORIGIN AND ROLE OF TRADE UNIONS

26. 26 Unit 6 ILO CONVENTION – FREEDOM OF ASSOCIATION  Conventions 87, 98 & 135: adopted in 1948, 1949 & 1971   Workers & employers have the right to establish & join organisations.  Workers & employers have right to negotiate with a view to regulate terms and conditions of employment by collective agreements  Right also provided in Industrial Relations Act, 1967 Section 5, Prohibition on employers in respect of certain acts No employer or trade union of employers, and no person acting on behalf of an employer or such trade union shall :- (a) impose any condition in a contract of employment seeking to restrain the right of a person who is a party to the contract to join a trade union or to continue his membership in a trade union;

27. 27 Unit 6 Definition of a trade Union (1) A continuous association of wage earners for the purpose of maintaining or improving the conditions of their employment (Webb and Webb 1894 : 1). An organisation consisting predominantly of employees, the principal activities of which include the negotiation of rates of pay and conditions of employment for its members (ABS, Cat. 6310.0)

28. 28 Unit 6 Definition of a trade Union - Malaysia Any association or combination of workmen or employers, being workmen whose place of work is in West Malaysia, Sabah or Sarawak as the case may be, or employers employing workmen in West Malaysia, Sabah or Sarawak, as the case may be :- (a) within any particular establishment, trade, occupation or industry or within any similar trades, occupations or industries; and (b) whether temporary or permanent; and (c) having among its objects one or more of the following objects :- regulation of relations between workmen and employers for the purposes of promoting good industrial relations between workmen and employers, improving the working conditions of workmen or enhancing their economic and social status, or increasing productivity;

29. 29 Unit 6 Definition of a trade Union - Malaysia regulation of relations between workmen and employers for the purposes of promoting good industrial relations between workmen and employers, improving the working conditions of workmen or enhancing their economic and social status, or increasing productivity; regulation of relations between workmen and workmen or between employers and employers; representation of either workmen or employers in trade disputes; conducting of or dealing with trade disputes and matters related thereto; or promotion or organisation or financing of strikes and lock-outs in any trade or industry or the provision of pay or other benefits for its members during a strike or lock- out.

30. 30 Unit 6 Evolution and Origin of trade unions in Malaysia (1) First Phase : 1870-1920  Economic interests primarily in hands of British. Nature of economic activity was essentially agriculture and mining.  Rapid stage of growth necessitated import of workers from India, Sri Lanka and China. Workers were illiterate and apathetic which situation was exploited by British economic interests  Chinese already settled here during 15th century but in small numbers. Numbers increased during British occupation when encouraged to migrate to escape oppressive conditions. Employed under indentured system, mainly in tin mines, where they were free to take up other occupations after fixed number of years.  Indian workers brought in from India and Sri Lanka during the 19th century under ‘kangani’ system. Required to work a fix number of years after which they will be repatriated to their homeland. However many of them stayed back.

31. 31 Unit 6 Evolution and Origin of trade unions in Malaysia (2)  Exploitation of workers : Colonial administration more interested in profits. No initiative to introduce labour legislation until 1930s. Compounded by absence of trade unions. Although unions could be legally formed under Registration of Societies Ordinance, it did not take place due to threat of being classified as ‘undesirable aliens’ and fear of deportation.  Growth of self help organisations: Absence of trade unions promoted growth of self help organisations, primarily for chinese migrant workers in the form of “Sai Ka’. Workers cause also championed by other political organisations.  Reforms: In 1877, initial reforms introduced by Colonial Government with appointment of Protector of Chinese Affairs, in 1888 establishment of Immigration Department and later in 1912, Department of Labour. Later in 1920 Labour Code was introduced to give some form of protection to workers but support for MCP and GLUs continue to grow.

32. 32 Unit 6 Evolution and Origin of trade unions in Malaysia (3) 2 nd Phase : 1920- 1940  Period of intense industrial unrest. GLUs with discreet support of MCP organised series of major strikes, especially during 30s.  International concern grew against exploitation of workers. Pressure from ILO forced introduction of legislation in 1930 (the Colonial Development and Welfare Act) to force British companies in Malaya to pay some attention to living conditions in estates.  Later Government introduced the Trade Union Enactment in 1940 to curtail activities of trade unions but this Enactment was not enforced until 1946.

33. 33 Unit 6 Evolution and Origin of trade unions in Malaysia (4) 3 rd Phase : 1940- 1950  Trade Union Enactment enforced in 1946. Also set up Trade Unions Advisor’s Department.  In 1947, registration became compulsory and many unions were denied registration and became illegal overnight.  In 1948, rules pertaining to membership were tightened to check influence of outsides and MCP. Amendments to check formation of federations (including GLUs) and amalgamations (which created large and powerful unions).

34. 34 Unit 6 Evolution and Origin of trade unions in Malaysia (5) 4 th Phase : 1950- 1970  Period of intense activity in terms of labour legislation. Saw introduction of key legislation such as Employment Act, 1955, amended Trade Unions Act, 1959 (initially restricted to West Malaysia but later extended to whole country in 1965) and the Industrial Relations Act, 1967.  Also saw establishment of legislative and regulatory bodies such as RTU, Labour and IR Departments and Labour and Industrial Courts.

35. 35 Unit 6 Salient Provisions of Trade Unions Act  Geographical demarcation – West Malaysia, Sabah and Sarawak  Categorisation – Trade, Occupation, Industry, Establishment  Powers of DG – Can refuse to register, cancel or suspend Can refuse permission for amalgamation or n affiliation with consultative bodies Can freeze bank accounts (By Minister) Can impose conditions Decides on competency and majority

36. 36 Unit 6 Role of Trade Unions  Collective voice of employees at the workplace and other levels  Main role is to obtain ‘better’ benefits for its members although they are often criticised as being anti-management and anti-market  Achieve objectives vide political, social and revolutionary lobbying

37. 37 Unit 6 Types of Trade Unions / Consultative bodies  National unions  Enterprise or In-house unions  Federation of local unions (MTUC)  Affiliation with International Secretariats

38. 38 Unit 6 Reasons for joining trade unions Ideological beliefs Or Instrumental considerations Or Normative pressures Note: Studies have shown that most workers join trade unions because of instrumental considerations.

39. 39 Unit 6 Decline of trade unionism (1)  Voluminous literature on reasons for decline of trade union membership / density  Various reasons can be attributed for this decline, which vary from country to country and from industry to industry.  Peetz (1998) and Drago and Wooden(1998) attribute this decline to two main factors, namely structural changes in the economy and increased government opposition to unions  T Abbot (in Why workers are saying No to Unions) attributes following reasons, namely persistence with old-fashioned, quasi marxist class war thinking, tendency to be involved with one side of politics and ingrained tendency of unions to see members as numbers to be used for industrial or political purposes rather than as individuals with needs to be met

40. 40 Unit 6 Decline of trade unionism (2) Changing composition of employment  Growth in services sector.  Part-time, casual workers.  Self-employment.  Public-/private-sector shifts.  Size of the workplace.  Young workers. Economic Factor  Increase in unemployment rates  Introduction of wage accords (in some countries) and other minimum standards that has reduced the need for and the influence of unions  Standardisation of benefits irrespective of trade union membership in terms of wage increases, etc

41. 41 Unit 6 Decline of trade unionism (3) Changing popularity of unions  Image as disruptive force: Governments and employers see unions as being too powerful. Society too sometimes view trade unions as disruptive force  Image amongst workers: Workers appear to have lost ‘absolute’ faith in unions with some accusing unions of working together (allied) with management Management strategies  Isolating trade unions by denying access to employees and by denying unions a role in wage/conditions setting  Introduction of policies aimed at replacing role of trade unions in workplace vide enhanced communications, involvement in decision making and employee shareholding schemes  Tactics aimed at reducing union membership vide granting of additional incentives to employees, greater level of formal internal communications channels, job satisfaction and use of individual contracts and increase in unemployment

42. 42 Unit 6 Decline of trade unionism (4) Government Policies  More difficult procedures for union formation;  More difficult recognition and representation procedures  Prohibition of compulsory unionism and membership  Increased conditions and penalties for industrial action  Introduction and encouragement of individual contracts Union Structure and Policies  Three (3) aspects of union structure, namely shape of industrial unions, internal governance structures (within individual unions) and external affiliations and alliances (which individual unions enter into on a geographical basis (MTUC) or industry basis (such as federation or amalgamation)  Where internal governance structures are concerned, there is growing concern over the manner in which policies decisions are made. In some unions due to the size of its membership, all members cannot play an active role in trade union activities and decision making

43. 43 COLLECTIVE BARGAINING AND AGREEMENTS

44. 44 Unit 6 Definition of Collective Bargaining ILO Convention 98 - Right to organise and Bargain Collectively Voluntary negotiations between employers or employers’ organisations and workers’ organisations with a view to the regulation of terms and conditions of employment by collective agreements Marsh and Evans 1973 A method or process of negotiating about wages and working conditions and other terms of employment between an employer on the one hand, and representatives of workers and their organisations or the other, with a view of arriving at collective agreements Industrial Relations Act, 1967 Negotiating with the view to the conclusion of a collective agreement

45. 45 Unit 6 Right to Collective Bargaining  Enshrined in law Section 13(1), Industrial Relations Act, 1967 Where a trade union of workmen has been accorded recognition by an employer or a trade union of employers, the trade union of workmen or the employer or the trade union of employers may invite the other party to commence collective bargaining

46. 46 Unit 6 Recognition and Representation (1)  Union seeking to initiate collective bargaining must seek and obtain recognition from employer  Process of applying for and obtaining recognition and other matters related to recognition specified by statute (S 9 – 12, Industrial Relations Act, 1967)  Employer from whom recognition is sought has 3 options; grant recognition, refuse recognition in which case must state reasons to union and apply to DGIR to ascertain membership status  Union can report to DGIR if no reply within 21 days or if recognition rejected, upon which DGIR inquire into the matter and take such steps as necessary in accordance with established procedures

47. 47 Unit 6 Recognition and Representation (2)  DGIR will initiate membership check / competency test and if okay, shall advise employer to recognise union. If still not resolved, DGIR shall report to Minister who is empowered to order recognition. Decision of Minister final unless Minister acted in bad faith.  Guiding Philosophy: Majority rule (50% + 1) and Competency test.  Recognition types: General and Limited  Exclusiveness: If a union has been granted recognition, no other union can claim recognition unless a period of 3 years has passed or the union which has been granted recognition is no longer in existence  Permanency: Once granted cannot be withdrawn

48. 48 Unit 6 Objectives of Collective Bargaining  Mutual Determination: To mutually determine the terms and conditions of employment  Mutually beneficial relationship: To provide base where mutually beneficial & effective relationship can be established through mutual understanding, flexibility, respect, growth and attitude of mutual accommodation  Maintenance of harmonious relationship: To provide a base where expectations & limitations, demands & rights could be better understood, thus achieving a sound and harmonious relationship & minimising disputes and disruptions to operations to the lowest level possible  Prompt & Equitable resolution of disputes & grievances: Provide procedure for resolution of disputes relating to employment or non-employment of any employee and for adjustment of any grievance that may arise in the implementation of any of the terms and conditions of employment

49. 49 Unit 6 Collective Bargaining Concepts (1)  Statutorily prescribed rights: Right to collective bargaining and collective bargaining procedures spelt out by statute (S.13–17, Industrial Relations Act,1967  Legally imposed pre-requisite: Trade unions must first seek and obtain recognition from employers (Recognition and representation)  Prohibited issues: Statute specifies issues that cannot be included by union in invitation to collective bargaining (specified by S.13 (3) and referred to as managerial prerogatives)  Compulsory items: Statute prescribes articles that must be included into collective agreement (Eg: Period, Modification Procedure, Grievance Procedure )

50. 50 Unit 6 Collective Bargaining Concepts (2)  Scope of Negotiations: Common issues raised include issues relating to rights and power, consultative mechanisms, pay and allowances, work time and leave entitlements, work conduct and discipline, environment, safety and health, productivity measures and performance improvements, employee welfare, training, etc  Parties: May be bilateral (Employer Vs Union) or tri-lateral (Employer, Union and IAT when referred to Court)

51. 51 Unit 6 Managerial Prerogatives Sutcliffe and Callus 1994 those areas of decision-making within an organisation over which managers claim to have an unfettered right to decide as they see fit Provisions of Section 13 (3), Industrial Relations Act, 1967  Right of promotion  Right of transfer (if not detriment to the workmen)  Right of employment  Right of termination by reason and redundancy or by reason of re organisation  Right of dismissal and reinstatement  Right of assignment and allocation of duties (but must be compatible with terms of employment)

52. 52 Unit 6 Collective Bargaining – Influencing Factors  Country’s industrial relations laws and practice  Industrial arbitration tribunal awards / trends  Nature and strength of Union (National vs Enterprise)  Availability of labour  Company’s policies and financial performance  Consumer price index (Harun Principle in Malaysia)  Skill of negotiators

53. 53 Unit 6 Issues in Collective Bargaining  Relating to salary, wages and money  Relating to time and leave  Relating to work conduct and discipline  Relating to welfare and working environment  Relating to rights and powers  Miscellaneous issues

54. 54 Unit 6 Collective Bargaining Process  Specified by S 13, Industrial Relations Act, 1967;  Either party may initiate bargaining process by inviting the other party in writing to bargain by setting out proposals  Proposal must be in writing and must set out proposals but cannot include management prerogatives but can be raised in discussion.  Party receiving proposal must reply within 14 days, either accepting or rejecting invitation. Where invitation has been accepted, bargaining must commence within 30 days of acceptance.  If invitation is rejected or when accepted if bargaining does not commence within 30 days, aggrieved party may complain to DGIR  DGIR will attempt to resolve differences by way of conciliation but if no settlement, trade dispute deemed to exist

55. 55 Unit 6 Deposit, Cognisance and Effect of CAs  Signed copies of Collective Agreement must be submitted to Industrial Court within 1 month  Industrial Court may refuse to give cognisance if compulsory terms not included and can also direct parties to amend the Collective Agreement. If parties refuse, Industrial Court may amend it  Collective Agreement granted cognisance shall be deemed as an award and thus binding on all parties.

56. 56 Unit 6 Common industrial action if no settlement  Refusal to work overtime  Refusal to work on rest day and public holiday  Avoidance of any form of co-operation  Unusually high medical leave  Go slow / Work to rule / low productivity  Boycott campaigns  Picketing  Strikes  Lock-outs  Acts of sabotage

57. 57 Unit 6 CA Dispute resolution mechanisms  Conciliation  Mediation  Fact Finding  Arbitration

58. 58 OCCUPATIONAL SAFETY AND HEALTH

59. 59 Unit 6 Duties and Obligations of Employer (1)  Duty to take reasonable care  Duty to provide competent staff  Duty to provide adequate material  Duty to provide proper system of work  Duty to provide effective supervision

60. 60 Unit 6 Duties and Obligations of Employer (2) Duty to take reasonable care Chang Fah Lin v United Engineers (1978) Duty and obligations on the part of the employer include, amongst others, “to take reasonable care the safety of his work people in all circumstances of the case so as not to expose them to an unnecessary risk Aikbee Sawmill Ltd v Mun Kum Chow (1971) This duty to take reasonable care is generally four-fold.i.e it is an obligation, and a continuing one for the provision of a competent staff of men, adequate material, a proper system and effective supervision

61. 61 Unit 6 Duties and Obligations of Employer (3) Duty to provide competent staff Butler v Fife Coal Co Ltd (1912) If an employer employs a person without or with insufficient experience to perform highly dangerous tasks, the employer may be liable if another employee is injured owing to such person’s inability to perform the job competently Hudson v Ridge Manufacturing Co Ltd (1957) …by his habitual conduct is likely to prove a source of danger to his fellow employees, a duty lies fairly and squarely on the employers to remove that source of danger

62. 62 Unit 6 Duties and Obligations of Employer (4) Duty to provide adequate materials Employer is responsible for ensuring that his workplace is safe, and that tools, plant, machinery, vehicles, equipment and materials used by persons at work are suitable for the work to be performed and are safe. Most common breaches are:-  Failure to provide necessary equipment  Providing insufficient equipment  Providing defective equipment  Failure to remove and replace known defective equipment

63. 63 Unit 6 Duties and Obligations of Employer (5) Duty to provide proper system of work Singapore Transport Supply Service Pte Ltd v Wee Peng Whatt & Ors (1978) Where the task is such as to call for the laying down of a system or mode of working in the interest of safety, it is the employer’s duty to use reasonable skill and care to provide a proper and safe system of work. The test is that of what is reasonable and proper to be done for the safety of the workman in the circumstances of the particular case.

64. 64 Unit 6 Duties and Obligations of Employer (6) Duty to provide effective supervision Where a particular work situation has become dangerous, it is the duty of the employer to stop work. In the event there is an accident, the employer cannot hide behind the argument that the employee should have stopped work when the situation became dangerous.

65. 65 Unit 6 Prime OSH statutes  Factories and Machinery Act, 1967  Occupational Safety and Health Act, 1994  Workmen’s Compensation Act, 1952  Environmental Quality Act, 1974  Other Acts based on particular industries.

66. 66 Unit 6 Occupational Safety and Health Act, 1994  Gazetted in February 1994 to provide the legislative frame work to promote and encourage high standards of safety and health at work place.  Aim of the Act is to create a healthy and safe working culture for Malaysian employers and employees vide the promotion of safety and health awareness and by establishing effective safety practices through self-regulation  Act specifies general duties of employers, employees, self- employed, manufacturers, designers, importers and suppliers in ensuring that a safe and healthy workplace is created and maintained.  Also spells out powers of enforcement, investigations and liability for offences

67. 67 Unit 6 Duties of Employer (1)  Provision and maintenance of safe plant and systems of work  Ensuring practicable, safe and healthy use or operation, handling, storage and transport of plant and substances  Provision of information, instruction, training and supervision to ensure safety and health at workplace  Maintenance of safe conditions in the workplace, in particular, means of access and exit

68. 68 Unit 6 Duties of Employer (1)  Provision of adequate facilities for the welfare of employees  To establish a Occupational Safety and Health Committee if more than 40 workers at workplace  To come out with a written Occupational Safety and Health Policy which spells out organisation’s policy on safety and health, enunciates arrangements for fulfilling intent of the policy and communicate this policy to all employees, contractors and visitors.

69. 69 Unit 6 Duties of Employees Section 24, Occupational Safety and Health Act, 1994  To take all reasonable precaution for their own safety and health, as well as those who may be affected by their activities  To wear or use appropriate personal protective equipment provided by employers  To obey all occupational safety and health work rules which have been set out by employers for use in the workplace

70. 70 Unit 6 Other statutory requirements  Must appoint qualified SHO for DOSH identified industries  Must report accidents, dangerous occurrences, occupational poisoning and occupational diseases within specified time frame and in specified manner  DG of DOSH has wide powers including power to call for inquiry, issue prohibition notice, issue improvement notice and also prosecute offenders

71. 71 Unit 6 Preventive measures  Education  Skill training  Engineering improvements  Protection devices  Regulation enforcement

72. 72 Unit 6 Dealing with Workplace violence  Review policies and employee treatment  Train managers to identify and deal with troubled employees  Implement security mechanisms

73. 73 Unit 6 Current issues in workplace health  Sick building syndrome  Smoke-free environments  Repetitive Strain Injuries (RSIs)

74. 74 Unit 6 Keeping the Workplace healthy  Make sure workers get enough fresh air  Avoid suspect building materials and furnishings  Test new buildings for toxins  Provide a smoke-free environment  Keep air ducts clean and dry  Pay attention to workers’ complaints

75. 75 Unit 6 Occupational Stress  May be positive or negative  Symptoms can be physiological, psychological, or behavioural  Chronic stress: Burnout - Emotional and/or physical exhaustion, with lowered job productivity

76. 76 Unit 6 Wellness Programmes  Programs designed to keep employees healthy and cut health-related issues  Include smoking cessation, physical fitness, weight control

77. 77 NEXT UNIT The need for right organisational structure, systems, culture, policies and practices