Any organization, whose membership consists

of employees, which seeks to organize and

represent their interests both in the workplace
and society and in particular seeks to regulate
the employment relationship through the direct
process of collective bargaining with
management
Legal definition

 In the Malaysian context, The Trade Union

Act 1957 (TUA) defined a trade union as any
temporary or permanent association or
combination of employers or of employees
within a particular establishment or industry
or trade or occupation or within similar
industries or trades or occupations
Characteristics of union

 Trade unions have been described as

utilitarian
- unions provided members with the benefits
of collective bargaining (e.g. Job security,
wages, fringe benefits, and access to
grievance procedures)
 Trade unions have also been described as
normative organizations
 - The existence of unions is predicated on
members wanting to belong to a union and
wanting to fulfill their roles in the
organization, that is in the moral involvement
in the union
 Union members may want to display their
leadership qualities through positions in the
union
 There are several differences between unions
and the workplace.
- Lack of authority over members and the need
for members’ voluntary participation.
- The lack of formal authority over its members
stems from the difference in the nature of the
exchange between the workers, the union
and the working organization.
 For instance, the worker is paid by and works
for the organization. In contrast, union
members pay and expect the union to work
for them.
 This difference in dynamics means that the
union must convince union members of its
usefulness and also emphasize the
importance of member commitment to
increase the union’s effectiveness.
Objectives of union

 To improve the terms of employment

 To improve the physical environment at work
 To achieve security of employment and
income
 To achieve industrial democracy
 To achieve fair shares in national income and
wealth
 Example of unions (workers)
- National Union of Plantation Workers
(NUPW) – Plantation industry
- National Union of Banking Employees
(NUBE) – Banking industry
- Malayan Agricultural Producers’ Association
(MAPA) – Plantation industry
- Malayan Commercial Banks’ Association
(MCBA) – Banking industry
 Public sector

 Congress of unions of employees in the public

and civil service (CUEPACS)
 A federation of trade unions of government
workers. It serves as spokesman for the public
service workers and was first registered in
1959.
 The Trade Union Act, sec 72, permits unions
in a similar trade, occupation or industry to
form a federation.
The objectives of CUEPACS
 To promote the interests and improve the
working environment of its affiliate trade unions
 To improve the conditions of employment of the
members of the affiliate trade unions
 To promote legislations affecting the interest of
the member unions in particular or trade
unionists in general.
Malaysian Trade Union Congress
(MTUC)
 The Malaysian Trade Union Congress (MTUC)
plays an important , although sometimes
controversial role in the industrial relations
system.
 MTUC is not a union, but a society registered
with the Registrar of Societies.
 Members of the MTUC are individual trade
unions which choose to affiliate to it. Most of
which were unions in the private sector
 Objectives of the MTUC
 Providing an advisory service to its members
 Presenting the labour viewpoint to the
government
 Presenting workers’ views on national issues e.g.
Development plans and educations
 Representing the Malaysian labour movement at
forums abroad
 Providing trade union education
 Carrying out research on matters of trade union
interest.
Malaysian Employers
Federation (MEF)
 The MEF is the employers’ equivalent of the MTUC.
 It is a registered as a society; its members are
individual companies and also employer’s
associations.
 The MEF has representatives on a number of
councils and bodies such as the National Labour
Advisory Council (NLAC), the National Productivity
Corporation and etc.


The objectives of MEF:
 To secure the organization of all employers
 To co-ordinate and present the opinions of
the employers on labour matters
 To promote, protect and defend the interests
of employers in general
 To inform and advise members on the
implementation of the labour laws
 To advise members on the settlement of
trade disputes