Title Collective Bargaining in Malaysia

DEFINITION OF COLLECTIVE BARGAINING

Donovan Commission A right which is and should be the prerogative of every worker in democratic society. Byar & Rue (1991) CB is a process that involves the negotiation, drafting, administration and interpretation of a written agreement between an employer and a union for a specific period of time.

J.T. Dunlop & J.T. Healey CB as a mixture of a poker game combining deception, bluff, luck and ability.

The Three Level of Industrial Relations Activity

Union strategies and structures Management strategies and structures BARGAINING OUTCOMES

Strategic level

EXTERNAL ENVIRONMENT

Functional level

Bargaining structure

BARGAINING PROCESS

Workplace level

Work organization Employee motivation and participation Conflict resolution

TYPES OF COLLECTIVE BARGAINING

1. Distributive Bargaining It occurs when labor and management are in conflict on an issue and when the outcome is a win-lose situation. 2. Integrative Bargaining Its for win-win or mutual gains bargaining. 3. Concession/Cooperative Bargaining Something of importance is given back to management. 4. Conjunctive Bargaining Situations where both parties agree to terms as a result of the bargaining.

CONDITION FOR SUCCESSFUL COLLECTIVE BARGAINING

1. Pluralism and the Freedom of Association 2. Trade Union Recognition

3. Observance of Agreements
4. Support of Labour Administration Authorities 5. Good Faith 6. Proper Internal Communication

ADVANTAGES OF COLLECTIVE BARGAINING

1.The advantage of settlement through dialogue and consensus 2. Collective bargaining agreements often institutionalise settlement through dialogue 3. Collective bargaining is a form of participation 4. Limit the settlement of disputes through trade union action. 5. Essential feature in the concept of social partnership 6. Collective bargaining has valuable by-products relevant to the relationship between the two parties. 7. Stabilise union membership 8. Improving industrial relations

NATURE OF COLLECTIVE BARGAINING

1. Not equivalent to collective agreement because collective bargaining refers to the process while collective agreement to the possible result. 2. Its a method use by trade unions to improve the terms and conditions of employment of their members. 3. It seeks to restore the unequal bargaining position between employer and employee. 4. Where it leads to an agreement, it modifies rather than replaces the individual contract of employment.

FUNCTIONS OF COLLECTIVE BARGAINING

1. A market or economic function It determines the terms labor will continue to be supplied to a company by its present employees or will be supplied in the future by newly hired workers. 2. A governmental function Bargaining relationship is seen as a mutual dependency of the parties concerned and the power of each to veto the acts of the other. 3. A decision making function CB allows the workers through their union representatives to participate in the determination of the policies which guide and rule their working lives.

FACTORS AFFECTING CB
1. Use of contingency worker and employee leasing. 2. Technological changes 3. International forces- less expensive foreign worker. 4. Economic conditions

5.Heavily governed by its political forces and legal regulations.

THE SCOPE OF CB IN MALAYSIA

a. Ensures the freedom of workmen to form and join a trade union and participate in its lawful activities by proscribing unfair labor practices by any person, particularly the employer. b. Requires the employer to recognize the trade union as the sole bargaining agent if it has sufficient membership. c. Defines the scope of collective bargaining in order to enable the parties to know what bargaining demands they can negotiate on. d. Imposes on both parties an obligation to bargain in good faith or negotiate with each other with a sincere desire to reach an agreement e. Ensures the smooth administration of the contract by providing for both the interpretation and implementation of the provisions of the collective bargaining.

CB PROCEDURE
Union presents Written demand s At the first bargaining session, union explains its demand and management presents counter offer. Bargaining sessions continue. Noncontroversial items where agreement is reached are cleared first.

Agreement is reached, put in writing and signed

Bargaining over controversial items. (Economic items)

Breakdown during negotiation. Parties refuse to continue negotiations.

CB PROCESS
Preparation Negotiations Implementation of the collective agreement Collective agreement

Disputes

Settlement

Preparation Negotiations Collective agreement

TACTICS FOR BARGAINING

1. Conflict based. 2. Armed truce 3. Power bargaining

4. Accommodation
5. Cooperation

COLLECTIVE AGREEMENT
Industrial Act, 1967 Is an agreement in writing between an employer or employer union relating to the terms and conditions of employment and work of workmen or concerning relation between such parties. The Industrial Act, 1967 provides that: 1. The CA shall be in writing and signed by the parties. 2. It shall set out the terms of the agreement and shall: - name the parties to the agreement - specify the duration of the agreement - prescribe the procedure for modification and termination of the agreement. - specify the procedure for the resolution of any question that may arise.

CB AT PUBLIC SECTOR IN MALAYSIA

Government is Malaysias largest employer. In public sector, the government unilaterally makes all such decision. To aid their decision making, the government has appointed special commissions and committee from time to time. The committee involves and related to public sector are: 1. Public Services Department 2. Salaries Commissions 3. National Joint Council 4. Public Services Tribunal 5. CUEPACS

PUBLIC SERVICES DEPARTMENT

- Acts as the personnel department of the Federal government which is under the Prime Minister Department. - It has 9 divisions which handle all personnel related functions in the public services. -The main function is planning, administration and development of civil service employees.

- Its other function include negotiating any anomaly arising from the implementation of the recommendations of the Salaries Commission and supervising the National Joint Councils.

SALARIES COMMISSIONS
Since the 1960s, several ad-hoc commissions have been set up to review salaries and other terms of service in the public sector as and when it considers it necessary, and report their findings and make recommendations to the government. The reports may or may not be accepted by the government. If their reports are accepted, then their recommendations are implemented by the Public Services Department (PSD). In 1992, the New Remuneration System (NRS) was introduced. Among others, it re-grades groups of employees and provides new benefits like maternity leave. Under the NRS, increments depend on the performance as measured through an annual appraisal system to replace the fixed annual increments.

NATIONAL JOINT COUNCIL

Provide a channel of communication for the government to receive feedback from the unions on the views of the public sector workers. It is to enable the employer (official) and employees (staff) discuss new proposals or principals of compensation or matters of general interest to public employees. In addition to NJCs, Departmental Joint Councils have been constituted on a ministry/department/statutory authority/local authority basis. They are for consultation and negotiation on the efficiency of the department concerned and the morale of the employees in that department, everything else is strictly prohibited.

PUBLIC SERVICES TRIBUNAL

A PST was set up in 1977 to arbitrate any dispute over anomalies in the implementation of recommendations of various Salaries Commissions and committees after negotiation has failed to resolve such dispute. The Tribunal is not authorized to resolve any disputes such as trade disputes. Decisions made by the Tribunal are final and conclusive and binding on all parties involved and affected by the dispute and must be implemented no later than six months from the date they were delivered.

CUEPACS
CUEPACS is a federation of trade unions of government workers registered in 1959. It is registered with the Department of Trade Unions and acts as the spokesman for the public service workers. Its membership is opened to all registered trade unions in the public and civil service in West Malaysia.

A council elected at a convention held once in three years carries out the administration of CUEPACS.

Value Of Collective Bargaining

1.The contribution to Political Democracy 2. The need for the right to strike Milton R.Konvitz (1948) stated in an article that explored the philosophical bases for the right to strike: Without the power to affect the course of events, a person or a group lacks the responsibility to reach decisions. Power is the source of responsibility. Without the right to strike, unions will lack the foundations for voluntary negotiation and agreement. If a free labour agreement-free collective bargaining in a free enterprise system-is in the public interest, so is the right to strike, which makes the free labour agreement possible.

CONCLUSION
In Malaysian Industrial relations system, there are 2 separate sub systems which relate to the setting of wages and other terms and conditions of service. 1. Private sector A bilateral system is encouraged employers and workers representatives are expected to bargain together in good faith within procedures set down in the Industrial Relations Act. 2. Public Sector The government as employer acts unilaterally to decide on salaries and other benefits for public servants. Its the governments belief that it is not in the best interests of the country for collective bargaining to take place in the public interest.