Professional Documents
Culture Documents
Forword
o Code of Conduct for Industrial Harmony
o Areas for Co-operation and Agreed Industrial Relations Practices Document I
Responsibilities
At the level of the Establishment or Undertaking
At National or Industry Level
Employment Policy
Recruitment
Training
Payment System
Security of Employment
Redundancy and Retrenchment
Working Conditions
Collective Bargaining
Recognition of Trade Unions
Where Recognition Has Been Accorded
Negotiating Procedures
Collective Agreements
Procedure For Resolving Collective Dispute
Procedure For Resolving Individual Grievance
Procedure For Disciplinary Action
Communication and Consultation
Communication
Joint Consultation and Works Committee
FORWORD
CODE OF COUNDUCT FOR INDUSTRIAL HARMONY
AIM
1. To lay down principles and guidelines to employers and workers on the practice
of industrial relations for achieving greater industrial harmony.
COMMITMENT
2. The Malayan Council of Employers' Organisation as representatives of employers
generally and the Malaysian Trades Union Congress as representatives of workers
generally.
3. AFFIRMING their belief in the concept and principles as enshrined in the
RUKUNEGARA;
4. BEING CONSCIOUS of the responsibilities towards those whom they represent
as well as the society of which they are an integral part;
5. RECOGNISING that industrial peace is essential for a sound and stable economy,
especially at a time of stagflation, and that a sound and stable economy is of
paramount importance for achieving the objectives of the national development
plans which are committed to the task of creating a united, socially just,
economically equitable and progressive Malaysian nation;
6. HEREBY ENDORSE, with the collaboration and approval of the Ministry of
Labour and Manpower, this CODE OF CONDUCT FOR INDUSTRIAL
HARMONY and commend both employers and workers in Malaysia to observe
and comply with its Provisions, viz;
i. to refrain from taking unilateral action with regard to any industrial
dispute;
ii.
iii.
to ensure that at all times all matters in dispute are dealt with by the proper
machinery established for that purpose;
iv.
v.
vi.
vii.
viii.
(SGD)
------------------------
------------------------
Dr P. P. Narayanan
(SGD)
------------------------
------------------------
Encik T. Narendran
(SGD)
------------------------
------------------------
Encik J. F. Philips
(SGD)
Encik S. J. H. Zaidi
(SGD)
------------------------
------------------------
Encik W. Fernando
(SGD)
-----------------------Puan John Gurusamy
(SGD)
-----------------------Encik Zainal b. Rampak
and purpose for which they have been formed but also take into consideration
national interests.
2. Good industrial relations depend upon good organisation of work. Management
should therefore take all reasonable steps to ensure that:
a. all management personnel understand their responsibilities and what is
required of them, and have the training and authority necessary to
discharge such duties and responsibilities efficiently;
b. duties and responsibilities for each group of employees are stated with
clarity and simplicity in the organisational structure;
c. individual employees or work-groups know what their objectives are and
are regularly kept informed of progress made towards achieving them;
d. where possible, work is organised in such manner so that the individual
employee has the chance to achieve a sense of job satisfaction.
3. Where a trade union has been recognised:
a. management should take the initiative in seeking to establish, jointly with
the trade union concerned, effective procedures for negotiation,
consultation and the settlement of grievances and disputes;
b. management and the trade union should take all reasonable steps to ensure
that both management's and union's personnel observe agreements reached
and use agreed procedures; and
c. management should not discourage employees from joining the recognised
union and from taking an active part in its legitimate activities.
4. The Supervisor is management's first "contact" man with the employees and
special attention should be given to his appointment and his needs on the job. The
employer should ensure that he:
a. is technically proficient and adequately trained and possesses the personal
qualities required to exercise supervision;
b. has charge of a work-group of a size that he can supervise effectively;
c. is an effective link in the interchange of information and views between
senior management and members of his work-group;
d. is briefed about innovations and changes before they occur so that he can
explain management's policies and intentions to his work-group.
At National or Industry Level:
5. Employers' association should, inter alia:
that members are systematically and regularly kept informed, factually and
objectively, of the progress of negotiations for a collective agreement;
c. encourage its members to attend union meetings and to participate fully in
union activities by holding branch meetings at times and places convenient
to the majority; and, where there is a large enough membership, consider
forming the branch organisation on the establishment; and
d. establish effective procedures for the settlement of disputes among
members of the union.
9. The trade union should also ensure that all its officials:
a. clearly know and understand the nature and extent of their responsibilities
and authority;
b. are adequately trained to look after members' interests in a responsible and
efficient way;
c. wherever possible and practicable regular dialogue is held with officials of
employers' association and its members.
10. As the basic relationship between an employer and the individual employee is
defined in the individual contract of employment, it should be expressed in clear
and precise language. It is the employee's responsibility to satisfy himself that he
understands the terms of his contract and to abide by them.
11. The employer and the trade union concerned, if applicable, should ensure that
procedures for dealing with questions that arise on the individual contract of
employment are clearly laid down. But it is the responsibility of the employee
himself to:
a. familiarise himself with these procedures; and
b. make use of them when the need arises.
EMPLOYMENT POLICY
12. A sound employment policy is a prerequisite to good employer-employee
relations. It should also reflect Government's policy requirements as are
announced from time to time. Good planning and efficient use of manpower are
important both for the success of the establishment or undertaking and for the
security of those employed in it. The employer should, therefore, inter alia,
i. keep fluctuations in manpower requirements to a minimum by means of
advance planning;
ii. make changes, wherever necessary, with as little disruption as is
necessary; and
iii.
where practicable, maintain, in consultation with the employees or their
representatives or trade union, as appropriate, a scheme for transferring
vi.
27. Where a trade union has not secured recognition from the employer for
negotiating rights, the employer should nevertheless be prepared to consider
receiving representations from the union on behalf of its members about
grievances or other matters, which can be settled on an individual basis.
Where Recognition has been accorded
28. Where a trade union has secured recognition the employer and the union should
establish effective procedures for negotiation. To enhance the smooth and efficient
functioning of such procedures the employer should make available to the union,
where possible, reasonable facilities to enable the union to keep in touch with its
members and to represent them effectively.
29. Senior management personnel should also maintain regular contacts with officials
of the trade union. Similarly, the principal officials of the trade union should also
keep in touch with members of the senior management of the undertaking or
establishment. Contact should not be left until trouble occurs. Management should
ensure that there is a close rapport and a continuing dialogue with the trade union
and its officials.
Negotiating Procedures
30. Negotiation of collective agreement should be as simple as possible and, with this
in mind, the employer and the union should establish agreed procedures which
may be formal.
31. It is desirable that respective employers' associations and trade unions negotiate
certain matters at industry level, including:
a. those conditions of employment which can be effectively applied
throughout the industry uniformly;
b. general guidelines for the negotiation of matters which cannot be decided
satisfactorily at industry level; and
c. a procedure for settling disputes, either for the industry as a whole or as a
model for adoption at the level of the undertaking or establishment.
Collective Agreements
32. Collective agreements deal with matters of procedures and matters of substance,
and may cover both in a single document or deal with them separately. In either
case there should be provision for regular review for ensuring that the procedural
provisions have not become out of date.
33. The procedural provisions should set out the formal constitution of joint
negotiating bodies and should also cover:
a. the matters to be negotiated and the level at which bargaining should take
place;
b. the arrangements for negotiating substantive agreements on terms and
conditions of employment, including the period for which the agreements
are to run and the arrangements under which either party can terminate
and re-negotiate an agreement;
c. the procedures for settling collective disputes and individual grievances;
d. the procedures regarding redundancy and temporary lay-offs, discipline
and dismissal.
34. The substantive provisions should cover:
a. wages and salaries, overtime rates, bonuses where applicable, piece-work
and other systems of calculating earnings in relation to performance; and
b. hours of work; provisions for overtime work and shift working; holiday
entitlement and pay.
35. The agreements may also cover such matters as:
a. fringe benefits such as sick pay, pensions and guaranteed pay schemes;
b. work study and other techniques for determining levels of performance
and productivity and job grading such as method study, work
measurement and job evaluation;
c. the deduction by management of trade union subscriptions etc. from
employees' wages; and
d. the facilities for trade union activities in the establishment.
Procedure for Resolving Collective Dispute
36. A procedure for settling collective dispute should:
a. be in writing and agreed between the employer and the trade union
concerned;
b. define the appropriate levels for raising and settling different types of
issues; and
c. prescribe time limits within which issues should normally be settled or
else taken to the next stage of the procedure.
37. The procedure should incorporate the following:
a. workers' representatives should raise the issue in dispute with employer at
the level directly concerned;
b. Failing settlement it should be referred to a higher level within the
establishment;
c. if still unresolved the issue should, where appropriate, be referred to the
employers' association and the trade union concerned and dealt with in
accordance with the industry-wide dispute-procedure agreed between
them; and
d. if still unresolved, it should be referred to the Ministry of Labour and
Manpower for conciliation/ arbitration.
Procedure for Resolving Individual Grievance
38. Effective procedure should exist for a worker to seek redress for his grievance.
Such procedure shall be established in consultation with the worker's
representatives or trade union, as appropriate.
39. The aim of the procedure should be to settle the grievance as near as possible to
the point of origin and should, therefore, operate as follows:
a. the employee should first discuss the grievance with his immediate
superior, accompanied if he so wishes by his union representatives; and
b. if he fails to get satisfaction, he should make use of the agreed appeals
procedure.
40. The appeals procedure should:
a. be in writing;
b. be made known to each employee;
c. be as simple and rapid as possible, with prescribed time limits for each
stage:
d. set out a procedure for appeal at more than one level wherever practicable;
e. require a recording of the outcome of each stage of the procedure, for
reference to the next stage and where possible this should be in the form of
an agreed statement in writing; and
f. give the worker the right to be represented by his representative trade
union official.
Procedure for Disciplinary Action
41. An employer should ensure that a fair, effective and expeditious procedure exists
for dealing with disciplinary matters. Such procedure may be established in
consultation with the employees' representatives or trade union as appropriate.
The employer should define and make known to each employee the rules of work
and the disciplinary action which may follow if they are broken. Penalties should
be graduated according to the seriousness of the offence. An employee should not,
except in cases of gross misconduct, be dismissed for a first offence.
42. The disciplinary procedure should be in writing and be made known to each
employee. The proceedings should be conducted in accordance with the rules of
natural justice and should:
a. provide for the employee to be informed, in writing, of the misconduct;
b. specify who has the authority to take what forms of disciplinary action;
c. provide for full and speedy consideration by employer of all the relevant
facts;
d. give the worker the opportunity to state his case and the right to be
represented by his workers' representative or trade union official;
e. in the case of less serious offences, provide, in the first instance, for a
warning by the employee's immediate superior;
f. in the case of more serious offences, provide for a formal warning in
writing, setting out the circumstances and the disciplinary action to which
an employee will be liable if he commits a further offence and require a
copy of this record to be given to the employee and if he so wishes to his
employees' representative or trade union official; and
g. provide for a right of appeal against disciplinary action to a higher level of
management not previously involved.
(SGD)
------------------------
------------------------
Dr P. P. Narayanan
(SGD)
------------------------
------------------------
Encik T. Narendran
(SGD)
------------------------
------------------------
Encik J. F. Philips
(SGD)
Encik S. J. H. Zaidi
(SGD)
------------------------
------------------------
Encik W. Fernando
(SGD)
-----------------------(DATUK LEE SAN CHOON, S.P.M.J., K.M.N)
Menteri Buruh dan Tenaga Rakyat,
Malaysia
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