Trade Unions Act (TUA) 1959, Amendments 2022 and Collective Bargaining

By the end of this program, participants will be able to:

1. Explain the purpose and legal framework governing trade unions in Malaysia under the Trade Unions Act 1959 and its relationship with the Industrial Relations Act 1967.
2. Understand the legal process for forming and registering a trade union, including the role and powers of the Department of Trade Union Affairs Malaysia.
3. Identify the rights, limitations, and responsibilities of trade unions and employers in representing workers’ interests.
4. Recognize common legal issues involving collective bargaining and collective agreements, union activities, recognition, membership, and disputes.
5. Apply practical approaches to managing employer–union relationships while maintaining industrial harmony and compliance with Malaysian labour laws.

Module 1 – The Awakening: Why Workers Form Trade Unions

The story begins when employees feel their collective voice is not heard. They start discussing the idea of forming a union.

• Purpose of trade unions in industrial relations
• Historical development of unionism in Malaysia
• Definition of trade union
• Types of unions (in-house, national, industry based)

Why Workers Form Trade Unions Recent Amendments to Trade Union Framework

• Overview of the Trade Unions (Amendment) Act 2023
• Introduction of multiplicity of unions within an organisation
• Expansion of union scope across trade, occupation or industry

Module 2 – The Birth of a Union: Registration and Legal Recognition

Workers decide to formally establish a union and must comply with the law.

• Formation of a trade union
• Registration requirements
• Powers of the Director General of Trade Unions
• Grounds for refusal of registration

Module 3 – The Power of Collective Voice: Union Rights and Functions

The union begins representing workers and engaging with management.

• Rights of union members
• Union funds and governance
• Union activities and lawful conduct
• Protection of union members

Module 4 – Collective Agreement & Collective Bargaining

Collective Bargaining and Collective Agreement

Once the union is recognised, the next chapter begins — negotiation between employer and union to determine employment terms.

• Concept of collective bargaining
• Legal framework for collective bargaining in Malaysia
• Subjects of negotiation (wages, benefits, working conditions)
• Good faith bargaining principles
• Drafting and structure of a collective agreement
• Registration of collective agreement in the Industrial Court
• Legal effect of a collective agreement

Collective Bargaining

• Majority Support and Sole Bargaining Rights
• Where more than one union exists, the union with majority support obtains sole bargaining rights
• Implications for employers and union representation during negotiations

Module 5 – The Industrial Drama: Disputes, Strikes and Legal Limits

Conflict arises between union and employer, leading to disputes and potential industrial action.

• Trade disputes and industrial action
• Legal restrictions on strikes and picketing
• Government intervention and dispute resolution

Industrial Disputes and Strikes

• Updated Strike Ballot Requirements
• Recent changes to the secret ballot threshold required before a strike can proceed
• Legal consequences of unlawful strike action

Final Reflection – Lessons from Industrial Relations Conflicts

Key legal lessons:

• Balancing worker rights and employer interests
• Importance of lawful union activities
• Building sustainable employer–union partnerships