TOPIC 2

INTRODUCTION TO
TRADE UNIONS
Learning Outcomes
At The End Of This Lecture, Student Should Be Able To:
Definition of trade unions
Trade union objectives
Types of trade unions
Categories of trade unions
Composition of trade union
Formation, registration of trade unions and its requirements
De registration of trade unions and its effects
Immunities, rights, privileges and liabilities of trade unions
 DEFINITION OF TRADE UNIONS

Trade unions are the most effective organization for protecting workmen from
exploitation by employers, and for promoting economic interests of
employees.

DEFINITION OF A TRADE UNION.

An association or workers/employers set up within particular trade,
occupation or industry (TOI) to:
1) Protect right of workers (members)
2) Improve terms and conditions at the workplace.
A trade union is an independent association or combination of employees
that acts as a voice to regulate relations between employees and
employers for the purpose of improving good industrial relations, enhance
economic and social status of both parties as well as finding solutions to
raise productivity for the benefit of those involved.

-the official website of MOHR-

 DEFINITION OF TRADE UNION – SECTION 2; TUA 1959
"trade union " or "union " means 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-

(i) the 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;
(ii) the regulation of relations between workmen and workmen, or between
employers and employers;
(iii) the representation of either workmen or employers in trade disputes;
(iv) the conducting of, or dealing with, trade disputes and matters related thereto; or
(v) the promotion or organisation or financing of strikes or lock-outs is any trade or industry or the provision of pay or other benefits
for its members during a strike or lock-out;
 TRADE UNION OBJECTIVES

1) To promote the industrial, social and intellectual interest of members.

2) To obtain and maintain for its members just and proper rates of remuneration,
security of employment, and reasonable hours, and conditions of works.
3) To promote the material, social, and educational welfare of the members.
4) To promote legislation affecting the interests of the members in particular or treat
unionists in general.
(Maimunah Aminuddin, 2020: p.128)
 TYPES OF TRADE UNIONS

Categories of trade unions

Composition of trade union
Formation, registration of trade unions and its requirements
De registration of trade unions and its effects
Immunities, rights, privileges and liabilities of trade unions
 TYPES OF UNIONS

1) Public sector employees’ union

2) Private sector employees’ union
3) Employer’s union
 PUBLIC SECTOR EMPLOYEES UNION

• Consist of the civil service, the statutory bodies and the local authorities.
• TUA provides that workers in the public sector can only form and join unions whose
members are in the same ministry, department or occupation.
• E.g:
National Union of the Teaching Profession
Malayan Nurses Union
Malayan Technical Services Union
Dental Technician Union
 PRIVATE SECTOR UNIONS

There 2 types of private sector unions:

a) National Union
b) In-house union

a) National Union
- cover all the workers in the same TOI.
- the larger union have a sophisticated structure with regional branches and local/plant
level committees.
- large coverage – not necessarily depends on the number of membership – but – depend
on the number of potential members and the degree of success of the union officers in
persuading these potential members to join TU.
-eg: National Union of Plantation Workers (NUPW)
 Private Sector Unions…cont’d
b) In-house Union
- involves a separate union for each company or enterprise irrespective of the category of TOI
(comprise workers who work for the same employer).

- the govt believes in-house union is more likely to be a appreciative of the situation in their
workplace and problems of their employer.

- the close relationship will lead to peaceful IR and higher levels of productivity.

- they may be directly controlled by the employer who provides them with financial help, physical
facilities, and representatives of management will be involved in running the union.
 ADVANTAGES OF IN-HOUSE UNION

1) Better management union relations because no interference from outsiders.

2) In-house union has more understanding of company’s needs and workplace problems
rather than a full-time union official of a nation wide occupational union.

3) They feel in-house union leaders are more likely to adopt a cooperative rather than a
confrontational approach to negotiations with management.
 DISADVANTAGES OF IN-HOUSE UNION
1) In-house union are generally weak because membership is limited and confined to
workers in one particular company.
2) The leadership of such unions must be chosen from the small number of members
which may give rise to the possibility of the employer trying to exploit such leader.
3) The union’s financial strength will not enable it to carry out its normal trade union
activities.
4) Fear of victimization among union leaders, particularly in relation to promotions,
termination of employment, transfers and assignment of duties which are management
prerogatives.
5) In-house unions with small memberships will be unable to provide scholarships and
other benefits for their members.
 EXAMPLES OF TU IN MALAYSIA

National Union of Teaching Profession

Telekom Employees Union
Tenaga Nasional Employees Union
Electrical Industry Workers Union
National Union of Bank Employees
National Union of Plantation Workers
National Union of Commercial Workers
Malayan Nurses Union
Metal Industry Employees Union
Sarawak Teachers Union
Please find for more TU actively involved in Malaysia
 CATEGORIES OF TRADE UNIONS ESTABLISHED IN MALAYSIA

• MEMBERSHIP – workers and employers

• LOCATION – Sabah / Sarawak and Semenanjung

• JOB NATURE –trade/occupation/industry

(please read more in Maimunah Aminuddin’s text book, 2016: p.112-113)

 REASONS FOR JOINING TU. (WHY PEOPLE JOIN TU?)

1) Economic motive
2) Protection of right
3) Social reasons
4) Influence the decision-making and policy making.
5) Prevent exploitation and unfair action.
6) Pressure from present union members.
 WHO CAN JOIN TRADE UNION?
(LEGAL REQUIREMENT)

• Employees who had attain the age over 16 years old and must be relevant to his trade,
occupation or industry.
• Students are not allow to join TU unless they are ‘bona-fide’ employees and over the age of
18 years old.
• Certain categories of employees are also not all permitted to join TU whose membership is
not the same category as themselves.
( managers, executives and staff in confidential or security positions)
Public sectors employees who want to become a member of a trade
union can only join those formed by employees in the same
department, ministries or occupation)
Certain group of public sector employees are not all permitted to join
TU . (Prison Services, Police Force, Armed Forces and those in the
confidential or security work)
Employees in the professional and managerial group in the public
sector are also not allow to join trade union unless they are exempted
by the Government Chief Secretary.
FORMATION, REGISTRATION OF TRADE UNIONS AND ITS REQUIREMENTS
PROCESS / STEPS OF REGISTRATION OF
THE TRADE UNION
(SECTION 7 – 14; TUA1959)
 REGISTRATION OF TRADE UNION

• This is a process where a trade union applies for registration and a certificate of
registration will be issued by the authority.
• The definition is silent on this matter (issue of registration).
• But, registration is necessary for a union under the TUA 1959 (TUA does insist on
the registration of every union).
 1. SECTION 8, TUA

• It is related to duration (of establishment) as the following:

• i. Any organization that fits the definition is required by the Act to apply for registration
as a union within one month of its establishment. (Sec.8, TUA)

• ii. If the DGTU thinks fit he can extend as to exceed a period of six month in the
aggregate. (Sec. 8(2), TUA)
 2. SECTION 12, TUA
• It is related to the powers granted to the DGTU as the following:
• i. the powers to register a union by giving a certificate of registration.
• ii. the powers to reject the application by a trade union (with valid reasons).
• iii. the powers to withdraw or cancel the registration of trade unions (with
reasons).
 3. SECTION 19, TUA
• •It is related to consequences of an unregistered or a de registered trade union as the
following:
• i. Shall be unlawful association and shall cease to enjoy any rights, privileges
and immunities.
• ii. Shall not take part in any trade disputes or promote, organize or finance any
strike or lockout or provide benefits for its members during a strike or lockout.
• iii. Shall be dissolved and its funds disposed.
• iv. Only those assigned for the purpose of dissolving the union and disposing the
funds can take part in its management or organization.
 4. SECTION 59, TUA
It is related to the prohibited acts done prior to registration.
• i. Prior to its registration a trade union is prohibited from any act in
furtherance of any of its objectives specified in the definition of a trade
union except any act done in a good faith in the course and for the
purpose of establishing the trade union.
 5. SECTION 67, TUA
• • It is related to the prohibition from seeking registration under other law.
• i. This section prohibits an organization falling within the definition of trade
union from seeking registration as a society or company under any law
(relating to the registration of societies or companies).
• ii. But, the Act permits any such organization whose objective is to regulate
relations between employers and employees or between employers and
employers to seek registration as a society under related law.
 APPLICATION FOR REGISTRATION
(SECTION 10, TUA 1959)

• An established trade union must fulfill several requirements that qualify it to be registered as the
following:
• • It must make application to the DGTU,
• • It must be signed at least by seven (7) members of the union,
• • It must be made in the prescribed form,
• • It must be accompanied by the prescribed fee,
• • It must be accompanied by a printed copy of the rules of the union signed by the members making
the application, and
• • It must specify:
• i. The name of the union and the address of its head office;
• ii. The titles, names, ages, addresses and occupations of the officers of the union…and such other
information regarding such officers as the DGTU may in any particular case require to be furnished… and
• iii. The names, addresses and occupations of the members making the application.
 EXAMPLE:
• For that purpose every trade union must apply for registration within one month from the date of its
establishment. The application must be signed by at least seven members of the union. The
documents and forms that have to be completed are as follows: -
• 1. Application for Registration (Form BB)                                  4 copies 
2. Prescribed form together with revenue stamp of RM30.00.
3. Printed trade union rules.                                                          1 copy 
4. Minutes of trade union's inaugural meeting.                      2 copies

(source: Department of Trade Union Affairs) 

 Shall refuse to register a trade union if:

• (a) In his opinion the trade union is likely to be used for unlawful purposes
or for purposes contrary to or inconsistent with its objectives and rules; or
• (b) He is not satisfied that the trade union has complied with the provisions
of this Act and of any regulations made thereunder; or
• (c) He is satisfied that the objectives, rules and constitution of the trade
union conflict with any of the provisions of this Act or of any regulations
made thereunder; or
• (d) The name under which the trade union is to be registered is:
• • Identical to that of any other existing trade union, or so nearly resembles the name of
such other trade union as, in the opinion of the DGTU, is likely to deceive (mislead) the
public or the members of either trade union; or
• • In the opinion of the DGTU, undesirable (unfavourable / unwelcome) unless the trade
union alters its name to the one acceptable to the DGTU. (Sec.12(3), TUA)
• iv. To issue a certificate of registration in the prescribed form. (Sec. 13, TUA) v. To call for
further information for the purpose of satisfying himself. (Sec.14, TUA) vi. To extend the
period of registration from one month as to exceed a period of six month. (Sec. 8, TUA)
 DE REGISTRATION OF TRADE UNIONS AND ITS EFFECTS

• DE REGISTRATION TUA 1959 also gives powers to the DGTU to cancel or withdraw a certificate of registration of a trade union (to revoke /
invalidate the registration) under the following circumstances:

• i. At the request of (demand by) a trade union; or

• ii. If he is satisfied that:
• – the certificate was issued by fraud (deception / con / trick) or mistakes (faults);
• – any one of the objectives or rules of the trade union is unlawful (illegal / unauthorised);(page:122)
• – the constitution of the trade union or its executive is unlawful;
• – the trade union has been contravened (disobeyed) any provision of this Act or of any regulations made thereunder;
• – the funds of the trade union has been expended (spent) in unlawful manner or unlawful objectives or on an objective not authorized by
the rules of the union; or
• – the union has ceased to exist (ended / closed down) . (Sec. 15(1), TUA)
 DE REGISTRATION … CONT’D
• iii. In the case where two or more trade unions registered in respect of particular
trade, occupation, industry or place of employment exist, the DGTU may:
• – cancel the certificate of registration of the trade union or trade unions other than the
trade union which has the largest number of workmen…; or
• – issue an order requiring the trade unions other than the trade union which has the
largest number of workmen … as its members to remove from the membership register
those members as are employed in that…and thereafter the trade union/ unions…
ordered shall not enroll as members in any … except with the permission in writing of
the DGTU…
• (Sec. 15(2), TUA)
 DE REGISTRATION … CONT’D

• iv. upon amalgamation (merger) of trade union or dissolution of trade union.

(Sec.15(1), TUA)
• v. In addition, the DGTU has a power to order a suspension (deferment) of a branch
of a trade union if he is satisfied that the branch of a union has contravened the
provision of this Act or the rules of the union concerned. The suspension of an
entire union or the entire class of union is in the hand of the Minister of Human
Resources. (Sec.17, TUA)
 IMMUNITIES, RIGHTS, PRIVILEGES AND
LIABILITIES OF TRADE UNIONS

• A distinction is drawn between a registered trade union and one that is not registered.

• Section 20, TUA 1959:

• “ A trade union shall not enjoy any of the rights, immunities or privileges of a registered trade union unless it is
registered”
IMMUNE FROM :

I. CIVIL SUIT IN CERTAIN CASES ( SECTION 21,TUA 1959)

II. LIABILITY FROM ANY TORTOUS ACT ALLEGATION ( SECTION 22, TUA
1959)
IMMUNITY FROM CIVIL SUITS IN CERTAIN CASES (S.21)

** It enjoys this immunity as long as the act is done in contemplation or in furtherance

of a TD even though the acts lead to:

i) Breach of the contract of work

ii) Interference with the trade / employment of some other person
The protection of this S.21 is limited to actions taken in furtherance of a TD. (TD S.2:
any dispute between an employer and his workmen connected with one of the
following:

I. the employment or non-employment of any such worker

II. the terms of employment of any such worker
III. The conditions of work of any such worker
IMMUNITY FROM LIABILITY (S.22)
A TU enjoys liability from any tortuous act (whereby a person is liable to pay damages/ compensation due to their
acts committed by them or on behalf of their TU if it is done in contemplation or in furtherance of a TD

What is tort?
Tort covers subject such as trespass to the person (assault), negligence (breach of the legal duty to take care
which result in damage), defamation, trespass to land & nuisance.

Such allegation will not be heard or entertained by any court.

PRIVILEGE

SECTION 24 TUA 1959

LIABILITIES
 TYPES OF LIABILITIES:

I. Liability in tort (SECTION 22 TUA1959)

II. Liability in contract (SECTION 23 TUA1959)

Liability in tort (SECTION 22 TUA1959)

A TU enjoys liability from any tortuous act (whereby a person is liable to pay
damages/ compensation due to their acts committed by them or on behalf of
their TU if it is done in contemplation or in furtherance of a TD

What is tort?
Tort covers subject such as trespass to the person (assault), negligence (breach
of the legal duty to take care which result in damage), defamation, trespass to
land & nuisance.
Tortuous act
• Although earlier it was mentioned that a trade union will not be charged for any
act committed in contemplation or furtherance of a trade dispute, • However, the
law did state that a union, its trustees and officials is responsible for torts done
involving specific property or rights of a trade union or its usage.
• As such, a trade union can be charged for the tort of nuisance if its premise is being
used in a way that can cause nuisance to its neighbors.
Liability in contract (SECTION 23 TUA1959)

Every registered TU is liable on any contract entered into by it or by agent acting on

his behalf. BUT, they are not so liable on any contract which is void / unenforceable
by law.

In virtue of s.23 TUA, a registered TU is liable on any contract entered into by it or by

agent acting on its behalf.

Contracts include: lease agreement, commercial transactions and even unemployment

contract of union employees.
 RIGHTS OGF REGISTERED TRADE UNION
(SECTION 25 TUA 1959)

LEGAL FINANCIAL REPRESENTAT INDUSTRIAL

ACTION SUPPORT ION ACTION
 Rights of registered trade unions

Legal action
• Section 25 (1) of TUA, a union have the right to institute legal action and similarly the union too can
be charged provides.
• Section 25 (2) of the same Act specified that an unregistered union can be charged under the name it
used or the name it is referred to.
• While Section 25 (3) of the TUA states a deregistered union can also be charged under the name it
was formerly registered.
Financial support
• The financing of trade union is very much supported by its members through entrance fee payment
and monthly membership subscription made by members once they join in as a member of a union.
• Section 25(5) of the Trade Unions Act provides that any fines imposed and be born by the union, can
be derived from the sales of its movable properties or any monetary held under its trust fund in
accordance with the related criminal procedure
Representation in court proceeding
• Section 25(6) of the Trade Unions Act, clarifies a trade union must appear in any civil or criminal
proceeding.
Industrial action
• As stipulated in the Trade Unions Act, 1959 Section 25A, both trade union of employee and employer
alike can take actions to stop a trade by launching legal strike and lock out.

However, the provision also states that penalties are enforceable if a trade union does not comply with
the requirements or the regulations.
 However,
i) a registered trade union may be sued or prosecuted under its registered name.(Sec. 25 (1),
TUA)

ii) a trade union whose registration has been cancelled or withdrawn may be sued and
prosecuted under the name by which it was registered. (Sec. 25 (2), TUA).

iii) In any civil proceedings, the execution for any money recovered from trade union can be
done or issued against any property belongings to or held in trust for the trade union other
than benevolent fund of a registered union. (Sec. 25 (4), TUA).

iv) Any fine ordered to be paid by a trade union may be recovered by distress or sale of any
movable property belongings to or held in trust for the trade union… (Sec. 25 (5), TUA)
 POWERS OF REGISTERED TRADE UNIONS

Powers accorded to a registered trade unions are the following:

1.To run activities/ perform roles

2. To spend a trade union’s funds
3. To collect money or other property . 4. To employ and pay a secretary, treasurer and other persons as
may be necessary
5. To amalgamate (merge/unite) with one or more registered union. *
6. To form a union federation (coalition/alliance). *
7. To affiliate (associate/join) with a consultative (advice giving) body. *
8. To transfer (handover) any engagement/ agreement to another trade union.