Collective bargaining

- Preparations for
negotiations
-Face to face bargaining
-Administration of the
Collective Agreement
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Prior conditions for collective

bargaining

Workers have the right to form and join trade

unions. Hence, firstly, in order to make the
trade union activity legal, union must go
Registration process .
Secondly, to conduct collective bargaining,
union must go through Recognition. The IRA
act requires unions to attain recognition before
they can proceed to invite an employer to
commence CB
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Registration of a union gives it the legal right

to exist, but recognition means an individual
employer is willing to accept the union as the
rightful representative of its workers.
Recognition is important to trade unions that,
in the interest of harmonious relations, the IRA
Act (sec 13) lays down the procedure for
unions to follow when claiming recognition
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Invitation to commence CB
(Malaysian context)

Either the union or the employer may invite

the other party to commence CB. Normally, it
is the union that usually invites the employer
to commence CB

The law (sec.13 IRA) requires the party making

the invitation to do so in writing and to set out
the proposals.
The party receiving the invitation must reply in
writing within 14 days from the date of receipt
of the invitation (notifying acceptance or
rejection of the invitation)
Where an invitation to commence CB has been
made, the parties must commence CB within 30
days from the date of receipt of the reply
notifying acceptance of the invitation
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Intervention by the DGIR

The party making the invitation may notify
the DGIR if:
There is no reply from the party within 14
days
The other party refuses to bargain
CB has not been commenced within 30
days from the date of receipt of the reply
notifying acceptance of such invitation

The DGIR may take such steps as may

be necessary bringing the parties to
commence CB without undue delay.

If after such steps have been taken and

there is still refusal to commence CB,
then a trade dispute shall be deemed to
exist.
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Once the employer has agreed to negotiate, the

representatives of workers and the employer will
meet, in number of sessions bargain until an
acceptable outcome is reached.
This agreement will be put in writing and signed
by both parties after which it must be deposited
with the Industrial Court within one month of its
being signed.

Once the collective agreement has been given

cognisance (approved), it becomes a binding
document enforceable by the Industrial Court

What if after a series of meeting there is a

deadlock, i.e. the parties negotiating are unable
to come to a satisfactory agreement?
In this situation, either party can request the
DGIR to conciliate. If the after conciliation, the
parties are unable to come to an agreement,
they can jointly request the Minister of Human
Resource to refer their disputes to the Industrial
Court for arbitration.
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Alternatively, the Minister can use his

authority under the Industrial Relations Act to
refer the dispute to the Court.
The Court will examine the issues and items
which are in dispute, hear the presentations of
both parties and will then make a decision.
The Court will decides on the final outcome of
the Collective Agreement.
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