HIGHER wages and better working conditions are among the long-term benefits of recent amendments to labour laws which give employees more freedom to form unions, said experts.

The amendments will remove legal restrictions to the number and types of unions that can be formed in any given industry, trade and sector, said labour activists and unionists.

Unionists from the Union Network International-Malaysian Labour Centre (UNI-MLC) and the Labour Law Reform Council (LLRC) have backed the changes despite opposition from another group, the Malaysian Trades Union Congress (MTUC) and the employers’ federation, the MEF.

The extremely low rate of union membership in Malaysia is one of the reasons wage growth, particularly for low-income workers, has stagnated.

Currently only 6% of the country’s 15 million private and public sector workers are unionised. According to labour activists, of that rate, 4% belong to government and statutory body unions.

Only about 2% of the private sector workers, who number about 14 million, are union members, said the Labour Law Reform Council (LLRC).

“On the whole, the amendments are progressive for the welfare and rights of workers,” said LLRC chairman N. Gopal Kishnan, in light of a controversy that has emerged over the amendments.

The amendments are to the Industrial Relations Act 1967 and Trade Union Act 1959, which were tabled by the Human Resources Ministry in this parliamentary session and in the process of being passed.

Among others, the changes will allow unions to be formed in any company or industry and limit government interference.

Current laws, for instance, stipulate that only one union can be formed to represent workers in a specific industry, such as transport workers, metal workers and automotive workers, said UNI-MLC president Mohamed Shafie B.P. Mammal.

The amendments will also erase a ban on unions in the electrical and electronics product industry instituted since the 1970s, Shafie said.

“There were no reforms for the past 60 years and this government seems sincere about amending laws that will give advantages to unions and workers,” said Shafie, a unionist for the past four decades.

Other changes in the two laws will also speed up wrongful dismissal cases and collective agreement disputes at the Industrial Court.

Healthy competition

MTUC, the country’s largest private sector union grouping and the MEF have objected to the amendments and have accused the ministry of bulldozing them with their consent.

The amendment to allow greater freedom to form and join unions would create a landscape of multiple unions that would compete with each other to gain members, MTUC said.

This would then weaken and dilute the collective voice of workers when it comes to bargaining for better wages and conditions from employers.

This is because, theoretically, employers can then set up or co-opt unions that are pliant to their demands and choose to only deal with them.

UNI-MLC and LLRC, both of which also represent unions, refuted this argument as the freedom of choice will mean workers will be able to choose unions that best represent their interests.

“Allowing workers to choose which union to join is like allowing citizens to vote for whichever political party is able to serve them best,” said Gopal.

The amendments also do not threaten the position of established unions, said UNI-MLC’s Shafie, but instead encourage them to perform better to keep their members.

“If you manage your union well, there is no reason that workers will not choose you,” said Shafie.

Gopal said a sole bargaining mechanism will also be introduced to assist workers when there is a situation of multiple unions.

This will allow workers to vote for the union to represent them in collective bargaining with a given employer, said Gopal.

“The voting, via secret ballot, will be run by the Industrial Relations Department and only the union that has the majority of workers will be given the right to bargain with an employer.” – November 22, 2019.