SMG 451

LABOR RELATIONS
AND COLLECTIVE
BARGAINING
Presented by :

RAIMI BIN RABUIMEN 2010349307

NUR ARTIKA BT MAHAMUT
2010523303
MOHD HIDAYAT BIN KAMARUDIN
2010188007
 SUBTOPICS
 Labor Act 1967

 Law of Malaysia 1997

 Sports Development Act

INTRODUCTI
ON
Labor Relations
 Labor relations is the study and practice of managing
unionized employment situations.
 In academia, labor relations is frequently a subarea
within industrial relations, though scholars from many
disciplines - including economics, sociology, history,
law, and political science--also study labor unions and
labor movements.
 In practice, labor relations is frequently a subarea
within human resource management. Courses in labor
relations typically cover labor history, labor law, union
organizing, bargaining, contract administration, and
important contemporary topics.
Labor Relations
 While labor relations is most often used to discuss this
exchange as it pertains to unionized employees, it may
also refer to non-union employees as well. Labor
relations are dictated in a large part by the government
of a nation and the various regulations it provides to
industry regarding the treatment of employees.
 In the United States, labor relations gained a huge
boost with the passage of the National Labor Relations
Act in 1935. This act covered a wide range of labor
rights, including the right to strike, the right to bargain
as a union, and a general right to protest and take
action to achieve their desires.
Collective Bargaining
 The process through which a LABOR UNION and an employer
negotiate the scope of the employment relationship.
 Collective bargaining is a type of negotiation used by
employees to work with their employers. During a collective
bargaining period, workers' representatives approach the
employer and attempt to negotiate a contract which both sides
can agree with.
 Typical issues covered in a labor contract are hours, wages,
benefits, working conditions, and the rules of the
workplace. Once both sides have reached a contract that they
find agreeable, it is signed and kept in place for a set period of
time, most commonly three years.
 The final contract is called a collective bargaining agreement,
to reflect the fact that it is the result of a collective bargaining
effort.
Collective Bargaining
Furthermore, the collective bargaining agreement is not
purely voluntary. One party's failure to reach agreement
entitles the other to resort to certain legal tactics, such as
strikes and lockouts, to apply economic pressure and force
agreement. Moreover, unlike commercial contracts
governed by state law, the collective bargaining agreement
is governed almost exclusively by federal LABOR LAW,
which determines the issues that require collective
bargaining, the timing and method of bargaining, and the
consequences of a failure to bargain properly or to adhere to
a collective bargaining agreement.
LABOR ACT
1967
Labor Act 1967
 Also known as Employee Act 1967
 Focused on to two (2) major acts :

The Age Discrimination in

Employment Act of 1967
Industrial Relation 1967
Age Discrimination in Employment Act

 Be enacted on December 15, 1967 by the

Senate and House of Representatives of
the United States of America in Congress
assembled, That this Act may be cited as
the "Age Discrimination in Employment
Act of 1967".
 To prohibit age discrimination in
employment.
Age Discrimination in Employment Act
The Age Discrimination in Employment Act (ADEA)
includes a broad ban against age discrimination and also
specifically prohibits:
 Discrimination in hiring, promotions, wages, or termination of
employment and layoffs.
 Statements or specifications in job notices or advertisements of
age preference and limitations.
 Denial of benefits to older employees. An employer may
reduce benefits based on age only if the cost of providing the
reduced benefits to older workers is the same as the cost of
providing full benefits to younger workers.
 Since 1978 it has prohibited mandatory retirement in most
sectors, with phased elimination of mandatory retirement for
tenured workers, such as college professors, in 1993.
Age Discrimination in Employment Act
The ADEA is applicable to all those organizations that have
more than 20 employees, including overseas employees.
There are a few exceptions to the rule as listed below:

• An employer can offer reduced benefits based on age if the

reduced cost is the same as the cost of full benefits for
younger workers.

• Mandatory retirement is allowed for executives above the

age of 65 working in high-ranking positions who are entitled
to a pension, which is more than the minimum yearly amount.
Age Discrimination in Employment Act

 An age limit may be specified where age has been

shown to be a “bona fide occupational
qualification" necessary to the normal operation of
the particular business. This is known as the
BFOQ, in short. This may include exceptions, like
a young woman hired to play a young character in
a film, or recruitments in the interest of public
safety, such as bus drivers or pilots.

• The law does not apply to workers employed by

the state.
Industrial Relations Act 1976

The Industrial Relations Act of 1967 is

the legal foundation for formally
recognizing and regulating collective
bargaining between employers and labor
unions in Malaysia. It serves to protect
workers engaged in negotiations from
abuse and to prevent the shutdown of
production by strike.
Industrial Relations Act 1976

Sections
The act is divided into 10 parts, labeled in Roman numerals.
The first section lays out the definitions used in the rest of the
act, while the remaining sections detail the roles of the union,
the employer and the director general of industrial relations.

Unions
The act establishes the process by which a union can become
officially recognized. Thereafter it protects the union's rights
by creating a venue for workmen to appeal victimizing
practices or unfair dismissal by the employer.
Industrial Relations Act 1976

Employers
While employers are prevented from abusing workers,
provisions in the act also preserve the business owner's
right to fire an employee for appropriate reasons. The
law also prevents union laborers from walking out on
the job if the employer is willing to negotiate.

Director General
The act confers powers to the director general of the
Industrial Relations Department to mediate
disagreements between capital and labor. The parties
may submit the dispute themselves, or the director can
choose to intervene of his own volition.
LAW OF
MALAYSIA
• The law of Malaysia is mainly based on the common
law legal system. This was a direct result of the
colonization of Malaya, Sarawak, and North
Borneo by Britain between the early 19th century to 1960s.
• The supreme law(Constitution of Malaysia) -sets out the
legal framework and rights of Malaysian citizens.
•  Federal laws enacted by the Parliament of Malaysia applies
throughout the country.
• There are also state laws enacted by the State Legislative
Assemblies which applies in the particular state.
• The constitution of Malaysia also provides for a unique dual
justice system—the secular laws (criminal and civil)
and sharia laws.
SUPREME LAW
• The Federal Constitution of Malaysia, which came into force in
1957, is the supreme law of Malaysia.
• The Federation was initially called the Federation of Malaya (in
Malay, Persekutuan Tanah Melayu) and it adopted its present name,
Malaysia, when the States of Sabah, Sarawak and Singapore (now
independent) joined the Federation.
• The Constitution establishes the Federation as a constitutional
monarchy having the Yang di-Pertuan Agong as the Head of
State whose roles are largely ceremonial.
•  It provides for the establishment and the organization of three main
branches of the government: the bicameral legislative branch called
the Parliament, which consists of the House of Representatives (in
Malay, Dewan Rakyat) and the Senate (Dewan Negara); the
executive branch led by the Prime Minister and his Cabinet
Ministers; and the judicial branch headed by the Federal Court.
COMMON LAW
• The laws of Malaysia can be divided into two types of
laws: written law and unwritten law.
• Written laws are laws which have been enacted in
the constitution or in legislations.  
• Unwritten laws are laws which are not contained in any
statutes and can be found in case decisions. 
• This is known as the common law or case law.
• In situations where there is no law governing a
particular circumstance, Malaysian case law may
apply. If there is no Malaysian case law, English case
law can be applied. 
FEDERAL LAW
• Federal laws are made by legislators (members of
Parliament and senators) sitting in the Parliament of
Malaysia and applies nationwide.
• Federal laws are known as Acts (of Parliament).
• Federal law is the body of law created by the federal
government of a country.
• A federal government is formed when a group of political
units, such as states or provinces join together in
a federation, surrendering their individual sovereignty and
many powers to the central government while retaining or
reserving other limited powers.
• As a result, two or more levels of government exist within
an established geographic territory.
STATE LAW
  State laws are made by assemblymen sitting in the
State Legislative Assembly (Dewan Undangan
Negeri) and only applies in the particular state.
State laws are often referred to
as enactments or ordinances. Article 75 of the
Constitution states that a federal law shall prevail
over any inconsistent state laws, including sharia
laws.
SPORTS DEVELOPMENT
ACT
1997
Sports Development Act 1997, Act
576
 An Act to promote and facilitate the
development and administration of sports in
Malaysia and to provide for matters incidental
thereto.
 Be it enacted by the Seri Paduka Baginda

Yang di-Pertuan Agong with the advice and

consent of the Dewan Negara and Dewan
Rakyat in Parliament assembled.
Sports Development Act 1997, Act
576
PART I PRELIMINARY

1. Short title, application and commencement

2. Interpretation

PART II SPORTS DEVELOPMENT

3. Guidelines in relation to sports development

4. Associations, etc., to consult and coordinate with Minister
5. Other Government Ministries, etc., to consult Minister
6. Coordinating body
7. Development of sports science
Sports Development Act 1997, Act
576
PART III OLYMPIC COUNCIL OF MALAYSIA

8. National Olympic Committee

9. Application of Act to the Olympic Council of Malaysia

PART IV ADMINISTRATION OF ACT

10. Appointment of Commissioner, etc.

11. Power of Commissioner to register sports bodies
12. Power of Commissioner to require disclosure of information.
13. Additional powers of Commissioner.
14. Directions by the Minister.
Sports Development Act 1997, Act
576
PART V REGISTRATION AND SUPERVISION OF
SPORTS BODIES

15. Application to be registered to carry out activities.

16. Sports bodies registered under the Societies Act 1966.
17. Registration of sports bodies.
18. Certificate of registration.
19. Grounds for refusal of registration.
20.Revocation or suspension of registration by Commissioner.
21. Appeals.
22. Directions to continue functions of sports body.
23. Internal procedure for resolution of dispute.
24. Referral of dispute to Minister.
25. Consequences of refusal of registration or revocation or suspension of
registration.
26. Regulations In respect of sports bodies.
Sports Development Act 1997, Act
576
PART VI SPORTS ADVISORY PANEL

27. Establishment of Sports Advisory Panel.

28. Appointment of members of Sports Advisory Panel.
29. Recommendation to the Minister.
30. Power of Sports Advisory Panel to require disclosure
of information.
31. No action to lie against the Sports Advisory Panel.
32. Regulations in respect of Sports Advisory Panel
Sports Development Act 1997, Act
576
PART VII MISCELLANEOUS

33. Approval for hosting of international competition.

34. Use of recognized international rules and guidelines for
competitions.
35. Minister’s approval required for “Sukan Malaysia”.
36. Company to apply for license to operate,
37. Amendment of Schedules.
38. Regulations.
39. General offence.
40. Protection for appointed person, member of committee, etc.
41. General powers of Minister.
42. Transitional provisions.
43. Prevention of anomalies.
First Schedule
[Section 2]
The following activities are regarded as sports
for the purposes of this Act:
1. Archery
2. Athletics
3. Aquatics
4. Automobile Sports
5. Badminton
6. Basketball
First Schedule
Second Schedule
[Section 19]
CONSTITUTION AND RULES OF SPORTS BODIES
ACTING AS THE GOVERNING OR
REPRESENTATIVE BODY OF ITS SPORT AT
NATIONAL LEVEL
The following matters shall be provided in the
constitution or rules:
1. The sports body shall have the following aims and objects:
(a) to promote and develop its sport;
(b) to maintain good terms with and to be in good standing
with the international governing and regulatory body of its
sport;
Second Schedule
(c) to ensure that its constitution and rules are observed
and abided by all its members; and
(d) to control and exercise jurisdiction over all
activities in relation to its sport in Malaysia and by
representatives of Malaysia abroad.
2. Its activities are conducted without discrimination as to
sex, race, colour, religion, social origin, language,
political inclination or any other opinion held by its
members.
3. The selection procedures for sportspersons, officials,
coaches and any other person to represent Malaysia in
its sport are open and fair.
Third Schedule
[Section 19]
CONSTITUTION AND RULES OF OTHER SPORTS
BODIES UNDER THIS ACT
The following matters shall be provided in the
constitution or rules:
1. The sports body shall have the following aims and objects:
(a) to promote and develop its sport;
(b) to maintain good terms with and to be in good standing
with all governing and regulatory bodies of its sport;
and
(c) to ensure that its constitution and rules are observed and
abided by all its members.
Third Schedule
2.Its activities are conducted without any
discrimination as to sex, race, colour, religion,
social origin, language, political inclination or
any other opinion held by its members.
3.Its fully audited accounts with reports on all
its activities and the use and disbursement of
all its funds for its preceding financial year be
submitted to the Commissioner together with
such other reports as the Commissioner may
require.
CONCLUSION
CONCLUSION
As a Malaysian, we must comply with all the law
to avoid from blamed because we have
“RUKUNEGARA as our guide:
 KEPERCAYAAN KEPADA TUHAN
 KESETIAAN KEPADA RAJA DAN NEGARA
 KELUHURAN PERLEMBAGAAN
 KEDAULATAN UNDANG-UNDANG
 KESOPANAN DAN KESUSILAAN