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The Malaysian Employers Federation (MEF) opposes a proposed change to the Trade Unions Act 1959 that would lift limits on trade union formation.
The latest amendments of the Trade Unions Act 1959
The Trade Unions (Amendment) Bill 2022, which was prepared in accordance with the principles of ILO Convention 87 on Freedom of Association and Protection of the Right to Organise, is likely to be tabled in Parliament for the second reading in July.
Among others, the Bill aims to abolish restrictions on the creation of trade unions based on particular establishments or similarities in trade, occupation, or industry, in order to allow for trade union diversity.
MEF's opposition to the amendment
According to MEF president Datuk Dr Syed Hussain Syed Husman, The effort to promote diversity of trade unions and omnibus trade unions could be destructive to the present peaceful industrial relations.
He said there's much anxiety among stakeholders, employers and trade unions alike about the government's plan to implement freedom of association in workplaces, especially to allow more than one union at workplaces.
Syed Hussain said that the proposed deletion of paragraph (a) of Sections 2 and subsection 2(2) of the existing Act for the definition of "trade union" or "union" would open the floodgates, as it would remove the director-general of trade unions' power to deny registration of a trade union.
The MEF president said that too many unions in the workplace might dissuade international investors from investing in this country.
He said a balanced employer and trade union workplace environment is needed. According to him, though MEF supports the ILO Convention 87's principles, one must be practical and aware that removing such provisions from the Act would not be in the overall interests of Malaysia.
What would happen if these amendments were passed?
Syed Hussain said that if approved, such amendments will drastically alter the character of the trade union, which will overhaul the country's current harmonious industrial relations system and potentially cause industrial disharmony nationwide with serious economic consequences.
He went on to say that unions are at risk of being used as a political tool, which could jeopardise economic stability. He added that anyone, including foreigners, can form and organise union activities in Malaysia to pursue personal, political, or other interests that may or may not be aligned with national interests.
He claimed that under the new proposed amendments, the risk of nationwide strike outbreaks is real and could disrupt public order.
According to him, those are among the relevant issues that one must consider before the government amends the Trade Unions Act 1959. He concluded that the amendments would cause significant anxiety and challenges for employers to manage these major changes during the recovery period when they should instead focus on rebuilding their businesses.
Source: The Edge Markets