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employees to change their ways. The emphasis should be on
corrective discipline and not for the sake of termination.
(b) Progressive Disciplinary Approach
This approach treats disciplinary problems in phases whereby the
punishment will be more severe should the same offence be committed
again. Unlike the hot stove approach, progressive discipline allows
employees the opportunity to change their behaviour before facing
punishments such as termination. This approach indirectly motivates
employees to improve their conduct on a voluntary basis.
(i) Verbal Warning
For employees who have committed their first offences, warnings are
given verbally by their supervisors. The supervisor will then warn
that the punishment will be more severe should the same offence be
repeated in future.
(ii) Formal Warning
Should the employee commit the same offence, a formal warning by
way of a letter of warning will be given. The offence will be
documented in their files and the employee will once more be told
that a stricter punishment will be taken should it occur again.
(iii) Suspension without Pay
Should the employee still fail to adhere to the instructions, he or she
will be suspended from work without pay. At this stage, the
employee will be given a final warning and should they fail to
address the problem, termination is the most likely punishment.
(iv) Termination
Termination is the last resort to be taken should the employee still
unable to follow the instructions as given.
Figure 9.1: Progressive discipline approach
Source: Mathis, Robert L. & Jackson, John H. (2000). Human resource management. (9th
ed.). Ohio: South-Western Thomson Learning.
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186 TOPIC 9 EMPLOYEE RIGHTS AND DISCIPLINE
(c) Positive Disciplinary Approach
In most cases, disciplinary actions will not motivate employees to change
their attitude. In fact, they merely serve to educate the employees to be
afraid and keep a distance from the supervisor instead of receiving the
punishments. To avoid such complications, employees would resort to
fraudulence instead of correcting their mistakes. Therefore, many
organisations choose to convert progressive discipline to positive discipline.
The latter approach is built upon the promise that offences are able to be
rectified and do not require any sorts of punishment. Hence, despite the
two approaches sharing the same processes, positive discipline replaces
punishments with that of counselling sessions between supervisor and
employee.
Counselling sessions are used to raise employeesÊ awareness of their
offences besides trying to find ways to overcome this problem. However,
just like the progressive discipline approach, the positive discipline
approach is use to terminate the services of employees who had committed
major offences.
According to Gomez-Mejia, Balkin and Cardy (2001) and Mathis and
Jackson (2000), there are four steps in this approach.
(i) Counselling
Counselling can be used as part of the disciplinary process for it
allows the manager or supervisor an opportunity to identify
employeesÊ problems and also a solution to the problem. The objective
of counselling is to enable the employee to understand the rules and
regulations of the company or organisation. At the first meeting of
this stage, both parties are expected to discuss the problems at hand
and to find the appropriate solution.
(ii) Written Documentation
Should the employees fail to improve their performance or repeat the
same offence, both parties are expected to meet once more and discuss
the reason(s) why the solution did not materialise. Another solution is
expected to be found at this stage and a contract will be made
whereby the causes and solutions are documented with the
concurrence of both parties.
(iii) Final Warning
When employees still fail to adhere to the written agreement as
previously agreed upon, they will be called and be given a final
warning. At this instance, the manager or supervisor will stress the
importance to improve the quality of work or to address the mistakes
made. The implication of failure to comply to the warning is also
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being stressed upon. Certain organisation would consider offering a
dayÊs off with pay to give the employee time to ponder whether to
continue to work in this organisation or otherwise.
(iv) Termination
Failure to improve oneÊs work performance or a repetition of the same
offence will result in the termination of the employee.
One of the positive aspects of this approach is that it focuses on problem
solving. Employees prefer to be treated with respect and usually they are
more receptive to change after counselling sessions as a compared to
progressive discipline approach. In certain cases, counselling sessions are
able to create a more productive work environment between employer and
employee. Employees are also active participants of the process; hence, it
helps in absolving the employers from being blamed for unfair dismissal.
However, to carry out this approach requires huge financial cost in training
managers and supervisors to be effective counsellors. Furthermore, the
counselling sessions involve a longer period of time and in stages. This
deters the employers and supervisors from applying this approach.
(d) Incorrect Disciplinary Approaches
Whether it is intentional or not, certain managers do err in their disciplinary
actions. This may happen due to inexperience in handling such matters or
were just unaware of making an error. According to Carrell, Elbert and
Hatfield (1995), there are six types of errors that are commonly committed
by managers when taking disciplinary actions.
(i) Punitive Discipline
Punitive discipline is also referred as negative discipline. This usually
involves threatening and blackmailing employees. This type of error
was commonly practised during the early 20th century but is now
rarely used as many employees are protected by the trade unions.
Besides, employers are more aware of the need for positive employer-
employee relationship.
(ii) Negative Feedback
Certain supervisors only present negative feedback when the
employees are unable to display good performance. Feedback should
be both, positive and negative. Praises need to be given when
employees perform well and exhort is necessary when employees
commit an offence.
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(iii) Late Determent
It might be deemed that late determent is actually procrastinated
discipline but in this context, supervisors normally would allow the
problem to worsen and actions will only be taken when it has reached
a critical stage. The problem might only be a minor misconduct at first
but become a major misconduct among employees.
(iv) Inadequate Definition
During the counselling session, the supervisor might state that the
employee concerned was „uncooperative, disloyal to organisation or
simply not functioning as a team player‰. When in discussion with the
employee, the supervisor cannot state the problem in muddled terms
that can lead to confusion and worsen the situation by way of the
employee misinterpreting the employerÊs meaning.
(v) Labelling Employees, Not Behaviour
Employees might be labelled by supervisors as lazy, irresponsible and
uncaring when they fail to perform at an acceptable level. In taking
such action, the supervisor has created two major problems.
Firstly, employees may bring that label upon themselves to the point
of becoming a self-fulfilling prophecy. Employees will be demotivated
due to the supervisorÊs lack of efficacy. Another problem is the label is
tagged to the employee itself and not to the attitude when in reality, it
is the attitude that needs to be changed.
(vi) Misplaced Responsibility
Supervisors have to be aware that at times the problems happened
because of themselves. When the responsibility to change the attitude
is in the hands of the employee, and they fail to change, they are
charged with disciplinary actions. However, we need to remember
that employees will not change their attitude if the supervisors fail to
change and this will create problems.
ACTIVITY 9.2
If you were the supervisor making the incorrect disciplinary action,
what would you do?
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9.2.4 Misconduct Outside the Organisation
When an employer learns that an employee has committed a misconduct while
off-duty, it is hard to make decisions. When the employer wants to fire the
employees, the employees might be charged with civil lawsuit due to unfair
dismissal. However, should the employer take no action and allow the act to
affect colleagues or others, they are also liable to be sued for negligence. Hence,
when such cases occur, employers need to take the necessary action cautiously.
Should the employee be arrested and jailed, employers can suspend the
employee until the investigation has completed. However, if the employee is not
jailed, the employee is entitled to continue working until the issue is solved.
Nevertheless, if the offence is assault, child abuse, rape or other instances of
similar crimes, the employee is to be suspended without pay until the case has
been settled.
According to Carrell, Elbert and Hatfield (1995), when the case is settled,
employers need to consider the following factors before taking disciplinary
action or terminating the employee.
(a) Relationship between employee and misconduct
This is probably the most critical factor. Most employers do not have valid
reasons to terminate employees outside of their work hours for offences such
as drug abuse or excessive drinking of alcohol. However, for major crimes
such as murder, employers have valid reason to terminate the employees.
(b) Period of work
If the employee has served long enough in the company and the offence
committed is only of minor nature, then a second opportunity is
appropriate. But if the same goes to a new employee, then employers can
fire the employee instantly.
(c) Interaction with the security force
For employees having frequent interactions with security forces such as
police and the army, offences committed might make them privy to
dismissal if the offences committed threaten civilians such as running
amok.
Whatever the solution, employers should make sure that the actions taken
are consistent with the actions taken previously so that the disciplinary
actions are not questionable.
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ACTIVITY 9.3
With close reference to your working experience, can you
differentiate the approaches taken at your workplace with those
learnt in this topic?
EXERCISE 9.2
True (T) or False (F) Statements
1. The progressive disciplinary approach usually involves four
stages and one of them involves the counselling session.
2. In the hot stove approach, disciplinary actions are usually
implemented instantly and consistently.
3. One of the offences normally done by supervisors is frequently
giving negative feedback towards employee.
4. For major offences such as theft, employees are usually given a
warning before facing expulsion.
5. For off-duty transgression, employers can always dismiss the
employee without having to consider factors such as the
relationship between the work and the offence, the duration of
the work and interaction with the public.
9.2.5 Alternative Disagreement Resolution Procedure
For organisations that have employeesÊ union, the procedures to maintain
employeesÊ rights are usually contained in the contract agreement. However,
organisations that do not have employeesÊ union, the Alternative Disagreement
Resolution (henceforth known as ADR) Procedure are used. Certain
organisations view the ADR as one way for employees to voice their concerns
while some view it as an effective tool to solve problems before they become too
complicated and serious. Among the methods used in the ADR are:
(a) Step-review System
This system is an examination of complaints in a step-by-step manner.
Unlike organisations with employeesÊ union, this system does not need to
appoint a third person to judge the complaints. In most step-review
systems, a president, chief executive, vice president or a human resource
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department director will be given the authority to judge the complaints
made. Figure 9.2 shows the process of examining complaints.
Figure 9.2: Flow of the complaints system done in stages
(b) Peer-review System
Peer-review system (also known as the complaints committee) is a system
consisting of the employeeÊs representative and the employer himself. The
numbers of representative from both parties are of equal number. They act
as jurors who would judge the evidence and justification. The board would
then take a vote on the matter. This system can be used to solve employeesÊ
complaints and problems by itself or it can be used alongside the step-
review system.
(c) Hearing Officer
Hearing officers are normally elected by the organisation but his function is
neutral in nature when judging a case. Usually, employees are the ones
who request hearing officers to judge a case. After looking into the evidence
and facts that have been presented, a judgement will be made. The result is
usually final and an agreement is forced on both the employer and
employee. As is the case with the peer-review system, it can be used by
itself or alongside the step-review.
(d) Open Policy
In open policy (which is traditional in nature), employees will look for
certain managers (or those more senior than the supervisors) who can be
trusted to forward their complaints. Normally, the director of the human
resource department will act as the final solution to judge a case.
The disadvantages of this system are:
(i) The management committee are not willing to listen to the complaints
sincerely.
(ii) Employees are also unwilling to see the relevant committee to
forward their complaints.
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(iii) There is no certainties that the decision made is consistent among all
the managers.
(iv) The management committee will usually favour the supervisors for
fear of losing authority and this policy has no credibility in the eyes of
the employees.
(e) Ombudsman System
The ombudsman system is a system that elects a group of representatives to
handle all complaints. The ombudsman will usually listen to the complaints
and mediates fair settlement between the employer and employee. Since
this system does not have the authority to pass a judgement or a solution,
cooperation and compromise between the two parties is essential.
(f) Arbitration
Arbitration is usually used to solve the problems relating to discrimination
such as sex, age, sexual harassment and even racial prejudices. This will be
specifically discussed in the next topic.
9.2.6 Termination of Contract Procedures
According to the Employment Act 1955, an employer can terminate the services
of an employee after an investigation has proven that the employee has
committed an offence. During the duration of the investigation, the employer can
suspend the employee for a duration of not more than two weeks. The
suspension however, has to see to it that the employee receives at least half of his
or her salary. Should the investigation prove that the employee is not liable, then
he or she is entitled to receive full payment of his or her salary during the
suspension.
It has to be reminded that during the investigation of the misconduct, the
employer has to document all the employeesÊ offences in detail to avoid making
the wrong decision. Among the items needing documentation are:
(a) Date, time and place of incident.
(b) Negative performance and attitudes of the employee.
(c) Effects of the offences on the performance of others.
(d) The disciplinary action to be taken and the expected change(s).
(e) The expected action to be carried out should the employee remains
unchanged.
(f) The reaction of the employee on the actions taken against him or her.
(g) Names of witnesses (if available).
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If employers intend to terminate the employees, the following are a few tips
provided by Bohlander, Snell and Sherman (2001):
(a) Dismiss employees if there are valid reasons
Employers should always understand the reason(s) for firing the employee.
The reason(s) should be in line with the regulation and practices of the
organisation.
(b) Follow the correct procedures
Determine that the termination is in line with the correct procedures,
irrespective of whether it is taken from staff manual books, supervisorsÊ
manual or internal memorandum. Before a decision of whether to fire an
employee is made, inform him or her beforehand that his or her
performance and/or the offences are unacceptable. Employees should
always be given the chance to improve themselves.
(c) Document all problems relating to employeesÊ performance
If the offence committed is not documented, the employee might use it as
an excuse for unfair dismissal.
(d) Consistency in dealing with employees
It is recommended that the employer have a documentation regarding the
causes of disciplinary act being taken against certain employees even
though they are not terminated from their posts. It is a good way to
standardise the type of punishment if other employees violate the rules
being set. If such documentation does not exist, the employee will feel
unsatisfied if the punishments received are different from another
employee who had committed a similar offence.
9.2.7 Guidelines in Implementing Fair Disciplinary
Action
The following are several guidelines that can be used in the process of
determining the kind of disciplinary action to be taken:
(a) Prioritise on Rules and Not Personal Interest
Rules must be based on consistency and reliability. Thus, effective
discipline is due to the clear guidelines and not involving any personal
interest.
(b) Respect EmployeesÊ Self-Importance
Workers have the right to know what kind of punishment they will get.
Effort must be made to avoid any embarrassment or negative work
environment in meting out the punishment.
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194 TOPIC 9 EMPLOYEE RIGHTS AND DISCIPLINE
(c) Responsible to Provide Necessary Evidence
Documentation process should be free from any bias that will protect the
organisation from any kind of unfairness such as fabricating false evidence
to blame other people. It is essential to keep in track all positive and
negative records for further analysis.
(d) Obtain Information
The management should collect necessary evidence before framing any
charges against the person responsible.
(e) Clear Explanation on the Error Made
The employer should explain thoroughly what sort of punishment and
offences have been committed before action is taken against the person
involved.
(f) Do Not Act While You are Angry
Not many of us can act objectively and reasonably when we are angry.
Thus, the best manner to discipline employees is when we are in a peaceful
mood.
(g) Avoid Heavy Punishment
The type of punishment should be appropriate with the offence committed.
If not, the organisationÊs objective to change employeesÊ attitude cannot be
achieved.
(h) Give Warning
In some cases, employees will either be suspended or lose their job if they
have committed serious offence. However, a warning via letter or given
verbally will be set for first time and second time offences. This is important
to ensure that none of the employees will accuse the organisation for
terminating them without giving any warning.
(i) Ensure the Disciplinary Act is Just and Fair
Equality is important when carrying out certain punishment to ensure that
all employees get the same punishment for the same action. This is to
prevent any extreme punishment, inconsistency regulations, bias and other
discrimination that will result in unsatisfaction.
(j) Obtain Information from Both Parties
Allowing employees to explain and defend themselves is the reasonable
way to create a positive environment. It will help the organisation to carry
out the necessary actions effectively.
(k) Be Bold if You are True
If the management is certain that they are truthful, they should not allow
the other parties who had committed the misconduct „to go freely‰. This is
to ensure that the rules being set up by the organisation is firm and strict.
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(l) Do Not Relate Discipline to Personal Interest
Effective manager and supervisor will not penalise other people based on
revenge or any kind of personal interest. It should be carried out rationally
and not based on emotional factors that may disrupt employeesÊ respect
and loyalty.
EXERCISE 9.3
TRUE (T) or FALSE (F) Statements
1. Based on the Employment Act 1955, employees who commit
crime/error can be suspended for two months for
investigation purposes.
2. The ombudsman system is the responsible committee that is
derived from the workerÊs representative and employer in
which both parties are equal in numbers.
3. The majority of the employees are not keen on any kind of
open proclamation made by the supervisor as the authority
will be biased.
4. Normally, a supervisor responsible for carrying out
reasonable disciplinary acts obtains information from both
parties.
5. Workers who are suspended from their respective job do not
have the right to obtain their salary during the period.
Multiple Choice Questions
1. Below are several minor mistakes or errors EXCEPT:
A. Misuse companyÊs tools or equipment.
B. Record other people attendance.
C. Violating code and uniform ethics.
D. Latecomers.
2. One of the guidelines that can be followed when
implementing certain punishment is__________.
A. Giving heavy punishment
B. Focusing on personal interest rather than a set of laws
C. Giving warnings
D. Responsibility is up to the workers
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196 TOPIC 9 EMPLOYEE RIGHTS AND DISCIPLINE
3. Effective law or rules must ___________.
A. Be created through documentation
B. Focus on the management only
C. Explain the reason for every punishment
D. Be analysed once in ten years
4. When carrying out an investigation on a discipline problem, all
of the following things must be recorded EXCEPT:
A. Performance and positive attitude.
B. Date, time and venue of the violation.
C. Names of witnesses.
D. Penalty being given and expected changes.
Essay Questions
1. Briefly explain the details in the hot stove process.
2. List out all the important things that should be considered when
outlining the discipline rules and set of laws.
It is the responsibility of all employees to know their rights in order for them
to know certain things that should not be done by the management and
organisation that they are working with.
In Malaysia, the employeesÊ rights are presented in various Acts such as the
Employment Act 1955, the Occupational Safety and Health Act 1994, the
WorkmenÊs Compensation Act 1952, etc.
However, the employer has the right to elect employees, promote and
discipline them, as well as terminate them from their respective post.
Other than employeesÊ and manager rights, discipline is also another
important issue in an organisation.
Unfortunately, it is not the most favourite aspect that is focused by the
employers even though it is crucial to motivate employees to follow the
existing performance pace.
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Arbitration Open policy
Hearing officer Peer-review system
Hot stove approach Positive disciplinary approach
Incorrect disciplinary approach Progressive disciplinary approach
Ombudsman Step-review system
Copyright © Open University Malaysia (OUM)
Topic Employee
Relations
10 Dynamics
LEARNING OUTCOMES
By the end of this topic, you should be able to:
1. Describe the structure and functions of trade unions in Malaysia;
2. Discuss the process of collective bargaining; and
3. Explain important industrial actions in Malaysia.
INTRODUCTION
Industrial relationship is also known as the relationship between employer and
his employees in a working field. For most of the local organisation, the rapport
or relationship that exists is based on the workersÊ welfare management.
Three important aspects in an industrial relationship are the rapport between
employer and the workers, employment laws and discipline procedure, as well
as the termination of services contract. Apart from that, the industrial relation is
also focused on the effect of the set of laws and rules on the working
environment, term and work surrounding, employerÊs right and responsibility as
well as employees and the process involved in creating the rules and term.
Generally, the industrial relation system involves three respective parties which
are the employer, workers and the government. This situation is being practised
in Malaysia even though there are a few foreign organisations that influence the
industrial relationship system such as the International Labour Organisation
(ILO). Apart from that, several other Acts are also responsible for influencing the
system as well.
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TOPIC 10 EMPLOYEE RELATIONS DYNAMICS 199
For workers, the trade union is utilised as the base to highlight their rights. It is
important to know that industrial relation will not exist without the trade unions.
Thus, in the next section, we will be discussing the scenario in trade unions as
well as the procedure in handling disputes.
10.1 TRADE UNIONS SCENARIO IN MALAYSIA
The Trade Unions Act 1959 (section 2) defines trade unions as „any organisation
or a combination of employee and employer whose workplace is in Peninsular
Malaysia, Sabah or Sarawak, whether in a certain or similar employment or
industry and whether temporarily or permanently‰.
The first trade union in Malaysia was identified in the 1920s, during the
development of the agricultural and tin mining era. Even though the trade union
development in Malaysia was slightly slower compared to the Western countries,
we must understand the employeesÊ conditions at that point in time. The
majority of employees working in Malaysia at that particular time were here on a
temporary basis, as most of their family members were in China or India. Half of
their salaries would be sent home to their families and they would return to their
motherland when they had successfully saved a certain amount of money. As
they were really in need of employment, they decided not to join any trade union
which at that time was strongly opposed by employers. Interestingly, history
seems to repeat itself around the 1990s when we saw many illegal immigrants
coming to work in Malaysia.
After the 1920s, the Malaya Communist Party succeeded in encouraging
unskilled employees to form trade unions. The employees organised several
strikes in the 1930s and at that time, there were no laws related to trade union
and its activities until 1940. However, it could not be carried out because Japan
attacked Malaya. Only in 1946 did the government have a chance to intervene by
taking steps such as establishing the Trade Union Advisory Department and the
Trade Union Enactment. In this enactment, three main clauses were approved,
i.e.:
(a) All trade unions must be registered;
(b) All national trade unions formed must be in the same industry; and
(c) The trade union officers elected must have already served in the industry
for at least three years.
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200 TOPIC 10 EMPLOYEE RELATIONS DYNAMICS
These laws are designed to prevent the Communist Party from intervening in the
trade union, to limit the unionÊs size and power as well as to control their
movement by making it compulsory for them to register with the newly elected
trade union Registry officer. As a result, there were more than 100 trade unions
that were revoked and cancelled at that time. Currently, the number of trade
union has shown an increase. In 1998 alone, 531 trade unions were registered as
compared to only 386 unions in 1984.
ACTIVITY 10.1
Based on the statistics from the Workers Union Affairs
Department, there were 592 workersÊ unions in Malaysia up to
December 2001 that represented the private sector, the government,
and local statutory bodies and employers. Why were these unions
established?
10.1.1 Purpose of Employees Participating in Trade
Union
Some employees join a trade union because they realised that if they fight for
their rights for better work conditions individually, they may fail. But by joining
a trade union and acting as a group, employers may consider their demands.
Moreover, a trade union will usually take steps to protect its members.
According to Bohlander, Shell and Sherman (2001), among the reasons why
employees are interested in joining a trade union include:
(a) To protect their rights;
(b) To increase their negotiation power;
(c) To increase status;
(d) To socialise;
(e) To increase employee welfare;
(f) Peer pressure; and
(g) Unsatisfied with the current conditions such as workplace condition,
policies, wages and others.
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TOPIC 10 EMPLOYEE RELATIONS DYNAMICS 201
SELF-CHECK 10.1
Do you know why employees choose to become members of a
trade union?
10.2 STRUCTURE AND FUNCTIONS OF TRADE
UNIONS IN MALAYSIA
10.2.1 Functions of Trade Union
Many are of the opinion that trade union is an outdated concept and do not see it
as necessary nowadays. They feel that employees who join trade union are not
showing loyalty to the organisation.
Some employers feel that trade unions disrupt the decision making and
processes of management in the organisation, thus contributing to the
organisationÊs inability to reach the set objectives. Whatever reasons given,
employers need to accept the fact that employees will continue to join a trade
union as they are more aware of its functions. Some of the functions of a trade
union are:
(a) Encouraging industrial relations, and improving work conditions,
economic status, and social or increasing productivity;
(b) Outlining the relationship between employees among employees or
employers among employers;
(c) Becoming representatives in industrial disputes;
(d) Managing issues related to disputes; and
(e) Encouraging, organising and funding strikes or „lockouts‰ in any trade or
industry as well as allocating resources or other benefits to members during
strikes or „lockouts‰.
ACTIVITY 10.2
In your opinion, do we need to establish a trade union?
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202 TOPIC 10 EMPLOYEE RELATIONS DYNAMICS
10.2.2 Establishment of Trade Union
Do you know the terms and conditions required to establish a trade union?
A trade union can be established if there are seven or more employees working
in the similar trade, occupation, or industry, and employees must either all be in
the private sector or all of them are in the public sector. For those who plan to
establish a trade union, they must first send their registration application to the
Director General of Trade Union in order to get an approval to operate legally in
the period of one month. If the period is insufficient, they can request from the
Director General of Trade Union (DGTU) that the period be extended to six
months.
The application form that needs to be sent must be enclosed with a fee and a
printed copy of the rules and regulations for the union that is being established.
The application also has to have details such as the union's name as well as its
address, the names, addresses and positions of all its members, and the name,
age, address and position of the elected union officer.
In processing the application form, the DGTU has the authority to reject any
trade union registration which in his or her opinion may be used for illegal
purposes. Registration is usually rejected if the managing director finds that:
(a) Some of the establishmentÊs objectives are illegal;
(b) A part of the trade unionÊs regulations clashes with the Trade Union Act;
(c) The name of the trade union that is being established may bring problems
in the future, or is similar to another existing union, or the name given is
found to be suspicious; or
(d) The trade union that is being established will be used for illegal purposes.
If there are two or more registered trade unions and they represent a group of
employees in the same trade, occupation, industry or workplace, the DGTU has
the authority to revoke any unions that have a small number of members or
order the union to not register the membership of the employee involved.
10.2.3 Becoming a Member of a Trade Union
According to Maimunah (2000), all employees aged 16 and above have the right
to join a suitable trade union such as those representing employees in their trade
or industry sectors and covers employees whether in Peninsular Malaysia, or in
Sabah and Sarawak (but not a combination of these territories). However, those
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TOPIC 10 EMPLOYEE RELATIONS DYNAMICS 203
aged between 16 and 21 years old have a limited opportunity in some trade
union activities such as competing in the election for the post of union executive
or participating in a strike until they reach the age of 18.
Employees in the public sector can only become a member of the trade union that
is formed by employees within the same occupation, department, or ministry.
However, management level staff in public service who are interested in joining
trade unions have to obtain permission from the Government Chief Secretary.
However, the police, the army and prison officers are not allowed to join any
trade union.
SELF-CHECK 10.2
Who is allowed to become a member of a trade union?
10.2.4 Trade Unions Fund
When employees are accepted as trade union members, they have to pay a
registration fee and a monthly fee of between RM3.00 and RM8.00. The money
collected will be used for purposes such as those set in the Trade Union Acts
(section 50) and regulations that have been outlined by the trade union.
According to the Act, trade union fund can only be used for purposes such as:
(a) Expenses related to the trade union employeesÊ salary;
(b) Expenses related to the office;
(c) Expenses related to solving trade disputes;
(d) Compensation for members during trade disputes such as strike allowance;
(e) Allowance for members and their family due to death, ailment, accident
and unemployment;
(f) Expenses related to reports and news printing; and
(g) Expenses related to the management of social, sports, education and
welfare activities of its members.
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204 TOPIC 10 EMPLOYEE RELATIONS DYNAMICS
10.2.5 Types of Trade Unions
In Malaysia, trade unions can be divided into two categories, namely, trade
union for employees in the private sector and trade union for employees in the
public sector. For employees in the private sector, there are two types of union,
which are, national and district trade union as well as company union.
(a) Trade union for Employees in the Private Sector
(i) National and District Trade Union
Employees who become members in this trade union are those from
different companies but in the same industry or employees in the
same trade or occupation. According to Maimunah (2000), most main
industries have national trade union.
For example:
National Union for Plantation Workers (NUPW) 75,000
members.
National Union for Teaching Professionals (NUTP) 30,000
members.
National Union for Bank Employees (NUBE) 20,000 members.
National Union for Telecom Employees (NUTE) 19,000
members.
Transportation Trade Union (TWU) 8,000 members.
Some trade unions have members who are limited to one district only.
For example, employees in Sabah and Sarawak are not allowed to join
unions in Peninsular Malaysia. In addition, there are trade unions that
only enrol members from certain areas such as the Perak Textile and
Garment Industry Trade Union which limits the intake of members to
employees from the Perak state only (Maimunah, 2000).
Visit http://www.nutp.org/ to obtain information on the services
offered by the National Union for Teaching Professionals to its
members.
(ii) In-house Union
An in-house union is a union established by employees working
under one employer. This indicates that employees from different
occupations can join this type of union as long as their employers are
the same.
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TOPIC 10 EMPLOYEE RELATIONS DYNAMICS 205
Even though the national trade union is against the establishment of
this type of unions, employers and the government on the other hand
encourage them. If employers find out that their employees are
planning to join a national trade union, they will take immediate
actions to encourage employees to establish a in-house trade union.
This is because they, the employers, are aware of the weaknesses of
this type of trade union.
According to Latiff Sher Mohamed (Maimunah, 1999), there are
several weaknesses in relation to in-house union, i.e.:
Limited membership and focusing on employees in one company
only resulted in making this type of union not very strong;
The union leader is easily exploited by their employer because
selection is made by union members whose numbers are limited;
Limited financial resources makes it difficult to carry out union
based activities;
Union leaders are worried about becoming victims in terms of
promotion, retrenchment, transfer and distribution of
responsibilities which are set by their employers; and
Unable to provide many benefits to its members due to the limited
number of members.
Even though this type of union is opposed by the national and district
unions, in-house unions have shown an increase and are predicted to
keep on increasing in the future. Some of the examples of trade unions
that have existed for more than 20 years are the Cold Storage
Employees National Trade Union and Rothmans Employees Trade
Union.
Visit http://www.mtuc.org.my/ to get information on the functions
and objectives of the establishment of the Malaysian Trade Union
Congress.
(b) Trade Union for Employees in the Public Sector
As we know, the public sector consists of public services, statutory bodies
and local authorities. Public servants are only allowed to establish a union
if they are in the same ministry, department or occupation. Issues relating
to wages and other terms of services are normally discussed at the national
level between government authorities and CUEPACS.
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206 TOPIC 10 EMPLOYEE RELATIONS DYNAMICS
There are 221 trade unions in the public sector in 1997 and this figure
includes several of MalaysiaÊs biggest unions such as the Malayan Union
for Teaching Professionals, Malayan Nursing Union, and Malayan
Technical Service Union as well as smaller unions such as the Dentistry
Technician Union with 242 members and the Pulau Pinang Port Senior
Commissioner Officers Union with a total number of 116 members.
Recently, the number of union members seemed to have decreased and this
is not caused by loss of interest but due to the governmentÊs privatisation
policy which has caused bigger unions to become private sector unions.
(c) EmployersÊ Association
Besides employees having their own trade unions, employers, on the other
hand, tried to build a network by establishing an employerÊs association
from similar organisations to fight for their rights and welfare. With this
network or association, employers are more prepared and able to react to
the demands of the trade union. The employer association also plays the
role of balancing the employee market condition and the reward offers or
salary as well as being involved in matters regarding decision making or
discussions with the central or state government or agencies representing
the government.
Through this network or association, employers can share techniques and
strategies to handle demands from employeesÊ trade unions. A few
techniques often used by employers in controlling the influence and
demands from trade unions are to offer rewards and wages as well as
competitive service benefits, to invest in developing a cooperative
workforce or human resources, to increase communications flow, to create
more opportunities for employee involvement in decision making and also
to increase employeesÊ commitment to the organisation. The following are
examples of large employerÊs associations:
(i) Malayan Commercial Banks Association (MCBA).
(ii) Malayan Agricultural Producers Association (MAPA).
(iii) Electrical Industry EmployersÊ Association (EIEA).
(iv) Engineering Machinery EmployersÊ Association (EMEA).
Visit http://www.mtuc.org.my/ for information on the functions and
objectives of the establishment of the International Labour Organisation.
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TOPIC 10 EMPLOYEE RELATIONS DYNAMICS 207
EXERCISE 10.1
TRUE (T) or FALSE (F) Statements
1. One of the reasons why employees join trade unions is that
they want to increase their status.
2. The Transportation Workers Union (TWU) is an example of a
company union.
3. The employerÊs association also acts in helping employees fight
for their rights and welfare.
4. The trade union fund can be used for purposes such as reports
and news printing, compensation to members during trade
disputes and also for office related expenses.
5. A union registration is normally rejected if the Workers Union
Managing Director finds that the name of the union that is
being established may pose some problems in future.
10.3 COLLECTIVE BARGAINING
ACTIVITY 10.3
In your opinion, who determines the wages and benefits for each
employee or work group in an organisation?
The decision on wages and benefits can be made either one-way or two-way. In
both public and private sectors which do not have trade unions, decision is made
one-way which is set by employers. But in the private sectors that have trade
union, the collective bargaining process is used by both employers and trade
union in determining wage and other work terms.
Collective bargaining can be defined as a method to determine work terms and
conditions as well as to control work relations through the negotiation process
between employers and employees in the hope of achieving an agreement
(Salamon, 1998).
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208 TOPIC 10 EMPLOYEE RELATIONS DYNAMICS
For employees, collective bargaining can be seen as a good method for them to
increase wages and benefits as well as to reduce the total working hours. Even
though the main objective of collective bargaining is to agree upon the accepted
work contract by both employees and employers, trade union has two other
objectives, which are to protect employeesÊ rights through allocation
development which will monitor the use of power or any actions which are
unfair towards employees and secondly to enable employees to be involved in
the decision making on matters which involve them.
10.3.1 Collective Bargaining Process
The bargaining process can only be practised in the private sector because in the
public sector, wages and all conditions will be decided by the employer. Besides
that, it is important to remember that the bargaining process cannot be carried
out if the employer does not recognise the trade union formed.
Only when the recognition is received, then the employees can only use the
union to voice out any dissatisfaction or to solve any disputes. In other words,
this can be seen as a policy for trade unions to improve any employee service
terms with employers. For employees who are not members of a trade union,
they will not be discriminated because the trade union not only negotiates for its
members but for all employees in the company.
In many cases, the bargaining process carried out is between employers and
trade unions. However, for employers who have their own associations such as
banks, the bargaining process carried out is between the employerÊs association
and the trade union. This is to ensure that all benefits are standardised for all
employees in that industry and also to reduce the number of employees who like
to job hop from one company to another. All bargaining processes carried out are
controlled by the Industrial Relations Act 1967.
The bargaining process begins when one of the parties, whether the employer or
the trade union, recommends a set of proposals for mutual agreement and
requests for negotiation to begin. The response on whether the invitation to
negotiate is accepted or not has to be sent within 14 days. If the employer refuses
to begin the process, a trade dispute will occur. However, it is important to
remember that employers who have recognised the establishment of the trade
union have to be involved in this process.
The number of meetings that needs to be held depends on the relationship
between them and the number of disagreements. Normally, in their first meeting,
both parties will discuss issues pertaining to the disagreements. If there are any
matters left out and not discussed, they will be tabled in the next meeting. But if
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TOPIC 10 EMPLOYEE RELATIONS DYNAMICS 209
an agreement is still not achieved, the matter will be reported to the Industrial
Relations Department and if necessary, they will be trialed by the Industrial Court.
If an agreement is reached between the employer and trade union, the next
process is to bind the mutual agreement as a valid contract. For this, it needs to
be done in writing and signed by both parties involved.
The validity date of the agreement must also be stated and normally it does not
exceed three years. After the period ends, a new bargaining process has to be
carried out. Meanwhile, all agreements reached have to be sent to the Industrial
Court within one month from the date they were signed. The court will then
examine the agreement made to ensure that it follows the legal requirements
before accepting it as a valid contract.
ACTIVITY 10.4
Visit http://202.190.197.23:8080/documents/10179/58539/2012-07-
27%20Relevant%20Acts%20The%20Industrial%20Relations%20Act
%201967_v3.pdf and list ten important parts included in the
Industrial Relations Act.
10.3.2 Industrial Actions
Even though cooperation and understanding during negotiations are encouraged
between employers and trade union, there are still some instances when disputes
happen. When this occurs, the industrial relations system usually has ways to
solve the dispute. However, there are also times when the parties involved
would rather use direct methods by pressuring the other party to bow to its
demands. In Malaysia, the law has allocated two ways that can be used by
employees, namely picket and strike, while the employers can employ the lock-
out method.
(a) Picket/Protest
According to Maimunah (2000), employees who are members of trade
unions and have trade disputes with their employers can hold a picket in or
near their workplace in the condition that:
(i) They do not obstruct the entrance and exit doors;
(ii) They do not threaten anyone; and
(iii) Their activities are carried out peacefully.
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210 TOPIC 10 EMPLOYEE RELATIONS DYNAMICS
Employees protest for the purpose of giving publicity about the dispute to
employees who are not directly involved and to the public. By protesting
peacefully, they hope to convince their employers to approve of their
claims. Picketing is a great tactic if employers are conscious of the
organisationÊs public image.
(b) Strikes
In Malaysia, strikes are only allowed for employees from registered trade
unions if trade disputes are still unsolved. Political strikes and sympathy
strikes are prohibited. Before employees go on a strike, those involved in
the dispute must first have a secret ballot to determine the percentage of
those who agree and disagree to the strike.
A strike is only allowed if the voting result shows two-thirds of the
employees agree to it. The voting result must be sent to the DGTU who has
the power to order the trade union not to have a strike if it is found that
certain necessary procedures are not followed.
A strike is only valid to be held after seven days, which is after the calm
period. During the calm period, validity confirmation can be done to enable
the parties involved to change their minds as well as to give an opportunity
for the government to intervene.
Apart from that, it must be reminded that the result of the ballot is only
valid for 90 days. Therefore, a strike must be organised within the 90-day
period from the voting date and if not, voting must be done again.
For employees in essential services such as banking, transportation,
electrical, postal, public health and supply and distribution of fuel, they too
must follow procedures as stated above, apart from giving notice of their
wishes to go on strike. Employers will then have to inform this to the
DGTU. After referring to the Industrial Relations Act 1967, illegal strikes
will be identified and the Ministry of Human Resources has the power to
prevent it. A strike is considered illegal if:
(i) It is on questions pertaining to the recognition of a trade union;
(ii) It is on matters contained in the collective agreement which have been
given cognisance by the industrial court;
(iii) It is on management matters related to hiring of employees, transfer,
promotion, employee termination and employee job distribution; and
(iv) The trade disputes have been referred to the industrial court for
arbitration.
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TOPIC 10 EMPLOYEE RELATIONS DYNAMICS 211
As stated, the Ministry of Human Resources has the power to prevent a
strike and enforce the use of other procedures in solving disputes.
(c) Lock-out
Lock-out is a way for employers to force employees to accept their
demands. Through this, employers will not allow employees to work until
the dispute between them is solved. This includes taking actions such as
closing the workplace, stopping work or refusing to give wage to any
employee until they agree to the work conditions imposed. Similar to a
strike, the requirements to a lock-out are also subject to the law.
ACTIVITY 10.5
In your opinion, should pickets, strikes and lock-outs be carried
out? State your reasons.
10.3.3 Dispute Solving Procedures
When disputes occur, employers and employees are not advised to picket, riot or
implement lock-out, because it in a way can affect the nationÊs economy and
other public specialties. Due to that, the Industrial Relations Act 1967 has
underlined several procedures to solve the arguments.
(a) Direct Negotiation
In direct negotiation, only the trade union and employers will be involved
in the process of solving the arguments. Usually, they will sit together in a
calm and respectful manner. In such cases, the DGTU cannot force both
sides to make peace if the direct negotiation is a failure.
(b) Conciliation
When the process of solving the arguments through direct negotiation is a
failure, employers and trade union can report the matter to DGTU. He will
suggest them to hold a meeting of peace to solve the arguments. It is a
process whereby the Industrial Relations Department will help to solve the
arguments between both sides (Maimunah, 2000).
(c) Mediation
This method has similarity with arbitration but the mediator who is being
appointed is not from the government or Industrial Relations Department.
The mediator is the outsider who is appointed and agreed by both sides.
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212 TOPIC 10 EMPLOYEE RELATIONS DYNAMICS
(d) Arbitration
Arbitration is used after the previous three methods have been a failure.
Similar to the method of using mediation, the arbitration method uses the
third party which is the Industrial Court. Under the Industrial Relations Act
1967, the Industrial Court is empowered to solve trade disputes.
The functions of the Industrial Court are:
(i) To hear and hand down decisions or awards in industrial disputes
referred to it by the Minister or directly by the parties; and
(ii) To grand cognisance to the collective agreements which have been
jointly deposited by the employers/trade union of employers and
trade union of employees.
The decision which is made by the Industrial Court cannot be altered unless
there is a matter related to law.
EXERCISE 10.2
TRUE (T) or FALSE (F) Statements
1. A strike is valid to be conducted only after three days, which
is after the calm period.
2. Employers can implement lock-out to force the employees to
fulfil their demands.
3. Arbitration is usually used after the three methods direct
negotiation, negotiation and the use of medium are a
failure.
4. The process of collective bargaining can be conducted
although the employers do not establish the workersÊ union.
5. Collective agreement can be a verified contract if it is done
orally while being witnessed by representatives from the
workersÊ union and the employers.
Copyright © Open University Malaysia (OUM)
TOPIC 10 EMPLOYEE RELATIONS DYNAMICS 213
Multiple Choice Questions
1. All of the following statements are the roles of the Ministry of
Human Resources in the industrial relationship system EXCEPT:
A. To protect the employeesÊ affairs including security, health
and employeesÊ right.
B. To improve the employer-employee relationship through a
stable and harmonious industrial relationship system.
C. To equip unemployed individuals with basic industrial skills
and enhance the level of labourÊs skills.
D. To help in minimising human resources in states using human
resource planning.
2. Among the following procedures, which is the procedure that
DOES NOT involve third party?
A. Direct negotiation
B. Negotiation
C. Mediation
D. Arbitration
3. Who is eligible to join trade unions?
A. Workers from different jobs, departments or ministries.
B. Workers who are at the age of 18.
C. Police, soldiers and prison officers.
D. Management workers in civil services who have obtained
approval from the head of department.
4. The following are the examples of in-house union EXCEPT the:
A. Malayan Technical Services Union
B. National Union of Telekom Employees
C. Rothman Trade Union of Employees
D. Malayan Commercial Banking Association
Essay Questions
1. Explain why some of the registrations of union are rejected by the
Director General of Trade Union (DGTU)?
2. Why are some strikes prohibited? Discuss.
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214 TOPIC 10 EMPLOYEE RELATIONS DYNAMICS
In this section, we have discussed the aspects of industrial relations and trade
union.
Thus, we should have understood what is industrial relationship and trade
union, why employees should join trade union, the roles, terms and
conditions of the formation, who can be the member, how and the purpose of
the unionÊs fund as well as the types of union available in Malaysia.
Arbitration Mediation
Collective bargaining Negotiation
Conciliation Picket
Direct negotiation Strikes
Industrial actions Trade unions
Lock-out
Copyright © Open University Malaysia (OUM)
Topic Employee
11 Safety and
Health
LEARNING OUTCOMES
By the end of this topic, you should be able to:
1. Compare and contrast the concepts of security and health;
2. Examine the types of security and health towards danger in the
workplace; and
3. Discuss the security and work health Acts and the purpose of the
formation of those Acts.
INTRODUCTION
According to the International Labour Organisation (ILO), it is estimated that
more than 1.2 million workers do not enjoy their right to work in a secure and
safe environment because of accidents and diseases which are related to their
jobs. Based on the statistics gained from the ILO at the 16th APOSHO
Convention in Mauritius (April 2000), it was found that:
(a) Employers from all over the world suffered because of more than 250
million accidents every year;
(b) More than 160 million employees suffered illnesses as a result of exposure
to dangerous chemicals at the workplace;
(c) More than 1.2 million deaths happened every year because of accidents and
diseases related to jobs and the total is higher than the total caused by road
accidents every year from all over the world;
(d) More than 10 million employers suffered due to injuries and diseases
resulting in permanent disabilities and the loss of the source of income.
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216 TOPIC 11 EMPLOYEE SAFETY AND HEALTH
As compared to developed countries, death rates in most developing countries
are around five to six times higher. In Malaysia, on the other hand, much effort is
being made to reduce workplace accident rates such as implementing the
Occupational Safety and Health Act 1994 and forming enforcement agents such
as the Department of Occupational Safety and Health and the National Institute
of Occupational Safety and Health (NIOSH) as well as conducting programmes
to create awareness among employees and employers of the importance of
creating a safe and healthy work environment.
11.1 UNDERSTANDING THE CONCEPTS OF
OCCUPATIONAL SAFETY AND HEALTH
ACTIVITY 11.1
We always hear the words „safety and health‰ but what do they
mean if applied in our workplace?
Occupational safety and health at the workplace means:
Safety:
An issue that has to do with protecting workers from injuries or accidents while
they are working. Injuries related to job include wound, fracture, sprain and
amputation caused by work accidents or caused by exposure that involves an
incident in the workplace (Bernardin and Russel, 1998).
Health:
A condition that gives protection to workers from emotional disturbance and any
types of physical illness caused by their job. Disease caused by work, such as
exposure to occupational surrounding factors, can bring all types of unusual
circumstances or disturbance. This condition includes chronic acute illness such
as stress, burnout, heart problem and death which may be caused by breathing
and absorbing or being exposed directly to toxics or harmful means (Bernardin
and Russel, 1998).
Copyright © Open University Malaysia (OUM)
TOPIC 11 EMPLOYEE SAFETY AND HEALTH 217
11.2 LAWS RELATED TO OCCUPATIONAL
SAFETY AND HEALTH
Government intervention in the issue of industry safety started since early 1878
with the appointment of the first „pemeriksa dandang‰. The first law related to
safety formed in 1892 was Steam Boiler Enactment (Maimunah, 1999).
When Malaysia was in the process of becoming an industrialised country in the
1960s, one Act was introduced to oversee the safety and health of work. It was
the Factories and Machinery Act 1967. Another Act, the Occupational Safety and
Health Act, was introduced in 1994 when it was found the previous had its
weaknesses. Our discussion here will be on these two Acts.
ACTIVITY 11.2
Why are laws related to safety and health of workers important?
What would happen to workers if there were no laws like this in
our country?
11.2.1 The Factories and Machinery Act 1967
For over 30 years, the Factories and Machinery Act 1967 played its role to
overcome safety and health issues in this country. The Factories and Machinery
Act emphasised on safety in factories and its enforcement was under the control
of the Department of Factory and Machinery (now known as the Department of
Occupational Safety and Health). Among the provisions in this Act included the
following:
(a) The power was given to the Department of Factory and Machinery, or the
appointed examiner to ensure safe construction and design of factories and
well-conditioned machines and to ensure safe usage including providing
appropriate training to workers;
(b) Emphasising on the aspects of workers' welfare by ensuring employers
provide health facilities and comfortable workplace;
(c) Providing safety tools such as fire extinguisher and first aid box; and
(d) Explaining the procedure to report accidents in the workplace.
Even though this Act had been used for a long time in Malaysia, it received a lot
of criticisms regarding the effectiveness of its provisions and implementation.
Among the criticisms were that it:
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218 TOPIC 11 EMPLOYEE SAFETY AND HEALTH
(a) Only protected workers who worked in factories and this only accounted to
about 25 to 30% of the entire workforce in Malaysia;
(b) Had a limited scope;
(c) Failed to take note of technology development; and
(d) Emphasised on the responsibilities to overcome issues related with safety
and health from the government side and not involving employers and
employees.
ACTIVITY 11.3
1. The construction sector was the sector that reported the highest
amount of accidents in 1998, that is, 38,718 (43.8%) compared to
other sectors such as commerce (14.7%), services (10.4%) and the
shipping sector (4.6%). In your opinion, why did the construction
sector contribute to the increasing number of accidents in 1998?
2. Visit http://www.dosh.gov.my/index.php?option=com_content
&view=article&id=531&Itemid=360&lang and list six important
parts in the Factories and Machinery Act 1967.
11.2.2 Occupational Safety and Health Act 1994
The Occupational Safety and Health Act 1994 was approved by the Parliament in
1993 and announced on 24 February 1994. It was established to overcome
weaknesses in the Factories and Machinery Act 1967 but not replacing it. With
this Act recorded in writing, about seven million workers in all industries and
sectors are protected except for those in the armies and those working in the
shipping industries which are dominated by the Merchant Shipping Ordinance.
The following industries are protected by this Act, namely, the manufacturing
sector; mining and quarry; construction, agriculture, forestry and fishery; utilities
such as electric, gas, water and sanitary services; transportation, storage and
communication; retail trading; hotel and restaurant; financial, insurance,
property and business services; public services and authority statute.
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TOPIC 11 EMPLOYEE SAFETY AND HEALTH 219
The main aim of this Act is to increase awareness and to promote safety and
health culture among all workers in Malaysia. The objectives of this Act are:
(a) To ensure the safety, health and welfare of workers in the workplace.
(b) To protect other individuals, apart from workers, in the workplace who are
exposed to risks from the work activities.
(c) To encourage a conducive work environment that meets the physiological
and physical needs of the workers.
(d) To ensure that the organisation maintain or fix the standards of safety and
health by implementing rules and industry practices that have been
approved and in accordance with the provisions of the Act.
Some of the provisions in this Act include the needs of forming the National
Council for Occupational Safety and Health and provisions that set the duties of
the employer and the self-employed, designer, manufacturer, supplier and
workers.
Visit http://www.dosh.gov.my/index.php?option=com_content&view=article&
id=531&Itemid=360&lang=en and find the four main aims of setting the
Occupational Safety and Health Act 1994.
(a) National Council for Occupational Safety and Health
The National Council for Occupational Safety and Health is an advisory
body which comprises 12 to 15 members appointed by the Ministry of
Human Resources. Just like other bodies involved in occupational
relationship, this council comprises three parties:
(i) Three members from the organisation that represent the employer;
(ii) Three members from the organisation that represent the workers;
(iii) Three members or more from the ministry or department responsible
for occupational safety and health; and
(iv) Three or more members from the organisation or professional bodies
related to occupational safety and health and at least one of them
must be a woman.
Members of the council are required to carry out investigations when
requested by the Minister of Human Resources, submit reports and give
their suggestions on any cases related to occupational safety and health.
The yearly report has be submitted to the Human Resources Minister on 30
June each year.
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220 TOPIC 11 EMPLOYEE SAFETY AND HEALTH
In sum, council members need to meet from time to time to discuss and
make suggestions on issues related to:
(i) Changes that are relevant to the Occupational Safety and Health Act;
(ii) Ways to improve administration and enforce the Act;
(iii) Ways to foster cooperation between employers and employees
regarding the safety, health and welfare of employees in the
workplace;
(iv) Safety, health and welfare problems encountered by women,
handicapped persons and other groups in society;
(v) Formulating suitable methods to control the use of chemicals in the
workplace;
(vi) Analysing statistics regarding deaths and accidents;
(vii) Resources for health facilities in the workplace;
(viii) Ways to encourage forming codes of practice in relation to the safety,
health and welfare of employees; and
(ix) Reviving plans and facilities to assist individuals injured while
working.
Visit http://www.dosh.gov.my/index.php?option=com_content&view
=article&id=531&Itemid=360&lang=en for information about the
functions of the National Council and Occupational Safety and Health at .
(b) General Duty of the Employer and Self-employed
It is the responsibilities of all employers and those who are self-employed
to ensure the safety, health and welfare of themselves, their employees and
other people in the vicinity during work hours. To achieve that aim,
employers need to provide a safe occupational surrounding which does not
threaten employeesÊ health. According to the Act, employers are
responsible for the following:
(i) Managing and maintaining the plant to ensure a safe work system
without any risk hazard;
(ii) Making sure the usage or operational handling, storage and
transportation of materials are safe without any health risk;
(iii) Providing sufficient information, instruction, training and supervision
to ensure safety and health in the workplace;
(iv) Maintaining safety at the workplace without risking health including
entry and exit to the facilities; and
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TOPIC 11 EMPLOYEE SAFETY AND HEALTH 221
(v) Maintaining the workplace areas so that they are safe without risking
health by providing sufficient facilities for employeesÊ welfare.
Any employer who fails to follow these instructions will be fined not more
than RM50,000 or jailed for not more than two years or both.
Apart from that, employers are also responsible for formulating policies on
occupational safety and health in written form and informing all workers
about them. These policies are looked into frequently to ensure that they
are suitable for current conditions. However, there are a few weaknesses in
the Occupational Safety and Health Act 1994. It does not set out what is
important in the occupational safety and health policy and it also does not
state by which manner the policy need to be conveyed to the workers. This
may cause the organisation to be unable to carry out these responsibilities
properly.
For employers who have more than 40 employees, they need to form an
Occupational Safety and Health Committee in their own organisation. The
functions of the committee is to help implement a safe and healthy
environment in the workplace, explore the effectiveness of the
programmes, give suggestions on any changes in order to improve the
situation and carry out inspections once every three months.
Visit http://www.dosh.gov.my/index.php?option=com_content&view
=article&id=531&Itemid=360&lang=en for information about the four
duties of each worker and punishment if the duties are not carried out.
ACTIVITY 11.4
In your opinion, why do many accidents still occur in the
workplace even though various precautions have been taken such
as the enactment of Acts and laws related to workersÊ safety and
health?
(c) General Duty of the Designer, Manufacturer and Supplier
The responsibility to ensure employeesÊ safety and health also relies on the
designer, manufacturer and supplier of the plant, machinery, equipment
and materials used while working. Therefore, the Occupational Safety and
Health Act 1994 has required all designers, manufacturers and suppliers to:
(i) Ensure that the plant or materials are safe without any risks to health
when being used;
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222 TOPIC 11 EMPLOYEE SAFETY AND HEALTH
(ii) Arrange or carry out appropriate tests and examinations on the plant
or materials;
(iii) Provide sufficient information regarding the use of the plant or
materials so that it is safe without any risks to health if used properly;
(iv) Carry out research to prevent or minimise risks to safety or health that
might exist from the design of the plant; and
(v) Ensure the plant that has been built is safe for use.
Failure to obey these rules can cause the designer, manufacturer and
supplier to be fined not more than RM20,000 or jailed not more than two
years or both.
(d) General Duty of Workers
Besides employers, designers, manufacturers and suppliers, you as an
employee are also responsible for ensuring your own safety and health.
There is no use for employers to provide various safety tools at the
workplace if they are not used. To make sure that everyone take the
responsibility to maintain safety and health in the workplace, the
Occupational Safety and Health Act 1994 has highlighted a few instructions
which need to be followed by employees:
(i) Give appropriate concentration while working to ensure the safety of
themselves as well as others;
(ii) Cooperate with employers or other persons who are given roles under
the Act and its regulations;
(iii) Wear or use tools or protection clothes; and
(iv) Obey any order on occupational safety and health measurement
enlisted in the Act or its regulations.
Employees who fail to obey these rules will be fined not more than
RM1,000 or jailed not more than three months or both.
Thus far, there are six regulations that have been established under the
Occupational Safety and Health Act 1994:
(i) Occupational Safety and Health (Control of Industrial Major Accident
Hazards) Regulations 1996;
(ii) Occupational Safety and Health (Safety and Health Committee)
Regulations 1996;
(iii) Occupational Safety and Health (Classification, Packaging and
Labelling of HazardousÊ Chemicals) Regulations 1997;
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TOPIC 11 EMPLOYEE SAFETY AND HEALTH 223
(iv) Occupational Safety and Health (Safety and Health Officer) 1997;
(v) Occupational Safety and Health (Use and Standards of Exposure of
Chemicals Hazardous to Health) Regulations 2000; and
(vi) Occupational Safety and Health (Notification of Accident Dangerous
Occurance, Occupational Poisoning and Occupational Disease)
Regulations 2004.
Visit http://www.agc.gov.my/Akta/Vol.%2011/Act%20514.pdf for
additional information about the Occupational Safety and Health Act 1994
and the objectives of the Act.
EXERCISE 11.1
TRUE (T) or FALSE (F) Statements
1. The Occupational Safety and Health Act 1994 was established to
replace the Factories and Machinery Act 1967.
2. One of the objectives of the Occupational Safety and Health Act
1994 is to encourage a work environment that is suitable for the
physiological and psychological needs of workers.
3. One of the criticisms received about the Factories and
Machinery Act 1967 was that it only protected those who work
in farms.
4. One of the roles of the committee members of the National
Council for Occupational Safety and Health is to improve the
administration and implementation of the Act.
5. Employers that have more than 50 workers are required to
establish an Occupational Safety and Health Committee.
11.3 SAFETY AND HEALTH AT WORK
ACTIVITY 11.5
List a few types and causes of accidents in your workplace.
Copyright © Open University Malaysia (OUM)
224 TOPIC 11 EMPLOYEE SAFETY AND HEALTH
Have you ever had a headache as a result of staring at the computer screen for
too long? Or have you seen your friend injured because he was crushed by heavy
things? All of these are examples of accidents that can happen while we work,
according to Aini Hayati (Faizuniah, et al., 2002)
Safety towards danger is an occupational aspect that has the potential to cause
injuries (such as sudden loss of sight, loss of fingers or hands, fall from a
building) or death to workers at a fast rate. Usually, safety towards danger is
related to tools or machines that are not safe to be used, unsafe work
environments, and exposure to dangerous chemicals.
Health towards danger refers to occupational aspects that can give negative
effects to employeesÊ health gradually. Continuous stress caused by workloads,
becoming deaf because of exposure to noisy work environment, having chest
pain and the eyes becoming blur because of exposure to chemicals are among
some of the examples of emotional and physical illnesses caused by work.
Next, we will look at a few safety and health categories regarding the danger in
workplace such as accidents in the workplace, the danger of chemicals, air
quality in the building, video screen terminal and repetitive injuries.
11.3.1 Accidents in the Workplace
In September 1996, the government launched the „Towards a Safe and Healthy
Working Culture‰ campaign to increase awareness among employers, employees
and societies regarding safety in the workplace. Even though the rate of accidents
in the workplace has decreased since 1997, the amount is still quite worrying.
ACTIVITY 11.6
Visit http://www.perkeso.gov.my/ for information on the
following:
1. The objective of the establishment of PERKESO.
2. The sector with the highest rate of accidents in 2001.
3. The amount of compensation paid by Perkeso in 2001.
Copyright © Open University Malaysia (OUM)
TOPIC 11 EMPLOYEE SAFETY AND HEALTH 225
Generally, accidents in the workplace can be caused by the characteristics of the
work, the workers themselves, employers and the environment as listed in Table
11.1.
Table 11.1: Causes of Accidents in the Workplace
Cause Example
Occupation
Workers Damaged machines unable to work properly.
Environment Obsolete unable to work properly.
Employer
Dangerous occupation for example, working at an
underground tunnel, exposed to dangerous chemicals.
Not focusing on their work.
Playful.
Drink alcohol or take drugs.
Mistake or miscalculation when analysing moving objects.
Lack of experience.
Too confident because they have experience.
Poor sight and hearing.
Inexperienced in handling tools no training.
Breaking safety instructions such as not wearing goggles.
Age: too young (clumsy) or too old (careless or incompetent).
Have personal problems cannot give full attention to work.
Exposure to high temperature, electrical equipment and
chemicals.
Environment that is too noisy.
Exposed to smoke and dust.
Infection.
Poor supervision.
Did not provide safety tools or gadgets for employees.
Did not give training to employees on how to use safety tools.
Safety rules and policy not implemented strictly.
Source: Adapted from Faizuniah Panggil et al., (2002). Pengurusan sumber manusia.
Malaysia: McGraw-Hill, pg. 148.
These problems can be overcome if every person plays their own roles. The
objective to ensure zero accident cannot be achieved if workers did not make use
of safety gadgets provided by the employer or the employer did not take any
action even though the employees had lodged complaints regarding the damage
of the safety gadgets provided.
Table 11.2 shows a few examples of roles that can be played by the employer,
employees, trade unions and the Occupational Safety and Health Committee in
minimising accidents in the workplace.
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226 TOPIC 11 EMPLOYEE SAFETY AND HEALTH
Table 11.2: The Role of the Responsible Agent to Decrease Accidents in the Workplace
Responsible Role
Agent
Employer Formulate a health and safety policy.
Apply all the rules and procedures that have been laid down.
Hold immediate investigation once an accident has occurred.
Provide private safety equipment such as helmets, gloves and so on.
Hold safety campaigns from time to time.
Make sure the work environment is safe.
Maintain a safe work system.
Create a procedure for reporting and investigating accidents.
Form and hold safety practices.
Select efficient workers.
Establish an incentive system. Employees or departments who
can avoid accidents will be rewarded.
Provide clothes and safety equipment.
Establish a non-workplace such as a „dangerous area‰.
Provide a clear warning such as „CAUTION‰ and „NON-
SMOKING ZONE‰.
Provide leave and appropriate rest to workers who need extra rest.
Get input regarding the problems from the workers.
Get feedback from employees after an accident had happened.
Employee Obey all the rules and procedures regarding safety.
Cooperate with the employer (self regulation).
Trade Form a „safety at workplace‰ attitude.
Unions Immediately report if the machines or tools are damaged.
Do not use any damaged tools that can endanger the employeesÊ
Health and safety.
Safety
Can voice out the rights of employees to the management. If all
Committee this while the effort is more on increasing incentives, then the
focus now should be on the safety and health of the employees.
Involved as a workersÊ representative in the Health and Safety
Committee.
The Occupational Safety and Health Act 1994, Section 30 (a) states
that it is compulsory for a company which has 40 or more employees
to form a health and safety work committee. This committee is to
study all the steps to ensure the safety of workers at the workplace.
Source: Adapted from Faizuniah Panggil et al., (2002). Pengurusan sumber manusia.
Malaysia: McGraw Hill.
Copyright © Open University Malaysia (OUM)
TOPIC 11 EMPLOYEE SAFETY AND HEALTH 227
11.3.2 The Risk of Chemical Substances
Why do many of us not realise the danger we put ourselves in when we are
exposed to chemical substances on a regular basis?
The negative effect from the chemicals will not immediately be visible. The effect
will be visible when the disease has become chronic. Refer to Table 11.3 to
understand how serious the effect can be on some people.
Table 11.3: Ten Types of Danger in the Workplace
Potential Risk The Disease
Arsenic Lung cancer, lymphoma
Asbestos
White lung disease, lung cancer and other
organ cancer
Benzene Leukaemia, aplastic anaemia
Bichloromethylether (BCME) Lung cancer
Coal dust Black lung disease
Emission from coke oven Lung and kidney cancer
Cotton dust Brown lung disease, bronchitis and emfisema
Lead Kidney disease, anaemia, malfunction of the
main system and abnormality
Radiation Thyroid cancer, lung and bone cancer,
Vinyl Cloride leukaemia, effect on productivity (miscarriage
or genetic damage)
Lung and brain cancer
Sources: Adapted from Byars, L. L. & Rue, L. W.(2000). Human resource management
(6th ed.). Boston: McGraw-Hill.
In Malaysia, the government has awareness of the risks posed by certain
chemical substances. They have provided an order in the Occupational Safety
and Health Act 1994 which prohibits the use of material like Benzene, Benzidine,
Krosodilit, Carbon Disulfide, white phosphorous and any other chemical
substances that are dangerous to safety in the workplace. This Act has been
enforced effective from 2 August 1999.
Other than that, the Occupational Safety and Health Act 1994 also contains the
rules to classify, package and label chemical substances and determine the use
and exposure of dangerous chemical substances.
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228 TOPIC 11 EMPLOYEE SAFETY AND HEALTH
Find out more information about the Occupational Safety and Health Act (The
Prohibition of Chemical) 1999 at http://www.dosh.gov.my/index.php?
option=com_content&view=article&id=531&Itemid=360&lang=en. Are you
exposed to these restricted materials?
11.3.3 Air Quality in the Building
ACTIVITY 11.7
Is the air in your work area good? If not, what are the factors that
contribute to air quality in your workplace?
In order to save energy, the techniques in construction of commercial buildings
have been changed to increase the effect of heating power, air and air
conditioned system. These include decreasing the flowing out of the air by
closing entire windows and any hole in the building. As a result, many workers
experience the „sick building syndrome‰ or lack of fresh air. Those who have this
syndrome will feel itchiness on the eyes, ears, throat and skin (Bohlander, Snell,
Sherman, 2004).
Moreover, workers in closed buildings are easily exposed to air pollution due to
bad air flowing system. According to research by the National Institute of
Occupational Safety and Health in the United States, air pollution in the building
is due to cigarette smoke and emission from office equipment such as ozone,
hydrocarbon from computers, photocopy machines, laser printers and fax
machines. Dust from carpets, papers and wood are among the contributors too
(O Connell and Motavalli, 1995 and Bohlander, Snell and Sherman, 2004).
To overcome the lack of fresh air in the building, the American Lung Association
has provided four recommendations: remove cigarette smoke with good air
flowing, prevent workers from smoking in air conditioned rooms, supervise the
air flowing system frequently and remove the sources of pollution from the
building (Bohlander, Snell and Sherman, 2004).
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TOPIC 11 EMPLOYEE SAFETY AND HEALTH 229
11.3.4 Video Terminal Appearance
ACTIVITY 11.8
Is it safe to use computers in our daily work? In your opinion, what is
the problem caused by using the computer for a long time?
In order to keep up with the current technological development, organisations
make full use of computers in their daily work. However, the widely usage of
computers is a cause for worry among employees due to the danger of the
computer monitor. Usage of computers for a long period can create the following
problems:
(a) Vision problems such as weakening of the vision, eye strain, and itchy eyes.
(b) Radiation such as forming of cataracts in the eyes and pregnancy problems
such as miscarriage and abnormality due to high exposure to radiation
(video terminal display).
(c) Muscle pain (back, neck and shoulders)
(d) Work stress due to pressure, bad posture, noise, lack of practice, workload
and routine.
Dr James Sheddy (Bohlander, Snell and Sherman, 2004) gave some advice to
minimise the negative effect of the computer:
(a) Put the computer screen between four and nine inches from the userÊs eye
vision level.
(b) Put the monitor in line with the vision.
(c) Sit on an adjustable chair, adjust the height according to the preferences of
the user and use a copyholder to attach to the computer or desk.
(d) Use suitable screen light which is not harmful to the eyes.
(e) Use screen-shades to decrease the light from the window to the screen.
11.3.5 Injuries of Frequent Movement
Repetitive motion injuries or cumulative trauma disorder are usually
experienced by workers who work using repeating actions such as finger and
hand movement. They include butchers, fish cutters, chefs, textile workers, violin
players, stewards and stewardesses.
Copyright © Open University Malaysia (OUM)
230 TOPIC 11 EMPLOYEE SAFETY AND HEALTH
One of the injuries is the carpal tunnel. The carpal tunnel refers to the hand bone
known as the carpal. These bones form a tunnel full of flexible tendons
(Ivancevich, 2001). According to research by NIOSH, the carpal tunnel syndrome
is related to the industrial sectors involved in cutting, forming, sewing and
cleaning.
One of the ways to avoid the injuries is by providing a good work environment
in line with the physical needs of the workers or known as ergonomics. This
word originated from Greek which is divided into „ergon‰ or work and „omics‰
which means „management of something‰ (Mathis and Jackson, 2000).The job of
the ergonomist is to study the aspects of work physiology, psychology and
engineering such as fatigue, lighting, equipment and control.
The importance of ergonomic study:
(a) The employer can use the result of the study to provide a conducive work
environment such as providing chairs, shoes, desks and any other suitable
equipment to the employees according to their size and height.
(b) The employer can adjust the room temperature, lighting and level of noise
so that they do not affect the employees' performance.
(c) Focus on personal space. Small or packed space will lead to stress and
cause health problems to the workers.
EXERCISE 11.2
TRUE (T) or FALSE (F) Statement
1. One of the causes of accident at the workplace is machine
failure.
2. Continuous stress felt by employees is one of the examples
of workersÊ safety.
3. The producing sector is the highest achiever in accidents.
4. The effect of chemical substances is visible immediately.
5. The carpal tunnel syndrome is formed by continuous
injuries and cumulative trauma injuries.
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TOPIC 11 EMPLOYEE SAFETY AND HEALTH 231
11.4 ISSUES RELATED TO SAFETY AND HEALTH
After understanding the occupational safety and health hazards in the
workplace, we are going to look at some of the issues related to occupational
safety and health.
11.4.1 Violence and Dangerous Work Environment
There are a few types of violence at the workplace. Examples of moderate
violence in the workplace are vandalism, sabotaging, fighting, violating company
rules, quarrelling with the customer, workmate or supervisor and theft. Cases of
rape, murder, running amok, burning and attacking are examples of serious
violence in the workplace.
Security guards or those who are involved in money exchange and valuable assets
such as bank tellers and cashiers are exposed to violence. Other than that, those
who work until late at night or in isolated places are also exposed to this type of
risk.
Other than visible threatening risks, workers also have to face hidden threats
such as bullying by other workmates which may progress to a more serious stage
such as murder.
One example of hidden violence is sexual harassment. The reported cases of
sexual harassment in Malaysia are low because not many of the victims come
forward to report their cases. However, this does not mean that it is not serious.
Some steps can be taken to overcome violence at the workplace such as vetting
the workersÊ applications, and forming a basic procedure related to safety at the
workplace. It includes prohibiting bringing in any weapons and banning any
practices that can be a threat to the work environment.
11.4.2 Work Stress
Stress can be classified into three types: neustress, distress and eustress or
positive pressure. (Schafer, 2000)
(a) Neustress is neutral pressure where it does not bring any benefit or harm.
(b) Distress happens when there is too much stimulation or little stimulation
such as over worrying, and becoming sad and angry easily.
Copyright © Open University Malaysia (OUM)
232 TOPIC 11 EMPLOYEE SAFETY AND HEALTH
(c) Eustress or positive stress refers to the moderate level of worry that will
work as a drive to do something.
Although stress has proven to increase the productivity and creativity of
workers, negative stress or distress is one of the examples of occupational illness
that can lead to physical injuries, heart disease, bone aching, asthma and gastric
problems; the main source of workersÊ disability (French, 1994).
The factors that cause stress are (Faizuniah, et al., 2002):
(a) Unsettled conflicts;
(b) High expectations set by the leaders or managers;
(c) Disturbance by other workers;
(d) Too many responsibilities;
(e) Great competition among the employees;
(f) Short time span to complete tasks;
(g) Failure to control the sources (financial);
(h) Lack of control in the job and role conflicts; and
(i) Great efforts made but only managed to achieve unrealistic goals.
A few steps can be taken to reduce the negative effects of pressure. They are as
follows:
(a) Have a good relationship among the employees;
(b) Openly voice out your feeling or problem to the supervisor or workmates;
(c) Get ready to face any changes in the future;
(d) Do not perform something that is beyond your ability;
(e) Put a realistic deadline which is easy to reach;
(f) Quick action in solving problems before it becomes worse; and
(g) Stop for a while or rest before proceeding the work to avoid boredom.
SELF-CHECK 11.1
Have you ever felt stressed? What are the factors leading to stress?
Copyright © Open University Malaysia (OUM)
TOPIC 11 EMPLOYEE SAFETY AND HEALTH 233
11.4.3 HIV/AIDS in the Workplace
What would your reaction be if you found out that your workmate was HIV
positive? Are you going to stay away from him or her because you are afraid to
get infected or will you accept him or her as usual? If you were an employer,
what would your reaction be? Would you fire the individual or help him or her
deal with it?
Whatever action you take, the important question is: do you understand what
HIV/AIDS is and its implications on workers, the job and the surrounding?
AIDS is a condition where the bodyÊs immune system becomes weak or
destroyed and the patient cannot fight the infected disease. According to
statistics received from the Ministry of Health, after the first cases were reported
in 1986 till the end of December, 2008, 84,630 Malaysian citizens had tested
positive for HIV, resulting in a total of 11,234 deaths. That figure increases every
year.
Most of the AIDS patients like to isolate themselves from the society because of
embarrassment and fear of being discriminated by family and society. What is
important is that they do not want to lose their jobs. This is because awareness of
this disease among employers is still low. According to research by the
Department of Safety and Health (DOSH) carried out in 154 factories, most of the
employers stated that:
(a) HIV/AIDS would not have a great impact on the business, productivity,
expenses, health care and absence in the workplace.
(b) HIV/AIDS still has not affected the work field.
(c) HIV/AIDS was only infected by non-expert workers and low educated
employees.
(d) HIV/AIDS was not an organisationÊs issue but the countryÊs issue.
Although there is no specific provision in the Occupational Health and Safety Act
1994 with regard to AIDS, Section 15(1) stated, „It can be assured that the
employer is responsible to take care of the workersÊ welfare from any HIV
infection and at the same time responsible to take care of them no matter what
health condition they are in.‰
Unfortunately, the worries and misconceptions of the employer and the
employee towards the patient of HIV/AIDS have obstructed the effort to create a
safe work environment. Geotsch (1996) has suggested three solutions to help the
employers in handling the problem.
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234 TOPIC 11 EMPLOYEE SAFETY AND HEALTH
(a) Through Education
The educational programme can be organised by professionals in
occupational safety and health with support by the employer to increase the
awareness of AIDS to all the employees. The programme explains the
disease, the risk and how it can infect others and this can help the
employees to increase their awareness of this disease and how to handle it
in the future.
(b) Formulating AIDS Related Policy
Although AIDS has proven to be giving negative effects to the work
environment, steps taken to overcome this issue are minimal. While
discussing how American companies handle this problem, Minetos (1998)
found that only 5% from all the employers have the written corporate
policy related to AIDS. Malaysia should also take this matter seriously.
(c) Protecting the Employees from AIDS
Employees who are involved in handling blood or any body fluid are likely
to be exposed to the danger of AIDS infection. So, they have to be given
enough training before allowed to work. Besides, the employer should
provide enough equipment and tools to prevent the employees from being
exposed to injuries.
Visit http://www.dosh.gov.my/index.php?option=com_content&view
=article&id=531&Itemid=360&lang=en for information about the steps to
protect workers from AIDS.
11.5 FROM THE SAFE AND HEALTHY WORK
ENVIRONMENT
A safe and healthy work environment is important to an organisation. It
increases the employeesÊ productivity, and gives a positive effect to the
organisation especially in terms of reducing the cost related to accidents and the
compensation needed to be paid by the company. To have a safe and healthy
work environment, a few steps can be taken such as requesting the workers to
help in organising the Safety and Health programme.
11.5.1 Employee Aid Programme
One of the ways the employer can overcome the issue of occupational safety and
health environment is by creating the Employee Aid Programme or EAP.
According to Gloria Cunningham in French (1998), the EAP was accepted and
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