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IntroductionIndustrial relations are the relationships between employees and employers within the organizational settings. The field of industrial relations looks at the relationship between management and workers, particularly groups of workers represented by a union.What is a trade union? A trade ...

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Introduction

Industrial relations are the relationships between employees and employers within the organizational settings. The field of industrial relations looks at the relationship between management and workers, particularly groups of workers represented by a union. What is a trade union? A trade union is an association of workman and employers which are occupied temporary or permanent in a trade or an occupation or an industry to follow lawful objectives such as association of University of Malaya Academic Staff. Moreover, there are three types of trade unions in Malaysia: Public sector, Private sector, and Employers union. According to Trade Union Act 1959 1959 section 2, to form a trade union some step must be make. Group of seven or more workers can form a trade union providing they work in the same trade, occupation or industry. First, within a month from the decision made to form a union the application of registration must be made. They must register with the Director-General of Trade unions in order to operate legally. Then, they must apply to the Director-General within 1 month of establishing a trade union (S.9) but they may ask for extension of 6 months. The application form must be signed by at least seven members (S10). The application form must have the required fees and printed copy of the rules or constitution of the union. Furthermore, the application must include the name of the union and its address including all the member name and address. Finally, Director-General may require other information such as a copy of the MOI meeting of the workers who wish to establish the union. One of the many Trade Union in Malaysia are The Malaysian Trades Union Congress, know more as MTUC. MTUC was formed in 1949 and was originally known as the Malayan Trades Union Council. It then changed its name to the Malayan Trades Union Congress in 1958, latter name Malaysia Trades Union Congress with the formation of Malaysia. MTUC functions and objectives are one, to do everything to promote the interest of organization under MTUC, to improve the economic and social conditions of workers. Another functions are to ensure that policies are developed and action taken to ensure full employment, to work towards the establishment of a minimum wage a legal maximum working week of 44 hours and to establish training centers and extension of training facilities for workers. Last functions are Provision for legislated Social Security measures to provide protection against sickness, unemployment, old age, injury, invalidity and retiring benefits and promotion of high standards of health, hygiene and welfare in all places of employment and seek adequate compensation for workers disabled by accidents and diseases. They also act as the spokesman for trade unions, both at national and international level, gives advice unions on any matter, and runs training to help union leader to represent the worker. One of the example of MTUC function are, in this newspaper article “MTUC proposes RM500 cost of living allowance, higher retirement age”. Congress of Unions of Employees in the Public and Civil Services Malaysia (Cuepacs), is also one of the national trade union centre in Malaysia. Cuepacs only provided help to the

public and civil service to seek further increasing on salary or other problem that the public service face.

Issues

First issue that MTUC proposes are increasing the cost of living allowance to RM500. MTUC stated that when justifying the need for the cost of living allowance (COLA), the National Labor Centre cited cost of living are increasing, also in recent finding by the United Nations stated that Malaysia has been using an outdated and incorrect factor in determining the national poverty line. The national poverty line has been one of the factors in setting minimum wages. Currently, the amount of COLA allowance is set at RM300, RM250, and RM150 depending on their locations, but it only for public service worker only. In the Budget 2020 the government announced that the COLA allowance will be increased by RM50 per month beginning 2020 for the support group. However COLA still not implement in certain organisations, because no obligations noticed by government. MTUC want the government to use their power to implement the act so that all the organisation in Malaysia will provide the COLA. The introduction of the COLA would be an effective move to address the current income disparity and the pittance minimum wage, adding that it would strengthen the aggregate demand and boost economic growth in the process. MTUC stated that the RM500 would be a major boost for the B40 and M40 categories of workers who are the hardest hit. MTUC secretary-general J. Solomon said in the private sector, had no valid reason to delay, having enriched itself from this incorrect poverty line income for many years had caused the wide income inequality in Malaysia. As one of the main Trade Union in Malaysia, MTUC make the proposal to help with better lifestyle. Malaysians in the middle and lower-income levels are unable to make ends meet and those with families are actually struggling. MUTC not asking for higher take-home wages, only asking for a real wage. The UN findings show that the poverty rate is as high as 15 per cent to 20 per cent, and this has direct relevance to low wages The second issue in the article are, higher retirement age. With some industries decide on 55. Meanwhile others organisations did not state proper retirement scheme which decide by themselves without standardize. Although the law stated that the minimum retirement age are 60 year old. Laws of Malaysia Act 753, MINIMUM RETIREMENT AGE ACT 2012 stated that notwithstanding any other written law, the minimum retirement age of an employee shall be upon the employee attaining the age of sixty years. However the Minister may, by notification in the Gazette, prescribe a minimum retirement age higher than the minimum retirement age stated in subsection in the law. Hence when the Minister prescribes a higher minimum retirement age, the prescribed minimum retirement age shall be the new retirement age. Using this law, MTUC want the government to increase the minimum age to retiree. MTUC said that lack of sufficient income to sustain retirement, with the expected increase in Malaysian lifespan in the future to about 80 years. This insure that they can keep up with the steady rise in the ageing population and the need to sustain an active lifestyle. MTUC also said

that this would boost the Employees Provident Fund savings for those in the lower-income category, also the senior citizens will depend less on their children, society and the government for old-age support. When this happen, the children and the government will not be burden to take care of the senior citizen as they can still make money. On another article, some of the employers and manufacturers are not in favour of raising the retirement age to 65 as it will limit the recruitment of younger workers into the workforce. This is because there are still a lot of young graduates waiting to be employed, and by extending the age, it will deprive them of opportunities in the employment market. Youth and Sports Minister Syed Saddiq Syed Abdul Rahman’s view on retaining the current retirement age so that employment opportunities for the younger generation do not get block. It was best to let the market forces decide if employers would want to retain capable workers on a contract basis if their expertise were still required. Malaysian Employers Federation executive director Datuk Shamsuddin Bardan suggested the government could consider re-employment policy for those aged above 60 to encourage retirees to continue being in the workforce. This can encourage bosses in line with the company’s requirements and their contributions to employ them but on a voluntary basis, without blocking the younger generation opportunities to work.

Analysis Using union is the right way to push the government for take more benefits from the employer since the private sector is non popular arrangement from the employer. MTUC as the as one of the main Trade Union in Malaysia, been more vocally to provide the worker the best condition in term of wages or salary. The COLA allowance is one of the way without increasing the minimum wages, to provide the worker the extra money as the cost of living are increasing every year. Civil servants and private service worker should enjoy the COLA allowance because we know the rising cost of living is very much felt by everyone. On this note, the government needed to consider the living wage to compensate the bottom 40 per cent (B40) and middle 40 per cent (M40) groups that being short of minimum wages, there must be an immediate need to grant all workers of B40 and M40 a COLA of RM500. This also serve as a moral obligation to the compensate the workers who have been suffered many years The outdated and incorrect factor in determining the national poverty line must be change to see the actual poverty line in Malaysia. The wide income inequality in Malaysia is because the incorrect poverty line income for many years must be made clear, so that the worker can get the benefit. The introduction of the COLA would be an effective way to address the current income disparity and the low minimum wage, also can strengthen the demand and boost economic growth in the process

The MTUC demand of higher retirement age, have pro and con. One of the pro as, the senior worker can have a stable income without doing odd job just to make one end. The can still work and their Employees Provident Fund can increase so that the money can be uses until they age 80- 90. The other benefit from this are, the senior worker did not depend on their child money to survive. Without their parent asking money, the child can save their money to been spend on other things. The disadvantages of the increasing the retirement age are, one it will deprive young graduates the opportunities to be in the employment market. With many young graduates waiting to be employed, this increasing of age to retire, it can make the market of new job to be static, slow, or even stall. This proposal can impact about one million jobs over the next five years. This can make the young generation without any job. If the employer still hired new worker, it will increase of cost to do business and reduce business competitiveness. So retaining the current retirement age will not block employment opportunities for the younger generation

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