ICM-HRM Exam Preparation Class

Answer for Question No: 5

(Trade union)
In Myanmar, According to the organized labor law, union parliament was determinant
to form Labor union in October 11, 2011. A trade union is an organization of workers, acting
collectively, seeking to promote and protect its mutual interests through collective bargaining.
Most of trade unions are independent of any employer. However, trade unions try to develop
close working relationship with employers. This can sometimes take the form of partnership
agreement between the employer and the trade union which identifies their common interests
and objectives.

Trade union must be equal with following facts;

1. To create only with employees

2. To be unity
3. To request the interests of worker
4. To be freely available
5. To democratically ????? (Verb is missing)

For no 1; trade union to create only with employee is important because most of
the trade union are formed create with owner, manager etc. They take part most of the
roles are use the most place of in trade union. Employees include in trade union
however they are just a little.

For no 2; It is also important because organizations and employees must be

unity. If they are not unitied y it is easy to be disunited. trade union easy to be broke.

For no 3; It is includes two parts. They are (1) to demand request the
entitlements and rights advantages by according to the labor union act and (2) to
request the requirements that are not stated in advantages but it doesn’t include labor
union act but are doable requirements this request must be easy to be allowed by the
for organization.

For no 4; It doesn’t mean to freedom. It means to be that independence. Trade

union isn’t been controlled by any employers organization but if they should need to
cooperation they have to do that.
 For no 5; It is includes 3 sub- facts. Those are (1) for the people; trade union
must be for the people, (2) by the people; person who choose for trade union by
according to the people wish, (3) Of the people; a person is choosenchosen by people’s
wish who must be work for people.

In Myanmar, according to the labor dispute resolution act (2017), trade union decided
all of dispute by tribunal formed. If mediation team can’t resolve to get settlement, that refer to
trade union and trade union decide this dispute. Trade union has advantages that industries
with trade union tend to have higher wages than non-union industries. Trade union can purse
collective bargaining giving workers a greater influence in negotiating a fairer pay settlement.
The efficiency wage theory states that higher wages can also lead to improved productivity. If
workers feel they are getting higher wage, they can feel more loyalty towards the firm and seek
to work for its success. Trade unions can also protect workers from exploitation and help to
uphold health and safety legislation. Trade union can give representation to workers facing
legal or unfair dismissal. Trade union can help to negotiate and implement new working
practices which help to increase productivity. For example, in new wage negotiations, firms may
agree to increase pay, on the condition of implementing new practices which lead to higher
productivity. If the trade union is on board, then they can help create good working
relationships between organizations and employees. On June 9, 2016, more than 12,000
workers from different Yangon factories were protesting in Hlaing Tharyar Township against
low wages, forced and unpaid overtime, and the firing of organized employees. They were also
protesting at the employers’ ignorance regarding decisions made by the Dispute Settlement
Arbitration Council. With the introduction of new labor law as part of the democratic opening in
Myanmar since 2011, workers have become increasingly vocal about the inhumane working
conditions and labor disputes. Trade union plays a crucial role in helping workers formulate and
articulate their complaints. In 2012 trade unions became legal. In 2013, there were already 670
registered factory unions. In 2015, the Confederation of Trade Unions of Myanmar was officially
recognized as the only trade union confederation in Myanmar.

The benefits of trades unions depend on the nature of relationship between trade union
and employees. If relationships are good and constructive, the union can be a partner with the
firm in maintaining a successful business, which helps protect jobs and higher wages. However,
if relationship between trade unions and the management become confrontational, it can
escalate into destructive partnership which cause decline profitability and puts the long-term
security of jobs at risk.