Industrial relations bill passed; a step closer to legal powers for trade unions

Dec 19, 2023, 7:43 AM
Demonstration by Tourism Employees Association of Maldives (TEAM). -- Photo: TEAM

Demonstration by Tourism Employees Association of Maldives (TEAM). -- Photo: TEAM

Parliament on Monday passed a bill on industrial relations to legalise the formation of workers’ unions and to ensure the right to participate in the activities of such unions.

Forming, joining and operating trade unions are rights guaranteed in the constitution. However, despite the previous formation of workers’ unions, the associations and groups did not have legal powers due to the absence of a special law to date.

The industrial relations bill comprised of 11 chapters passed by Parliament includes:

  • Sectors with the right to form trade unions
  • Rules for the formation and operation of trade unions and employers’ unions
  • Collective bargaining rules for resolving disputes between workers and employers
  • Rules for implementing matters related to trade unions

The Social Affairs Committee that reviewed the bill made 24 amendments during the committee stage. Notable important changes include determining the minimum number of members required to register a union, organizing inactive unions and specifying fines and penalties.

While a minimum of seven signatures is required to register a workers’ union, three signatures are required to form an employers’ union. The committee also reduced the maximum fine imposed under the law to MVR 50,000 from up to MVR 100,000.

Other amendments brought by the committee include changes to the collective bargaining process and to the composition of the Tripartite Labor Advisory Board and Industrial Dispute Resolution Division as well as authorizing the Registrar of Unions to take action against unions that do not comply with orders. The minister was also authorized to appoint the Director General and some periods in the bill were lengthened.

The bill was passed unanimously by Parliament with the votes of 68 MPs in attendance. The law will come into force three months after it is ratified and published in the gazette.

Workers’ unions have been calling for an industrial relations law for several years. Enacting such a law was a pledge of former President Ibrahim Mohamed Solih. The bill was submitted to Parliament by the previous government.

However, after a first reading in March and preliminary debate in April, work on the bill stalled amid the split in the Maldivian Democratic Party (MDP). The bill was sent to review after the debate stage ended in October. The committee completed work on the bill last week.

Comments

Read More

Latest News

Priority should be sale of assets to generate immediate liquidity

Former President Mohamed Nasheed urged the Maldives to prioritize selling assets for immediate liquidity rather than long-term projects like the $20 billion Rasmalé development. He argued the UAE-backed waterfront deal will not provide the urgent cash flow needed to resolve the nation's current financial crisis.

Police seek charges against six men for assaulting officers

Maldives Police are seeking charges against six men for assaulting officers during a drug search in Maafushi. Five suspects remain in custody, while one was released by the court. Authorities have also appealed the release of a seventh individual involved in the August incident.

No tax concessions for UAE developer in Rasmale' project

The Maldives government awarded the $20 billion Rasmalé project to UAE developer Eagle Hills without tax concessions or exemptions. All business activities will follow national tax laws, with payments processed through local banks. The state expects over $11 billion in revenue from sales fees and commercial revenue sharing.

No details on size and value of land given to Dubai company

The Maldives government signed a $20 billion deal with Dubai’s Eagle Hills to develop a massive integrated zone in Rasmalé. While the project promises 54,000 jobs and housing, officials have withheld specific details regarding the land size, valuation, and lease terms. The area is expected to operate as a special economic township.

Rasmale' investor to build 5,000 housing units in Hulhumale'

The Maldivian government has partnered with UAE-based Eagle Hills to build 5,000 housing units in Hulhumalé using a contractor financing model. This agreement follows a massive $20 billion deal for the firm to develop Rasmalé. The project will feature luxury residences and a world-class marina without impacting existing housing plans.

AMFA concludes first Junior Lifeguard Program

The Australia Maldives Friendship Association successfully completed its first Junior Lifeguard Program pilot in Thulusdhoo and Fuvahmulah. The initiative trained youth in water safety and rescue skills to enhance maritime security. AMFA plans to expand the program across the Maldives by 2027 through partnerships with local councils.

Project to build international bowling arena in Hulhumale'

A private company has been awarded a MVR 20 million project to build the Maldives' first international-standard bowling arena in Hulhumale'. The two-story facility aims to host global competitions, though the direct award process lacks an official statement. This project is part of a broader plan to develop world-class sports infrastructure.

Newsletter

Get the latest news delivered straight to your inbox