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Danniel has been working as Operation Assistant for the past eight years at Megah Holdings Berhad and is a member of the Megah Holdings Employees

Danniel has been working as Operation Assistant for the past eight years at Megah Holdings Berhad and is a member of the Megah Holdings Employees Union (MHEU), an in-house union. The company has established a good and harmony relationship with the in-house union so far. Recently, there was a change of management in the company. The new management brought in new practices and changes to the organization which bothered the employees. They were not happy with a few items such as medical coverage, health insurance, extra workloads, insufficient overtime payment, salary increment, allocations of work and a few others. The employees also were unsatisfied with the way the new management handle the issues regarding their welfare and wellbeing. Most of members including Danniel were unhappy with MHEU's way in dealing matters regarding these issues and intended to have a bargaining session with Megah Holdings Berhad. Danniel with a few other employees managed to influence a number of workers to form a new trade union and name it as Megah Holdings Non-Executive Employee Union (MHNEEU) to represent the blue-collar workers. They managed to register the newly union without much hassle due to the efficiency of the young MHNEEU Secretary, Rachael, who has just turned 20 years old recently. Danniel was elected as the new President. MHNEEU immediately claimed for recognition from Megah Holdings Berhad. Unfortunately the company refused to give recognition to MHNEE on the ground that MHEU still has the majority number of members compared to MHNEEU.

a) Discuss the legality of the newly registered Trade Union. Justify.

b) Justify the employer's rights not to give recognition to MHNEEU.

c) Explain the possibilities that will happen if MHNEEU were given recognition by the employer and its consequences after that.

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