Problem
M.Z.R Electrical Sdn. Bhd. is a manufacturer located in Melaka which produces a wide range of power distribution solutions and electrical components. Since its operation in 2015, the management of this company has developed a good reputation as an employer by providing a reasonable compensation and benefits package to their employees. Since the COVID-19 pandemic disease outbreak hit Malaysia, the company has had difficulties maintaining its reputation in treating its employees well. The management has to make some pay cuts and reduce the workweek's length to survive. This situation has made the employees, especially among the blue collars, no longer happy and protested the management's decision without the involvement of the employees. Due to the situation, Haikal, who is a Sabahan and has joined the industry for 6 months, managed to form and register the MZRE Employee Union with 6 new technician members as a start. Haikal realized that the union should have more members to get stronger, and he had invited several employees from other electrical companies. Upon reaching enough members, the union has claimed recognition from the management. However, their claim has been rejected.
1. Describe the right of the employer to reject the recognition claim.
2. Comment on the decision that has been made by the management by making some pay cuts and reducing the workweek's length to sustain the industry.