Comparing the effectiveness of remedies available to Maltese trade union members to those of shareholders under Maltese company law

Abstract

Maltese Trade Unions have a sui generis legal nature which imbues them with unique characteristics, features and attributes. The external dealings of Trade Unions with third parties are both legally regulated and squarely within reach of the judiciary, but what about their inner dealings? National jurisprudence seems to suggest that most of the latter are to be self-regulated by the trade union internal mechanisms. This situation is quite debatable and begs the question as to whether it is indeed an effective alternative to a form of fullyfledged special administrative regulatory body as is the case in other foreign jurisdictions such as the UK, the US and Canada. In furtherance of this objective can parallels be drawn in the field of trade-unionism with the legal and juridical evolution in company law with regards to minority rights of equity owners, and can any of the lessons learned in the long and rich history of Maltese corporate law be applied to buttress the institution of trade unions? Albeit there may be some fundamental differences between these two institutions, a lot in common still exists to the extent that it may well be opportune to add further to the already existing shared principles and practices used by one institution to the other. Whilst there are a multitude of other institutions which like companies and trade unions are regulated by special laws and which may also be of a national interest, none of them can have a socio-economic impact of the same magnitude as these two institutions. Both institutions are organised in a democratic manner in the sense that they both adopt processes which allow their members to vote for the administrators or directors of their choice according to the fundamental notion of majority rules. However, notwithstanding this rule, it is also imperative to evaluate what happens when the minority suffers abuses of power. A critical comparative analysis with some foreign jurisdictions will also be undertaken in order to be in a position to first identify any potential shortcomings in the Maltese Industrial Relations system and finally offer practical recommendations as to how such shortcomings can be addressed. A qualitative form of research will be adopted to tackle this paper.