This case refers to the dispute between Sarawak Commercial Banks’ Association (SCBA) and Sarawak Bank Employees’ Union (SBEU) over the interpretation of a MOU signed between the 2 parties prior to the conclusion of the 12th Collective Agreement for period 2009-2011. The gist of the MOU is that SBEU Sarawak would conclude the collective agreement with SCBA Sarawak but if the respective Associations in Peninsular Malaysia and Sabah later conclude the collective agreements with the trade unions representing employees in Peninsular Malaysia and Sabah respectively with higher benefits, then SCBA Sarawak shall extend the same to SBEU Sarawak. SBEU Sarawak alleged that SCBA Sarawak did not honour the MOU, which the Association denied as those items in dispute were not “higher” benefits.
The Industrial Court adjudicated on this dispute (which was then narrowed down to 4 items, namely, salary range/bonus, annual increment, COLA and the 2% additional adjustment given to SBEU, Sabah) and by majority decision, ruled in favor of SCBA Sarawak.
Not satisfied, SBEU Sarawak then commenced Judicial Review proceedings to quash the decision of the Industrial Court. The High Court heard the submissions on 20.2.2013 and dismissed the Application with costs of RM5,000. The Union then appealed to the Court of Appeal.
The Court of Appeal heard the matter on 29.9.2014 and dismissed the Union’s appeal with costs of RM5,000.