On 21.5.2014, MCBA and NUBE concluded and signed the 16th Collective Agreement for the period 2012 -2014.
The 15th Collective Agreement between MCBA and NUBE was for a period of 3 year ending 31.12.2011. Since then, both parties had not been able to come to an agreement through negotiation to renew the collective agreement.
In so far as MCBA was concerned, the Association found it difficult to accommodate the demands of the Union which it deemed excessive and inordinate. For example, among other things, the Union demanded salary adjustment across the board at 51%; minimum 12 months’ bonus; yearly payment of RM5, 000 for holiday vacation, etc.
The dispute was subsequently referred to the Industrial Court in September 2012 for arbitration. The case was last heard by the Court on 17.3.2014. In the course, NUBE indicated that they were prepared to drop or scale down some of their demands. This change provided a conducive platform for both parties to reconsider their respective positions. Arising from a series of meeting, both MCBA and NUBE finally agreed to settle the dispute out of court and the 16th Collective Agreement was successfully concluded and signed on 21.5.2014.
The salient changes under the new Agreement are that – eligible employees will receive a salary adjustment of 10% across the board. The starting pay for Non-Clericals and Clerks would be raised by 18% and 12% respectively. In addition, their existing monthly Cost of Living Allowance (COLA) will be revised from RM100 and RM150 to RM200 and RM300 respectively. The rate of COLA will be standardized to RM300 for all employees by 1.7.2014. In addition to these changes, most of the allowances were also revised upwards.
The Association is of the view that the remunerations package as a whole, as contained in the Collective Agreement continues to place itself in the upper quartile of the market and it remains competitive to retain and attract the right talents for the banking industry.
Notwithstanding the delay in renewing the Collective Agreement, the Association is glad that finally both parties are able to see the light at the end of the tunnel by taking a compromising position, without which there would be no successful conclusion of the Collective Agreement.
While employees are delighted and are looking forward to the payment of arrears, the Association too looks forward to have a harmonious and productive relationship with the Union.