On 21.5.2014, MCBA and NUBE concluded and signed the 16^th Collective Agreement for the period 2012 -2014.

The 15^th 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 16^th 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.

 

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In order for your emails to reach us at MCBA, please address them to mcba@mcba.my instead of mcba@streamyx.com.

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MAYNEU, which is the in-house union of Maybank that represents the non-executive employees of the Bank was registered by the Director-General of Trade Union on 3.1.2011.

NUBE (National Union of Bank Employees) aggrieved by the registration, filed a Judicial Review (JR) application on 10.2.2011 to challenge the registration of MAYNEU and obtained an Interim Stay Order against MAYNEU.

NUBE’s application for Judicial Review was heard recently and on 7.11.2013, the High Court delivered its judgment to dismiss NUBE’s JR application. This High Court judgment therefore affirms the legality of the registration of MAYNEU.

It is reported that NUBE would file an appeal to the Court of Appeal over the High Court decision and will also apply for a Stay Order pending the disposal of the appeal.

Commercial Banks conclude new CAs with Officers Union & Sabah, Sarawak Bank Employee Unions

–          Landmark provisions incorporated into Sarawak Collective Agreement

More than 8,000 members of the Sarawak Bank Employees’ Union (SBEU Sarawak), Sabah Banking Employees’ Union (SBEU Sabah) as well as the Association of Bank Officers (ABOM) can look forward to higher remuneration and better benefits following the recent conclusion of their collective agreements (CA) with their respective Commercial Banks’ Associations. The new CAs will be in effect for the period 2012—2014.

The revised CAs provide an across the board salary adjustment at a minimum 10% (subject to the maximum salary point). This and other agreed terms are by all standards generous. The minimum and maximum basic salaries were also raised by not less than 10%.

The agreements also include a 2 months’ guaranteed contractual bonus except for employees under the collective agreements with ABOM and SBEU Sarawak. These two unions had agreed, since 2009 and 2006 respectively, to incorporate the 2-month contractual bonus into the employees’ basic salary and for the employees thereafter to be paid discretionary bonuses based on the performance of the bank and employee.

In addition, banks will pay a Regional Allowance of 15% to 22.5% of the basic salary for all non-clerical and clerical employees in East Malaysia as part of their monthly wages. In Peninsular Malaysia, banks pay COLA between RM100 to RM150 per month to all clerical and non-clerical employees.

Speaking on the negotiations, the President of the Malayan Commercial Banks Association (MCBA) Nora Abdul Manaf commended the professionalism and constructive engagement demonstrated by the teams from the three unions and the banks, which culminated in the amicable conclusion of the CAs.

“The conclusion of collective agreements reflects the cordial relationship we enjoy which are premised on constructive engagement, mutual respect and reasonableness,” she said.

She said that the wage rates granted under the three CAs were competitive and market leading rates. Employees also enjoy a slew of many other allowances which have been adjusted upward by about 8% to 11%.

With the new agreement, a clerk recruited without prior working experience at entry level is already paid close to the minimum market rate for a basic degree holder without prior working experience as detailed in the MEF Salary Survey for Executives 2012.  In addition, all non-clerical and clerical employees are entitled to claim overtime regardless of their wage levels. The same benefit of overtime entitlement is extended to officers under the collective agreement with ABOM except that the maximum overtime rate is computed at RM2,000 if the officer’s monthly wage exceeds RM2,000.

Nora explained that a notable feature of the new CAs was a landmark provision in the agreement between the Sarawak Commercial Banks’ Association (SCBA Sarawak) and SBEU Sarawak where members had agreed to accept job enlargement and empowerment, in return for a higher salary increase and potentially better bonus.

“The position taken by SBEU Sarawak is highly commended as more often than not, most negotiations for CAs focus merely on wage and benefit increases without the accompanying tangible value-add proposals,” she remarked.

As a result of the above agreement, Nora added, SBEU Sarawak provided a clear platform for banks to further enhance performance and productivity. In return, the earning capacity of the employees was significantly raised besides having the opportunity for employees to further upgrade their skills. Under the collective agreement, these rewards to the employees come in the form of higher salary adjustment, extra annual increment, payment of ex-gratia, revision of minimum retirement age from 55 years to 60 years even before coming into force the Minimum Retirement Age Act.

“The employees covered by the Sarawak collective agreement will enjoy salary increases of 12% to 17%, ranging from RM202 to RM824 extra a month. In addition, performing members have received up to 4.5 months (discretionary) performance bonus based on the performance of the banks and the employee.” remarked the President of SBEU Sarawak, Ms. Hadiah Binti Leen.

There are currently four national banking employees’ trade unions in the country, besides other in-house banking trade unions whose scope of representation is confined only to employees of individual banks.

At the industry level, banking employees in the clerical and non-clerical categories are represented by three national unions, namely National Union of Bank Employees (NUBE), SBEU Sabah and SBEU Sarawak. ABOM is a national union that represents primarily the Class II officers in the executive capacity in Peninsular Malaysia only. Traditionally, new recruits with a diploma and clerks on promotion will be placed in the Class II officer grade.

Banks operating in Peninsular Malaysia, Sabah and Sarawak are represented by MCBA, SCBA Sabah and SCBA Sarawak respectively, which are  registered as trade unions for banking employers under the Trade Union Act.

With these three CAs concluded, the only outstanding CA is with NUBE, which has been referred to the Industrial Court for arbitration.