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 12^th 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.

Malayan Commercial Banks’ Association (MCBA) successfully concluded its 52^nd Annual General Meeting on 21 August 2014 which was held at Renaissance Kuala Lumpur Hotel.

The highlights of the meeting included the welcoming speech of the President of MCBA, Puan Nora Manaf, who is also the Head of Group Human Capital, Maybank and the election of Executive Committee members for the period 2014/2016.

In her opening speech, Puan Nora highlighted that the financial sector plays a pivotal role under the National Economic Transformation Programme and in helping the nation to achieve its vision to be a high-income economy and developed nation by 2020. She reminded member banks of the need to therefore stay focused, be diligent and undeterred as banks progress forward. She went on to share some vital economic statistics and reports that benchmarked Malaysia to other regions. She also singled out productivity being a key driver to a high economy and quoted the Malaysia Productivity Centre Annual Report 2013/2014 which indicated that while Malaysia exceeded some of the developed countries in terms of labor productivity growth, but our country lagged behind some developing Asian peers, such as Vietnam, Indonesia, Thailand, India and China.

Touching on the industrial relations landscape, she commended MCBA, member banks and NUBE for having concluded the collective agreement amicably. She highlighted that the total package offered under the renewed collective agreement remains highly competitive as compared to other industries.

She reiterated that the Association recognizes and respects the rights of unions to seek redress over legitimate grievances including taking industrial actions in accordance with the laws. She nevertheless shared her worrying observation that the element of race and religion were brought into play during industrial actions namely at pickets. She cautioned that this trend is unhealthy, divisive and dangerous which should never be part of the equation in the conduct of industrial relations. In addition, she also observed that on many occasions, outsiders and non-employees were seen as part of the crowd in pickets. She hoped all parties involved including the enforcement agencies do step up surveillance to prevent outsiders from tarnishing the image of all concerned.

The full text of the President’s speech can be accessed in the Members’ Area of the MCBA Website.

All the existing Executive Committee members were unanimously re-elected for another 2-year term for period 2014- 2016. They are (by alphabetical order) Affin Bank, CIMB Bank, Hong Leong Bank, Maybank, Standard Chartered Bank and RHB Bank.

Close to forty representatives from member banks attended the function, which ended with a get-together lunch.