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»Trend in Collective Agreement for the period of 2002-2003

A study was carried out to analyse the trend of Collective Agreements for the period of 2002/2003. The findings of the study was distributed to all the affiliated union in our March Newsletter. The analysis of the study covered minimum wage, salary adjustment, annual increments, quantum and principals applied on bonus and other important area.

Survey on Collective Bargaining Gains

A study was carried to determine the minimum wage levels, job security and safeguards, retrenchment compensation and retirement benefits. Unfortunately only 33 unions responded

Findings

Minimum wage remains far behind MTUC’s proposal of RM900 per month. Several agreements stipulated minimum wages as low as RM360, RM371 AND RM380. About 22% of the 33 agreements had RM400 to below RM500 minimum starting salary. One CA stipulated RM600 minimum and two had RM700.

Salary Adjustments

Only 2 agreements had a 11% salary adjustment the rest were rather low and some had no adjustment at all. Most agreements maintained 2 months salary as bonus and some new agreements concluded during this period stated that payment of bonus shall be dependant on company’s profits.

Since Medical benefits constitute an important elements of social safety net, collective agreement provisions on this subject was included in our study. Our findings showed that many agreements did not provide for adequate healthcare benefits, medical attention for spouse and dependant children appeared to be very rare.

Attempt was made to examine the movement of minimum wage rates from previous agreements, and nine of the thirty three collective agreements showed a 10% to 15% increase. Minimum wage rates are not progressing as it should be.

»Study on Pending Cases
To collect information on backlog cases at Industrial Court, Labour Department and Industrial Relations Department, MTUC Research Department sent out survey form to all the affiliated unions, only 34 unions responded to this survey.

Finding
Response from the 34 unions showed only 19 unions had a backlog of cases. EIWU reported having the most backlog cases with 49 cases; followed by NUPCIW 28 cases, AMESU 25 cases and NUCW 20 cases and others from Sarawak. National unions and industrial unions reported more pending cases than in-house unions.

It can be observed that the Industrial Relations departments had more backlog cases, about 67%. EIWU had the highest backlog of case about 47 cases followed by 17 cases from NUCW, 17 cases in Sarawak, 15 cases from NUPCIW, NUNW 12 cases.

AMESU had the highest rate of cases pending at the Labour courts and Labour department with 13 cases followed by NUPCIW and other unions. AMESU had 9 cases pending at Industrial Relation Court followed by NUPCIW having 7 cases.

Duration of Pending Cases
Study also showed that cases are pending for more than 4 years. Bumiputra-Commerce Bank Executive Staff union had a case pending almost 5 year since 1997. There are numerous cases pending since 1998. Cases pending since year 1988 were reported by NUPCIW, NUNW and DMIB. Cases that pending since year 1999 were reported by Kian Joo, Sabah Banking Emp Union, NUPCIW, EIWU and union of Perodua Sales S/B. For the year 2000 reported by AMESU and Negeri Sembilan Division.

Conclusion of analysis

Inordinate delay in settlement of dismissal cases and trade disputes has increased tremendously which made workers life more difficult. This also give the employer to run away from paying any compensation to the effected workers. Companies taking advantage by changing name, restructure and stop operation or change location etc. All these activities became routine tactic for employer to run away from their responsibility.
Workers and their family affected by retrenchment or dismissals had to endure extreme hardship awaiting settlement of their cases. How their family will survive if the breadwinner of the family unemployed and have to wait for 5 years to get justice? Our economic condition doesn’t guarantee for new employment as longer. If this condition continue more and more workers will suffer and can increase the number of poor in the country

Constraints in the study

Even though there are 229 unions are affiliated with MTUC, but information and feedback from affiliates remains limited. Made it difficult to collect, compile and distribute useful and important information. Affiliates cooperation and support is essential to ensure success of MTUC research.

 
   

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Email:mtuc@tm.net.my . OSH Contact No: (603) 8023-3954, FAX: (603) 8023-3955, Email: mtucosh@tm.net.my