Many MTUC affiliates complained of continued violation

Dec 2004
Retrenchment Of 525 Workers At Sinora Sabah

In March 2002, Sinora, a Sabah state-owned company, served notice of retrenchment to 525 workers presumably as part of a downsizing exercise effected by financial losses experienced by the company

This company chose to retain almost entirely migrant and contract staff. Retrenchment comprised local Sabahans who are permanent, long-serving and senior non-executive staff.

Union complained that the retrenchment, which included mostly union and Exco members, was a union busting attempt, in gross violation of the Trade Union Act and ILO Convention 87 which allows workers to form and join unions without fear of victimization or any form of retaliatory action by employers.

MTUC Described Banks’ Action As A Conspiracy To Destroy NUBE

Since October 2002 all the banks suddenly and unilaterally stopped subscriptions deduction facility: Despites appeals from thousands of NUBE members, banks remained adamant. They blatantly defied Human Resources Minister Datuk Dr Fong Chan Onn’s repeated advice to restore the deduction facility.

Serious impact on members rights.

By stopping deduction of monthly union dues from members’ salary, banks have denied employees their right to union membership and union representation.
In a letter to MCBA and Association of Banks, MTUC said that all the Inter Relations Committees will become defunct and the grievance procedure machinery under the Collective Agreement, will become inoperative. This would mean banks can hire, fire, demote and transfer employees unchallenged. They can behave like powerful bullies.

Banks’ action is carried out in bad faith and clearly intended to destroy bank workers’ effective representation through NUBE.”

MTUC Seeks Suhakam’s Intervention

In December 2002, MTUC submitted a 110 page memorandum to the Human Rights Commission highlighting increasing antiunion activities by major corporations.

MTUC stated that as a result of restrictions imposed by the Trade Union Act of 1959, hundreds of thousands of workers are denied the right to join a union of choice. Workers in the electronic industry have become major victims: paid low wages and often penalized according to ups and downs of the industry.

The law permit the Director General of the Department Trade Unions to make capricious rulings; and he has fully used his arbitrary powers to deny union membership to thousands of workers.

After waiting for decades, MTUC urged SUHAKAM to take steps to initiate appropriate action to remove the restrictions which are in breach of the Malaysian constitution.

Union Busting Activities By MISC

In December 2003, Malaysian International Shipping Corporation (MISC) embarked on a series of anti union activities to kill the newly established inhouse union for MISC Executives.

A week after the union was registered on 22nd September 2003, MISC Management issued a transfer order to the union President, from Kuala Lumpur HQ to an Institute in Terengganu. Despite repeated plea and extenuating circumstances, MISC insisted that he whould comply with the transfer order or be dismissed. Accordingly Encik Abdul Majid was dismissed from employment.

This was followed by another directive to the union Treasurer to report for work in a MISC subsidiary company in Malacca and a member of union’s Executive Committee ordered to report for work in an Institute in Terengganu. Both complied under protest.

In early Dec, another member of the union’s Exco was asked to go on early retirement with full wages. On 8 December company suspended the Secretary of the union without stating any charge to justify their action.

MTUC expressed dismay that MISC, a major corporation is engaging in such illegal action. They fail to realize that ultimately their conduct will reflect on Petronas as the owners of MISC.

Union Busting Activities by Tai Wah Garment Industries

In December 2003, Tai Wah Garment, a subsidiary of Ramatex, embarked on a series of activities to eliminate the Johor Textile Worker’s Union in their midst.

More than 150 workers in a garment factory in Kota Tinggi protested against their employer’s decisions to shift them to another branch in Kulai. MTUC submitted a strongly worked protest to the company.

Hong Leong Subsidiary HUME Industries Continues Antiunion Activities

On June 30, 2004 more than 250 workers started picketing in protest against continued anti union activities by Hume Industries concrete division operations in Prai, Chemor and Kanthan.

The workers, all members of the Non Metallic Mineral Products Manufacturing Employees Union (NMEU) were unhappy with company’s decisions to retrench 94 permanent workers whilst retaining more than 200 contract workers.

MTUC described company’s action as discriminatory and was clearly a union busting tactic. Retrenchment of permanent workers is in actual fact unfair dismissal and is contrary to well accepted Principle of Last in First Out.

MTUC urged the Labour Department to investigate such unfair Labour practice and order Hong Leong management to stop the impending retrenchment. MTUC stated that labour department ought to remain vigilant and act on reports by companies on retrenchments. The Department’s failure to act decisively will encourage unscrupulous employers to enforce unfair labour practice with impunity.

ILO Committee On Freedom Of Association Responds To MTUC’S Complaint On Infringement Of Trade Union Rights.

On 22nd September 2003 MTUC submitted a 25 page complaint to the ILO that the Labour legislation, applied by the authorities, denies workers the right to freely organize and join organizations of their own choosing, and to bargain collectively. Restrictions, prohibitions and violations include: discretionary powers granted to the DGTU to decide on scope of membership; refusal to recognize independent trade unions; establishment of employer-dominated trade unions; arbitrary denial of collective bargaining rights. full text of complaint can be obtain from issues.

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