Mcis V Kes Pekerja Bukan Logam 2010

INDUSTRIAL COURT OF MALAYSIA
[CASE NO. 1/2-1187/07]
BETWEEN
KESATUAN SEKERJA PEMBUATAN BARANGAN
GALIAN BUKAN LOGAM
AND
MCIS SAFETY GLASS SDN BHD
AWARD NO. 1104 OF 2010
Coram : YA PUAN SUSILA SITHAMPARAM - PRESIDENT

MR. S. RAJASEKARAM - EMPLOYEES’ PANEL
PUAN MAHURAN SARO BINTI SARIKI - EMPLOYERS’ PANEL
Venue : Industrial Court Kuala Lumpur.
Date of order : 9 May 2007

of reference
Date of receipt of : 29 May 2007
order of reference
Dates of hearing : 17 October 2008

14 November 2008
13 and 14 April 2009
20 April 2010
Date of oral : 1 July 2010

submissions
Representation : For the union - M Eswary; The Law Firm of M
Eswary
For the company/respondent - Mahadi

Mohammed; M/s Mahadi Redzuan & Co
1
AWARD
This was a reference by the Honourable Minister of Human Reso urces

pursuant to section 26(1), Industrial Relations Act 1967 (hereinafter referred
to as “the said Act”) of a trade dispute between Kesatuan Sekerja Pembuatan
Barangan Galian Bukan Logam (hereinafter referred to as “the union”) and
MCIS Safety Glass Sdn Bhd (hereinafter referred to as “the company”)
pertaining to the ninth collective agreement (hereinafter referred to as “the said
collective agreement”) for the period commencing from 1 May 2006 and ending
30 April 2009 ( hereinafter referred to as “the relevant period”). The company
manufactured various types of glasses which were used in the automotive
industry. It had a domestic and an overseas market.
The hearing commenced on 17 October 2008 before YA Dato‟ Umi

Kalthum bt Abdul Majid and the members of the employers‟ panel and the
employees‟ panel. The hearing continued on 14 November 2008 before the
same coram. During the hearing on 17 October 2008 and 14 November 2008,
the union was represented by Mr Alfred Balamohan Vengadasalam of M/S A.V.
Balamohan & Co. There were 11 disputed articles in the said collective
agreement when the hearing commenced on 17 October 2008. The three
witnesses from the union testified before the first coram.
There was a second coram comprising of YA Puan Amelia Tee Hong Geok
bt Abdullah and the same panel members when the hearing continued on 13
2
and 14 April 2009. YA Dato‟ Umi Kalthum bt Abdul Majid had been appointed
as a Judicial Commissioner on 30 December 2008. The union retained a new
counsel, Miss M Eswary of The Law Firm of M. Eswary. At that stage of the
hearing, there were 3 disputed articles in the said collective agreement on
bonus, salary increment and salary conversion. COW1, the company‟s first
witness testified before the second coram.
There was a third coram comprising of YA Puan Susila Sithamparam and
the same panel members when the hearing continued on 22 April 2010 and
1 July 2010. YA Puan Amelia Tee Hong Geok bt Abdullah had been appointed
as a Judicial Commissioner on 14 August 2009. Both parties did not h ave any
objections to the new coram. COW1 was recalled as a witness and he testified
before the third coram. COW2 also testified before the third coram.
Forty articles in the said collective agreement and Appendix A to the said
collective agreement have been agreed and annexed to the award and forms
part of the award. The court had decided on. 2 July 2010 that the employees
of the company be given a salary increase of 4% for the relevant period. The
court then directed counsel for the union to prepare the salary scale as in
Appendix B which is also annexed to the said collective agreement and forms
part of the award.
There were three witnesses for the union who testified on the financial
position of the company, the strength of the workforce and the producti on
targets of the company. There were two witnesses for the company who
3
testified on the financial position of the company, the financial reports of the
company, its production targets and the market for the products of the
company.
Productivity Linked Wage System
The company had proposed that the productivity linked wage system
(hereinafter referred to as “PLWS”) be implemented under the said collective
agreement. The grounds for its proposal is that the company can no longer
afford to pay its employees an annual increment of wages, its sales revenue
decreased in 2007, it shareholders did not receive dividends in 2006 and 2007,
its operational costs were high in 2007 and its executives and non-unionised
staff did not receive bonuses and annual increments in 2007.
The union contended that the employees of the company would be

victimised and there would be favouritism if PLWS was implemented under the
said collective agreement. It denied that the company was having financial
difficulties and was not able to pay bonuses and annual increments of salary
to its employees. The shareholders had received dividends from 2002 to 2005.
The directors of the company had been paid remuneration from 2002 to 2007.
The company had built a new office premises in 2005 and purchased a new
furnace and upgraded an old furnace in 2008.
The merits of PLWS was highlighted in Prestige Ceramics Sdn Bhd v.
4
Non-Metallic Mineral Products Manufacturing Employees’ Union [2004] 1 ILR
1177 (hereinafter referred to as “Prestige Ceramics No. 2”) and Kesatuan
Pekerja-Pekerja Perkilangan Perusahaan Makanan v. Nestle Manufacturing
Malaysia Sdn Bhd [2008] 2 LNS 0045.
In a strong dissent, the learned employees‟ representative on the panel in
Prestige Ceramics No. 2 was emphatic that the Guidelines on Wage Reform
which was adopted by the National Labour Advisory Council on 1 August 1996
which provided for a fixed component for annual increments of salaries and
fixed component for bonuses be adhered to.
The implementation of PLWS
In Prestige Ceramics No. 2, the court accepted the proposal by the

company that PLWS be implemented under the ninth collective agreement
between the parties. The court awarded an annual increment and an annual
bonus which was based on PLWS. The court did not allow for a fixe d annual
increment, a fixed contractual bonus and a salary adjustment.
In Prestige Ceramics Sdn Bhd v. Non-Metallic Mineral Products

Manufacturing Employees’ Union. [2006] 2 LNS 0861 (hereinafter referred to
as “Prestige Ceramics No 3”), the court retained PLWS under the tenth
collective agreement between the parties but included a new proposal by the
company of a fixed annual increment as the company had recognised that it
5
was part of Malaysian culture.
In Syarikat Denso (M) Sdn Bhd v. Kesatuan Kebangsaan Pekerja-Pekerja

Alat-Alat Pengangkutan dan Sekutu. [2007] 2 LNS 0547, the union did not
object to the implementation of PLWS. The court allowed an annual increment
of wages which had a fixed component at the same rate as the current annual
increment and a variable component which was linked to performance.
The court also allowed a bonus which comprised of a fixed component of

1.8 months wages and a variable component which was based on the
performance of the employee. The maximum bonus which an employee could
earn was 2.5 months wages. In determining the fixed component, the court
took into consideration that the average appraisal rating of an employee was
two points. In this way, the court ensured that an average employee would
earn at least two months bonus which was the quantum of the current bonus.
The court also granted a salary adjustment of 8 % with effect from 1 January
2004 after taking into consideration that the employer had had an accelerated
sales revenue in the previous years.
The court also approved a grievance procedure for employees who were
not satisfied with their appraisal. The court did not implement PLWS from the
date of commencement of the collective agreement but allowed it to take effect
after three years from the date of commencement of the collective agreement.
The court then extended the period of the collective agreement to five years
6
which was two years longer than the usual period of three years for the
duration of the collective agreement.
The equitable elements in the Denso’s case is the fixed component for
the annual increment of wages and the bonus, the quantum for the fixed
component of both the annual increment and the bonus was fixed after
ensuring that the employees would not receive less than what they received
under the current collective agreement, there was a grace period for the
implementation of PLWS and the there was a grievance procedure for the
appraisal of employees.
In Kesatuan Kebangsaan Pekerja-Pekerja Perdagangan v. Kumpulan
O’Connors (M) Sdn Bhd [2009] 4 ILR 641, the union agreed to the
implementation of PLWS under the sixth collective agreement. The court

accepted the company‟s proposal of a salary increment of 9.5% of the basic
wage and an annual increment which was based on PLWS. Employees who
received less than 50% rating in their appraisal did not receive any annual
increment. The quantum of the annual increment depended on the appraisal
ratings of the employee.
The court also accepted the company‟s proposal of a bonus which had a
fixed component of one month‟s wages and two variable components which
was based on the employee‟s performance and the company‟s return on the
average working capital.
7
The fo r mul a which was approv ed b y th e cou rt in de te r mining
the profitability of the company was Return of Average Working Capital
(RAWC) = Trading Profit x 100%

Average Working Capital (AWC)
The Trading Profit was the adjusted trading profit after charging interest,
allocated charges but before bonus provision and before tax achieved in the
Financial Year being appraised. The Average Working Capital which comprised
of stocks and work in progress plus trade debtors less trade creditors and
customers‟ deposits in the Financial Year being appraised.
The relevance of the financial position of the employer
In Prestige Ceramics No 2, the court implemented PLWS as the company

was financially incapable of giving an annual increment of wages. The court
took into consideration the financial reports of the period of the previous
collective agreement and also the financial reports of the financial years of the
period of the collective agreement which it was deciding which had been
tendered.
In Kumpulan O’ Connors’s case, the court did not take into

consideration the financial position of the company as it had not been plead ed.
In Denso’s case, the court took into consideration the financial reports of the
company which showed that there had been an accelerated increase in sales
revenue when it awarded the salary adjustment.
8
The financial position of the company
UW1 was a Quality Control Inspector and the Secretary of the Works
Committee in the company. He commenced employment with the company on
16 December 1989. He has been with the company for nineteen years. He
testified that the company had spent a few million dollars to build a new
Administrative and Management office in 2005. He tendered photographs of
the old and new offices vide Bundle UB3, page 1. The old office was housed in
a single storey wooden building. The new office was housed in a three storey
building. He admitted that the company had used the old office since 1975 and
the new office was built more than thirty years later. He did not agree that the
old office could no longer house the present number of staff.
He stated that in early 2008, the company installed a new furnace HTBS
and upgraded an old furnace MA81. He admitted that the company had to
purchase the new furnace HTBS at the request of its customers. He admitted
that the old furnace MA81 could no longer be used as there was a new process
of manufacturing and there were no longer any spare parts being sold for the
old furnace. He admitted that the workers relied wholly on machinery to
manufacture the products.
He denied that the company had incurred losses from 2007 until 2009.
The accounts of the company showed that the company had made profits from
2003 until 2007, the shareholders had received dividends every year, and the
9
directors were paid fees and allowances every year.
The audited accounts from 2004 to 2007 were tendered vide Bundle
COB2, pages 1 to 92. COW1, the Chief Executive Officer of the company
testified that the company was not able to meet the demands of the union.
The company would have to close down, sell its land, factory and machinery.
The tragic consequence would be the rice bow l of its 311 workers who had
worked for the company for thirty years and who had been treated well by the
company would be gone. The company was planning to introduce new
strategies and obtain a capital injection from its shareholders to revive the
company. The company would take at least three years to recover from the
losses it incurred in 2006 and 2007,
He testified that the company was no longer in a position to pay

contractual bonuses due to its financial position. The company proposed that
the workers be paid a bonus only if the company realised a net profit after tax
in excess of its total paid-up share capital in the financial year. The
shareholders had injected RM6.5 million in 2007 to revive the company. The
paid-up share capital was RM1.5 million which was 10% of its share capital of
RM15 million. Bonuses were paid in 2003, 2004 and 2005.
He stated that the reason for the decrease in sales revenue by the
company in 2006 was that there was a contraction in the automotive industry
which resulted in a lower volume of business. The operational costs also
increased that year as the price of basic glass, silver paste, child parts, diesel
10
and electricity had increased. The balance sheet of the company as at 31
December 2006 showed that its external borrowings was RM20,514,308 which
was high when compared with its shareholders fund which was RM28,956,505
vide Bundle COB1, page 36.
He stated further that in 2007, the company had struggled to make a

turnaround but its operational costs remained high. It di d not pay any
bonuses or salary increment to its executive and non -unionised employees.
The executives of the company received their last salary increment in 2004 and
the non-unionised employees of the company received their last salary
increment in 2003. A small ex-gratia payment was given to the non-unionised
employees of the company in 2004.
He explained that the company depended heavily on machinery in its

production. The depreciation of the machinery and other assets were taken
into account when determining the profits of the company. The depreciation of
assets was RM4,202,884 for the year 2006 vide Bundle COB2, page 83.
He explained that the company had made a profit in 2007 despite the
decrease in sales revenue as it had reduced costs that year by obtaining a cash
injection of RM10 million to upgrade equipment and increase in working
capital, improving work processes to reduce production rejection,
implementing costs control to reduce costs of basic glass and processing
materials and conducting skill and team building training for its workers. He
explained further that the company had made a loss before tax of RM141,951
11
in 2007 but the profit of RM1,505,859 was arrived at after tax adjustment of
RM1,647,810. Deferred tax account was the accounting treatment for the
timing of differences between depreciation and capital allowance.
The income statement for the year ended 31 December 2007 showed that
the revenue of the company had decreased from RM53,588,321 in 2006 to
RM49,273,398 in 2007 vide Bundle COB2, page 67. The company made a
profit of RM1,505.859 in 2007. The operating costs was reduced from RM24.2
million in 2006 to RM18.6 million in 2007. The staff costs increased from
RM11.5 million in 2006 to RM12.4 million in 2007.
He stated that the company decided to have a new office building to
centralise its administration, to upgrade its facilities such as a project room to
cater for Proton and Perodua and to improve its corporate image. The facilities
in the old building were stated in the Bundle COB3, page 8.
He stated that the company paid dividends to its shareholders in 2003,

2004 and 2005 but it did not pay any dividends in 2006 and 2007 vide Bundle
COB1, page 29. The directors were paid remuneration from 2004 to 2007.
An evaluation of the company’s proposals for bonus and annual

salary increment based on PLWS
The company manufactures products for the domestic and the overseas
market. Its customers are from the automotive industry which is highly
competitive. Thus, the most appropriate salary structure for the employees of
12
the company would be PLWS. However, the implementation of PLWS must be
done in a just and equitable manner.
COW1, the Chief Executive Officer proposed that the salary increment be
based on PLWS. PLWS would enhance competitiveness and enable its
employees to obtain a fair share of the gains that arise from productivity
growth and performance improvement. The employees‟ performance would be

based on a fair appraisal system. That system would motivate a worker to
perform better. The maximum scale of the salary of each grade would be
adhered to because the maximum scale was the highest value of a job in terms
of relevant importance. He tendered the company‟s performance appraisal form
vide Bundle COB1, pages 69 to 80.
He explained that the profit margin in the automotive industry was low
as the vendors had to deal with automotive companies who had a volume of
business which gave them the leverage to negotiate prices. The vendors had to
keep the costs of production low by controlling costs and increasing
productivity. The company had to sustain itself when the economic cycle was
bad when the sale prices went down. Thus, the staff costs should be pegged to
profits to ensure that the company survived.
There was a genuine concern by the union that if PLWS is introduced
instead of fixed annual increment of salaries for all the employees, there may
be favouritism and victimisation in the appraisal of their performance. The
appraisal reports for the employees of the company for the relevant period
13
would have been prepared as the relevant period for the said collective
agreement has ended on 30 April 2009.
The was a provision in the collective agreement for the
appraisee/employee to sign and to give his comments. However, there was no
grievance procedure for an employee or his union to appeal to a higher level if
he was dissatisfied with his appraisal.
The company‟s proposal on annual salary increment and annual bonus

did not provide for a fixed component. There should be a fixed component for
an annual increment of salaries and a fixed component for the annual bonus
as in Denso’s case.
The company‟s proposal for determining the profitability of the company

in giving bonuses was 30% of the net profit after tax in excess of 10% of the
total paid-up share capital to be distributed to all its employees. COW1 did
not explain how this threshold was determined and whether it was just and
equitable. In the Kumpulan O’Connors’s case, the formula on the profitability
of the company was based on the Return on Average Working Capital. In that
case, the company had consulted the union on the formula in accordance with
the Guidelines on Wage Reform.
In Prestige Ceramics No 2 a consultant from the National Productivity

Center testified as an expert witness on the merits of the PLWS which was
implemented on a trial basis. The company in this case did not call any expert
14
witness to testify on the merits of its proposal.
The court held that it was not just and equitable to accept the company‟s
proposals on annual salary increment and bonus.
Bonus
The company had proposed that the bonus be paid based on profits after
tax, COW1 had testified that the accounting treatment for the accounts for
2007 was a deferred tax account which took into consideration the timing
between capital allowance and depreciation. The company being a
manufacturing company producing high quality glass for the automotive
industry was highly dependent on the latest machinery used in the industry
and it had to replace obsolete machinery. Thus, the capital expenditure was
justified.
The business risks must be shared by the shareholders, the directors

and the employees. The employees should enjoy the fruits of their labour just
as much as the shareholders and the directors of the company. The employees
will compare their salaries and bonuses with the dividends and remuneration
which the shareholders and the directors receive respectively.
In PHIP (Selangor) Bhd v. Kesatuan Kebangsaan Pekerja-Pekerja Hotel,

Bar dan Restoran Semenanjung Malaysia and another [2005] 2 MLJ 769, the
High Court held that the onus was on the employer to prove that it was in the
15
interest of both parties to replace the contractual bonus with‟ a productivity
linked bonus.
The court accepted the union‟s proposal for a contractual bonus.
Article 36 of the said collective agreement shall read:
“Article 36 - Bonus
36.1. The Company shall pay bonus to all employees who
are confirmed as at 31 st December each year.
36.2 The quantum of bonus shall be equivalent to 2.00
months of the last drawn basic salary exclusive of
overtime and allowances of any description as at
31 st December.
36.3 Confirmed employees with less than one year service
as at 31 st December shall receive a pro-rata bonus
based on completed months of service calculated up
to 31 st December of the year. For purpose of pro-
rata bonus, payment shall be calculated as follows:-
No. of completed months of service x last drawn basic salary
12
36.4 The Company shall pay annual bonus to all

confirmed employees on 15 th December each year.
36.5 Employees who retire on attaining the retirement
age as specified in this agreement or who are
retrenched due to redundancy or are medically
boarded out of service due to ill health or

16
disablement or in the case of sudden death and any
confirmed employee who resigns form the Company
will be entitled to receive bonus on a pro-rata basis
for their period of serving in the year of termination
of employment.
36.6 Notwithstanding the above, no employee shall be
entitled to any bonus in the event of his dismissal or

his resignation to avoid dismissal.
36.7 Notwithstanding Article 36.2 above, the Company
may, at its discretion, pay an ex-gratia payment,
subject to the Company‟s performance”.
Salary conversion and salary increment
Counsel for the union submitted that a salary increment for the
relevant period be included in the said collective agreement. She submitted
that the increase in the consumer price index from 1 May 2003 to 30 April
2006 was 7.4%. That figure was not disputed by the c ompany. She also
submitted that a salary increment of 6% be given.
The Harun formula as expounded in Malayan Commercial Bank

Association v. National Union of Bank Employees, Award No 117 of 1982, Case
number 12-057-82, Jan-June 1982, MLLR, page 246 (hereinafter referred to as
“MCBA v. NUBE”) was that the salary increase which was based on the
consumer price index should not be less than 60% or more than 2/3 of the
17
average increase of the consumer price index over the previous three year
period. In the present case, based on the Harun formula, the upper limit is
2/3 of 7.4 which is 4.9 and the lower limit is 60 % of 7.4 which is 4.4.
Counsel for the union submitted that the Harun formula was laid down
during a period of high inflation of 21.5% and that th e Industrial Court was
concerned that a high increase of the salary increment which was awarded by
the Industrial Court would escalate the inflation. She submitted further that
the court should depart from the Harun formula and award a higher rate than
the upper limit of the Harun formula as in Association of Insurance Employers
v. Kesatuan Kebangsaan Pekerja-Pekerja Perdagangan [2005] 1 ILR 470. She
cited several other authorities which departed from the Harun formula.
Counsel for the union also submitted on the salary increments of

employees in other companies in a similar industry for a similar period as
shown in their collective agreements. The salary increment for the employees of
Schott Glass (M) Sdn Bhd was 5.5% under the collective agreement between
that company and Non-Metallic Mineral Products Manufacturing Employees‟
Union (hereinafter referred to as “NMMPMEU”) from 1 July 2004 to 30 June
2007 vide Bundle UB2, page 56.
The salary increment for the employees of Poly Glass Fibre

Manufacturing Sdn Bhd was 5% under the collective agreement between that
company and NMMPMEU from 1 March 2005 to 28 February 2008.The salary
increment for employees of Malaya Glass Products Sdn Bhd was 6% under the
18
collective agreement between that company and NMMPMEU from 1 March
2005 to 28 February 2008 vide Bundle UB2, page 174.
Counsel for the company submitted that it was not safe to rely on those
collective agreements as the industries were not similar. Further, the location
of the factories of the companies covered by those collective agreements was in
the Klang valley where the costs of living was higher than the location of the
factory of the company in the present trade dispute which was in Senawang in
Negeri Sembilan.
Opinions have been expressed at other forums that there has been a
suppression of salaries/wages in the country when compared to neighbouring
countries. The court must have a rational basis for determining the minimum
salary/wage. Empirical data on salaries/wages of similar positions in similar
industries in neighbouring countries is needed in order to make a comparison.
The principles of wage fixation were reiterated in Arab-Malaysian

Development Berhad v. Perak Textile and Garments Manufacturing Employees’
Union [1987] 1 ILR 118 at page 130 as follows:
“(a) Wages and salaries in comparable establishments in

the same region;
(b) Any rise in the cost of living, since the existing wages
and salaries were last revised;
(c) The financial capacity of the employer to pay the
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increases; and
(d) The legitimate desire of the employer to make a
reasonable profit.”
The main factors which the court took into consideration was the
increase in consumer price index for the period of the previous collective
agreement; the company‟s current ability to pay any increase in salaries to its
employees based on the financial reports which were available for the period of
the collective agreement being considered and for the period of the previous
collective agreement; and the salary increment of employees in a similar

industry for a similar period based on the collective agreements tendered.
The parties may call expert witnesses to tender reports on surveys done
on the salaries for equivalent positions in similar establishments. In Kumpulan
O’Connor’s case, the court relied on the Mercer survey which was based on
market data of salaries for equivalent positions to award a salary increment of
9.5% of the basic wage. The court held that the basic wages and the fixed
allowance for costs of living provided income stability, indicated the job value
and reflected the costs of living.
In this case, the court held that a salary increment of 4% was just and
equitable.
Article 37 of the said collective agreement scale shall read:
20
“Article 37 - Salary Scale
37.1 Employees will be paid in accordance with the salary

scale set out in Appendix B to this Agreement. Each
employee will be informed of the salary in the salary
group applicable to him.
37.2 The allocation of the salary group and job function of

each employee shall be decided by the Company.”
“Article 38 - Salary Conversion
38.1 With effect from 1st May 2006, every confirmed

employee shall be given a salary increase of 4% of his
last drawn basic salary as at 30th April 2006 and
adjusted to the nearest higher Ringgit Malaysia.

38.2 If an employee‟s new salary, after his salary
adjustment mentioned under Article 38.1, is below
than the minimum salary shown in the scale of his
salary group, his salary will then be adjusted to the
minimum salary applicable to him.”
Counsel for the company had submitted that if the current practice of
allowing an employee to receive an annual salary increment irrespective of
whether he had reached the maximum salary in his job category was
continued, it would be absurd as that employee would be receiving a salary
which was not commensurate with his academic qualifications and experience.
21
COW1 had testified that the majority of unionised employees had a very
low level of education such as a Lower Certificate of Education or Sijil Rendah
Pelajaran and some had studied until standard six. In 2003, the average
annual salary of a unionised employee was RM12,411.12; in 2004, it was
RM14,054.39; in 2005, it was RM16,264.39; in 2006, it was RM17,473.50 and
in 2007, it was RM18,425.04 vide Bundles COB5 and COB6. The company
could not continue to pay the unionised employees annual increments of
salaries without any ceiling.
The Court did not accept the union‟s proposal of Article 39.3 on the
payment of an annual increment to employees who had reached the maximum
salary in their job category.
The employees who have exceeded the maximum salary in their salary
group shall continue to receive the same salary on a personal-to-holder basis
and be entitled to one annual increment under the new scale.
“Article 39 - Annual increment

39.1. The Company shall grant annual increment to all
employees on 1st May, each year as in the salary scale
as per Appendix B.
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39.2. Confirmed employees who have less than twelve (12)
months of continuous service as at 30 th April will
receive their annual increment on a pro-rata basis.
For purpose of this article, pro-rata increment shall
be calculated as follows :-
Completed months of service x Annual Increment rate of the

12 appropriate Job Group
39.3. If an employee is drawing the maximum salary or

more than the maximum salary in the new scale, he
will continue to draw that salary on a personal-to-
holder basis and be given one annual increment.
Thereafter he will not be given any annual
increment”.
The court took into consideration public interest, the financial

implications and the effect of the award on the economy of the country and on
the industry concerned and also the probable effect in related or similar
industries as provided in section 30(4) of the said Act.
The parties should endeavour to implement PLWS in the next collective

agreement in accordance with the Guidelines on Wage Reform to ensure that it
is implemented in a just and equitable manner.
UW1 testified that there were foreign employees in the plant where he
23
worked. He agreed that the supply of foreign employees had been outsourced
by the company. COW1 admitted that the foreign employees were not reflected
in the payroll of the company. It does not augur well for industrial relations in
the country if foreign employees are excluded from the scope of collective
agreements and receive lesser wages and benefits than local employees.
HANDED DOWN AND DATED 23 RD DAY OF AUGUST 2010
(SUSILA SITHAMPARAM)
PRESIDENT
INDUSTRIAL COURT OF MALAYSIA.
24
THIS FORMS PART OF AWARD NO. 1104 OF 2010
IN CASE 1/2-1187/07
9 TH COLLECTIVE AGREEMENT
BETWEEN
MCIS SAFETY GLASS SENDIRIAN BERHAD

(CO. NO. 14299-M)
AND
NON-METALLIC MINERAL PRODUCTS MANUFACTURING

EMPLOYEES’ UNION
INDEX
ARTICLE SUBJECT
1 Parties to the Agreement
2 Objective of the Agreement
3 Interpretation
4 Arbitration
5 Legislation
6 Duration, Modification & Termination

of this Agreement
PART II - EMPLOYER - UNION RELATIONS
7 Recognition of Union & Scope of Agreement
8 Recognition of the Company
9 General Undertaking
10 Grievance Procedure
11 Exclusion Clause
PART III - TERMS & CONDITIONS OF EMPLOYMENT
12 Probation & Confirmation
13 Promotion
14 Transfer
15 Discipline
16 Absenteeism
17 Working Hours
18 Allowances
19 Overtime
20 Rest Day
21 Public Holiday
22 Annual Leave
23 C om passi onat e, C al am i t y &

S peci al Leav e
24 Leave on Trade Union Business
25 Medical Attention
26 Sick Leave
27 Maternity Benefits
28 Prolonged Illness
29 Disablement
30 Industrial Accident
31 Uniforms
32 Safety Wear & Equipment
33 Retrenchment/Retrenchment Benefit
34 Retirement
35 Retirement Benefit
36 Funeral Expenses
37 Bonus - Disputed
38 Salary Scale
39 Salary Conversation - Disputed
40 Annual Increment - Disputed
41 Downtime
42 Transport Subsidy
43 Insurance Coverage
44 Food Subsidy - Coupon System
45 Retrospective Benefits
Appendix A Exclusion List
Appendix B Salary Structure - Disputed

ARTICLE 1 - PARTIES TO THE AGREEMENT
1.1 This Agreement is made on ________ between the MCIS SAFETY

GL AS S S E NDI RIAN B E RH AD, havi ng i t s fact or y at l ot 1, 3 & 4 L o r o n g
Senawang 2/1, Senawang Industrial Estate, 70450 Ser emban Negeri
Sembilan Darul Khusus with Company Registration No. 14299-M
(hereinafter called the “Company”) on the one part, and the NON-
METALLIC MINERAL PRODUCTS MANUFACTURING EMPLOYEES’ UNION,
h a v i n g i t s r e gi s t e r e d o f f i c e a t N o . 9 9A , J al a n S S 1 4 / 1 , 4 7 5 0 0 S u b a n g
J a ya . S e l a n go r D a r u l E h s a n b e i n g a t r a d e u n i o n o f e m p l o ye e s
R e gi s t e r e d i n p u r s ua n t t o t h e T r a d e U ni o n s A c t 1 95 9 ( h e r e i n a f t e r c a l l e d
t h e “ U n i o n ” ) o n t he o t h e r p a r t , w h e r e i n i t i s a gr e e d t h a t t h e t e r m s a nd
c o n d i t i o n s o f e m pl o ym e n t s h a l l b e ob s e r v e d b y t h e U n i o n a n d t h e
e m p l o ye e s f u n c t i o n i n g i n t h e p o s i t i on l i s t e d i n t h e A p p e nd i x B o f t h i s
A gr e e m e n t o n t h e on e p a r t a n d t h e C o m p a n y o n t h e o t h e r pa r t .
1.2 In the event either the Compan y or the Union changes its name or
change of ownership or mergers with other companies or organizations
to the effect that the Company or the Union is wholly or partl y
absorbed by the organization, the Articles of this Agreement shall
c o n t i n u e t o c o v e r t h e e m p l o ye e s t o w h i c h t h i s A g r e e m e n t i s a p p l i c a b l e
at the time the change of name or change ownership or merger takes
place for the remaining period of validity of this Agreement provided
that the legislation permits.
________________ _______________
For the Company For the Union
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ARTICLE 2 - OBJECT OF THE AGREEMENT
2.1 T h e o b j e c t o f t h e agr e e m e n t i s t o p r ovi d e f o r a c l e a r u n de r s t a n d i n g o f

t h e r e l a t i o n s hi p b et w e e n t h e C o m p a ny a n d t h e U n i o n a n d o n m a t t e r s
c o n c e r n i n g t h e t e r m s a n d c o n d i t i o n s o f e m p l o ym e n t f o r a l l e m p l o ye e s ,
t o s t a b i l i s e t h ei r t e r m s a n d c o n d i t i o n s o f e m p l o ym e n t f o r t h e p e r i o d o f
d u r a t i o n o f t h i s A gr e e m e n t a n d t o p r ov i d e a n d i m p r o v e t h e m a c h i n e r y
f o r p r o m p t a n d e q u i t a b l e d i sp o s i t i o n of gr i e v a n c e a r i s i n g a s a r e s u l t o f
i n t e r p r e t a t i on o r a ny m a t t e r c o n t a i n e d i n t h i s A gr e e m e n t .
2.2 B o t h p a r t i e s a c k n ow l e d ge t h e f a c t t h a t t h e w e l l - b ei n g o f t h e C om p a n y
and its emplo yees is dependent upon a common determination to
work together with the closest co -operation to achieve sound and just
industrial, as well as economic relationship between the Company and
i t s e m p l o ye e s .
2.3 W i t h t h i s o b j e c t i n v i e w , b o t h p a r t i e s t o t h i s A gr e e m e n t a f f i r m t h e i r
m u t u a l d e si r e t o cr e a t e a r e l a t i o n s h i p o f r e s p e c t a n d c o n f i d e n c e a n d
a gr e e t o i m pl e m e n t t h e p r o v i si o n s h e r e i n .
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ARTICLE 3 - INTERPRETATION
3.1 This Agreement shall supersede all other agreements on conditions of

e m p l o ym e n t e n t e r e d i n t o w i t h t h e C o m p a n y e i t h e r d i r e c t l y o r t h r o u g h
the Union in so far as matters covered by this Agreement are
concerned.
3.2 Where any term exist in the current individual contracts of service or
e m p l o ym e n t o f t h o s e e m p l o ye e s w i t h i n t h e s c o p e o f t h i s A g r e e m e n t
which is in conflict with the provision of this Agreement, the provisions of
this Agreement shall prevail.
3.3 Words used in this Agreement to indicate the masculine gender shall
also apply to the feminine gender, except where the text clearly
indicates otherwise.
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ARTICLE 4 - ARBITRATION
4. 1 An y di sput e rel at i ng t o t he i nt erpr et at i on or i m pl em ent at i on of t hi s

Agreement shall be settled by negotiations between the Company and
t h e U n i o n . If u n s u c c e s s f u l t h e d i s p u t e s h a l l b e r e f e r r e d t o t h e In d u s t r i a l
C o u r t i n a c c o r d a n c e w i t h t h e p r o v i s i on s o f t h e In d u s t r i a l R e l a t i o n s A c t ,
1967.
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ARTICLE 5 - LEGISLATION
5. 1 If an y l e gi sl at i on i s i nt roduced whi ch rel at es ei t her i n whol e or i n part to

an y o f t he ben efi t s cont ai ned i n t hi s Agr eem ent , t hen i f t h e benefi t s a re
m ore favor abl e, t he y wi l l cont i nue t o appl y, provi d ed i t i s so perm i t t ed
b y t he l e gi sl at i on.
5.2 Where l e gi s l a t i o n provides for m or e favorable terms than terms

c o n t a i n e d i n t hi s A g r e e m e n t t h e p r o v i s i o n o f s u c h l e gi s l a t i o n s h al l
a u t o m a t i c a l l y a p p l y.
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ARTICLE 6 - DURATION, MODIFICATION & TERMINATION OF THIS
AGREEMENT
6. 1 Thi s Agreem ent sha l l t ake e ffe ct from 1 s t Ma y 2006 and s hal l rem ai n i n
force for a pe ri od of t hree (3 ) ye ars ex pi ri ng on t he 30 t h Apri l 2009
provided that the Agreement shall continue in force thereafter until
and unless superseded by another Collective Agreement or Award.
6. 2 During the period of this Agreement, neither the company nor the
U n i o n s h a l l s e e k t o v a r y, m o d i f y, a n n u a l o r t o a d d a n y o f t h e p r o v i s i o ns
in any way whatsoever, save by mutual consent or by operation of law.
In t h e e v e n t b ot h pa r t i e s a gr e e i n g, t o v a r y a n y o f t h e p r o v i s i o ns o f t hi s
A gr e e m e n t , b o t h p a r t i e s s h a l l d e po s i t s u c h v a r i a t i o n w i t h t h e In d u s t r i a l
C o u r t c o gn i z a n c e wi t h i n t h i r t y ( 3 0 ) d a ys f r o m t h e d a t e o f A gr e e m e n t o n
t h e v a r i a t i on .
6. 3 Ei t her part y m a y s e rve on t he ot h er t h ree ( 3) m ont hs ‟ w ri t t en not i ce t o

negot i at e on new t erm s and condi t i ons of em pl o ym ent a nd an y ot he r
rel at ed m at t e rs, but no such not i ce shal l be served ea rl i er t han 31 s t
J a n u a r y 2 0 0 9 . In t h e e v e n t o f a d e a d l o c k i n n e g o t i a t i o n , t h e p r o v i s i o n s
o f t h e c u r r e n t t e r m s a n d c o n d i t i o n s o f e m p l o ym e n t o f t h i s A g r e e m e n t
shall prevail until superseded by new terms and conditions of
emplo yment concluded between the parties or awarded by the
Industrial Court.
6. 4 This Agreement may be terminated by either party giving the othe r

three (3) months‟ written notice but such notice shall not be served
b e f o r e 3 1 s t J a n u a r y 2 0 0 9 . P r o v i d e d a l w a ys t h a t , a f t e r t h e t e r m i n a t i o n o f
this Agreement and before the conclusion of a new Collective
Agreement, the provisions of this Agreement shall c ontinue to be in
force.
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PART II- EMPLOYER-UNION RELATIONS
ARTICLE 7 - RECOGNITION OF UNION & SCOPE OF AGREEMENT
7. 1 The C om pan y re co gni z es t he Uni on as t he sol e and ex cl usi ve bar gai ni ng

bod y i n r espect o f rat es of p a y, hou rs of work and ot her t erm s and
condi t i ons of em plo ym ent for al l el i gi bl e em pl o yees, e x cl udi ng t he
fol l owi ng: -
(a) Mana geri al , Ex ecut i ve, C on fi dent i al , S upervi sor y, and S ecuri t y
C apaci t y (S ee App e ndi x A);
(b) Em pl o yees on p rob a t i on; and
(c) Tem porar y em pl o ye es on speci al assi gn m ent s not ex ceedi ng si x (6)

m ont hs.
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ARTICLE 8 - RECOGNITION OF THE COMPANY
8.1 The Union recognizes the right of the company to operate and
manage its business in all respects and in particul ar, without derogating
from the generality of the foregoing, to determine the number and
deplo ym ent of t he work force and the content of jobs, to establish rules
and regulations on operation and safet y; t o determine the efficient
ut i l i z ati on of t he work forc e, t ool s and equi pm ent , t he m eans, m et hods ,
processes, materials, procedures and schedules of production; to
engage, promote, retrench, transfer, discharge, suspend or otherwise
d i s c i p l i n e a n y e m p l o ye e f o r c a u s e s u b j e c t t o t h e l a w f o r t h e t i m e b e i n g
in force. In the exercise of its manageme nt rights, the Company shall
not breach any of its obligations under the terms of this Agreement.
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ARTICLE 9 - GENERAL UNDERTAKING
9.1 The Union and its members jointl y and severall y undertake to cooperate
with the Company to the best of their abilit y and to conscientiousl y fuffill
all work and to observe the rules and regulations of the Company for
t h e advancement of the Company‟s business.
9.2 The Union agrees that none of its members who are employees of the
Company shall engage in Union activities in the Company ‟s time or in
its premises except with the consent of the Company which shall not be
unreasonably withheld or for the purpose of settling grievances as per
Grievance Procedure laid down under Article 10 of this Agreement.
9.3 The Company agrees to deduct Union subscriptions from its members
w h o s o w i s h s u b j e c t t o t h e r e q u i r e m e n t o f t h e E m p l o ym e n t A c t , 1 9 5 5
and on the following conditions: -
(a) Deduct i ons shal l b e m ade onl y on t he st ren gt h o f a wri t t en

aut hori z at i on dul y ex ecut ed t o t he C om pan y st at i n g t he ex act
am ount t o be deduct ed ea ch m ont h.
(b) The Union shall noti f y the Compan y in writing and w ithin suffi cient
t i m e t h e ex a c t a m ou n t o f U n i o n d u es t o b e c o l l e c t e d f r o m e a c h o f
i t s members and subsequent change t hereof. In order to provide
suffi cient tim e for necessar y adjustm ents to be made in the pa yroll
syst em, such notifi catio n shall be effectiv e aft er 21 da ys of its
receipt b y the Compan y.
(c) The am ount st at ed i n t he i ndi vi dual em pl o ye e ‟s aut hori z at i on m us t

be the same as the amount due from him as notified by the Union
t o t h e C o m p a n y.
(d) The company shall continue to make such deduction so lo ng as

the authorization remains in force.
(e) The Company shall remit to the Union the amount .dul y collected
each month and the Union shall acknowledge same in writing.
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(f) T h e U n i o n a g r e e s t o r e f u n d t o t h e C o m p a n y a n y o v e r p a ym e n t
made in error and li kewise the Company agrees to make good to
U n i o n a n y s h o r t p a ym e n t m a d e i n e r r o r .
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ARTICLE 10 - GRIEVANCE PROCEDURE
10.1 It i s t h e d e s i r e o f b o t h p a r t i e s t o t h i s A g r e e m e n t t h a t g r i e v a n c e s a r i s i n g
between an employee and the Company, or between the Union and
t h e C o m p a n y b e s e t t l e d a s e q u i t a b l y a n d a s q u i c k l y a s p o s s i b l e . In
pursuance to this, it is agreed that grievances should be processed
according to the following procedure with the aim of reaching
agreement at the lowest possible level and of maintaining continuous
good relations between both parties.
10.2 Definition of Grievances
A grievance shall be defined as a complaint by an emplo yee

concerned which he brings to the attention of his imme diate superior
and which is subsequently not settled to the satisfaction of the
emplo yee. It is mutuall y agreed that, a grievance of an emplo yee who
is a Union member will only be entertained if he files in a Grievance
Form.
10.3 Procedure
Step 1
A n e m p l o ye e h a v i n g a g r i e v a n c e s h a l l f i r s t r e f e r t h e m a t t e r i n w r i t i n g
to his immediate superior who will attempt to resolve the issue within
t hree (3) ful l worki ng da ys from t he t i m e i t was rai sed b y t he em pl o ye e.
Step 2
If t h e m at t er i s not resol ved or i f t he gri ev anc e i nvol ves t he i m m edi at e

s uperi or, t he em pl o ye e or t he Uni on on hi s behal f shal l , wi t hi n seven (7)
worki ng da ys, ref e r i t i n wri t i n g t o t he rel ev ant Man a ger, wi t h t he
as s i s t ance of anot her rep resent at i ve of t he C om pan y i f r e qui red, s hal l
at t em pt t o re sol ve t he i ssue wi t hi n sev en (7) ful l worki n g da ys from t he
t i m e t he m at t er was refe rred t o hi m .
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Step 3
In the event that if no settlement is reached, the Union or the

emplo yee concerned ma y bring the matter in writing to the General
Manager or his app ointed deput y within seven (7) working da ys. The
General Manager or his deputy shall attempt to resolve the matter
within ten (10) working da ys on receipt of the matter in writing.
Step 4
If the matter still remains unsettled after Step 3 above, either par t y
may refer the dispute to the Ministry of Human Resources for
reconciliation as expeditiously as possible.
Step 5
If the dispute is unresolved after reconciliation proceedings by the

M i ni s t r y of Hum an R esources, bot h par t i es m a y ref er t he di sput e t o t h e
Industrial Court for settlement in accordance with Section 26 of the
Industrial Relations Act, 1967.
10.4 At all stages of the procedure where a time limit is specified, such time
limit ma y be extended b y agreement between the emplo yee or the
U n i o n i f t h e e m p l o ye e h a s r e f e r r e d t h e m a t t e r t o t h e U n i o n a n d t h e
Management.
10.5 A n y g r i e v a n c e w h i c h i s n o t p r e s e n t e d b y a n e m p l o ye e o r b y t h e U n i o n
w i t h i n f o u r t e e n ( 1 4 ) w o r k i n g d a ys f r o m t h e d a t e o f o c c u r r e n c e o f t h e
alleged grounds for complaints shall be consider ed null and void.
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ARTICLE 11 - EXCLUSION CLAUSE
E m p l o ye e s w h o h a v e l e f t t h e s e r v i c e o f t h e C o m p a n y e f f e c t i v e f r o m 1 s t M a y
2 0 0 6 a n d p r i o r t o t h e s i gn i n g o f t h i s A gr e e m e n t f o r a n y r e a s o n w h a t s o e v e r
o t h e r t h a n o n r e t r e n c h m e n t , r e t i r e m e nt , m e d i c a l l y b o a r d e d o u t o r w h o h a v e
died while in service shall not be entitled to any benefits arising from this
A gr e e m e n t .
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PART III - TERMS & CONDITIONS OF EMPLOYMENT
ARTICLE 12 - PROBATION & CONFIRMATION
12.1 The probationar y period of a new employee shall normall y be three (3 )

months, but this period ma y be extended b y the Compan y for a further
period of t hree (3) months.
12.2 On satisfactory completion of the probationary period, the new

e m p l o ye e s h a l l b e g i v e n a l e t t e r o f c o n f i r m a t i o n w i t h a c o p y t o t h e
Secretary of the Works Committee of the Union.
12.3 If after the completion of the probationary period, no confirmation

l e t t e r h a s b e e n r e c e i v e d w i t h i n s e v e n ( 7 ) c o n s e c u t i v e w o r k i n g d a ys , i t
will be deemed that the e m p l o ye e has been confirmed in his
appointment.
1 2 . 4 A p r o b a t i o n e r up o n c o n f i r m a t i o n s h al l n o t b e e nt i t l e d t o a n y i m m e d i a t e
i n c r e a s e i n s a l a r y a n d s h a l l c o n t i nu e t o d r a w h i s c o m m e n c i n g s a l a r y
unt i l he rec ei ve hi s fi rst i ncrem ent whi c h shal l not be e arl i e r t han si x ( 6 )
m o n t h s, b u t n o t l at e r t h a n t w e l v e 1 2 m o n t h s f r o m t h e d a t e o f h i s f i r s t
appointment.
1 2 . 5 C o n f i r m e d em p l o ye e , m a y a t a n yt i m e gi v e a w r i t t e n n o t i c e t o t h e
Company of his int ention to terminate the contract of service. The p e r i o d o f
n o t i c e s h a l l b e 1 4 da ys .
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ARTICLE 13 - PROMOTION
13.1 The company shall maintain its policy of promoting from amongst
d e s e r v i n g e m p l o ye e s t o h i g h e r g r a d e s w h e r e v a c a n c i e s o c c u r i n a
higher grade. The company will give preference to promote serving
e m p l o ye e s w h o , i n t h e C o m p a n y ‟ s o p i n i o n , a r e s u i t a b l e t o f i l l t h e
vacancies.
13.2 If the Company decides that a vacancy within the scope of this
A g r e e m e n t s h a l l b e f i l l e d , d e t a i l s s h a l l b e d i s p l a ye d o n t h e c o m p a n y ‟ s
Notice Board for at least one (1) week.
1 3 . 3 A n e m p l o ye e s e l e c t e d f o r p r o m o t i o n w i l l b e n o t i f i e d i n w r i t i n g a n d w i l l
normally be required to serve a probationary period of 3 months but
this period may be extended by the Company for a further period of
not exceeding three (3) months.
13.4 On satisfactory completion of the probationary period on promotion,

t h e e m p l o ye e s h a l l b e g i v e n a l e t t e r o f c o n f i r m a t i o n , w i t h a c o p y t o t h e
S e c r e t a r y o f t h e W o r k s C o m m i t t e e . If h e i s f o u n d u n s a t i s f a c t o r y i n t h e
h i g h e r p o s t , h e m a y, a t a n y t i m e d u r i n g or at the end of the
probationary period, be reverted to his former or similar post and pay
without prejudice to his future prospects.
13.5 During the period of probation on promotion, initially or extended, the

e m p l o ye e s h a l l c o n t i n u e t o r e c e i v e t h e s a m e s a l a r y a s t h a t r e c e i v e d
prior to promotion on probation, but on confirmation in the higher
grade or post he will be paid the salary for that higher gra de or post as
provided in Clause 13.7 below, retrospective to the date on which he
was first appointed on probation for promotion.
1 3 . 6 A n e m p l o ye e w h o i s n o t c o n f i r m e d i n h i s a p p o i n t m e n t t o h i g h e r p o s t
i e , i f he i s not foun d sui t abl e fo r t he hi ghe r post , h e wi l l b e i nform ed b y
the Company accordingly and will automatically revert to his former
p o s i t i o n a n d s a l a r y/ w a g e s w i t h o u t p r e j u d i c e t o h i s f u t u r e p r o s p e c t .
1 3 . 7 O n c o n f i r m a t i o n i n t h e h i g h e r g r a d e o r p o s t , t h e e m p l o ye e c o n c e r n e d
shall be entitled to rec eive two (2) increments in that higher grade.
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13 . 8 If t he em pl o ye e ‟s new sal ar y under C l a use 13.7 i s bel ow t he m i ni m um of
the scale in the higher grade, his salary shall be adjusted to the
minimum of such scale in the higher grade.
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ARTICLE 14 - TRANSFER
14.1 An em pl o ye e may be t ransferr ed wi t hi n t he com pan y to anot her

department/section in accordance to company‟ work requirement .
T h e e m p l o ye e c o n c e r n e d w i l l b e n o t i f i e d i n w r i t i n g w i t h i n s e v e n ( 7 )
w o r k i n g d a ys b e f o r e h a n d i f h e i s t o b e t r a n s f e r r e d p e r m a n e n t l y.
In t he ev ent t he C om pan y t rans fers a n y em pl o ye es, t he Uni on shal l be

cons ul t ed.
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ARTICLE 15 - DISCIPLINE
15.1 An employer may, on the grounds of misconduct inconsistent with the

fulfillment of the express or implied conditions of his service, after due inquiry
(a) Dismiss without notice the employee; or

(b) Downgrade the employee; or
(c) Impose any other lesser punishmen t as he deems just ant, and where a
punishment: of suspension without wages is imposed, it shall not exceed
a period of two weeks.
15.2 For the purposes of an inquiry under subsection (1), the em ployer may suspend
the employee from work for a period not ex ceeding two weeks but shall pay
him not less than half his wages for such period:
Provided that if inquiry does not disclose any misconduct on the part of the
employee the employer shall forthwith restore to the employee the full
amount of wages so withhel d.
15.3 Any employee who is subject to any disciplinary action as provided for in this
Article or otherwise, except in the case of dismissal, shall have the right to
appeal in accordance with the Grievance Procedure set out in Article 10 of this
Agreement; provided that any action already taken by the Company shall stand
while the appeal is being processed.
________________ ______________
Management Representative Union Representative
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ARTICLE 16 - ABSENTEEISM
16.1 (a) A n e m p l o ye e w h o i s a b s e n t f r o m w o r k f o r a n y o n e d a y w i t h o u t
the consent of the Company or without reasonable e xcuse shall
b e g i v e n F I R S T w r i t t e n w a r n i n g a f t e r d u e i n q u i r y.
(b) If the same employee is again absent from work for a second
time within a period of twelve (12) months from (a) abo ve, he
shall be given a SECOND written warning after due inquir y.
(c) I f t h e s a m e e m p l o ye e i s a g a i n a b s e n t f r o m w o r k f o r t h e t h i r d t i m e
within a period of twelve (12) mont hs from (a) above, he shall be
g i v e n a F IN A L w r i t t e n w a r n i n g a f t e r d u e i n q u i r y.
(d) S h o u l d t h e s a m e e m p l o ye e i s a g a i n a b s e n t f o r t h e f o u r t h t i m e
wi t hi n a peri od of t wel ve m o nt hs from (a) abov e, hi s servi ce s hal l
be terminated forthwith.
16.2 A n e m p l o ye e w h o i s a b s e n t f r o m w o r k f o r a p e r i o d o f t w o c o n s e c u t i v e
working da ys without the consen t of the company or without
reasonable excuse, shall be given a Final Warning b y the Compan y.
Should he again absent himself for one more day without reasonable
excuse totaling to three da ys within twelve months from his first
absence, the company may terminate his service forthwith.
16.3 A n e m p l o ye e s h a l l b e d e e m e d t o h a v e b r o k e n h i s c o n t r a c t o f s e r v i c e
with the Company if he has been continuously absent from work for
m o r e t h a n t w o c o n s e c u t i v e w o r k i n g d a ys w i t h o u t p r i o r l e a v e f r o m t h e
compan y, unless he ha s a reasonable excuse for such absence and has
informed or attempt to inform the Company of such excuse prior
to or at earliest opportunity during such absence.
________________ ______________
19
ARTICLE 17 - WORKING HOURS
17 . 1 The norm al worki n g hours per w eek shal l be as fol l ows: -
(a) Operat i ve non shi ft - 48 hours per w eek

[ ex cl usi ve of m eal break pe r da y)
(b ) Operat i ve on shi ft - 48 hours per w eek

[ i ncl usi ve of m eal break pe r da y)
(c) C ar Dri ver - 43 1 / 2 hours per wee k

(ex cl usi ve of m eal b reak)
17 . 2 W orki ng hours
OP ER AT IV E NON - S H IFT
M onda y- F ri da y : 8.00 a.m . - 4.30 p.m.

S at urda y : 8.00 a.m . - 3.00 p.m.
Al l em pl o ye es shal l be gi ven t i m e -off from 12.30 p.m . t o 3.00 p.m . on

ever y Fri da y:
________________ ______________
20
ARTICLE 18 - ALLOWANCE
18 . 1 The fol l owi ng sh al l be pa yabl e t o em pl oye e as spe ci fi ed bel ow: -
(a) S H IFT AL L O WANCE
(i ) R M2.00 per shi ft pa yabl e to em pl o ye es worki n g on

st
com pl et i on of 4 hours i n t he 1 shi ft , under shi ft oper at i on.
(i i ) R M 3.25 per shi ft pa yabl e to em pl o ye es worki n g on

nd
com pl et i on of 4 hours i n t he 2 shi ft , under shi ft oper at i on.
(i i i ) R M 5.50 per shi ft pa yabl e to em pl o ye es worki n g on

rd
com pl et i on of 4 hours i n t he 3 shi ft , under shi ft oper at i on .
(b) FU RNACE AL L O WANCE
(i ) R M2.40 per da y t o em pl o ye es em pl o yed i n t he Furna ce

S ect i on W orki ng on com pl et i on of 4 hours.
(i i ) RM2.40 per day to quality In s p e c t o r s working on

c o m p l e t i o n of 4 hours i n t he Furn ace S e ct i on.
(i i i ) R M 2.40 per da y t o Fi t t ers, W i reman (i ncl udi ng wat er

treatment plant) and Electricians who work during
machine breakdown in Furnace Section on completion
of 2 hours.
(c) ME AL AL L O WANCE
(i ) R M 8 . 0 0 p e r d a y p a ya b l e t o a n e m p l o ye e , o t h e r t h a n a
d river, who is sent out of the factory premises on official duties
d u r i n g h i s l u n c h b r e a k o n l y.
(i ) RM4.70 per day pa yable to an emplo yee who has

completed 4 hours of overtime work on a normal workday ,
public holida y and rest da y.
21
(d) H.P. ALLOWANCE
RM1.40 per day to all H.P. Operators, Fitters, Electrician,

Quality Inspectors, Buffers and Pre -Process Operator on
completion of 4 hours.
(e) ACTING ALLOWANCE
(i) R M 4 . 0 0 p e r d a y t o a n e m p l o ye e a c t i n g i n a p o s i t i o n o n e
job group higher.
(ii) R M 5 . 0 0 p e r d a y t o a n e m p l o ye e a c t i n g i n a p o s i t i o n t w o o r
more group higher.
18.2 OUTSTATION ALLOWANCE
(a) ACCOMMODATION ALLOWANCE
A n e m p l o ye e , i f r e q u i r e d t o t r a v e l o u t s t a t i o n o n c o m p a n y ‟ s
business and s t a ys overnight, shall be entitled to claim
Accommodation allowance at the maximum amount of
R M 9 0 . 0 0 per night if substantiated by a recei pt and presented.
The amount of the allowance shall relate only to the actual
room rent. Any Government Tax and Service Charge included in
the room bill shall be pa yable b y the Compan y.
(b) SUBSISTENCE ALLOWANCE
A n e m p l o ye e s h a l l b e p a i d a S u b s i s t e n c e A l l o w a n c e i f h e t r a v e l s
on Company‟s business outside his base at the following rates
and subject to the time of departure from time of return to his
base:-
Breakfast : 0730 hrs or before RM5.00

Lu n c h : 1300 - 1400 hrs RM7.00
Dinner : 1900 hrs or after RM8.00
Per diem overnight stay RM10.00
22
(c) OUTSTATION ALLOWANCE
W h e r e a n e m p l o ye e i s r e q u i r e d t o t r a v e l a n d w o r k o u t s t a t i o n
a w a y from Hi s nor m al pl ace o f work shal l be pai d an out st at i on
al l owance o f R M50.00 per da y.
18 . 3 A n e m p l o y e e , i f r e q u i r e d t o a t t e n d a c o u r s e s p o n s o r e d b y t h e
Company shall not be entitled to claim the above allowance where
the relevant allowance are inclusive of the cost of the course.
18 . 4 In al l cas es, t he m ode of t ranspo rt under t hi s Art i cl e sh al l al wa ys be

det erm i ned b y t he C om pan y.
________________ ______________
23
ARTICLE 19 - OVERTIME
19.1 Overtime shall be only worked at the request of the Company and with
the consent of the employee but such consent shall not be
unreasonabl y wi t hhe l d b y t he em pl o ye e and m ust be di st ri but ed fai rl y.
19.2 Overtime work is work performed in excess of the daily normal hours of work
and shall be paid at one and half (1.5) times the employees basic rate per
hour.
19.3 The normal hourly for the purpose of computing overtime payment shall be
calculated as follows: -
(Basic salary p.m. x 12 months) + *Fixed Allowance

52 weeks x normal hour of work per week
= Rate per hour
*Fixed Allowance
Shift Allowance
Transport allowance
18.4 Formula (Overtime/ Rest Day/ Public Holiday)
(a) NON SHIFT EMPLOYEES
(Basic Salary per month x 12 months] + *Fixed Allowance

52 weeks x normal hours of work per week
= Rate per hour
SHIFT EMPLOYEES
(b) 1 s t ROTATION SHIFT
(Basic salary per month x 12 months) + *Fixed Allowance

= Rate per hour
24
(c) 2 ND ROTATION SHIFT
(Basic salary per month x 12 months) + *Fixed Allowance)

52weeks x normal hours of work per week
= Rate per hour
(d) 3 RD ROTATION SHIFT
Basic salary per month x 12 months + *Fixed Allowance)

= Rate per hour
*Fixed Allowance
Shift Allowance
Transport Allowance
________________ ______________
25
ARTICLE 20 - REST DAY
20.1 Every employee shall be entitled to a rest day of one whole d ay in each
week. The normal rest day shall be Sunday for ail employees.
20.2 An employee who work on a rest day, shall be paid at the rate of two (2)
times of his hourl y rate of pay per hour.
20.3 For any work carried out in excess of the normal hours of work on a rest day,
by an employee mentioned under Article 19.2 above, he shall be paid at a
rate three (3) times of his hourl y rate of pay.
20.4 The normal hourl y rate for the purpose of computing overtime payment shall
be calculated as follows; -
(Basic Salary per month x 12 months) + *Fixed Allowance

*Fixed Allowance
Shift Allowance
Transport Allowance
________________ ______________
26
ARTICLE 21 - PUBLIC HOLIDAY
21.1 All employees will be granted paid public holidays on ail holidays gazette by
the Federal/State Government as listed below including any unexpected
public holiday gazette by the Federal /State Government ; -
New Year - 1 day

Birthday of Prophet Muhammad - 1 day
Chinese New Year - 2 days
Thaipusam - 1 day
Birthday of HRH the Yang DiPertuan Besar Negeri Sembilan - 1 day
Labour day - 1 day
Israk & Mikraj - 1 day
Birthday of HRH the Yang Di pertuan Agong - 1 day
Hari Raya Puasa - 2 days
Wesak day - 1 day
National day - 1 day
Hari Raya Haji - 1 day
Maal Hijrah - 1 day
Deepavali - 1 day
Christmas - 1 day
17 days
21.2 Any employee who absents himself from work on a working day immediately
precedi n g or Im m ed i at el y su cc eedi n g a pai d publ i c hol i da y or hol i da ys or
an y d a ys subst i t ut e d t herefor e wi t hout pri or consent of t he C om pan y or
wi t hout reasonabl e ex cuse shal l not be ent i t l ed t o an y hol i da y pa y for t hat
da y o r da ys.
21.3 Any employee requested to work on public holiday shall be entitled to two [2]
days pay at the ordinary rate of pay for one (1) day‟s work in addition to the
paid public holiday pay entitlement provided that no other day or days -off
has been substituted in lieu of that Public holidays
The ordinary rate of pay per day shall be calculated as follows; -
(Basic Salary per month x 12 months) + *Fixed allowance

52 weeks x normal hours of work per week = Rate per hour
Rate per hour x normal hours of work per day = rate per day
* Fixed Allowance
27
Shift Allowance
Transport Allowance
21.4 For any work in excess of the normal hours of works on public holiday, an
employee shall be paid at four and half (4.5) times the ordinary rate per hour
where a part of an hour being calculated as one (1) hour for this purpose.
21.5 Notwithstanding the above, employee will also be eligible f or paid public
holiday on any unexpected public hol iday/s declared as gazette public
holiday/s by Federal or State Government
________________ ______________
28
ARTICLE 22 - ANNUAL LEAVE
22.1 Employees shall be entitled to pa id annual leave as follows; -
(a) On completion of 12 months - Thirteen (13) working days for

Continuous service but less than every period of 12 months
2 years
On completion of 2 years - Sixteen (16) working days for

(b) continuous service but less than every period of 12 months
5 years
(c) On completion of 5 years - Twenty-five (25) working days for

continuous service but less than every period of 12 months
10 years
(d) On completion of 10 years - Twenty-seven (27) working days

continuous service to 20 yea rs for every period of 12 months
(e) On completion of 20 years and Twenty-eight (28) working days

above every continuous service for period of 12 months
22.2 Annual leave shall be in addition to Rest Day, Public Holiday and sick leave, to
which an employee is entitled under the provisions of this Collective
Agreement. Saturday will be considered as a full working day for purpose of
computing annual leave for car drivers. Annual leave application shall be
made two (2) days in advance, for a smoother control of workforce
arrangements in production.
22.3 An employee shall be allowed to carr y forward not more than five (5) days of
his annual leave to the following year.
22.4 Employees shall NOT absent themselves from duty for the purpose of annual
leave without prior approval of the Company.
22.5 Pay in lieu of annual leave shall be given where an employee leaves the
service of the Company, other than in the case of dismissal for misconducts,
for any balance of annual leave to which he is entitled to and which he has
not taken.
29
22.6 The Company may consider granting „No-Pay‟ leave in accordance with the
genuine needs of the employee who has no annual leave to his credit,
provided that such application is made at least two (2) days in advance.
22.7 In the interest of both the Company and the employees, the Company may
declare two (2) periods of factory shutdown; -
(a) The first shutdown in which two (2) days of annual leave shall be taken
to synchronize with Hari Raya Puasa.
(b) The second shutdown in which two ( 2) days of annual leave shall be
taken to synchronize with Deepavali.
________________ ______________
30
ARTICLE 23 - COMPASSIONATE, CALAMITY & SPECIAL LEAVE
23.1 COMPASSIONATE LEAVE
The Company shall grant compassionate leave with pay in any calendar year
to any employee for the following purposes:-
(a) Death of member of immediate family - 3 consecutive

(ie, spouse, child & parent) working days
(b) Death of grandparent, grandchild, brother - 3 consecutive

or sister & parent-in-law working days
23.2 CALAMITY LEAVE
In the event that an employee suffers from disasters such as his permanent
residence being totally or half burnt, destroyed, washed off, flooded or
disaster of any other nature, the Company shall grant 2 consecutive working
days of calamity leave with pay
23.3 An employee who is granted leave under this article shall be required to
produce satisfactory documentary evidence to support the leave.
23.4 SPECIAL LEAVE
The Company shall grant special leave with pay in any calendar year to an
employee for the following purposes:-
(a) First marriage - 4 consecutive working days
(b) Birth of child - 4 consecutive working days up to

five (5) surviving children.
23.5 The Company shall grant special leave with pay for a period of not more than
15 days to confirmed employee to attend pilgrimage once in their service with
the Company.
31
23.6 An employee who is granted leave under this Article shall be required to
produce satisfactory documentary evidence to support the leave.
________________ ______________
32
ARTICLE 24 - LEAVE ON TRADE UNION BUSINESS
24.1 The company shall grant paid leave for a period not exceeding sixteen (16)
days per annum to not more than three (3) employees who are committee
members of the Union or Union official for the purpose of attending any Trade
Union course approved by the Ministry of Human Resources provided that
such applications are made in writing at least one week in advance.
24.2 Union official and union worksite co mmittee members shall be paid their
normal wages on days that they attend meetings with the Company or
meetings held at the labour department/attending Industrial Court cases
provided that the industrial matters are concerning the company.
24.3 The Company may grant paid leave to employees who are Trade Union
officials to attend conference approved by the Ministry of Human Resources
provided that:-
(a) Not more than one (1) person shall attend at any one time;
(b) A total of leave not more than seven (7) da ys for such purpose in any
calendar year;
24.4 The Company shall grant a total of 21 days paid leave per year to an
employee attending to any course sponsored by the Ministry of Defense or
the Ministry of Home Affairs. However, the number of persons allowe d to
attend the above mentioned course/s shall be limited to two (2) persons at
any one time and a total of five (5) persons per calendar year.
24.5 The Company shall grant 10 paid man days for courses sponsored by the
Ministry of Youth and Sport and Minis try of Culture and Tourism. The
emplo yee should provide document ar y evidence in support of his
application.
________________ ______________
33
Without prejudice
ARTICLE 25 - MEDICAL ATTENTION
25.1 All employees, shall be eligible for free medical attention and treatment by:
(a) a registered medical practitioner duly appointed by the Company or;
(b) if no such practitioner is appointed or, if having regard to the nature or circumstances
of the fitness, the service of the medical practitioner so appointed are not obtainable
within a reasonable time or distance, by any other registered medical practitioner or
by a medical officer.
25.2 The Company shall NOT bear the cost of the following :-
(a) Medical or surgical or other appliances, including spectacles or glasses;
(b) Dental charges;

(c) Any expenses in respect of pregnancy, confinement, miscarriage, pre-natal or post-
natal;
(d) Any expenses for treatment of mental cases which have been certified by a government
doctor in charge of mentat cases;
(e) Any expenses incurred in respect of illness or injury or disablement arising, from:-
(i) any proven fault;
(ii) participation in or attending any hazardous acts, pursuit or pastime;
(iii) attempted suicide or self-inflicted injury;
(iv) the performance of any unlawful act, exposure to any unjustifiable hazards
except when endeavoring to save life;
(v) provoked assault;
(vi) the use of drugs not medically prescribed;
(vii) congenital anomalies;
(viii) excessive use of alcohol or illegal abortive measures or any breach of the peace
or disorderly conduct;
(ix) treatment of venereal disease.
(x) Any expenses in respect of illness or injury due to accident arising out of and in
t h e c o u r s e o r e m p l o ym e n t w h i c h c o n s t i t u t e s a v a l i d c l a i m under
Workmen‟s Compensation Ordinance, 1952 in force or Employees‟ Social
Security Act, 1969.
________________ ______________
34
Without prejudice
25.3 Provided it is certified by the Company‟s doctors, the Company shall

pay for the cost of second class (A) accommodation and ward
c h a r g e s i n a g o v e r n m e n t h o s p i t a l t o m a x i m u m o f s i x t y ( 6 0 ) d a ys .
25.4 The total liability of the Company in respect of medical expenses, X -

ra y, surgical, operations fee, anesthetics and spec ialist treatment
while hospitaliz ed shall be limited to RM 5000.00 for each emplo yee
in an y one calendar year of service.
25.5 An employee who disregards the advic e of the company doctor

shall forfeit the benefits under this Articles.
________________ ______________
35
ARTICLE 26 - SICK LEAVE
26.1 An employee shall after examination at the expense of the Company:
(a) by a registered medical practitioner duly appointed by the company

or;
(b) if no such practiti oner is appointed or, if having regard to the nature or
circumstances of the illness, the service of the medical practitioner so
appointed are not obtainable within a reasonable time or distance, by
any other registered medical practitioner or by a medical officer; be
entitled to paid sick leave:
(aa) where no hospitalization is necessary: -
(i) of fourteen (14) days in the aggregate in each calendar

year if the employee has been empl oyed for less than two
(2) years;
(ii) of eighteen (18) days in the aggrega te in each calendar

year if the employee h as been employed for two (2) years
or more but less than five (5) years;
(iii) of t went y-t wo (22 ) da ys i n t he a ggre gat e i n e ach

cal enda r ye ar i f t he em pl o ye e has bee n em pl o yed for
fi ve (5) ye ars of m o re; or
(bb) of sixty (60) days in the aggregate in each calendar year if

hospitalization is necessary, as may be certified by such
registered medical practitioner or medical officer.
Provided that where an emplo yee takes any paid sick leave
under paragraph (aa) in an y c alendar year, the period of his
entitlem ent to paid sick leave under paragraph (bb) in such
cal endar year shall be reduced to the extent of the number of
da ys of paid si ck leave taken under paragraph (aa):
And provi de furt her t hat i f an em pl o ye e i s ce rt i fi ed b y s u ch

re gi st ered m edi c al pract i t i oner or m ed i cal offi cer t o be i l l
enough to need to be hospitalized but is not hospitalized for any
reason what soev er, t he em pl o yee sha l l be deem ed t o be
hospi t al i z ed for t he purpose of t hi s sect i on.
36
(cc) Notwithstanding Clause 25.1 (aa) and (bb) hereinabove the
C o m p a n y s h a l l g r a n t a n e m p l o ye e w h o i n j u r e s h i m s e l f i n
road accidents and is not covered by SOCSO, up to twent y -o n e
( 2 1 ) d a ys p a i d s i c k l e a v e i n t h e a g g r e g a t e p e r c a l e n d a r
year, in addition to the sick lea ve entitlement under clause ( aa )
a n d ( b b ) h e r e i n a b ov e a n d h o s pi t a l i z a t i o n l e a v e o f up - t o 6 0
d a ys . T h e e m p l o ye e concerned must be certified by a
registered medical practitioner appointed by the
C o m p a n y a s b e i n g u n f i t f o r d ut y.
26.2 Where an employee has been hospitalized is discharged from hospital and
continuous to be treated away from the hospital with no break of treatment
this period shall be regarded as part of the hospitalization .
26.3 An employee who absents himself on sick leave: -
(a) which is not certified by a registered medical practitioner or a medical

officer as provided under Section 2( 1) of the Employment Act, 1955 or
a dental surgeon as defined in the Dental Act, 1971; or
(b) which is certified by such registered medical practitioner or medical

officer or dental surgeon, but without informing or attempting to inform
his employer of such sick leave within forty-eight hours of the
commencement thereof;
Shall be deemed to absent himself from work without the permission of

his employer and without reasonable excuse for the days on which he is
so absent from work.
26.4 The Company shall pay the employee his ordinary rate of pay for every day of
such sick leave, and an employee on a monthl y rate of pay shall be deemed
to have received his sick leave pay if he receives from the Company his
m o n t h l y w a g e s , w i t h o u t a b a t e m e n t i n r e s p e c t o f t h e d a ys o n w h i c h h e
w a s o n si ck l eave, f or t he m ont h duri ng whi ch he was on su c h si ck l eave.
26.5 No employee shall be entitled to paid sick leave for the period during wh ich
the employee is entitled to maternity allowance, or for any period during
which he is receiving any compensation for disablement under the
Workmen‟s Compensation Ordinance 1952, or any benefits under the
Employees‟ Social Security Act, 1969.
37
26.6 An employee who, during his working hours, report to a registered medical
practitioner appointed by the Company and who is not subsequently granted
sick leave shall report back for dut y as soon as possible after the completion
of the medical examination.
________________ ______________
38
ARTICLE 27 - MATERNITY BENEFITS
27.1 Female employees will be entitled to Maternit y Benefits in accordance with

the provisions of Part IX Employment Act, 1955.
________________ ______________
39
ARTICLE 28 - PROLONGED ILLNESS
28.1 In the case of prolonged illness, namely Tuberculosis (TB), Cancer, poliomyelitis,
Leukemia, Leprosy, Stroke, Heart Attack, Aids and Amputations an employee
shall be granted eight (8) months leave with full basic pay and further six (6)
months leave with half basic pay.
28.2 Notwithstanding Clause 27.1 herein above for any other prolonged illness not
included in Clause 27.1 herein above, the Company may consider on the
merits of each case at the sole discretion of the company.
28.3 All prolonged illness should be certified by the Company‟s Panel Doctor or by a
Government Hospital, Malaysia.
________________ ______________
40
ARTICLE 29 - DISABLEMENT
29.1 The company shall, as far as possible, provide alternative employment to the
employee who suffers disability due to sickness, or accident subject to the
circumstances obtaining at the time and where alternative employment is
provided, the conditions of employm ent and the salary shall be determined
by the Company.
________________ ______________
41
ARTICLE 30 - INDUSTRIAL ACCIDENT
30.1 All cases of illness or injury due to accident arising out of and in the course of
employment Shall be treated in accordance with the Social Security Act, 1969
or Workmen‟s Compensation Ordinance, 1952 as the case may be, and the
Company shall make up the pay to the Employees concerned for a period of
twelve (12) months only the diffe rence between the cash benefits received
from SOCSO or workmen‟s Compensation and the employee ‟s actual normal
basic pay for the period of their disablement if the cash benefit or
compensation is Jess than their actual normal basic pay.
________________ ______________
42
ARTICLE 31 - UNIFORMS
31.1 The Company will provide uniforms to all employees covered under this
Agreement. The design and t ype of uniform snail be determined by the
Company.
31.2 All employees shall be given 3 pairs of unifor m each year.
31.3 All employees provided with uniforms shall wear such uniforms at all times
during working hours. Failure to wear such uniforms shall be construed as an
act of misconduct and the employee concerned shall be liable to disciplinary
action by the Company.
________________ ______________
43
ARTICLE 32 - SAFETY WEAR & EQUIPMENT
32.1 The compan y shal l provide safet y wear and/or equipment to thos e
emplo yees for whom safet y wear/equi pm ent is considered necessar y b y th e
Compan y‟s safet y committee.
32.2 Employees provided with such safety wear/equipment shall wear or use them
at all time during working hours. Repeated failure to wear or use such s afety
wear/ equi pm ent sh a l l be const rued as an act o f m i sconduct and t he
em p l o ye e concerned shall be liable to disciplinary action by the Company.
32.3 All employees shall observe and comply with all Safety Rules and Regulations
contained in the Occupational Safety and Health Act, 1994 (O.S.H.A) and any
amendment made thereto.
________________ ______________
44
ARTICLE 33 - RETRENCHMENT/ RETRECHMENT BENEFIT
33.1 The provisions of this Article shall apply to those employees who are declared
redundant by the company (ie, whose services are surplus to th e company‟s
requirements) includes when the Company is permanently closing for business
but shall not apply to dismissal for disciplinary reason, resignation, retirements
or termination of employment for any other reason.
33.2 Where the Company intends to terminate the service of an employee on the
ground of redundancy, two (2) months prior notice in writing shall be given or
two (2) months pay in lieu of such notice.
33.3 A confirmed employee whose appointment is terminated on the grounds of

redundancy in accordance to the provisions of this Article, shall in addition to
receiving such notice or pay in lieu, thereof, be entitled to a retrenchment
benefits calculated on the following basis;
(a) 30 days on the last drawn wages multiply by the number of years of
service with the company.
(b) Wages earned shall mean the basic pay earned exclusive of overtime,
bonus, allowance or any other payment by whatever name called.
(c) The rat e pe r da y t o det erm i ne ret r enchm ent ben efi t shal l be
cal cul at ed as follows;-
*Wages per month

---------------------
26
*Wages shall have the meaning assigned under Section 2

(i) of the Employment Act, 1955.
33.4 Should there be a need of additio nal workers the Company will give
preference for re employment to those retrenched subject to their suitabilit y
for the jobs available and provided that the vacancies occur within 6 months
from the date of their retrenchment.
45
33.5 Redundancy & Retrenchment
(a) In circumstances where redundancy is likely, the Company shall, in
consultation with the Union and in consultation with the Ministry of
Human Resources, take positive steps to avert or minimize reductions of
work force by the adoption of appropriate measures such as:
(i) Limitation of requirement;

(ii) Restriction of overtime work;
(iii) Restriction of work on weekly day of rest;
(iv) Reduction in number of shits or days worked a week;
(v) Reduction in the number of hours of work;
(vi) Re-training and/or transfer to other department work
(b) The ultimate responsibility for deciding on the size of the workforce must
rest with the Company, but before any decisio n or reduction is taken
there shall be consultation with the union representatives on the
reduction.
(c) If retrenchment becomes necessary, despite having taken appropriate

measures, the company shall take the following measures; -
(i) Giving as early a warning as practicable, to the employees
concerned;
(ii) Introducing schemes for voluntary retrenchment and retirement
and for payment of redundancy and retirement benefits;
(iii) Retiring employees who are beyond their normal retirement age;
(iv) Assisting in cooperation with the Ministry of Human Resources for
the employee to find work outside the undertaking;
(v) Spreading termination of empfoyment over a longer period;
(v) Ensuring that no such announcement is made before the
employee and the union had been informed
(d) The Company shall select employees to be retrenched in accordance

with an objective criteria, which should have been worked out in
advance with the Union, as appropriate m ay include;-
(i) need for the efficient operation of the establishment or
undertaking;
(ii) ability, experience, skill and occupational qualifications of
individual employee required by the establishment of undertaking
under (i);
46
(iii) consideration for length of service and status (non-citizens. Casual,
temporary, permanent);
(iv) age
(v) family situation;
(vi) such other criteria as many be formulated in the context of national
policies.
________________ ______________
47
ARTICLE 34 - RETIREMENT
34.1 All male/female employees shall retire on attaining the age of fifty five (55)
but it may be extended on a yearly basis up to maximum extra five (5) years
by the Company.
34.2 In the absence of the birth certificate, the date of birth as shown in the Identity
Card of the employee concerned shall be deemed to be the date of birth for
the purpose of determining the retirement age. In the case when onl y the
year is indicated in the Identit y Card, 31 s t December of that year would be
taken as the date for determining the retirement age.
34.3 Employees shall have the option, to retire on attaining the age of fifty (50)
years and female-employees on attaining the age of forty-five (45) years.
34.4 The company shall grant an employee t wo (2) weeks leave with pay before
retiring. In case of medically boarded out or death of an employee, the
Company shall make payment equivalent to two (2) weeks pay as an addition
to the retirement benefits as in Article 34.
________________ ______________
48
ARTICLE 35 - RETIREMENT BENEFIT
35.1 The company shall make a lump -sum payment hereinafter referred to as
retirement benefit in accordance with the following; -
(a) to employees who retire on or after attaining the age of retirement;
(b) to employees who retire on medical grounds where the registered

medical practitioner appointed by the Company certifies that the
employee is unfit to perform the duties for which he is employed.
(c) on the death of an employee to the legal representative of the deceased

upon production of the appropriate legal documents.
35.2 Notwithstanding the above, no employee shall be entitled to retirement

benefits unless he has completed five (5) years continuous service with the
company.
35.3 All employees who retire in accordance with this Article shall be eligible for
retirement benefit which shall be calculated on the basis of eight percent (8%)
of total basic salary earned since his first year of service.
35.4 Basic salary earned shall mean pay e arned exclusive of overtime, bonus,
allowance or any payment by whatever name called.
________________ ______________
49
ARTICLE 36 - FUNERAL EXPENSES
36.1 In the event death of an employee, the Company will contribute RM2,00 0.00
for his funeral expenses to his legal representative.
________________ ______________
50
ARTICLE 37 - BONUS
DISPUTED
51
ARTICLE 38 - SALARY SCALE
38.1 Employees will be paid in accordance with the salary scale set out i n
Appendix B to this Agreement. E ach employee will be informed of the salar y
group applicable to him.
38.2 The allocation of the Group and job functions of each employee shall be
decided by the company.
________________ ______________
52
ARTICLE 39 - SALARY CONVERSION
DISPUTED
53
ARTICLE 41 - DOWNTIME
41.1 In the event of failure in the supply of electricity or water to the factory
occurring;-
(a) On the 1 s t and 2 n d day - full wages will be paid
41.2 Notwithstanding the above , it is agreed that, whenever possible the Company
will deploy the affected workers to perform other duties during the period of
any breakdown.
41.3 In the event of temporary shutdown as a result economic downturn affecting

the company‟s business, the following provisions will be applied.
(a) Employees shall be paid 50% of their basic pay for the shutdown period.
(b) In the event where a Public Holiday falls on any day during the shutdown
full basic pay shall be payable for that day or days.
(c) For the purpose of this Article, the period of shutdown shall be considered
as inclusive in the twelve (12) months of continuous service for that
calendar year
________________ ______________
55
ARTICLE 42 - TRANSPORT SUBSIDY
42.1 The company shall pay Transport Subsidy of RM55.00 per month for a
complete day work (checked in monthly) to all employees.
42.2 Employee who are absent without permission shall have an amount of RM1.83
being deducted for each day of absence.
42.3 Notwithstanding clause 41.2 above, employees on hospitaliza tion/ SOCSO

leave shall continue to receive their transport allowance without any
abatement.
42.4 Employees who have exhausted the paid medical leave (not hospitalization
leave) and continue to take unpaid medi cal leave an amount of RM1.83 shall
be deducted on each occasion.
________________ ______________
56
ARTICLE 43 - INSURANCE COVERAGE
43.1 All confirmed employees shall be insured under a Group Personal Accident
(GPA) Insurance policy which provides for twenty-four (24) hours coverage for
death and permanent disablement. The sum insured for each eligible
employee is as follows; -
(a) Employees with less than 5 years service with the Company -
RM15,000.00
(b) Employees with above 5 years service with the Company -

RM30,000.00
(c) Employees with above 20 years service with the Company -

RM40,000.00
________________ ______________
57
ARTICLE 44 - FOOD SUBSIDY - COUPON SYSTEM
44.1 The Company shall pay food subsidy in the form of coupon of RM40.00 per
month to all employees. The coupon shall be arranged by the company and
distributed to employees through their respective supervisors at the end each
month (31 st of the month).
________________ ______________
58
ARTICLE 45 - RETROSPECTIVE BENEFITS
The payment of all retrospective benefits shall be mutually decided by both parties.
________________ ______________
59
APPENDIX A
EXCLUSION LIST
MANAGERIAL STAFF
(a) Directors, Managers and Assistant Managers;
(b) All employees designated as members of the Company‟s Executive Staff;
(c) Supervisors;
(d) Accountant and Accounts Supervisors;
(e) Foreman/Technician;
(f) Production Officers/Management Traine es
CONFIDENTIAL STAFF
(a) Clerks/Typist of the Personal Administration Department;
(b) Sales Supervisors and Sales Representatives;
(c) Cost Assistant;
(d) Secretaries/Confidential Clerks
OTHERS
(a) Security staff
(b) Electrical Chargeman
________________ ______________
60
________________ ______________
APPENDIX B
SALARY STRUCTURE
DISPUTED
GROUP MINIMUM MAXIMUM INCREEMENT

(RM) (RM) (RM)
GROUP A
DISPUTED DISPUTED DISPUTED
General Worker
GROUP B
Apprentice Filter DISPUTED DISPUTED DISPUTED

Assintant Electrician
Pre-process Operator
Buffer
Final Process
Operator
Logistic Operator
GROUP C
Company‟s Drivers DISPUTED DISPUTED DISPUTED
H.P. Operator
Assistant Storekeeper
Post Process
Operator
(Laminated Glass
Plant)
Forklift Driver
Assistant Craftman
Assistant CNC
Controller
DISPUTED DISPUTED DISPUTED
61
GROUP D
Group Leader
CNC Controller
GROUP E
Group Leader DISPUTED DISPUTED DISPUTED

CNC Controller
Filter
Electrician
Storekeeper
Quality Control
Inspector
Maintanance/carpenter
GROUP F
Chargehand DISPUTED DISPUTED DISPUTED

Craftman
Senior Electrician
Senior Filter
GROUP G
Electrician Wireman DISPUTED DISPUTED DISPUTED

(with qualified
certified)
62
THIS FORMS PART OF AWARD NO. 1104 OF 2011
IN CASE 1/2-1187/07
APPENDIX B
9TH COLLECTIVE AGREEMENT

FROM 01.05.2006 - 30.04.2009
SALARY STRUCTURE FOR 2006 AND THEREAFTER
GROUP MINIMUM MAXIMUM INCREMENT
GROUP A 447 1556 43
General Worker
510 1808 50
GROUP B
Apprentice Filter
Assistant Electrician
Pre Process Operator
Furnace Operator Buffer
Final Process Operator
Logistics Operator
541 1866 51
GROUP C
Company Drivers
H.P Operator
Assistant Storekeeper
Post Process Operator
(Laminated Glass Plant)
Forklift Driver
Assistant Craftman
Assistant CNC Controller
CNC Controller
63
APPENDIX B
9TH COLLECTIVE AGREEMENT
FROM 01.05.2006 - 30.04.2009
SALARY STRUCTURE FOR 2006 AND THEREAFTER
GROUP MINIMUM MAXIMUM INCREMENT
GROUP D 447 1556 43
Group Leader
CNC Controller
510 1808 50
GROUP E
Fitter
Electrician
Storekeeper
Quality Control Inspector
Maintenance/Carpenter
541 1866 51
GROUP F
Chargehand
Craftman
Senior Electrician
Senior Fitter
GROUP G
Electrician Wireman
(with qualified certificate)
64

Mcis V Kes Pekerja Bukan Logam 2010

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INDUSTRIAL COURT OF MALAYSIA

[CASE NO. 1/2-1187/07]

MCIS SAFETY GLASS SDN BHD

AWARD NO. 1104 OF 2010

Coram : YA PUAN SUSILA SITHAMPARAM - PRESIDENT

Venue : Industrial Court Kuala Lumpur.

Date of order : 9 May 2007

Dates of hearing : 17 October 2008

Date of oral : 1 July 2010

For the company/respondent - Mahadi

This was a reference by the Honourable Minister of Human Reso urces

The hearing commenced on 17 October 2008 before YA Dato‟ Umi

as a Judicial Commissioner on 30 December 2008. The union retained a new

hearing, there were 3 disputed articles in the said collective agreement on

There was a third coram comprising of YA Puan Susila Sithamparam and

Productivity Linked Wage System

The union contended that the employees of the company would be

The merits of PLWS was highlighted in Prestige Ceramics Sdn Bhd v.

1177 (hereinafter referred to as “Prestige Ceramics No. 2”) and Kesatuan

Pekerja-Pekerja Perkilangan Perusahaan Makanan v. Nestle Manufacturing

Malaysia Sdn Bhd [2008] 2 LNS 0045.

In a strong dissent, the learned employees‟ representative on the panel in

The implementation of PLWS

In Prestige Ceramics No. 2, the court accepted the proposal by the

In Prestige Ceramics Sdn Bhd v. Non-Metallic Mineral Products

In Syarikat Denso (M) Sdn Bhd v. Kesatuan Kebangsaan Pekerja-Pekerja

The court also allowed a bonus which comprised of a fixed component of

duration of the collective agreement.

In Kesatuan Kebangsaan Pekerja-Pekerja Perdagangan v. Kumpulan

implementation of PLWS under the sixth collective agreement. The court

increment. The quantum of the annual increment depended on the appraisal

ratings of the employee.

average working capital.

the profitability of the company was Return of Average Working Capital

(RAWC) = Trading Profit x 100%

The relevance of the financial position of the employer

In Prestige Ceramics No 2, the court implemented PLWS as the company

In Kumpulan O’ Connors’s case, the court did not take into

revenue when it awarded the salary adjustment.

Administrative and Management office in 2005. He tendered photographs of

old office could no longer house the present number of staff.

He testified that the company was no longer in a position to pay

vide Bundle COB1, page 36.

He stated further that in 2007, the company had struggled to make a

He explained that the company depended heavily on machinery in its

timing of differences between depreciation and capital allowance.

the revenue of the company had decreased from RM53,588,321 in 2006 to

He stated that the company decided to have a new office building to

centralise its administration, to upgrade its facilities such as a project room to

He stated that the company paid dividends to its shareholders in 2003,

An evaluation of the company’s proposals for bonus and annual

done in a just and equitable manner.

growth and performance improvement. The employees‟ performance would be

vide Bundle COB1, pages 69 to 80.

There was a genuine concern by the union that if PLWS is introduced

be favouritism and victimisation in the appraisal of their performance. The

agreement has ended on 30 April 2009.

The was a provision in the collective agreement for the

appraisee/employee to sign and to give his comments. However, there was no