As Aidilfitri nears, bank workers' union press HR minister over festival payment

KUALA LUMPUR, April 8 — The National Union of Bank Employees (Nube) today alleged that Human Resources Minister Steven Sim's decision to discuss a one-off festivity bonus with employers in their absence is against an International Labour Organisation (ILO) convention.

The union said the meeting with the Malayan Commercial Banks' Association (MCBA) was a “gross violation of ILO rules” because Sim can be seen as siding employers while negotiations are ongoing.

Article 2 of Convention 87 on Freedom of Association and Protection of the Right to Organisation states that workers' and employers' organisations have the right to draw up their constitutions and rules and public authorities shall refrain from any interference which would restrict this right or impede the lawful exercise of it.

“This direct intervention in the reconciliation process and siding with the MCBA is a gross violation of ILO rules. Further, the Minister’s actions have weakened the industrial relations process and run contrary to the norms of good faith collective bargaining,” Nube said in a statement.

Sim has yet to confirm or deny the meeting.

Nube said its allegation is based on circulars issued to staff which directly thanked the minister for his time, input, and guidance.

The circular was said to have been issued five days after a mediation meeting between Nube and MCBA, chaired by the Industrial Relations Department, failed to come up with an agreeable resolution.

The union claimed the circular was evidence of “the duplicitous nature with which the Minister circumvented correct and proper process by excluding Nube from negotiations”.

Nube members alleged their employers are attempting to renege on an agreement for a yearly ex-gratia payment to be made during every major religious or cultural celebration.

Banks however said the agreement was for a one-off payment.

“The Festival Aid-MoA clearly stipulates that the quantum of payment may be reviewed in the following year – namely, 2024.

“It does not indicate the 2023 Festival Aid payment was a one-off, or that MCBA could adjust the aforementioned quantum without negotiating with Nube, the rightful voice of workers,” the union said.

By law a dispute must go through conciliation, mediation or reference to Industrial Courts if necessary. Nube said while the Minister may take action, Sim has done so without Nube and MCBA exhausting existing avenues.

“The MCBA has also taken the coward’s way out by using the Minister as a shield rather than approaching the negotiation table with Nube,” the union said.