UNI-LCJ FINANCE WORKSHOP, 11TH TO 11TH JUNE 2013. TOKYO, JAPAN PRESENTATION BY: CATHERINE JIKUNAN GENERAL SECRETARY SABAH BANKING EMPLOYEES’ UNION, SABAH, MALAYSIA. INDUSTRIAL RELATION IN MALAYSIA Law providing basic benefits Employment Act 1955 Sabah Labour Ordinance Sarawak Labour Ordinance Children and young persons (employment)Act 1966 Minimum Wage act 2012 Weekly Holiday Act, 1950 Pensions Act, 1980 INDUSTRIAL RELATION IN MALAYSIA Laws establishing the Industrial Relation Framework Trade Union Act 1959 Industrial Relation Act 1967 Public Service Tribunal Act 19 Social Security Laws Employees Provident Fund Act 1991 Employees Social Security Act 1969 Workmen’s Compensation Act 1952 INDUSTRIAL RELATION IN MALAYSIA Safety Laws Factories and Machinery Act 1967 Occupational Safety & health Act 1994 DISPUTES Labour Department Labour Court Industrial Relation Department Industrial Court Appellate Board (Employees Security) Social BANKING REFORM INITIATED FOLLOWING GLOBAL FINANCIAL CRISIS Financial crisis 1997 Local Banks merged to form bigger and stronger Bank Local banks had 38 banks, after merger only 9 Finance Company force to merge with their parent Company i.e. the Bank New Technologies Non core banking business outsourced to third party Lean and trim of workforce Mutliskilling BANKING REFORM INITIATED FOLLOWING GLOBAL FINANCIAL CRISIS CURRENT GLOBAL FINANCIAL CRISIS Central Bank- Impose stricter policy Stricter credit check Additional charges impose i.e. Credit Card Work processing constantly change in line with the new technology application More merger expected More outsource of non-core business CURRENT SITUATION OF FINANCE INDUSTRY IN MALAYSIA Banks continuously making huge profit Several local Banks has been activity branching out to other ASEAN country i.e. CIMB Bank operates in Indonesia, Thailand, Vietnam, Singapore, Hong Kong, Philippines CIMB continue to acquire smaller banks’ in country like Philippines MAYBANK operates in Indonesia, Thailand, Myanmar, Vietnam, Philippines, Singapore And still looking for victims in other country MALAYSIA YET TO RACTIFY CONVENTION 87 CHARACTERISTICS OF LABOURMANAGEMENT RELATION Recently just concluded 13th Collective Agreement with salary adjustment of 10% across the board. Collective Agreement expired 31st December 2011. Able to settle issues at the office level without referring to the head Office of the Union. Cordial relationship but with precaution Most issues arises because of the Performance Management System (PMS) and Sales. ROLES AND CHALLENGES OF SBEU ROLES To protect members job security To enhance and safe guard the Collective Agreement Providing continuous training and education to all members Recruitment Organising Work with other Banks Union i.e. NUBE Work with Malaysian Trades Union Congress Represent workers at the Industrial Court Labour Court, Social Security, Pencen Fund. ROLES AND CHALLENGES OF SBEU CHALLENGES Membership shrink Trade Union Act, limiting trade union membership Continuously redesign jobs i.e. same job function but different titles More outsource non-core business to third party i.e. cheques collection from the ATM machine. Engagement of Security Guard and Courier Services to perform banks’ job. ROLES AND CHALLENGES OF SBEU Sales, sales ,sales Performance management System Financial limitation Members commitment to Union 2nd line leaders Men are staying away from the Union leadership.