The Industrial Court must consider statutory provisions when making awards related to trade disputes, focusing on equity and employee benefits compliance.

Reference

[1] This is a reference dated 7 September 2020 made by the Honourable Minister of Human Resources pursuant to s 26(1) of the Industrial Relations Act 1967 ("the Act") arising out of a trade dispute between Kesatuan Sekerja Industri Elektronik Wilayah Timur Semenanjung Malaysia ("the Union") and ROHM-Wako Electronics (Malaysia) Sdn Bhd ("the Company") in relation to the terms and conditions of employment of the 2nd Collective Agreement for period of 1 May 2020 to 30 April 2023.

Introduction

[2] This is a trade dispute between the Union and the Company in relation to the terms to be incorporated into the 2nd Collective Agreement for period of 1 May 2020 to 30 April 2023. The Company is in the business of manufacturing electronic components such as diodes and LED. The products of the Company are made for export. The Company operates its business in Kota Bahru, Kelantan.

[3] The First Collective Agreement between the parties was for the period of 1 May 2017 until 30 April 2020.

[4] Prior to the Ministerial reference, the parties held direct negotiations but could not resolve the dispute pertaining to the 2nd Collective Agreement. The parties therefore had agreed to submit a joint request by letter dated 21 July 2020 to the Honourable Minister to refer the trade dispute pertaining to the 2nd Collective Agreement to the Industrial Court for adjudication and an Award.

[5] The Union had initially proposed 55 Articles in the 2nd Collective Agreement (pp 9 to 74 of UB-1). The Company had meanwhile counter proposed to the Union that the Articles of the 1st Collective Agreement (pp 119 to 151 of COB-1) be maintained in the 2nd Collective Agreement.

[6] Upon reference by the Honourable Minister, the parties had narrowed down the issues disputed on instructions of the Court. The parties were thus able to reduce the disputed Articles to 13 Articles.

[7] At the outset of the hearing, the Learned Counsel of the Union informed the Court that the disputed Articles have been reduced further to 11 Articles.

[8] The Court has in handing down this Award in this case considered the notes of proceedings as well as the following documents and cause papers:

(i) The Union's Statement of Case dated 20 November 2020

(ii) The Company's Statement in Reply dated 31 December 2020

(iii) The Union's Bundles of Documents - UB-1 and UB-2

(iv) The Company's Bundles of Documents - COB-1 to COB-4

(v) The Union's Witness Statement - (Mohd Fazuid Akram Bin Abdul Kadir) - UW-1

(vi) The Company's Witness Statement (Wong Pui Li) - COWS-1

(vii) The Union's Written Submissions on 29 November 2022 and 3 January 2023

(viii) The Company's Written Submissions on 1 December 2022 and 4 January 2023

[9] The Agreed Articles of the 2nd Collective Agreement are annexed as to this Award as an Appendix. These articles are as follows:

(i) Article 1 - Parties to the Agreement

(ii) Article 2 - Title

(iii) Article 3 - Scope of Agreement

(iv) Article 4 - Effective Date and Duration of Agreement

(v) Article 5 - Preamble

(vi) Article 6 - Interpretation and Arbitration

(vii) Article 7 - Modification and Amendment To Agreement

(viii) Article 8 - Termination of Agreement

(ix) Article 10 - Recognition of the Union

(x) Article 11 - Recognition of the Company

(xi) Article 12 - Language and Copies of the Agreement

(xii) Article 13 - Check Off

(xiii) Article 14 - Existing Benefit

(xiv) Article 15 - Labour - Management Council

(xv) Article 16 - Grievance Procedure

(xvi) Article 17 - Leave on Trade Union Business

(xvii) Article 18 - Notice Boards

(xviii) Article 19 - Appointment and Probationary Period

(xix) Article 20 - Notice of Vacancy and Promotion

(xx) Article 21 - Notice of Termination

(xxi) A