Harun bin Mahmud Hashim J:

This is an application for declarations on:

1. Whether arrears of wages paid for retrospective wage increases attract Employees Provident Fund (EPF) contributions. 2. Whether such arrears of wages attract contribu- tions towards Retirement Benefits under the collective agreement signed on the 11 July 1984, between Malayan Commercial Banks Association (of which the defendant is a member) and the plaintiff.

The plaintiff is a trade union of employees and the defendant a member of a trade union of employers, both registered under the Trade Unions Act 1959 . The two trade unions entered into a collective agreement on 11 July 1984 with retrospective effect from 1 January 1984 for a period of three years. The collective agreement was deposited with the Industrial Court which took cognizance of it under s.16 of the Industrial Relations Act 1967 and accordingly bound the plaintiff and the defendant. Under the collective agreement, Class II officers of the defendant bank are entitled to an increase in pay. The defendant accordingly paid arrears of salary in one lump sum to all eligible employees in July 1984.

The plaintiff contends that in paying out t