AWARD

Susila Sithamparam:

[1] This was a reference by the Honourable Minister of Human Resources pursuant to s. 26(2) Industrial Relations Act 1967 arising out of a trade dispute between Muda Paper Mills (Penang) Sdn Bhd and Paper and Paper Products Manufacturing Employees' Union (hereinafter referred to as "the union") with respect to the Seventh Collective Agreement for the period 1 January 2006 to 31 December 2008.

[2] On 18 May 2007, the name of the employer in the order of reference was amended by the court to Muda Paper Mills Sdn Bhd (hereinafter referred to as "MPMSB"). MPMSB was formerly known as North Malaya Paper Mills Sdn Bhd. The name of the company was changed to MPMSB on 24 September 1999.

[3] The first paper mill was set up by North Malaya Paper Mills Sdn Bhd at Jalan Tasek in Seberang Perai (hereinafter referred to as "the Tasek mill"). A second paper mill was set up by the company in Kajang (hereinafter referred to as "the Kajang mill"). There was no evidence as to when the Tasek and Kajang mills were set up. By 2004, the Kajang mill had already been set up vide corporate information marked U1 and annexed to the statement of case.

[4] When North Malaya Paper Mills Sdn