Industrial Court Rules in Favour of Malayan Commercial Banks Association
Dispute Over Festival Aid for Bank Employees
The Industrial Court has ruled in favour of the Malayan Commercial Banks Association (MCBA) in its trade dispute with the National Union of Bank Employees (NUBE) over festival aid for bank employees.
Memorandum of Agreement has No Legal Effect
Industrial Court chairman D Paramalingam said a memorandum of agreement (MoA) on festival aid, dated April 5, 2023, was of no legal or binding effect. This is because the MoA had not been deposited with the court for formal recognition, as required by the Industrial Relations Act 1967.
No Obligation to Pay Aid for Subsequent Years
Paramalingam also said that the MoA only provides for a one-off payment for the year 2023 and not for the following years, although parties were at liberty and had the discretion to review any payment of festival aid for the subsequent year post-2023.
Stare Decisis Principle
Paramalingam was bound by the stare decisis principle, as similar decisions had been made in the past by the High Court, Court of Appeal, and Federal Court.
NUBE’s Request Rejected
Despite knowing full well the outcome of the NUBE v HSBC Bank Malaysia Bhd case, the union attempted to introduce a MoA as an implied term of employment. However, Paramalingam rejected this request, stating that the court would not allow itself to be dragged into the quagmire of judicial rowdyism.
Dispute Origins
The dispute over the festival aid followed unsuccessful conciliation efforts by the industrial relations department in February and March last year, leading to the referral of the case on April 16, 2024.
Legal Representation
Lawyers N Sivabalah and Reena Embasegaran appeared for MCBA, while Ravi Nekoo and Arvin Kumar Mohan represented the union.
Conclusion
The Industrial Court’s decision is a significant one, as it highlights the importance of adhering to the Industrial Relations Act 1967. The court’s ruling also underscores the need for parties to comply with the stare decisis principle and respect the decisions of higher courts.
Frequently Asked Questions
Q: What is the outcome of the Industrial Court’s decision?
A: The Industrial Court has ruled in favour of the Malayan Commercial Banks Association (MCBA) in its trade dispute with the National Union of Bank Employees (NUBE) over festival aid for bank employees.
Q: Why did the Industrial Court reject NUBE’s request?
A: The court rejected NUBE’s request because it was imploring the court to depart from an apex court decision, which the court would not do.
Q: What is the significance of the Industrial Relations Act 1967?
A: The Industrial Relations Act 1967 is a crucial piece of legislation that regulates industrial relations in Malaysia. The act provides for the establishment of the Industrial Court, which has the power to hear and determine industrial disputes.