Assignment 1 Collective Agreement Group 1

FACULTY OF BUSINESS AND MANAGEMENT
MASTER OF HUMAN RESOURCE MANAGEMENT (BA707)
HRM 723: EMPLOYEE RELATIONS
ASSIGNMENT 1: COLLECTIVE AGREEMENT
Between Boon Siew Honda Sdn. Bhd. And National Union of Transport Equipment and
Allied Industries Workers
PREPARED BY:
STUDENT NUR ARYANNIE BINTI AHMAD (LEADER) 2022668084

NAME & ID NURHUDATUL HAZIQAH BINTI ZAINISHAM 2022207572
NAZLIN MUNIRA BINTI MOHD NAZRI 2022265456
SYAZWINA BINTI MUHAMAD NUKHSHAH BANDI 2022618904
GROUP BA707 2A
ASSESSMENT GROUP ASSIGNMENT (30%)
PREPARED FOR:
SIR SHAHRULZAMAN HJ. MOHD SALEH
SUBMISSION DATE:
24th JUNE 2023

TABLE OF CONTENTS
1.0 INTRODUCTION ................................................................................................................................. 1

1.1 History of Boon Siew Honda Sdn Bhd ..................................................................................... 5
2.0 COMPARISON OF SUBSEQUENT CA OF BOON SIEW HONDA SDN BHD COMPANY ... 6
2.1 ARTICLE 2 – DURATION, MODIFICATION AND TERMINATION OF AGREEMENT ........ 6
2.2 ARTICLE 3 – RECOGNITION OF THE UNION AND SECURITY .......................................... 9
2.3 ARTICLE 6 – APPLICATION ...................................................................................................... 11
2.4 ARTICLE 11 – WAGES/SALARY ADMINISTRATION............................................................ 13
2.5 ARTICLE 15 – OVERTIME .......................................................................................................... 17
2.6 ARTICLE 16 - GAZETTED PUBLIC HOLIDAYS ..................................................................... 20
2.7 ARTICLE 18 - ANNUAL LEAVE ................................................................................................. 22
2.8 ARTICLE 19 - STUDY LEAVE.................................................................................................... 25
2.9 ARTICLE 22 - MEDICAL BENEFITS ........................................................................................ 28
2.10 ARTICLE 26- SAFETY & HEALTH ......................................................................................... 37
2.11 ARTICLE 27 – DISCIPLINE ...................................................................................................... 39
2.12 ARTICLE 28 – GRIEVANCE PROCEDURE .......................................................................... 43
2.13 ARTICLE 34 – SALARY ADJUSTMENT/ UPLIFT & SPECIAL MINIMUM WAGE
SALARY ADJUSTMENT .................................................................................................................... 46
3.0 SUGGESTION ON NEW COLLECTIVE AGREEMENT ............................................................. 48
3.1 Flexible Working Arrangement ................................................................................................ 48
3.2 Personal-Development Plan ..................................................................................................... 50
3.3 Paternity Leave ............................................................................................................................ 51
3.4 Requirement to Exhibit a Notice on Sexual Harassment .................................................. 52
3.5 Apprenticeship ............................................................................................................................. 53
4.0 CONCLUSION ................................................................................................................................... 55
REFERENCES ......................................................................................................................................... 57
1.0 INTRODUCTION
According to the International Labour Organization (ILO) (2015), defined Collective
Agreement (CA) as all written agreements concerning working conditions and terms of
employment concluded between an employer, a group of employers, or one or more employers'
organizations, on the one hand, and one or more representative workers' organizations, or, in the
absence of such organizations, the representatives of the workers duly elected and authorized by
them in accordance with national laws and regulations, on the other. In Malaysia, collective
agreement is under the Inductrial Relations Act 1967, Act 177 in Part IV (14) (Ministry of Human
Resource, 1976). Moreover, the purpose of collective bargaining is to reach a collective
bargaining agreement. This is because, collective bargaining is free and voluntary, therefore, the
negotiating outcomes contained in collective agreements are developed by the parties
themselves rather than imposed on them. Additionally, according to Kamarulzaman (2020), a
collective agreement is an important agreement that will lead to a healthy relationship between
the employer and the employee, and also resulting in an increase in production. Furthermore,
collective bargaining between the employer and the trade union results in collective agreement
which it is utilized as an effective platform to agree on the conditions and terms of employment
for the company's employees. However, in order to achieve such goals, the country must ensure
that industrial relations in the country provide the necessary legal mechanism for the respective
parties involved in collective bargaining to reach a mutually beneficial collective agreement
(Svarstad & Kostøl, 2022). Collective agreements formalize unions' power to express their views
on working conditions and corporate organization. A collective agreement is thus a key
organizational tool through which unions can influence industrial relations at the firm level.
At the same time, according to Lin, (2022), collective agreements specify some terms and
circumstances for a group of employees and establishes the employees' working rights. Collective
bargaining agreements typically address wage rates, health benefits, layoff procedures, the
employee's right to challenge the employer's disciplinary action, and vacation and holiday
entitlement. On the top of that, collective agreements can give employers a sense of security and
stability since they know they will be protected from being illegally dismissed under the agreement
because there is a support system and process in place to fight for their rights. Employees, on
the other hand, will be able to project the company's operational expenses, which are contributed
by employee compensation, wages, and benefits. This will ensure that their company is more
stable. In addition, collective agreement is a collaboration between the company and the
employees through their trade union. Due to this, employers must realize that employees are one
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of the most significant resources for the firm in order to run efficiently. By working together, it is
possible to ensure that the firm will be able to sustain its' business in the long run and will have
the opportunity to enter new markets with steady operations and safe financial standing. Due to
this, collective agreements must bind the signatories and those on whose behalf they are
concluded at the same time apply to all workers of the classes concerned in the undertakings
they cover, unless the agreement expressly states otherwise. It is also pivotal to take precedence
over individual employment contracts, while recognizing stipulations in individual contracts that
are more favorable to workers.
Additionally, the employer stands to benefit from a collective agreement too. First, there
will be simplicity in the hiring and employment procedure as it has been established and agreed
upon in the collective agreement. Secondly, it clarity fosters positive engagement and long-term
growth by establishing explicit norms that everyone understands even before they begin working.
Furthermore, collective agreements give stability since they establish long-term agreed-upon
norms and regulations that must be followed by both the employer and their employees. Last but
not least, the employees will know that their well-being is well taken care of under the collective
agreement, while the employer will be in a better position to foresee their operations and financial
requirements. If employed members agree to the conditions of the tentative agreement, they can
vote to authorize it. Typically, union members vote by secret ballot, but this varies depending on
the organization’s regulations. Once the union and management have ratified the agreement,
both parties must adhere to it and follow its terms.
By virtue of, according to a case reported by IndustriAll Global Union (2021), entitled “Malaysian
Union Wins Collective Agreement After Nine Years”, since forming a worksite committee at an
aluminum electrolytic capacitor plant in 2012 and winning a secret election on union registration,
the employer has filed legal challenges against the union. It was questioned if the secret ballot
result was genuine, claiming that the voting papers produced by the industrial relations
department were not in other languages, despite the fact that the plant employed numerous
Myanmar, Indonesian, and Philippine migrant workers. The union prevailed in court. In a second
attempt, the corporation sued the union president, Wan Noorulaazhar bin Mohd Hanafiah,
claiming that he could not represent union members because he was an executive-level
employee. The case was dismissed in court. Nichicon Malaysia Sdn. Bhd received the union's
first collective bargaining proposal in 2019. However, the firm stalled talks by rejecting the majority
of the union's suggestions. However, on 14 February 2020, the union organized a so called a
Valentine picket. The collective action compelled the Ministry of Human Resources to refer the
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matter to the industrial court as soon as possible. Thus in May 2021 the firm and the union
achieved an out-of-court settlement and signed the first collective agreement. This victory is the
culmination of a nine-year collective battle by all union members who have fought together since
the beginning. After signing the collective agreement, their members will receive a 4% wage
increase, a one-month contractual bonus, a variable bonus, and other benefits.
Other than that, according to a New Straits Times newspaper article entitled “Genting
Malaysia, workers' union seal 13th CA after two-year delay” reported by NST Business (2022),
where, after a two-year delay owing to Covid-19, Genting Malaysia Bhd has achieved an
agreement with its workers' union on the 13th collective agreement (CA). More than 5,500
employees will benefit from improved remuneration and benefits under the 13th CA, which
includes salary changes for various job positions as well as upward revisions of split duty
allowances and hospitalization benefits. In addition, the split duty allowance and hospitalization
benefits have been increased. The signing of the 13th CA indicates how both sides may work
together to find new and efficient ways to overcome any concerns that may occur through regular
consultations and discussions. With all of these enhancements, they feel their staff will work
harder to maintain the company's business growth for the mutual advantage of both sides. Hence,
Genting Malaysia will continue to invest in the development of employee skills and expertise, as
well as review job practices, in order to boost efficiency and production.
Furthermore, according to an article written by Alarabiya News (2022) entitled “Tire maker
Goodyear settles labor abuse claims with workers at Malaysia factory” stated that, Goodyear Tyre
& Rubber Co has reached an arrangement with migrant workers who claimed unpaid salaries and
benefits at its Malaysian factory. The workers, who sought anonymity because they were not
authorized to speak about the settlement, stated that the net compensation they received was
less due to taxes and lawyer fees. According to the workers' lawyer, Chandra Segaran Rajandran,
the overall settlement sum exceeded the original claim of roughly 5 million ringgits, however he
declined to go into specifics citing a non-disclosure agreement. The industrial court ordered
Goodyear to pay back wages to select workers and to follow a compensation collective
agreement. Goodyear had filed an appeal, but later initiated settlement talks. The corporation is
glad to have reached an agreement with the workforce. According to the corporation, it has
performed a thorough investigation into the workers' complaints, including an independent audit
of its labor practices. It did not reveal the audit results. Furthermore, its Malaysian subsidiary has
also parted ways with a vendor and a human resources manager engaged in the case, as well as
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tightened its vendor evaluation process to guarantee compliance with company principles and
rules. The agreement covers multiple claims filed against Goodyear in Malaysia's industrial court
since 2019 by a total of 184 present and former workers from Nepal, India, and Myanmar.
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1.1 History of Boon Siew Honda Sdn Bhd
Boon Siew Honda Sdn Bhd was propelled by the ambitions of two great individuals. In
1957, Tan Sri Dato' Loh Boon Siew and Mr. Soichiro Honda first met. Beginning as a partner in
the distribution of motorbikes to the general market, the mutual goal evolved into providing an
effective mode of transportation for the development of the Malaysian economy. Their vision is
still evolving after 60 years of collaboration. Boon Siew Honda was founded a company that
actually brought the remarkable commitment, earnestness, and the drive of a dream. Boon Siew
Sdn. Bhd., which began operations in September 2008, is a joint venture between Honda Motor
Co. Ltd. and Oriental Holdings Bhd (Boon Siew Honda, 2023). They want to ensure that every
rider has a positive experience by providing speedy service, high-quality products, and ongoing
technical progress. By 1980, Boon Siew had accomplished the huge feat of producing 500,000
motorcycles. Next, in 1986, Boon Siew Honda produced its one millionth motorcycle in just six
years. The numbers continued to rise, and over two million pieces have been made and sold
across the country to far. Additionally, Boon Siew Honda is scheduled to produce 5 million units
in Malaysia in 2018. After 59 years, Boon Siew Honda is still going strong in Malaysia and South
East Asia, with a variety of successful models under its belts, including the iconic Honda EX5.
Even after 30 years, the EX5 remains one of the most famous motorcycles in the country, all
thanks to a simple yet inspiring design.
The tale of Boon Siew Honda began in the 1950s, when a 43-year-old Penang resident
went on a holiday to Japan and fell in love with the Honda Cub motorcycles. Tan Sri Dato Loh
Boon Siew, the late, chose to ship several models back to Malaysia to assist Malaysia in
determining the best means of transportation to reconstruct the nation after World War II. Boon
Siew Honda, along with Soichiro Honda, managed to make Honda motorcycles household names
by the 1970s, when they produced the immensely successful Honda C70, and the rest is history.
The late Tan Sri Dato Loh Boon Siew had an epiphany that these Honda cubs would sell like
hotcakes and help rebuild the nation after it was invaded by the Japanese during World War II,
with the idea that they were the perfect option for petite Asians to travel easily and without hassle
at a very affordable price. Malaysia needed a win after achieving independence, and he saw a
fantastic potential to be a significant part of this, specifically how Malaysians would travel. Each
great individual had their own goals to pursue, with Loh Boon Siew wishing to overhaul Malaysia's
motoring business and Mr Soichiro Honda wishing to produce efficient and inexpensive modes of
transportation.
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2.0 COMPARISON OF SUBSEQUENT CA OF BOON SIEW HONDA SDN BHD COMPANY
2.1 ARTICLE 2 – DURATION, MODIFICATION AND TERMINATION OF AGREEMENT
COG. NO: 147/2019: Collective Agreement 2018-2019

Register on 18th June 2019.

A) This agreement made on 18th April 2019 between BOON SIEW HONDA SDN, BHD. And THE
NATIONAL UNION OF TRANSPORT EQUIPMENT AND ALLIED INDUSTRIES WORKERS
shall take effective from 1st April 2018 and shall continue to remain in force until 31st March
2021 and thereafter, until superseded by a new Agreement.
B) During the period of this Agreement neither the Company nor the Union shall seek to vary any
of its terms nor shall any demands or claims be made on new terms and conditions of
employment save by mutual agreement by operation of laws or as provided herein and
provided that such variations shall take effect and be binding on the parties only after being
given cognizance by the Industrial Court.
C) Any variation to the terms of this Agreement shall be jointly deposited by both parties with the
Industrial Court for its cognizance within one month from the date of the said variation.
D) Either party may serve on the other three (3) months written notice to negotiate on new terms
and conditions of employment and other related matters but no such notice shall be served
earlier than 1st January 2021. The party that serves the notice shall also submit proposals on
terms and conditions of employment for negotiation. In the event of deadlock in negotiation,
the provisions of the current terms and conditions of the employment shall prevail until
superseded by new terms concluded between the parties or awarded by the Industrial Court.
E) This Agreement may be terminated by either party giving three (3) months written notice but
such notice shall not be served before 1st January 2021.
_________________________________________________________________________

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A) This agreement made on 5th September 2022 between BOON SIEW HONDA SDN, BHD.
And THE NATIONAL UNION OF TRANSPORT EQUIPMENT AND ALLIED INDUSTRIES
WORKERS shall take effective from 1st April 2021 and shall continue to remain in force until
31st March 2024 and thereafter, until superseded by a new Agreement.
B) During the period of this Agreement neither the Company nor the Union shall seek to vary any
of its terms nor shall any demands or claims be made on new terms and conditions of
employment save by mutual agreement, by operation of laws or as provided herein and
provided that such variations shall take effect and be binding on the parties only after being
given cognizance by the Industrial Court.
C) Any variation to the terms of this Agreement shall be jointly deposited by both parties with the
Industrial Court for its cognizance within one month from the date of the said variation.
D) Either party may serve on the other three (3) months written notice to negotiate on new terms
and conditions of employment and other related matters but no such notice shall be served
earlier than 1st January 2024. The party that serves the notice shall also submit proposals on
terms and conditions of employment for negotiation. In the event of deadlock in negotiation,
the provisions of the current terms and conditions of the employment shall prevail until
superseded by new terms concluded between the parties or awarded by the Industrial Court.
E) This Agreement may be terminated by either party giving three (3) months written notice but
such notice shall not be served before 1st January 2024.
Based on both Collective Agreement made by the company, it can be seen the differences
in terms of the date especially. Of course, the date is changing following the current CA. At the
same time, according to the International Labour Organization (ILO), under Section 32, Act 1(b)
stated that a collective agreement shall contain the date on which it is to become effective
(International Labour Organization, 2015). Dates are important because to record particular
events of a particular time period in history. It also makes it easy to follow history because history
provides us with information about the past. Due to this, the employee will become more alert with
any changes so that they will stay up to date with the changes made in the collective agreement.
Furthermore, the date is also proof that the company takes into account and always strives to
improve for all employees. Moreover, date is also important to refer if there is any consequences
or problem in the future. This is because, according to the Ministry of Business Innovation and
Employment New Zealand (2023), collective agreement shall state a start date whereas,
collective employment agreements specify the date on which they take effect. They may indicate
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that various sections of the agreement take effect on different dates. If no date is specified, it
takes effect on the date the last party signs it. Other than that, expiry date also important where
with few exceptions whereas a collective employment agreement ends on the sooner of its stated
expiry date or three years after it takes effect. If the union or the employer begins bargaining
before the expiry date, the collective agreement will last for 12 months or until it is changed. When
a collective employment agreement expires, each existing employee who was covered by the
expired collective employment agreement receives an individual employment agreement based
on the expired collective agreement plus any extra terms and conditions previously agreed upon.
The employer and employee might agree to alter this individual employment agreement or
negotiate a new one. If a collective agreement is later enacted, union members will be
automatically transferred from any individual employment agreement to the collective agreement.
Even if they are union members, new employees will be hired under an individual employment
agreement signed with the employer if there is no current collective employment agreement that
covers them.
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2.2 ARTICLE 3 – RECOGNITION OF THE UNION AND SECURITY

Register on 18th June 2019

A) The Company recognizes the Union as the exclusive collective bargaining agency in respect
of and on behalf of the categories of employees who fall within the scope of this Agreement
as appearing in Article 5 below;
B) The Company shall not do anything to restrain an employee who is covered by this Agreement
from joining the Union and the Company shall not give any such employees who are not Union
member's terms and conditions of service more favorable than those provided to Union
members.
C) The Company undertakes to extend a copy of this Agreement to all confirmed employees
covered by the scope of this Agreement.
D) In the event that a category of employee is not covered under Article 11 (Salary Structure) of
this Agreement, the Union and the Company shall enter negotiations without delay in respect
of such staff which falls within the scope of representation.
E) 1) The Company shall provide a notice board for the use of the Union. The Union shall be
held responsible for the control of all notices or news articles put thereon.
2) On request, the Company shall endeavor to meet the request of the Union for facilities to
conduct meetings in the Company's premises.


A) The Company recognizes the Union as the exclusive collective bargaining agency in respect
of and on behalf of the categories of employees who fall within the scope of this Agreement
as appearing in Article 5 below;
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B) The Company shall not do anything to restrain an employee who is covered by this Agreement
from joining the Union and the Company shall not give any such employees who are not Union
member's terms and conditions of service more favorable than those provided to Union
members.
C) The Company undertakes to extend a copy of this Agreement to all confirmed employees
covered by the scope of this Agreement.
D) In the event that a category of employee is not covered under Article 11 (Salary Structure) of
this Agreement, the Union and the Company shall enter negotiations without delay in respect
of such staff which falls within the scope of representation.
E) 1) The Company shall provide a notice board for the use of the Union Area Committee* and
the Union Area Committee* shall be held responsible for the control of all notices or
news articles put thereon.
2) On request, the Company shall endeavor to meet the request of the Union Area
Committee* for facilities to conduct meetings in the Company's premises.
*Union Area Committee is referring to BSH worksite committee only
It can be seen that, the comparison of both collective agreement is the term used in E)
where, in Collective Agreement 2018-2019 only used the term of ‘Union’, however, Collective
Agreement 2021-2024 used the term ‘Union Area Committee’. At the same time, the new CA also
highlighted that the Union Area Committee is referring to BSH worksite committee only, therefore,
those employees in the union not subjected as the BSH worksite committee are not applicable for
the company to provide a notice board to put all notices or news article thereon and also for the
company to provides them facilities to conduct meetings in the Company’s premises.
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2.3 ARTICLE 6 – APPLICATION


This Agreement shall only apply to;
a) employees who are still in service at the time this Agreement is made;
b) employees who had retired, either on reaching the compulsory age of retirement or
on medical grounds after the effective date of this Agreement and;
c) employees who had died in service after the effective date of this Agreement.
_________________________________________________________________________

This Agreement shall only apply to all employees who are still in service as of 1st April
2021 that are still reachable by the Company at the best efforts within a reasonable period
of three months from the date of back pay payment. In the case an employee who died
after 1st April 2021, to their nominated beneficiary as per the last declaration made to the
Company by the employee.
Based on the comparison, there were few changes made by the company. Firstly, the
company specified the date which it said that in Article, the agreement shall only apply to the
employees who are still in service as of 1st April 2021 that are still reachable by the Company at
the best efforts within a reasonable period of three months from the date of back pay payment. At
the same time, in new CA, the company has also specified the date where in the case an
employee who died after 1st April 2021, to their nominated beneficiary as per the last declaration
made to the Company by the employee. It is beneficial in this new CA where the company has
specified the date so that the employee will be more alert, rather than the old CA which only stated
the agreement shall only apply to employees who are still in service at the time this Agreement is
made, as this seems very unclear yet vague.
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Moreover, keeping track of any back pay owing to or requested by employees is a vital
element of a well-organized payroll. Understanding back pay and how it works will assist
guarantee that the company's finances are in order and, most importantly, that employees are
fairly reimbursed for their efforts. Back pay is the money owed to an employee after they have
received their paycheck. Employees may be entitled to back pay if they received a rise that took
longer than expected to be processed by their company's payroll processes. Employees may also
be entitled to back pay if there was a payroll error that resulted in their receiving less money than
they earned or if they worked overtime hours that were not recorded on their timesheets. They
might also ask for back compensation if they believe they were unlawfully fired from their job.
Hence, it is an advantage prepared by the company to have these back pay payment regulations
for the future use.
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2.4 ARTICLE 11 – WAGES/SALARY ADMINISTRATION


A) All employees shall be paid the monthly rates in accordance with the scale set out in the below
with effective from 1st April 2018.
B) All monthly basic salary payments will be based on a cut off period from the 22nd of the prior
month to the 21st of the current and such salaries will be paid as follows: -
a. Mid-Month Payment — A Flat rate of 50% of basic salary will be paid on the 15th of
each month.
b. End Month Payment — the balance of the basic salary with all allowances &
incentives, minus all allowable deductions (statutory & otherwise) will be paid on the
28th day of the said month.
Should the 15th &/or the 28th be a public holiday in which the bank is not able to
accommodate the payment of salary, the day prior to the public holiday shall be the pay
day for the purposes above.
C) All Overtime (OT) payments will be based on a full calendar month period, i.e., from the 1st to
the 30th of the month and such OT payments will be paid to all employees in the following
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mid-month salary. E.g., OT for April will be based from 1st to 30th April, and it will be paid to
employees on the 15th of May.
D) Employees, who are confirmed in their appointment, shall be eligible for annual increment
applicable in the appropriate scales up to the maximum thereof on 1st April of each year
subject to the employees having served a minimum of six months' unbroken service.
E) The Company reserves the right to grant additional merit increment to employees for
outstanding performance.
F) All employees shall be required to carry out such duties and job functions as may be required
from time to time by the Company.


A) (I) All employees shall be paid the monthly rates in accordance with the scale set out in the
below with effective from 1st April 2021.
(I) All employees shall be paid the monthly rates in accordance with the scale set out in
below with effective from 1 st May 2022.
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B) All monthly basic salary payments will be based on a cut off period from the 22nd of the prior
month to the 21st of the current and such salaries will be paid as follows: -
a. Mid-Month Payment - A Flat rate of 50% of basic salary will be paid on the 15th of each
month.
b. End Month Payment - the balance of the basic salary with all allowances & incentives,
minus all allowable deductions (statutory & otherwise) will be paid on the 28th day of
the said month.
Should the 15th &/or the 28th be a public holiday in which the bank is not able to
accommodate the payment of salary, the day prior to the public holiday shall be the pay
day for the purposes above.
C) All Overtime (OT) payments will be based on a full calendar month period, i.e., from the 1st to
the 30th of the month and such OT payments will be paid to all employees in the following mid-
month salary. E.g., OT for April will be based from 1st to 30th April, and it will be paid to
employees on the 15th of May.
D) Employees, who are confirmed in their appointment, shall be eligible for annual increment
applicable in the appropriate scales up to the maximum thereof on 1st April of each year
subject to the employees having served a minimum of six months' unbroken service.
E) The Company reserves the right to grant additional merit increment to employees for
outstanding performance.
F) All employees shall be required to carry out such duties and job functions as may be required
from time to time by the Company.
Based on the comparison on both collective agreements, it shows that the company has
actually increase the Minimum of Scale (RM), Maximum of Scale (RM) and specified the Annual
Salary Increment (RM) to 4%. There are so many reasons why company should amend this
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especially in this challenging yet uncertain economy world. A wage rise is a method to express
your appreciation for your staff and recognize their achievements. Top-performing employees
receive pay raises to encourage them to stay with the company and further their careers. Most
employees anticipate wage raises after a given amount of time on the job. Top performers who
constantly outperform expectations expect to be compensated for their efforts with a salary
commensurate with their degree of responsibility. Employers provide competitive wages to retain
employees.
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2.5 ARTICLE 15 – OVERTIME
COG. NO: 147/2019. Collective Agreement 2018-2019

A) Overtime shall be worked at the request of the Company and with the consent of the
employee. Such consent shall not be unreasonably withheld.
B) For any period of over time worked up to the first hour, the payment shall be one hour and
thereafter overtime shall be paid in accordance with each completed half on an hour.
C) If any employee is called out from his house to work overtime outside his normal schedule
hours of work, he shall be paid extra four 4 hours at straight time for each occasion.
(1) For the purpose of computing overtime payment for such call back, overtime shall be
deemed to commence from the time an emplovee report for dutv.
(2) Planned overtime work on an emplovee's dav off, scheduled dav of rest or paid public
holidavs will not be considered as a call back.
(3) Where an employer informs an employee during his working time that he is required to
start work earlv for the following day before his normal working time, then this is not call
back. But when an employee is called from his home to perform overtime outside his
normal working time, then this shall be termed as call back. Where transport is not
provided, the Company shall reimburse the transport expenses.
(D) Employees required to work overtime after midnight or on completion of the second shift shall
be paid a special allowance as follows:
(1) For the 1st hour of overtime RM5.50
(2) For the 2nd hour of overtime RM5.50
(3) For the 3rd and subsequent hour RM9.50 subject to maximum of RM20.50 in total (1), (2)
and (3). Upon completion of the overtime work after midnight or after the 2nd shift, the
Companv guarantees that the emplovee concerned shall have a rest period of 15 hours.
If the whole or part of the rest period falls within the employee’s normal working hours on
the following Day then these hours affected shall be paid.
(E) All emplovees who are required and approved to do overtime work will have their OT hours
paid based on the following OT formula: -
Overtime Formula = Basic Salary + Shift Allow. + Acting Allow. + OT Meal Allow
24 × 8
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_________________________________________________________________________
Allied Induestries Workers
A) Overtime shall be worked at the request of the Company and with the consent of the
employee. Such consent shall not be unreasonably withheld.
B) For any period of over time worked up to the first hour, the payment shall be one hour and
thereafter overtime shall be paid in accordance with each completed half on an hour. Overtime
meal allowance of RM3.00 shall be paid to an employee who works for a minimum of two (2)
consecutive hours per occasion and RM5.00 shall be paid to an employee who works more
than two (2) consecutive hours per occasion.
C) If any employee is called out from his house to work overtime outside his normal schedule
hours of work. he shall be paid extra four 4 hours at straight time for each occasion.
(1) For the purpose of computing overtime payment for such call back, overtime shall be
deemed to commence from the time an employee report for dutv.
(2) Planned overtime work on an employee’s day off, scheduled dav of rest or paid public
holidays will not be considered as a call back.
(3) Where an employer informs an employee during his working time that he is required to
start work early for the following day before his normal working time, then this is not call
back. But when an employee is called from his home to perform overtime outside his
normal working time, then this shall be termed as call back. Where transport is not
provided, the Company shall reimburse the transport expenses.
D) Employees required to work overtime after midnight or on completion of the second shift shall
be paid a special allowance as follows:
(1) For the 1st hour of overtime RM5.50
(2) For the 2nd hour of overtime RM5.50
(3) For the 3rd and subsequent hour RM9.50 subject to maximum of RM20.50 in total (1), (2)
and (3). Upon completion of the overtime work after midnight or after the 2nd shift, the
Company guarantees that the employee concerned shall have a rest period of 15 hours.
If the whole or part of the rest period falls within the employee’s normal working hours on
the following Day then these hours affected shall be paid.
18
E) All employees who are required and approved to do overtime work will have their OT hours
paid based on the following OT formula: -
Overtime Formula = Basic Salary + Shift Allow. + Acting Allow. + OT Meal Allow
24 × 8
In Article 15 of the collective agreement on 2022, the additional clause which indicates
that an Overtime meal allowance of RM3.00 shall be paid to an employee who works for a
minimum of two (2) consecutive hours per occasion and RM5.00 shall be paid to an employee
who works more than two (2) consecutive hours per occasion. As compared to the 2019 collective
agreement, the clause only stated that for any period of over time worked up to the first hour, the
payment shall be one hour and thereafter overtime shall be paid in accordance with each
completed half on an hour. The addition of this clause will give benefits to the employee as they
will be paid overtime meal allowance according to the consecutive hours per occasion. According
to a 2019 Talent Market Report, both small and large organizations are likely to give meal
allowances when they are unable to match a candidate's requested wage, with small companies
providing them 17% of the time and large companies offering them 37% of the time. That is likely
to have altered considerably in recent months, with COVID-19 making in-office food alternatives
illegal to companies nationwide. Offering overtime meal allowances to employees has various
advantages for both employees and employers. To begin with, a motivated and productive team
boosts work performance and overall production. Furthermore, employees feel financially secure
and respected, which contributes to increased job satisfaction and retention. Employees are more
inclined to stay with a firm for the long term if they feel adequately rewarded and have a consistent
income (StaffAny Team, 2023). The employee that is required to work overtime after ordinary
working hours more than one- and one-half hours on any day, shall be paid the Overtime Meal
Allowance.
19
2.6 ARTICLE 16 - GAZETTED PUBLIC HOLIDAYS

A) Employees shall be granted all paid public holidays gazetted and declared by the Federal
Government and the State in which the employee is serving.
B) An employee who absents himself from work on the working day immediately preceding or
immediate succeeding a Gazetted Public Holiday observed by the Company without prior
consent of his employer or without reasonable excuse shall not be given any pay for that
holiday nor for that day on which he so absent himself.
C) Where on a public or any other day substituted an employee is on sick leave, annual leave,
SOCSO leave, the Company shall grant another day — as a paid holiday in substitution for
such public holiday or the day substituted therefore.
D) When a gazetted public holiday falls on a non-working Saturday, both the union & the company
agrees that there will NOT be any replacement Public Holiday.
_________________________________________________________________________
A) Employees shall be granted all paid public holidays gazetted and declared by the Federal
Government and the State in which the employee is serving.
B) An employee who absents himself from work on the working day immediately preceding or
immediate succeeding a Gazetted Public Holiday observed by the Company without prior
consent of his employer or without reasonable excuse shall not be given any pay for that
holiday nor for that day on which he so absent himself.
C) Where on a public or any other day substituted an employee is on sick leave, annual leave,
SOCSO leave, the Company shall grant another day — as a paid holiday in substitution for
such public holiday or the day substituted therefore.
Based on the comparison in Article 16, the collective agreement 2022 has abolished the
term of (D) where it stated on the collective agreement of 2019, when a gazetted public holiday
20
falls on a non-working Saturday, both union & the company agrees that there will NOT be any
replacement Public Holiday. This means that the public holidays on Saturday have been gazetted
and there will be a replacement Public Holiday. However, if employees are asked to work on one
of those days that falls on a Saturday, they must be paid a public holiday rate.
21
2.7 ARTICLE 18 - ANNUAL LEAVE

A) All employees become eligible for annual leave on completion of twelve (12) continuous
months of service. The Annual Leave entitlement is as follows:
Less than & up to 1 year of service - 12 working days
> than 1 to 2 years of service - 15 working days
More than 30 years of service - 25 working days
And pro-rated for every uncompleted year of service
B) All employees shall take their annual leave during plant shutdown which shall be determined
by the Company and according to the roster prepared by the Company as follows:
(1) Festival shutdown(s) - 5 working days
(2) Roster by the Company - 2 working days
(3) Audit/Maintenance Shutdown - 3 working days
C) Provided that for the purpose of Audit/Maintenance shutdown, the plant maintenance
personnel and such other personnel as the Company may specify from time to time shall work
during this maintenance shutdown when the Company so requires them to do so.
D) Notwithstanding the foregoing and subject to the requirement of the Company, an employee
may be granted the balance of this annual leave entitlement outside the annual leave roster
and / or plant shutdown(s).
E) Where at the date of the shutdown an employee has not completed twelve months continuous
service, proportionate paid leave shall be granted based on completed months of service and
any balance to cover the shutdown period(s) shall be unpaid.
22
F) Any leave granted outside the annual leave shutdown period(s) or outside the leave roster,
with the exception of paid sick leave, maternity leave, compassionate leave, study leave and
approved annual leave, shall be unpaid.
G) Where an employee who is on annual leave falls sick or injured or on maternity leave or
SOSCO or compassionate leave as certified by Company 's doctor or any government medical
officer or private medical practitioner, his annual leave entitlement shall not be deducted.
H) Annual leave balanced in the prevailing year may be carried forward to the following year &
such annual leave if unutilized within the following year will be forfeited.
_________________________________________________________________________

A) All employees become eligible for annual leave on completion of twelve (12) continuous
months of service. The Annual Leave entitlement is as follows:
Less than & up to 1 year of service - 12 working days
More than 30 years of service - 25 working days
And pro-rated for every uncompleted year of service
B) All employees shall take their annual leave during plant shutdown which shall be determined
by the Company and according to the roster prepared by the Company as follows:
(1) Festival shutdown(s) - 5 working days
(2) Roster by the Company - 2 working days
(3) Audit/Maintenance Shutdown - 3 working days
23
C) Provided that for the purpose of Audit/Maintenance shutdown, the plant maintenance
personnel and such other personnel as the Company may specify from time to time shall work
during this maintenance shutdown when the Company so requires them to do so.
D) Notwithstanding the foregoing and subject to the requirement of the Company, an employee
may be granted the balance of this annual leave entitlement outside the annual leave roster
and / or plant shutdown(s).
E) Where at the date of the shutdown an employee has not completed twelve months continuous
service, proportionate paid leave shall be granted based on completed months of service and
any balance to cover the shutdown period(s) shall be unpaid.
F) Any leave granted outside the annual leave shutdown period(s) or outside the leave roster,
with the exception of paid sick leave, maternity leave, compassionate leave, study leave and
approved annual leave, shall be unpaid.
G) Where an employee who is on annual leave falls sick or injured or on maternity leave or
SOSCO or compassionate leave as certified by Company 's doctor or any government
medical officer or private medical practitioner, his annual leave entitlement shall not be
deducted.
H) Annual leave balanced in the prevailing year may be carried forward to the following year &
such annual leave if unutilized within the following year will be forfeited. However, an
employee shall be entitled to payment in lieu of such annual leave if; at the request of the
company, he agrees in writing not to avail himself of any or all of his annual leave entitlement.
Based on the comparison, clause (H) in the collective agreement of 2022 states that
however, an employee shall be entitled to payment in lieu of such annual leave if: at the request
of the company, he agrees in writing not to avail himself of any or all his annual leave entitlement.
The collective agreement of 2019 only states that Annual leave balanced in the prevailing year
may be carried forward to the following year & such annual leave if unutilized within the following
year will be forfeited. This would be unfair to those who cannot spend their annual leave due to
several factors. The company should give a certain period for those who have not used the annual
leave so that they can arrange the leave properly.
24
2.8 ARTICLE 19 - STUDY LEAVE

A) Where an employee is required by the Company to undertake a course of training,

any absence from duty in connection with such course will be regarded as paid study
leave.
B) The Company shall grant the members of Executive Council and Works Committee
of Union leave to attend relevant trade union courses subject to the requirements of
the Company, and further subject to not more than two such members from the
Company being granted such leave at one time, and such paid leave so granted shall
not exceed one month in total in any more year and shall not be deducted from their
annual leave entitlement.
C) Subject to the requirement of the Company, leave for the purpose of study or training
or examination shall be granted by the Company with or without pay at its discretion.
D) The Company shall give sympathetic consideration to the granting of leave with or
without pay at its sole discretion in the cases where employees represent sports and
cultural teams for the state or country.
E) When the Principle Officers of the Union's Executive Council apply for leave for the
purpose of attending to Union activities directly connected with the Company for
promoting good industrial relations, such leave shall be granted with pay. The above
shall be subject to not more than two members representing the union leaving the
Company on such assignment at any one time.

25
A) Where an employee is required by the Company to undertake a course of training,
any absence from duty in connection with such course will be regarded as paid study
leave.
B) The Company shall grant the members of Executive Council and Works Committee
of Union leave to attend relevant trade union courses subject to the requirements of
the Company, and further subject to not more than two such members from the
Company being granted such leave at one time, and such paid leave so granted shall
not exceed one month in total in any more year and shall not be deducted from their
annual leave entitlement.
C) Subject to the requirement of the Company, leave for the purpose of study or training
or examination shall be granted by the Company with or without pay at its discretion.
D) The Company shall give sympathetic consideration to the granting of leave with or
without pay at its sole discretion in the cases where employees represent sports and
cultural teams for the state or country.
E) When the Principle Officers of the Union’s Executive Council apply for leave for the
purpose of attending to Union activities directly connected with the Company for
promoting good industrial relations, such leave shall be granted with pay. The above
shall be subject to not more than two members representing the union leaving the
Company on such assignment at any one time.
F) The company shall assist the union to claim from Human Resources Development
Fund (HRDF) on occasion where training is conducted by the Union for the members
of Boon Siew Honda Sdn Bhd (only applicable to HRDF approved training).
As compared to the 2019 collective agreement, Article 19 of the 2022 collective

agreement has an additional clause which indicates that the company must assist the
union to claim from HRDF (now known as Human Resources Development Corporation
or HRDC) on the occasion whereby the training which falls under study leave is conducted
by the Union for the members of the company. To simplify, this means that if the members
undergo training which is approved by HRDC, the union is eligible to make financial claims
from HRDC and the company must assist the union throughout the process. HRDC
approved training includes in-house training and public training, as well as the training
26
must meet the minimum duration of four (4) hours in order to make the claim. A few of the
claimable costs include meal allowance, consumable training materials and
transportation fees (HRD Corp, n.d.).
The addition of this clause utilizes HRDC’s initiative of assisting companies in order
to encourage training and learning amongst the employees. Neither the company nor the
employee would have to worry about study leave causing a negative impact on the
productivity, output or costs born of the company as HRDC would be able to help in
covering them financially. This additional clause may even encourage the company to
emphasize more on training and learning which would highly benefit the employees and
even the results of the company in the long run. Some companies may turn a blind eye
on the importance of training and learning due to a fear of bearing costs and a waste of
resources, however a lack of training would only cause negative consequences (Hendy,
2023), such as inability to retain employees and may even lead to more serious issues,
like an unsafe working environment due to unsatisfactory amount of knowledge and
expertise which is relevant to a manufacturing industry like Boon Siew Honda Sdn Bhd.
27
2.9 ARTICLE 22 - MEDICAL BENEFITS

A) Sick Leave
An employee shall, after examination at the expense of the employer
(1) By a registered medical practitioner duly appointed by the employer; OR
(2) If no such practitioner is appointed or fi having regard to the nature or
circumstances of the illness, the services of the medical practitioner so appointed
are not obtainable within a reasonable time or distance, by any other registered
medical practitioner or by a medical officer; be entitled to paid sick leave:-
(a) Where no hospitalization is necessary:-
(i) Of fourteen (14) days in each calendar year if the employee has
been employed for less than two years;
(ii) Of eighteen (18) days in each calendar year if the employee has
been employed for two years or more but less than five years;
(iii) Of twenty two (22) days in each calendar year if the employee
has been employed for five years or more; or
(b) 60 working days in each year if hospitalization is necessary.
(3) If any employee is certified by the Government Medical Officer or the Company
Doctor to be ill enough to be hospitalized but is not hospitalized through no fault of
the employee, or is discharged following hospitalization for recuperation from the
same illness, he shall be deemed to be hospitalized for the purpose of this Article.
(4) An employee who reports to the Company Doctor and who is not subsequently
granted sick leave shall report for duty as soon as possible after the completion of
the medical examination.
(5) Employees granted sick leave shall be required to comply with all instructions
of the Company Doctor.
B) Medical Attention
28
(1) Subject to the treatment being given by the Company doctor or under A(1) or
A(2) above, the Company shall pay for the cost of such treatment and for medicine
provided by the doctor. In addition, if any employee is referred to a specialist
including eye specialist and dental surgeon by the Company Doctor, the specialist
fee shall be paid by the Company.
(2) The Company shall not pay for the following
(a) Medical or surgical or other appliances;
(b) Denture charges;
(c) Spectacles, lenses and optician's fees;
(d) Any expenses in respect of pregnancy, confinement miscarriage;
(e) Any expenses arising out of self-inflicted injury or illness or disease
caused by misconduct;
(f) Any expenses for treatment in mental cases which have been certified
by Government Doctor in charge ofmental cases;
(g) Any expenses incurred in respect of illness injury or disablement arising
from any proven fault,carelessness, indiscretion of t h eemployee outside
the course of his employment, participation in any hazardous sports pursuit
or pastime, attempted suicide, the performance of any unlawful act,
exposure to any unjustifiable hazards, except when endeavoring to save
human life, the use of drugs not medically prescribed, congenital anomalies,
excessive use of alcohol and plastic surgery for beautification purposes.
The company will nonetheless pay Dental Charges (fillings and extractions only)
to all confirmed employees to a maximum of RM150.00 per employee per calendar
year from any of its Panel Dental Clinics only to be eligible to this benefit.
Confirmed employees who do not have a full year of service will have this benefit
pro-rated.
C) Hospitalization
(1) Subject to the Company Doctor or the Government Doctor certifying ti as
necessary, the Company shall pay for the cost of:-
29
a) All In-patient medical expenses at a Government Hospital - for the cost
of second class accommodation and ward charges in Government hospital;
OR
b) At a private hospital as appointed by the company at its sole discretion
from time to time - for all in-patient costs incurred due to inpatient treatment
in the said private hospital, subject to the Company's total liability arising
out of the provisions of this Article being limited to RM18,000.00 (Ringgit
Eighteen Thousand Only) per financial year for each employee in any
calendar year. Should the expenses of the said hospitalization be more than
the limit of RM18,000.00 per financial year, the employee will be fully
responsible to pay for whatever excess incurred. Additionally both parties
agree that the company will not provide any personal loans or advances for
payment of such excess.
(2) The Company shall not pay hospital ward and accommodation charges for any
illness or injury for which free medical attention is not given as specified under
Article 22 B (2) of Medical Attention
(3) In the cases of critical illness, if the affected employee decides at its own
expenses to be treated at a private Hospital and when such hospital charges
exceed RM3000.00, the Company shall pay the excess bill limited to the benefit
provided in clause C(1) of this Article. This clause shall only apply to employees
who are not covered by any Health Insurance.
D)
The Company shall give sympathetic consideration at its discretion to individual cases on
its merits where the maximum of sick leave, under (A) above, (i.e. 60 days hospitalization
leave) and RM18,000.00 limit are exceeded.
E) Prolonged Illness
(1) On the recommendation of the Company's doctor, any employee suffering from
Tuberculosis, Cancer, Leukemia, paralysis or any other illness of a prolonged
nature which renders him unable to perform his duty, shall be granted in addition
to his sick leave entitlement under Sick Leave to prolonged illness benefits as
follows:
30
(a) Four (4) months leave at full pay.
(b) Ten (10) months leave at half pay.
(2) In cases where early prognosis, certified by the Company Doctor indicates six
months or more of prolonged illness, the employee may, at his option, elect to
resign from the service of the Company or the Company may discharge him from
the Company. In such cases the Company shall pay in one lump sum, in addition
to such other payments, if any for which he may be entitled; the balance if any, of
prolonged illness payments as set out under (a) above to which the employee
would have been entitled.
F) Medical Boarded Out
The Company shall pay one lump sum payment of RM5000.00 (Five Thousand Only) to
any confirmed employee of minimum one (1) year service who is medically boarded out
by a Medical Officer or the Company in consultation with the Union.
Payment shall be made to him within 2 weeks of him being medically boarded out.
G) The company will provide normal Outpatient Medical Treatment to the dependants of
all employees to a maximum of RM500 per calendar year, however all such Outpatient
treatment are to be at the appointed or nominated Panel doctors of the company.
a. Dependants are defined as the employee's 1st Legal spouse and their
unmarried children under 18 years of age of the 1st Legal spouse
b. Dependents Who are employed shall not be eligible for this benefit

A) Sick Leave
An employee shall, after examination at the expense of the employer
(1) By a registered medical practitioner duly appointed by the employer; OR
(2) If no such practitioner is appointed or if having regard to the nature or
circumstances of the illness, the services of the medical practitioner so appointed
31
are not obtainable within a reasonable time or distance, by any other registered
medical practitioner or by a medical officer; be entitled to paid sick leave:-
(a) Where no hospitalization is necessary:-
(i) Of fourteen (14) days in each calendar year if the employee has
been employed for less than two years;
(ii) Of eighteen (18) days in each calendar year it the employee has
been employed for two years or more but less than five years;
(iii) Of twenty two (22) days in each calendar year if the employee
has been employed for five years or more; or
(b) 60 working days in each year if hospitalization is necessary.
(3) If any employee is certified by the Government Medical Officer or the Company
Doctor to be ill enough to be hospitalized but is not hospitalized through no fault of
the employee, or is discharged following hospitalization for recuperation from the
same illness, he shall be deemed to be hospitalized for the purpose of this Article.
(4) An employee who reports to the Company Doctor and who is not subsequently
granted sick leave shall report for duty as soon as possible after the completion of
the medical examination.
(5) Employees granted sick leave shall be required to comply with all instructions
of the Company Doctor.
B) Medical Attention
(1) Subject to the treatment being given by the Company doctor or under A(1) or
A(2) above, the Company shall pay for the cost of such treatment and for medicine
provided by the doctor. In addition, if any employee is referred to a specialist
including eye specialist and dental surgeon by the Company Doctor, the specialist
fee shall be paid by the Company up to a limit of RM8,000 (Ringgit Eight Thousand
only) in any financial year.
(2) The Company shall not pay for the following
(a) Medical or surgical or other appliances;
(b) Denture charges;
(c) Spectacles, lenses and optician's fees;
(d) Any expenses in respect of pregnancy, confinement miscarriage;
32
(e) Any expenses arising out of self-inflicted injury or illness or disease
caused by misconduct,
(f) Any expenses for treatment in mental cases which have been certified
by a Government Doctor in charge ot mental cases;
(g) Any expenses incurred in respect of illness injury or disablement arising
from any proven fault, carelessness, indiscretion of the employee outside
the course of his employment, participation in any hazardous sports pursuit
or pastime, attempted suicide, the performance of any unlawful act,
exposure to any unjustifiable hazards, except when endeavoring to save
human life, the use of drugs not medically prescribed, congenital anomalies,
excessive use of alcohol and plastic surgery for beautification purposes.
The company will nonetheless pay Dental Charges (fillings, extractions and scaling
only) to all confirmed employees to a maximum of RM200.00 per employee per
calendar year from any of its any Dental Clinics only to be eligible to this benefit.
Confirmed employees who do not have a full year of service will have this benefit
pro-rated.
C) Hospitalization
(1) Subject to the Company Doctor or the Government Doctor certifying it as
necessary, the Company shall pay for the cost of:-
a) All In-patient medical expenses at a Government Hospital - for the cost
of second class accommodation and ward charges in Government hospital;
OR
b) At a private hospital as appointed by the company at its sole discretion
from time to time- for all in-patient costs incurred due to inpatient treatment
in the said private hospital,
subject to the Company's total liability arising out of the provisions of this
Article being limited to RM12,000.00 (Ringgit Twelve Thousand Only) per
financial year for each employee in any financial year. Should the expenses
of the said hospitalization be more than the limit of RM12,000.00 per
financial year, the Company shall allow the utilization of benefits inclusive
33
of Outpatient Medical limits up to a limit of RM20,000.00 in any financial
year before requesting the employee to be fully responsible to pay for
whatever excess incurred. Additionally, both parties agree that the company
will not provide any personal loans or advances for payment of such excess.
(2) The Company shall not pay hospital ward and accommodation charges for any
illness or injury for which free medical attention is not given as specified under
Article 22 B (2) of Medical Attention.
(3) In the cases of critical illness, if the affected employee decides at its own
expenses to be treated at a private Hospital and when such hospital charges
exceed RM3000.00, the Company shall pay the excess bill limited to the benefit
provided in clause C (1) of this Article. This clause shall only apply to employees
who are not covered by any Health Insurance.
D) The Company shall give sympathetic consideration at its discretion to individual cases
on its merits where the maximum of sick leave, under (A) above, (i.e., 60 days
hospitalization leave) and RM20,000.00 limit are exceeded.
E) Prolonged Illness
(1) On the recommendation of the Company's doctor, any employee suffering from
Tuberculosis, Cancer, Leukemia, paralysis or any other illness of a prolonged
nature which renders him unable to perform his duty, shall be granted in addition
to his sick leave entitlement under Sick Leave to prolonged illness benefits as
follows:
(a) Four (4) months leave at full pay.
(b) Ten (10) months leave at half pay.
(2) In cases where early prognosis, certified by the company Doctor indicates six
months or more of prolonged illness, the employee may, at his option, elect to
resign from the service of the Company or the Company may discharge him from
the Company. In such cases the company shall pay in one lump sum, in addition
to such other payments, if any for which he may be entitled; the balance if any, if
prolonged illness payments as set out under (a) above to which the employee
would have been entitled.
F) Medical Boarded Out
34
The company shall pay a one lump sum payment to any confirmed employee with a
minimum of one (1) year service who is medically boarded out by a Medical Officer or the
Company in consultation with the union based on the Termination and Layoff benefits
Regulation 1980 for those who are covered under the scope of the Employment Act, i.e.
(a) 10 days' wages for every year of employment under a continuous contract of
service with the employer it he has been employed by that employer tor a period
of less than two years; or
(b) 15 days' wages for every year of employment under a continuous contract of
service with the employer if he has been employed by that employer for two years
or more but less than five years;
(c) 20 days' wages for every year of employment under a continuous contract of
service with the employer if he has been employed by that employer for five years
or more
G) The company will provide normal Outpatient Medical Treatment to the dependants of
all employees to a maximum of RM500 per financial year at any nearest clinics.
a. Dependants are defined as the employee's 1st Legal spouse and their
unmarried children under 18 years of age of the 1st Legal spouse
b. Dependants who are employed shall not be eligible for this benefit
Several changes or updates were made to Article 22 of the 2022 collective

agreement which particularly pertains to sick leave. The first change that was made to
this article is Clause B(1) in case of a situation where an employee is referred to a
specialist (including eye specialist and dental surgeon) by the Company Doctor, the
Company would pay the specialist fee. In the 2019 collective agreement, there is no
minimum or maximum amount stated for the specialist fee that would be borne by the
Company. The presumption can be made that the Company would pay for the specialist
fee regardless of the amount. However, in the 2022 collective agreement, a limit of
RM8,000 is stated whereby if the specialist fee exceeds that limit, the excess would be
borne by the employee. A change was also made to Clause B(2) where the 2019
collective agreement states that the company will pay Dental Charges (fillings, extractions
and scaling only) to all confirmed employees with a maximum of RM150.00 per employee.
35
The 2022 collective agreement has increased this maximum amount to RM200.00 per
employee per calendar year from any of its any Dental Clinics.
Clause C(1)(b) was also amended. In the 2019 collective agreement,

hospitalization expenses either in government hospital or private hospital, liability of the
company was limited to RM18,000 per financial year for each employee in any calendar
year. Should the expenses be more than that, it would be the employee’s own
responsibility to pay for whatever excess incurred. In the 2022 collective agreement, the
liability of the company was reduced to a limitation of RM12,000 for each employee.
However, should the expenses exceed the limitation, the company shall allow the
utilization of benefits, inclusive of Outpatient Medical with a limit of RM20,000.00 in any
financial year before requesting the employee to be completely responsible for any further
excess in expenses.
As for Clause (D) in the 2022 collective agreement in which the company may give
sympathetic consideration at its discretion to individual cases on its merits where the
maximum of sick leave under Clause (A) and RM20,000.00 are exceeded is slightly
different compared to Clause (D) in the 2019 collective agreement whereby the limit is
RM18,000.00. Clause (F) of this article shows a minimal change where the 2022
collective agreement does not state an amount that the company must pay in lump sum
to a confirmed employee who is boarded out and it also does not state when the amount
must be paid. This is a contrast to the 2019 collective agreement which limits one lump
sum payment of RM5,000.00 and it was stated that the payment would be made within
two weeks of the employee being medically boarded out. Finally, another minor change
was made in Clause (G) where in regards to Outpatient Medical Treatment for
dependants of an employee, the 2019 collective agreement specifically stated that such
outpatient treatment are to be at the appointed and nominated panel doctors of the
company. However, the 2022 collective agreement generalizes it to be at any nearest
clinic.
36
2.10 ARTICLE 26- SAFETY & HEALTH

Safety and Health shall be practiced as per the Law and the company shall appoint Union
Worksite Committee members as committee members in the company Safety & Health
Committee.
______________________________________________________________________

Safety and Health shall be practiced as per the Law and the company shall set up Safety
Committee whose functions will be pertaining to safety and health. The Committee shall
comprise of equal representation from Management and Union with the Chairman of the
committee should be from Senior Management (Officer Level).
Article 26 in the collective agreement pertains to the safety and health of the
company. The clause from the 2019 collective agreement is more simplified, stating that
the safety and health should be practiced according to the law and the company must
appoint Union Worksite Committee members as committee members in the company’s
Safety and Health Committee. On the other hand, the 2022 collective agreement indicates
that the Safety and Health Committee should consist of equal members from both the
management of the company and the Union as well as that the Chairman of the committee
should be from management. This change signifies more involvement of the company’s
management in regarding safety and health rather than only the Union members. Equal
representation of both parties is also important in order to ensure a balance between the
perspectives of the Union and the insights of management. Teamwork is essential in
order for management to maintain the safety and health of employees and finds that
37
management commitment to safety relates to teamwork (McGonagle et al., 2
022).
38
2.11 ARTICLE 27 – DISCIPLINE


A) In the event of an employee found guilty of misconduct after due inquiry, the Company
may:
(1) Where the misconduct is very serious then:
(a) The Company may suspend the employee without pay up to two weeks;
(b) Down-grade the employee
(c) Dismiss the employee
B) At any such inquiry, an employee may be represented by the Union.
C) For the purpose of the inquiry under clause A above, the Company may suspend the
employee from work for a period of not exceeding two weeks but shall pay not less than
half his basic wage for such period, provided that if the inquiry does not disclose any
misconduct on the part of the employee, the Company shall forthwith restore the employee
the full amount of wages so withheld.
D) During any period of suspension from duty for purpose of investigation, an inquiry under
clause C above, the employee may be required in writing to report at his normal place of
work during working hours to any executive or supervisory staff as the Company may,
from time to time require, and failure to so report will render liable to dismissal without
notice
E) An employee who is subject to any disciplinary action provided in this Article shall have
the right to appeal
F) Both the Union and the Company agree that for the purpose of
a. Performance Appraisals – all disciplinary action taken will have a life span of 1 year or
to the end of the calendar year, whichever is the earlier. This means that a disciplinary
action taken in May or October 2012 will be taken into the employees annual appraisal
for the year 2012 (ending December 2012). Thereafter, it will not be taken into account
in subsequent years annual appraisals.
b. Progressive Disciplinary Action – all disciplinary action for the purpose of Progressive
Discipline will have a life span of two years from the date of the last disciplinary action.
39
Thereafter the said disciplinary actions will be void and any subsequent minor
misconduct will start again from the Counseling stage.
Examples:
G) All decision taken by management, a copy will be extended to the Union in respect of the
Union members.

Register on 20th October 2022

A) In the event of an employee found guilty of misconduct after due inquiry, the Company
may:
(1) Where the conduct is very serious then:
(a) The Company may suspend the employee without pay up to two weeks;
(b) Down-grade the employee;
(c) Dismiss the employee
B) At any such inquiry, an employee may be represented by the Union.
C) For the purpose of the inquiry under clause A above, the Company may suspend the
employee from work for a period of not exceeding two weeks but shall pay not less than
half his basic wage for such period, provided that if the inquiry does not disclose any
misconduct on the part of the employee, the Company shall forthwith restore the employee
the full amount of wages so withheld.
D) During any period of suspension from duty for purpose of investigation, an inquiry under
clause C above, the employee may be required in writing to report at his normal place of
40
work during working hours to any executive or supervisory staff as the Company may,
from time to time require, and failure to so report will render the employee liable to
dismissal without notice
E) An employee who is subject to any disciplinary action provided in this article shall have
the right to appeal.
F) Both Union and the Company agree that for the purpose of
a) Performance Appraisals – all disciplinary action taken will have a life span of 1 year or
to the end of the calendar year, whichever is the earlier. This means that a disciplinary
action taken in May or October 2012 will be taken into the employees annual appraisal
for the year 2012 (ending December 2012). Thereafter, it will not be taken into account
in subsequent years annual appraisal.
b) Progressive Disciplinary Action – all disciplinary actions for the purpose of Progressive
Discipline will have a life span of one year from the date of the last disciplinary action
up to a maximum of 6 steps for the case of minor misconduct. Thereafter the said
disciplinary action will be void and any subsequent minor misconduct will start again
from the Advice Letter stage. Examples :
G) All decisions taken by management, a copy will be extended to the Union in respect of the
Union members.
According to both Collective Agreement Article 27F(b) made by the company, the
difference in the duration of the disciplinary actions can be seen. In addition, it can be seen the
stages involved in progressive discipline. In the first Collective Agreement made by the company,
41
progressive disciplinary action has a life span of two years from the date of the last disciplinary
action. This policy provides a timeframe within which discipline measures remain in effect. This
means that if an employee commits minor misconduct, they will undergo the counselling stage. If
they commit another minor misconduct within the two-year period, the disciplinary process will
continue from where it left off. In other words, the previous disciplinary actions are still valid, and
the process continues to the next stage. However, if there is no subsequent misconduct within
two years, the previous disciplinary actions will become void. Any future minor misconduct will
start again at the counselling stage. Consequently, any minor misconduct by an employee will
restart the disciplinary process once more. Essentially, the employee is given a fresh start after
the two-year period without further misconduct.
In the second Collective Agreement Article 27F(b) in 2022 made by the Company,
progressive disciplinary action has a shorter life span of one year from the date of the last
disciplinary action. However, it also has a maximum of 6 steps for minor misconduct. If an
employee commits minor misconduct, the disciplinary process begins at the advice letter stage
as per this policy. If there is another instance of minor misconduct within the one-year timeframe,
the disciplinary process proceeds through the steps until it reaches the maximum of 6 steps. Each
step in the process represents an escalation in the severity of disciplinary measures or
interventions. Once the maximum of 6 steps is reached, any subsequent minor misconduct by
the employee will revert back to the initial advice letter stage. Therefore, any previous disciplinary
actions beyond the 6 steps become null and void, and the employee starts over from the previous
steps.
Indiana University Organizational Development states, "Progressive discipline is the use

of increasingly severe steps or measures when an employee fails to fix a problem after a
reasonable opportunity." The guiding principle of progressive discipline is to use the least severe
measure necessary to correct undesirable behaviour (Indiana University, 2023). Incorporating a
system that strikes a balance between the required time for development and the need for suitable
sanctions depending on the severity and frequency of misconduct could be a step towards
improving both policies. This will ensure that employees have a fair opportunity for advancement
while at the same time ensuring that persistent inappropriate behaviour is adequately addressed.
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2.12 ARTICLE 28 – GRIEVANCE PROCEDURE


A) Definition of Grievance – A grievance shall be defined as a complaint by the employee
concerned which he/she brings to the attention of his/her immediate superior, which is
subsequently not settled to the satisfaction of the employee.
B) Purpose - It is the desire of both parties to this Agreement that grievance arising between an
employee and the Company or between the Union and the Company be settled as equitably
and as quickly as possible level to maintain good relation between both parties.
C) Step I – Any employee having any grievance may in the first instance discuss such grievance
with his immediate superior.
D) Step II – If the employee fails to obtain satisfaction from his immediate superior, he may refer
his grievance to the appropriate department head,
E) Step III - If the employee after referring the grievance to a department head, fails to obtain
satisfaction, he may refer his grievance to the Head of the GA department.
F) Step IV – If the employee is still not satisfied, the matter may be resolved in accordance with
the Industrial Relations Act.
G) In every step, the time for processing the grievance should be within three working days.
H) An employee may be represented by Union at any stage in the above procedure.
I) However, both parties may extend the time limit if so desired by mutual consent.
J) Grievance Procedure (General Nature) – Notwithstanding the above, in the case of general
grievance affecting the employee, the Union can meet the Head of the GA Department or vice
versa.
K) Grievance may be submitted in any manner desired as long as all details of the grievance are
available.

43
A) Definition of Grievance – A grievance shall be defined as a complaint by the employee
concerned which he/she brings to the attention of his/her immediate superior, which is
subsequently not settled to his satisfaction of the employee.
B) Purpose – It is the desire of both parties to this Agreement that grievance arising between an
employee and the Company or between the Union and the Company be settled as equitably
and as quickly as possible. In pursuance of this, it is agreed that grievance should be
processed at the lowest possible level to maintain good relation between both parties.
C) Step I – Any employee having any grievance may in the first instance discuss may in the first
instance discuss such grievance with his immediate superior.
D) Step II – If the employee fails to obtain satisfaction from his immediate superior, he may refer
his grievance to the appropriate department head.
E) Step III – If the employee after referring the grievance to a department head, fails to obtain
satisfaction, he may refer his grievance to the Head of the GA department.
F) Step IV – If the employee is still not satisfied, the matter may be resolved in accordance with
the Industrial Relation Act,
G) In every step, the time for processing the grievance should be within three working days.
H) An employee may be represented by Union at any stage in the above procedure.
I) However, both parties may extend the time limit if so desired by mutual consent.
J) Grievance Procedure (General Nature) – Notwithstanding, the above, in the case of general
grievance affecting the employees, the Union can meet the Head of the HR Department or
vice versa.
K) Grievance may be submitted in any manner desired as long as all details of the grievance are
available.
According to Article 27 (B) of the first Collective Agreement, both parties (employee/Union
and the Company) want to settle grievances as equitably and soon as feasible to maintain good
relations. Nonetheless, there is no clear indication of how the complaints should be evaluated or
dealt with in this document. On the other hand, the second Collective Agreement, which is a
continuation of the purpose statement, further elaborates on the agreed-upon approach to
handling grievances. It emphasizes that grievances are to be processed at the lowest feasible
level to achieve the goals of swift and fair resolution without damaging relationships.
44
The primary distinction between the two collective agreements is that the second
Collective Agreement, in article 27 (B), contains an additional paragraph that emphasizes the
agreed-upon approach of addressing grievances at the lowest possible level. This means that
neither party will take complaints to a higher level or bring in other parties unless necessary,
preferring instead to deal with issues where they first arise, with the people or departments directly
affected. In conclusion, although both articles express the desire to settle grievances fairly and
quickly, the second Collective Agreement, in article 27 (B), underlines the necessity of processing
grievances at the lowest feasible level to maintain good relations between the employee/Union
and the Company. Worker compliance with rules and regulations can be enforced through the
application of sanctions under this policy. The goal is to guarantee that employees do not violate
the rules and regulations. Punitive disciplinary measures can take the form of fines, reprimands,
demotions, terminations, transfers, and the like. Disciplinary action implies punishment in the
negative conception of discipline Punishment is an additional source of animosity and bitterness.
However, if discipline is viewed solely as a means of command and correction, then it will be
impossible to achieve desirable outcomes (S, 2019).
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2.13 ARTICLE 34 – SALARY ADJUSTMENT/ UPLIFT & SPECIAL MINIMUM WAGE SALARY
ADJUSTMENT


All employees will be given a salary adjustment (uplift) of 4.5% with effect from 1st April 2018.
While the uplist adjustment shall take effect from 1st April 2018, all other benefits shall take effect
upon signing of this agreement.


All employees will be given a salary adjustment (uplift) of 4.5% with effect from 1st April 2021.
While the uplift adjustment inclusive of basic salary, overtime and overtime meal allowance shall
take effect 1st April 2021, all other benefits shall take effect from the date conclusion of the
Collective Agreement.
According to Section 34 of the Collective Agreement in 2019, it is stated that all other
benefits, except for the pay adjustment, shall go into effect immediately upon the signing of the
agreement. In other words, once the agreement's final signatures have been tallied, the
aforementioned perks will be put into effect. As a result, the parties are compelled to carry out
their ends of the bargain and give the benefits they'd discussed in the agreement.
In the second Collective Agreement Section 34 in the year 2022, it is stated that all of the
other benefits will go into effect on the date the collective agreement ends. This indicates that
implementing these benefits depends on successfully negotiating a collective bargaining
agreement before the procedure can be completed. In a collective bargaining agreement,
"conclusion" means that all terms, conditions, and provisions contained within the agreement
46
have been finalized and accepted by both the employer and the employee's union or
representative. It indicates that all issues that had been pending were successfully resolved and
that the agreement has become completely effective.
In both circumstances, the agreement's signature or conclusion marks a major turning point in the
negotiations, signalling the parties' commitment to the agreement's provisions and setting in
motion the implementation of the advantages described in the agreement. The interests of the
employee might also be protected by the agreement if it outlines the remuneration and benefits
that will be supplied to the employee. For both the company and the worker, having a written
employment agreement in place can bring much-needed stability and peace of mind and prevent
potential conflicts. When it comes to enforcing any conditions that are breached, having a written
agreement in place can make it much simpler to do so. One example of this would be if an
employee did not complete their tasks in accordance with what was described in the agreement
(Staff Desk, 2023).
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3.0 SUGGESTION ON NEW COLLECTIVE AGREEMENT
3.1 Flexible Working Arrangement
According to Yow (2023), The new Employment (Amendment) Act 2022 (the
EA(Amendment) A 2022) came into force on 1 January 2023. It amended the EA by introducing
key changes, including new flexible working arrangements (Part XIC) in view of the post-
pandemic landscape. Under Sections 60P and 60Q, employees may now apply for flexible
working arrangements from their employers in writing to adjust their hours, days or place of
work. The EA(Amendment)A 2022 also reduces the maximum number of working hours from
48 to 45 per week. Due to this, it is highly recommended for Boon Siew Honda Sdn. Bhd to
apply these regulations. The existence of Coronavirus Disease 2019 (Covid-19) had changed
the whole world completely to a new different world and it was known by everybody. In
addition, Covid-19 has become a serious and dangerous disease which led Dr Tedros
Adhanom, WHO Director-General to declare the coronavirus outbreak at Public Health
Emergency of International Concern (World Health Organization, 2020). As people cannot go
out and movement was restricted, organization and businesses cannot halt their activities in
running their daily work. So, they tried to learn and adapt with working remotely at home
because that’s the only way to save the business. Moreover, working from home (WFH) can
be defined as a working arrangement in which employees fulfils the work task or essential
responsibilities of their job while remaining at home (Tiang, 2020). Employer and employee
engage to the work activities by fully utilizing the use of digital and technology. In fact, when
MCO was implemented, organization and businesses cannot disobey the rules and being
selfish because the one who are working is a human and easily exposed to the virus if
companies still forcing them to work physically. Based on the survey done by Job Street
entitled Who is More Likely to Work from Home: An Employer Perspective, 67% of
organizations required their employee to work from home except those who are working in
essential sector such as health services, public cleaning and sanitation, security services and
more (Job Street, 2020).
Due to this, with the consequences of the pandemic COVID-19 recedes, most of the
employees already used to work in flexibility arrangement therefore, most of them are seek
this to be remain. According to Press (2021) highlighted that, flexible schedules benefit more
than just employees; they also benefit businesses. Flexible work arrangements have
progressed from an option to an expected norm for certain job types. The advantages of
flexible work arrangements for both individuals and businesses are numerous. At the same
time, while flexible work choices were already on the rise, the 2020 pandemic provided a
much-needed boost. Nowadays, providing a flexible work environment is critical to avoiding
recruitment problems. Of course, there are numerous job profiles in which flexible work hours
48
would be ineffective. For example, call center agents who must be available during peak hours
in order to reach their consumers or the construction workers who are unable to work remotely
because they must remain on-site. However, for jobs that can be completed on a laptop,
providing flexible work hours or office space can be an enticing inducement to boost employee
engagement. Flexible work arrangements are agreements between businesses and
employees that give employees some scheduling flexibility. Instead of the usual office space,
they can either schedule their hours or choose their work location.
One of the most beneficial regarding this flexible working arrangements is increased
work-life balance among employees (University of Michigan, 2023). When employees are
given the opportunity to exercise flexible work alternatives, they are better able to meet their
various duties outside of work, such as seeking job training and education, caring for family
members in need, and having time to exercise and eat well. Reduced stress as a result of
using work flex to accommodate employee life requirements has a proven return on employee
loyalty, attention, and satisfaction. This, in turn, contributes new enthusiasm and talent to the
unit's goals. It also helps to reduce stress and associated health problems, which affect health
insurance premiums. Furthermore, while it is true that flexible schedules benefit employees,
smart companies understand that they benefit as well. As a result, from being a green firm to
having a competitive advantage in recruitment and boosting diversity, the advantages of
flexible work for businesses can help your organization stay ahead of the competition
(Howington, 2023). For an instance, according to a study conducted by Mache, et.al., (2020),
with the growing popularity of innovative ways of working, scientific interest in flexible work
arrangements such as "Activity Based Working" (ABW) and office space design is growing.
ABW is defined as a work design in which employees have a high degree of control and
organization over the timing and location of their work. They have the option of working from
home, the workplace, or while commuting, as for an example, on a train. The use of open work
offices with a variety of shared workspaces designed for different work tasks, so-called activity-
related workspaces such as focus and concentration rooms, meeting rooms, and others that
employees can use depending on the nature of their work activities, is the ultimate key design
feature of ABW. Employees can select and use work environments based on their current job
tasks, with regular transitions between them. These flexible work arrangements also
incorporate the "desk-sharing" notion, which means that employees no longer have a
designated workstation and can pick their workspace freely. The workplace is frequently
separated into so-called neighborhoods, which ensure that coworkers from the same
department remain close to one another. Furthermore, personnel in ABW contexts use a
variety of information technologies for example, personal laptops and smartphones.
49
3.2 Personal-Development Plan
A personal development plan (PDP) is an agreement between an employer and an
employee that describes the goals of that team member. It wishes to encourage employees to
reflect on their professional lives and focus on self-improvement. Employees search for
possibilities for training and personal growth in their workplaces. One of the primary reasons
people decide to leave is a lack of these chances. HR professionals and team leaders may
avoid this by adopting a personal development plan template to assist workers in meeting their
personal development objectives. In this instance, it would be a win-win situation for both the
corporation and the employees. According to a survey, 94% of respondents said they would
stay at the company longer if it invested in their careers. In addition, professional and personal
growth leads to higher retention. Besides, 58% of employees claim that professional
development contributes to their job satisfaction. Moreover, employees who feel respected,
empowered, and as if they are making a difference are much more likely to stay in a company
for those who don’t have less than a 35% chance of staying (Effy, 2022). Staff assessment
sessions, for example, are an excellent opportunity to create self-development goals. The
employee and their management can pool their perspectives on the necessary improvement.
One of the most significant advantages of defining personal development objectives is
improved concentration and clarity of direction. Clear goals motivate people to act and make
quick decisions about their next moves. This motivates individuals to be more proactive in their
personal and professional life. Time off It is simple to scroll endlessly on the phone without a
clear objective or to spread work across the day. People will be more proactive and efficient if
they have specific goals.
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3.3 Paternity Leave
Another suggestion that could be made is adding an article pertaining to paternity
leave. For the collective agreement of both years, Article 21 discusses maternity leave where
it includes the standard ruling on paid days of leave after giving birth, leave due to miscarriages
or illnesses caused by the pregnancy and the repercussions in case the employee is absent
beyond the accommodated maternity leave days without permission. As commonly known by
most, manufacturing is a highly male-dominated industry (Berlinsky-Schine, 2022) and Boon
Siew Honda is a manufacturing company. At least some of the majority of male employees are
or would be fathers and deserve the opportunity to look after their wives who have just given
birth and their newborn babies without having to utilize their paid leaves or worse, take unpaid
leave. One of the most recent amendments to the Employment Act 1955 (enforced in 2023) is
the addition of entitlement to 7 days of paid paternity leave (Subsection 60FA) where fathers
would be able to prioritize their family without being worried about work. Paternity leave is
especially crucial to consider after a case where a man only had 2 days of paternity leave and
had to return to work which soon led to the passing of his wife after she had just given birth
(Lee, 2023). Therefore, the following collective agreement of Boon Siew Honda should
consider including an article that permits paid paternity leave for the employees in order to
ensure the employee and their dependants’ well-being.
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3.4 Requirement to Exhibit a Notice on Sexual Harassment
Besides that, we would suggest that the next collective agreement should include an
article that ensures the safety of employees against sexual harassment and summons
termination towards any employee that is found guilty of harassing other employees. Sexual
harassment has been receiving a heightened awareness towards it recently, but it does not
mean that the allegations and occurrences have decreased. In fact, a study discovered that
most Malaysian women find sexual harassment to be a top issue (35%), alongside the
sexualization of women and girls in media (22%) and sexual violence (17%) (Adam, 2022). An
estimation by researchers is that 40-80% of women experience sexual harassment in the
workplace by their male colleagues, especially those of higher roles in the hierarchy, and
occurs the most in the manufacturing sector (Cortina, 2018), e.g. Boon Siew Honda. In the
rise of awareness regarding sexual harassment, one of the amendments made to the
Employment Act 1955 includes Section 81H which requires employers to display a notice in
regards to sexual harassment in the workplace. Boon Siew Honda can include this in their
next collective agreement or even include better guarantees for protection of any victims and
ensure proper punishment to the perpetrator. For example, ensuring that any victim
(regardless male or female) may receive counseling or leave as much as necessary to recover.
Thus, the next collective agreement of Boon Siew Honda should include a new article which
covers the issue of sexual harassment in the workplace.
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3.5 Apprenticeship
Apprenticeship programmes are extremely important in both the process of preparing
individuals for skilled trades and the development of a labour force that is highly skilled.
Establishing a solid structure that encourages the learning and development of apprentices is
vital to the success and efficacy of such programmes. The performance of the company can
be improved by introducing a new provision that will be incorporated into the collective
bargaining agreement.
The United States Employment Service describes an apprentice as "a worker not less
than 16 years of age engaged under direct journeyman supervision, and according to a
prescribed or traditional series of work processes graded to coincide with increasing trade
maturity in learning a skilled occupation that requires, during the learning process, several
years of reasonably continuous employment before the time that the worker may be
considered a qualified journeyman." In most jurisdictions, a promise by an employer to train
an employee in exchange for payment must be memorialized in a formal contract, indenture,
or agreement to be recognized as an apprenticeship (United States. Bureau of Labor
Statistics, 1948). Ordinarily, an apprenticeship combines training and experience gained on
the job with a portion of academic education. Employers, trainees, educators, and the
government are therefore prospective cost-bearers and beneficiaries. An active field of
theoretical and empirical study in the present day is the circumstances under which people
are prepared to incur these expenses and enjoy these advantages (Wolter & Ryan, 2011).
The Minister of Human Resources has just stated that the Employment (Amendment)
Act 2022 (“the Amendment Act”) and the Employment (Amendment of First Schedule) Order
2022 (“Amendment Order”), which modifies the First Schedule and expands the scope of
employees protected by the Employment Act of 1955, would go into effect on January 1, 2023.
The Amendment Act and the Amendment Order made several significant amendments to the
Employment Act of 1955 ("the Act"), including the following apprenticeship. Previously, an
"apprenticeship contract" was defined as a two-year written agreement. An apprenticeship is
amended must be explicitly described in the labour contract, and its duration must be at least
six months and no more than 24 months (Medina, 2022). The proposed new clause is
motivated by the recognition that apprenticeships play a vital role in creating a trained
workforce and paving the way for the long-term success of both apprentices and the business.
Nevertheless, it is essential to address the difficulties that already exist and identify areas of
the current apprenticeship framework that may use improvement. This new clause will create
a conducive environment for apprentices' holistic development, assuring their success.
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Apprenticeship programmes are a great way for businesses to improve their
employees and cut down on expensive recruitment expenses. Companies are able to more
effectively and efficiently meet their talent needs by leveraging apprenticeship programmes if
they grasp the relationship between apprenticeships and cost reductions and make use of
apprenticeship programmes. The process of hiring new employees is time-consuming,
expensive, and fraught with potential hazards (University of West London, 2023).
Apprenticeships offer numerous advantages to businesses, including the creation of a
dedicated workforce, lowered training costs, and increased employee loyalty. Apprenticeships
are a cost-effective way to grow a trained workforce over time while mitigating some of the
risks and expenses associated with traditional recruitment methods. Employers may cut
expenses, improve employee retention, and build a highly qualified workforce that is prepared
for long-term success by embracing apprenticeships as a strategic recruitment strategy.
Investing in the professional development of current employees is a fantastic method to
provide your company with the qualified workers it requires without having to make an
excessive number of new hires.
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4.0 CONCLUSION
In the light of discussion, collective agreement is the process through which
employees, through their unions, negotiate contracts with their employers to establish their
employment terms, such as compensation, benefits, hours, leave, occupational health and
safety standards, strategies to balance work and family, and more. Collective agreement is a
method of resolving workplace issues. It is also the most effective technique of increasing
wages in most of the countries such as America and Malaysia. Working people in unions do,
in fact, receive greater pay, better benefits, and safer workplaces as a result of collective
agreement. Collective bargaining occurs when management and employees speak with one
another in order to establish an agreement. Most people associate collective bargaining with
the process through which union members of employees negotiate with employers in order to
get benefits. Collective bargaining, on the other hand, is the process through which an
agreement is made about employee wages, working hours, and working conditions at the
company. Nevertheless, trade unions have been regularly criticized for creating strife within
the workplace environment fighting workmen compensation as the concept of collective
bargaining has been termed as a continuous strategic process in determining terms and
conditions of employment where management and employees participate at a workplace to
oversee establishing stable relationships and was primarily developed as an alternative to ad-
hoc on the basis of an agreement with the employees related to managing discipline and
employee claims.
Therefore, based on the comparison between two Collective Agreement by Boon Siew
Honda Sdn. Bhd. And National Union of Transport Equipment and Allied Industries Workers
shows that the company is alert and competitive in order to fulfill the mutual agreement from
both parties (Malaysia Trades Union Database, 2019). This is because, since the late 1960s,
Malaysian automobile workers are frequently subjected to bad working circumstances,
including long working hours and intense pressure; some workers have even been unfairly
sacked by their employers. By that time, the government had enacted a policy requiring a
specific number of component parts to be manufactured locally, thus production began with
tires, doormats, and leather strips. As a result, the union expanded to include these part
manufacturers as well. Wages are the most pressing issue for union members. The cost of
living has risen dramatically over the previous 30 years, yet incomes have not kept pace.
According to the sources, even though the GDP appears to be very high, the discrepancies
are really large. On top of that, a very small number enjoys everything, while the rest suffers,
and the distribution is unfair. Malaysian employees require stronger unions with a larger
membership, as well as industry-wide collective bargaining with a single employer union, in
order to bargain for greater salaries (Hwa, 2023). Another issue is that the surge of migrant
55
workers in the transportation equipment industry has a negative impact on unionization rates.
This is because, most migrant workers prefer to work extra hours in order to send more money
home, therefore they are hesitant to join a union and bargain for improved employment
benefits.
Last but not least, collective bargaining is a voluntary procedure that leads to the
completion of a collective agreement by determining work terms and conditions and regulating
relations between employers, workers, and their organizations. The advantage of collective
bargaining is that it resolves issues via communication and consensus rather than conflict and
confrontation. Freedom of association and collective bargaining create possibilities for
constructive rather than hostile debate, focusing energy on solutions that benefit the firm, its
stakeholders, and society at large. Through collective bargaining, the parties can adapt a
collective agreement governing the employment relationship to their specific industry or
organization. It also enables parties to tackle difficulties unique to their sector or workplace.
Besides that, parties are known to form agreements that may assist the enterprise's flexibility
during a downturn or the introduction of technology and organizational change in a way that
protects workers from risk while delivering the desired results. For an example, collective
agreements, also known as TES agreements, are commonly used in Finland to protect the
benefits of an employment relationship as well as field-specific compensation progression
(Technology Industries of Finland, 2023). A collective agreement establishes the minimum
level of employment terms and conditions in a specific field. Individual employees can also
negotiate additional improvements to their own employment contracts. Essentially, collective
agreements promise employees better working conditions than those granted by legislation.
As a union member, an employee has access to the services of a trained personnel
representative, such as a shop steward, who will assist employees at their workplaces in
problems and issues relating to working life.
56
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FACULTY OF BUSINESS AND MANAGEMENT

MASTER OF HUMAN RESOURCE MANAGEMENT (BA707)

HRM 723: EMPLOYEE RELATIONS

ASSIGNMENT 1: COLLECTIVE AGREEMENT

STUDENT NUR ARYANNIE BINTI AHMAD (LEADER) 2022668084

ASSESSMENT GROUP ASSIGNMENT (30%)

24th JUNE 2023

1.0 INTRODUCTION ................................................................................................................................. 1

COG. NO: 147/2019: Collective Agreement 2018-2019

Register on 18th June 2019.

COG. NO: 268/2022: Collective Agreement 2021-2024

COG. NO: 147/2019: Collective Agreement 2018-2019

Register on 18th June 2019

COG. NO: 268/2022: Collective Agreement 2021-2024

Register on 20th June 2022.

COG. NO: 147/2019: Collective Agreement 2018-2019

Register on 18th June 2019

Register on 20th June 2022.

COG. NO: 147/2019: Collective Agreement 2018-2019

Register on 18th June 2019

COG. NO: 268/2022: Collective Agreement 2021-2024

Register on 20th June 2022.

COG. NO: 147/2019. Collective Agreement 2018-2019

COG. NO: 147/2019. Collective Agreement 2018-2019

COG. NO: 147/2019. Collective Agreement 2018-2019

COG. NO: 268/2022. Collective Agreement 2021-2024

COG. NO: 147/2019. Collective Agreement 2018-2019

A) Where an employee is required by the Company to undertake a course of training,

COG. NO: 268/2022. Collective Agreement 2021-2024

As compared to the 2019 collective agreement, Article 19 of the 2022 collective

COG. NO: 147/2019. Collective Agreement 2018-2019

COG. NO: 268/2022. Collective Agreement 2021-2024

Several changes or updates were made to Article 22 of the 2022 collective

Clause C(1)(b) was also amended. In the 2019 collective agreement,

COG. NO: 147/2019. Collective Agreement 2018-2019

COG. NO: 268/2022. Collective Agreement 2021-2024

COG. NO: 147/2019: Collective Agreement 2018-2019

Register on 18th June 2019

COG. NO: 268/2022: Collective Agreement 2021-2024

Register on 20th October 2022

Indiana University Organizational Development states, "Progressive discipline is the use

COG. NO: 147/2019: Collective Agreement 2018-2019

Register on 18th June 2019

COG. NO: 268/2022: Collective Agreement 2021-2024

COG. NO: 147/2019: Collective Agreement 2018-2019

Register on 18th June 2019

COG. NO: 268/2022: Collective Agreement 2021-2024

Register on 20th October 2022

Medina, A. F. (14 September, 2022). Amendments to Malaysia’s Employment Act to Come

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