Malasia - FBC fails to abide by CBA (2011)

Federal Power Cables (FBC) has failed to abide by provisions of its collective bargaining agreement (CBA) with the International Metalworkers’ Federation (IMF) affiliated Electrical Industry Workers’ Union (EIWU) when it refused to grant the contractually required bonus and annual wage increments to more than 300 EIWU members. After EIWU attempts to negotiate with FBC on the wage issues failed, about 200 EIWU members began a peaceful picket in front of the company plant on 19 May. Maniyan Poovan, General Secretary of EIWU, said that FBC has overtly engaged in illegal actions in an attempt to bust the EIWU. The FBC’s Managing Director has openly stated that he does not like national unions like the EIWU, but preferred in-house unions. He has also offered incentives for EIWU members to leave the union by granting them conditions of employment more favourable than those contained in the CBA. FBC management officials started issuing ‘show-cause’ letters to workers who took sick leave and approved annual leave. EIWU shop stewards have also received the show-cause letters which could lead to disciplinary action, including dismissal. Maniyan said the picket would continue in an effort to resolve the pending disputes.

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