AGREEMENT

between

EXXONMOBIL BORNEO SENDIRIAN BERHAD

and

SABAH PETROLEUM INDUSTRY WORKERS UNION

2008 - 2011

 

TABLE OF CONTENTS

PART I - GENERAL

Article 1 - Parties to the Agreement

Article 2 - Preamble

Article 3 - Union Recognition

Article 4 - Management Function

Article 5 - Union Function

Article 6 - Scope of Agreement

Article 7 - Duration of Agreement

Article 8 - Legislation

Article 9 - Modifications and Amendments

Article 10 - Number and Gender

Article 11 - Text In English

Article 12 - Definitions

PART II - PROBATION AND PROMOTION

Article 13 - Probationary Period

Article 14 - Promotion

PART III - PAY AND GROUP CLASSIFICATIONS

Article 15 - Group Classifications

Article 16 - Annual Increment

Article 17 - Unsatisfactory Employee

PART IV - ALLOWANCES, OVERTIME PAY AND REIMBURSEMENTS

Article 18 - Acting Assignment and Allowance

Article 19 - Pay for Overtime Work

Article 20 - Call Back

Article 21 - No Compounding

Article 22 - Reimbursement of Transportation Expenses

Article 23 - Reimbursement of Meal Expenses

PART V - BONUS

Article 24 - Conditions for Bonus Payment

PART VI - HOURS OF WORK

Article 25 - Work Week

PART VII - TRANSFERS

Article 26 - Permanent Transfer Reimbursement

Article 27 - Reimbursement for Prolonged Separation

Article 28 - Family Visits

Article 29 - Repatriation to Home Town

PART VIII - PUBLIC HOLIDAYS

Article 30 - Gazetted Public Holidays

PART IX - WORKING CONDITIONS

Article 31 - Working Conditions

PART X - ANNUAL LEAVE

Article 32 - General

Article 33 - Scheduling Vacation

Article 34 - Disability While on Vacation

PART XI - LEAVE OF ABSENCE

Article 35 - General

Article 36 - Special Leave

Article 37 - Study Leave

Article 38 - Compassionate Leave

Article 39 - Maternity Leave

Article 40 - Time-Off for Union Business

PART XII - SICKNESS BENEFITS 

Article 41 - Clinical Care

Article 42 - Sick Leave

Article 43 - Prolonged Illness

Article 44 - Medical Examination

PART XIII - EXISTING BENEFITS

Article 45 - Existing Benefits

PART XIV - DISCIPLINE

Article 46 - Disciplinary Procedure

PART XV - GRIEVANCE PROCEDURE

Article 47 - General

Article 48 - Grievance Defined

Article 49 - Grievance Procedure

Article 50 - Arbitration

Article 51 - Extension of Time Limits

Article 52 - Grievance Forfeited

Article 53 - Form for Processing a Grievance

Article 54 - Grievance of a General Nature

PART XVI - UNIFORMS

Article 55 - Uniforms and Laundry

Article 56 - Protective Clothing/Safety Shoes

PART XVII - RETIREMENT BENEFITS

Article 57 - Retirement Benefits

EXHIBITS

EXHIBIT 1 - GROUP CLASSIFICATION - POSITION TITLES


 

PART I - GENERAL

ARTICLE 1 - PARTIES TO THE AGREEMENT

 

THIS AGREEMENT is made this ________ day of ________________, 2008 between the SABAH PETROLEUM INDUSTRY WORKERS UNION, Block N, 2nd Floor, Lot 4, Sinsuran Complex, P. O. Box No. 11087, Kota Kinabalu, Sabah, hereinafter called "the Union", a trade union of employees registered pursuant to the Trade Union Act 1969 and EXXONMOBIL BORNEO SENDIRIAN BERHAD (Company No:8823D), a Company incorporated with limited liability in Malaysia and having its registered office at EMB Company Secretary's Office, 28th Floor, Menara ExxonMobil, Kuala Lumpur City Center, 50088 Kuala Lumpur, Malaysia, hereinafter called "the Company".

In case either the Company or the Union changes its name or merges with other companies or organizations to the effect that the Company or the Union is wholly or partly absorbed by the other organization, the provisions of this Agreement shall remain valid for the employees for which this Agreement was applicable at the time the change of name or the merger took place, for the remaining period of validity of this Agreement.

ARTICLE 2 - PREAMBLE

 

It is the intent and purpose of this Agreement to ensure industrial peace and mutually beneficial relationship with justice between the parties hereto in matters concerning terms and conditions of service for employees in positions represented by the Union; to stabilize industrial relations within the Company; to clarify the rights and responsibilities of the Company, its employees, the Union and its memberships; to provide an orderly and effective means of conducting any negotiations or resolving any misunderstandings or grievances during the life of this Agreement.

Both parties acknowledge the fact that the well being of the Company as well as its employees is dependent upon a common determination to work together with the closest cooperation. It is under such a relationship of mutual respect and mutual confidence that management and employees will be in a position to contribute their share in the common efforts for the improvement of the general economy and the raising of the standard of living of the employees.

In view of the above, both parties agree that during the life of this Agreement neither party will take unilateral action nor present demands which are not in accordance with the provisions already agreed upon, unless agreed to by both parties.

 

ARTICLE 3 - UNION RECOGNITION

 

The Company recognizes the Union as the sole collective bargaining body for its employees in the recognized bargaining unit with respect to salaries, hours of work and other terms and conditions of service applicable to such employees.

 

ARTICLE 4 - MANAGEMENT FUNCTION

 

(a) It is recognized that the operation of the business and the direction of the work force are the functions and responsibilities of the Company. Management functions include, but are not limited to the rights to hire, promote, discipline or discharge for proper cause, to create jobs, to discontinue jobs or lay off for lack of work, to specify job content and to determine the number of employees required, the right to make rules and regulations governing the conduct and safety of employees, to establish the methods, processes and means of operations and to institute or discontinue any operation or method of production.

(b) The Company's exercise of its rights in the management of the business shall not violate any of the expressed provisions of this Agreement nor shall they be used to discriminate against any member of the Union or employee.

 

ARTICLE 5 - UNION FUNCTION

 

It is recognized that the Union maintains the right as the sole bargaining body to make representation against all Company's actions which are contrary to or tend to diminish the value of the provisions of this Agreement, and to bargain collectively for its members relative to salaries, hours of work and other terms and conditions of service.

 

 

ARTICLE 6 - SCOPE OF AGREEMENT

 

This Agreement, including the Exhibits marked Exhibit 1 through Exhibit 4 constitutes the entire Agreement between the Company and the Union relating to salaries, hours of work and other terms and conditions of service of regular employees.

This Agreement supersedes all the other previous Collective Agreements made between the Company and the Union.

 

ARTICLE 7 - DURATION OF AGREEMENT

 

This Agreement shall be deemed to have come into effect on the 1st day of May, 2008 and subject to Article 16 Annual Increment, shall continue to remain in force for a period of three years and thereafter until superseded by a new Agreement or terminated as provided below:

(a) Either party may serve on the other three months' written notice to negotiate on new terms and conditions of employment, but no such notice shall be served earlier than the 1st day of February, 2011. The party that serves the notice shall also submit proposals on terms and conditions of employment for negotiation. Pending the outcome of the negotiations, the provisions of the current terms and conditions of employment shall prevail until superseded by new terms concluded between the parties or awarded by the Industrial Court.

OR

(b) This Agreement may be terminated by either party by giving three months' written notice but such notice shall not be served before the 1st day of February, 2011.

 

ARTICLE 8 - LEGISLATION

 

In the event that any legislation should supersede, vary, repeal or add to any of the provisions of this Agreement, then the relevant provisions of this Agreement shall be amended accordingly. However, if the benefits contained in this Agreement are more favorable, these benefits, with the exceptions of Articles 19, 20 and 21, shall continue to apply if it is so permitted by law. The effective date of such amendment shall be the effective date of the new law.

ARTICLE 9 - MODIFICATIONS AND AMENDMENTS

 

Notwithstanding the provisions of Article 6, upon the request of either party at any time during the period or extended period of this Agreement, both parties may discuss and consider whether or not any modifications and/or amendments arising from operational changes need to be made. All modifications and / or amendments arrived at mutually shall be in writing signed by the Union President and the Director of the Company or their designated representatives and shall be jointly deposited with the Industrial Court for cognizance. After the court has given cognizance, such modifications or amendments shall be binding on the parties from such date and for such period as may be specified in the modification or the amendment Agreement provided that such period shall not commence earlier than the effective date of this Agreement.

 

In the event of a change in the interpretation of any of the provisions of this Agreement, it is agreed that the resultant benefit, if any, will be limited in its retroactivity to the time when the matter was first officially raised by either party.

 

ARTICLE 10 - NUMBER AND GENDER

 

Where the context so permits words importing the singular shall include the plural and vice versa, and words importing the masculine gender shall include the feminine gender.

ARTICLE 11 - TEXT IN ENGLISH

 

The Agreement shall be prepared in English. A copy of the Agreement will be given to all employees.

 

ARTICLE 12 - DEFINITIONS

In order to assist both parties in interpreting and understanding the meaning of certain terms of this Agreement, the following definitions are made:

Words and phrases shall be construed according to the Definitions as follows:-

Company Approved Doctor - Shall mean a medical practitioner whose name is contained in a list of approved medical practitioners circulated by the Company among employees from time to time.

Day - A day is a period of twenty-four (24) consecutive hours from midnight to midnight.

Employee - Shall mean a locally engaged person employed under a contract of service written or implied in or about the business of the Company in Sabah to whom this Agreement applies, but excludes all persons specifically employed by the Company on a temporary basis.

Family - The spouse and dependent children of the employee.

Salary - Shall mean the fixed monthly sum payable to an employee for services with the Company excluding bonus, overtime payments, and other allowances of whatsoever nature.

Salary Group - The range of salary defined by a minimum and a maximum to which a number of comparable position classifications are assigned.

Scheduled Day of Rest - Shall be deemed to be Sunday or, when in a work week an alternate day other than Sunday is observed as the rest day, such alternate day.

Wife - The legal wife of the employee as registered in Company records.

Work Day - A day which contains regular scheduled working hours for an employee.

Work Period - The scheduled hours of work on a day on which an employee is scheduled to work.

Formula for Computing Hourly Rate of Pay - For purpose of determining an hourly rate of pay the following formula will be used:

Monthly Salary x 12 = Hourly Rate

52 x Number of Hours per Work Week

TABLE OF CONTENTS

PART II - PROBATION AND PROMOTION

ARTICLE 13 - PROBATIONARY PERIOD

 

(a) All newly engaged employees in the following categories shall be considered to be on probation for up to twelve (12) months:

                                                                                                                            Sales Trainee

                                                                                                                            Salesman

(b) All newly engaged employees other than those considered in sub-section (a) above, shall serve a probationary period of six (6) months. In the event that after the normal 6 months probationary period the employee has not proven himself to be competent or suitable for the job, a further extension of 3 months probationary period may be imposed.

(c) Following completion of the stipulated probationary period, as covered under (a) or (b) above, the employee shall be advised in writing by the Company by the last day of the probationary period whether he has been accepted for regular employment. In the event the newly hired employee does not receive a written notice from the Company by the last day of his probationary period, it is assumed that his employment with the Company is confirmed immediately following the last day of his probationary period.

(d) A newly hired employee whose services are terminated during his probationary period will not be entitled to termination benefits.

 

ARTICLE 14 - PROMOTION

(a) An employee who is promoted shall be informed in writing at the time of the promotion. The length of the probation, if any, shall not be more than 6 months.

(b) Upon promotion to a higher classified position the employee's salary shall be adjusted by the accrued annual increase at the rate applicable to his salary group prior to his promotion or a pro-ration thereof, plus a promotional increase of not less than ten (10) percent. The employee shall again be eligible for an increase or a pro-ration thereof on the common anniversary date calculated as follows :-

                                                                                                                                 Completed Months of Service

                                                                                                                                     Since Date of Promotion             x     Annual Increment Rate

                                                                                                                                                      12

(c) In the event the Company decides not to confirm the employee in his new position, he will be redirected to a position compatible with his ability, and the company undertakes that the employee will continue to receive the salary appropriate to his position immediately prior to the position he held on probation.

TABLE OF CONTENTS

 

PART III - PAY AND GROUP CLASSIFICATIONS

ARTICLE 15 - GROUP CLASSIFICATIONS

 

All existing positions in the represented unit covered by this Agreement are listed in Exhibit 1. Each position title is classified in the Classification Structure and Salary Scales.

The position title listing in Exhibit 1 is made only for the purpose of determining rates of pay for employees assigned to these positions.

 

ARTICLE 16 - ANNUAL INCREMENT

 

a) The annual incremental rate shall be four (4%) per cent of base salary subject to a minimum as stipulated in Exhibit 2. The common anniversary date for all employees shall be the first (1st) January of 2009, 2010 and 2011.

b) Thus, on the common-anniversary date i.e. January 1 of each year, all employees who have completed twelve months of active service since the last incremental date except those who are at or above their respective job rates, or those who have proven to be unsatisfactory, or those who are on a leave of absence without pay or those on temporary suspension from work shall receive an annual increase computed below subject to the maximum of the salary group for the assigned position as shown in Exhibit 2 - Classification Structure and Salary Scale.

 

                                                                                                                        Completed Months of Active

                                                                                                                        Service Since Last Increase         x     Appropriate Incremental Rate

                                                                                                                                        12

c) Notwithstanding the provisions of clause (b) above, new employees shall receive their first annual increase only upon completion of twelve months of service. On the common anniversary date following his first annual increase, the employee shall be eligible for a prorated increase calculated as follows:

 

                                                                                                                        Completed Months of Active

                                                                                                                        Service Since Last Increase         x     Appropriate Incremental Rate

                                                                                                                                                12

ARTICLE 17 - UNSATISFACTORY EMPLOYEE

 

(a) When an employee has shown himself to be an unsatisfactory employee, he will be informed in writing at least three months in advance of his anniversary date about his faults or shortcomings and how he may correct them. This will enable him to make improvements and thus be eligible for an increase.

(b) If his performance is still unsatisfactory by the time of his anniversary date, an increase will be denied until such time as his work performance has improved and warrants granting the applicable increase. The denied increase that may later be approved cannot be made retroactive but will become effective the beginning of the payroll period following the approval of such an increase.

(c) If the deferral is for a period of three (3) months or less, such an employee will again be eligible for a subsequent increase on the next common anniversary date. However, if the deferral is for a period of more than three (3) months, his next increase will be reduced by one-twelfth (1/12) of an increment for each month beyond three (3) months and will be calculated as follows:

                            Annual Increment Rate x 1/12 x Number of months beyond Three Months

(d) For the purpose of this Article, the term "unsatisfactory" performance includes "inefficient performance" and "misconduct".

TABLE OF CONTENTS

 

PART IV - ALLOWANCE, OVERTIME PAY AND REIMBURSEMENT

 

ARTICLE 18 - ACTING ASSIGNMENT AND ALLOWANCE

 

(a) Types of Job Status - There are two (2) types of Job Status for employees in the represented unit:

i) Normal Status - This is the status of an employee filling his job assigned on a permanent basis or any other position classified in his respective group.

ii) Acting Status - This is the status of an employee assigned on a temporary basis to a position in a higher group classification and who is responsible for the full and proficient performance of the position to which he is assigned.

(b) Acting Assignment and Allowance - An employee assigned to a position in a higher classification on acting status will be paid an acting allowance effective the date of the assignment in accordance with the rates below:-

i) For acting in a position one job group higher - 25 % of the starting rate of the group in which he is acting per working day basis;

ii) For acting in a position two or more job groups higher - 30 % of the starting rate of the group in which he is acting per working day basis :

                                

                            Acting Allowance = (Min. monthly salary applicable to or  personal salary whichever is higher/22) x Acting Rate  x  No. of  Days

iii) For acting in a CAE position - 30 % of his salary per working day basis:

                            Acting  Allowance = (Personal Salary/(52 x No. of hours worked per work week)) x 12 x 8 hours x 30%

                               

ARTICLE 18 - ACTING ASSIGNMENT AND ALLOWANCE (Cont'd)

 

iv) For acting in management position - 40% of employee's own salary group maximum per calendar day basis:

                            Acting Allowance  =   (Employee's Own Salary Group Maximum / 365) x 12 x 40%

 

v) While an employee is assigned on a temporary basis to a position in a higher group classification and is receiving an acting allowance, the acting allowance shall not be used for computing overtime, vacation pay, sickness or disability benefits, redundancy, termination or resignation allowances and bonus.

vi) While an employee is assigned on a temporary basis to a management position and is receiving an acting allowance he may elect to continue membership in the Union; however, during such period of temporary assignment the Company shall not recognize Union representation for him in respect of his acting assignment.

vii) An official and prior advice will be given to the employee before he can assume an assignment on an acting basis.

 

 

ARTICLE 19 - PAY FOR OVERTIME WORK

 

(A) Overtime pay shall be paid to all employees, except Sales Trainees and Salesmen, covered by this Agreement for overtime performed at the request of the Company in excess of normal hours of work. Consent from the employee to work overtime shall be obtained but such consent shall not be unreasonably withheld.

(B) Employees shall be paid in accordance with the following overtime rates:

                            i) Overtime hours worked on a normal working day and hours worked on a non-working day: 1.5 times the hourly rate.

                            ii) Overtime hours worked on employee's rest day:

                                        a) For work which does not exceed half his normal hours per day: 4 x 2.0 hourly rate

                                        b) For work which exceeds half up to his normal hours of work:

                                            No. of hours worked x 2.0 hourly rate

                                        c) For work which exceeds his normal hours of work: No. of hours in excess x 3.0 hourly rate

                            iii) Overtime hours worked on gazetted public holiday:

                                        a) For work which does not exceed his normal hours per day: 8 x 2.0 hourly rate

                                        b) For work which exceeds his normal hours of work per day: Hours in excess of normal hours of work per day x 3.0

(C) For overtime work between the hours of 12 midnight and 6.00 a.m., regular day scheduled employees shall be paid 2.0 x the hourly rate of such overtime hours worked. For continuing overtime work from mid-night to 6.00 a.m. and up to the an employee's normal starting time in the morning, the overtime rate shall be 2.0 x the hourly rate. However, for overtime work starting between 6.00a.m. and the employee's normal starting time in the morning, the rate shall be at 1.5 x hourly rate.

(D) Where a gazetted public holiday is observed by the Company on a day other than the actual gazetted day, the observed day only will be the public holiday for overtime payment purposes. Provisions as in b (iii) above shall apply.

(E) The overtime pay rate shall be that applicable for a monthly salary of up to a maximum of Ringgit Malaysia one thousand five hundred only (RM 2500).

 

ARTICLE 20 - CALL BACK

 

(a) "Call-back" work is work outside an employee's normal work period and is not contiguous to or an extension of the normal work period or planned overtime work. It is recognized that "Call-back" is necessary from time to time in meeting operational requirements.

(b) When an employee is called back to work, he shall receive a minimum of four (4) hours straight time pay or the applicable rate of pay under Article 19 whichever is greater whether or not he performs work for four (4) hours.

(c) When "Call-back" work is completed and is then followed by another "Call-back", this will be considered a separate "Call-back" even though it may occur in the same four hour period.

                    (d) The "Call-back" will commence at whichever time is later.

i) The time he is instructed to report: or

ii) The time he actually reports.

 

ARTICLE 21 - NO COMPOUNDING

 

When more than one rule provides that work is payable at a rate in excess of straight time, pay is based solely on the rule providing the highest rate.

 

 

ARTICLE 22 - REIMBURSEMENT OF TRANSPORTATION EXPENSES

 

The employee shall be responsible for his transportation to and from his normal place of residence and his place of work. It is only when the Company requires additional trips to be made over the normal or when additional expenses be incurred through compliance with Company's request. That such transportation expense will be reimbursed. For the purpose of this Article, the normal place of residence refers to his place of residence during his normal working days.

(a) No Additional Overtime Trips

For employees who normally travel to or from their work by bus and are required to work overtime contiguous to their regular work schedule, no transportation reimbursement will be paid except outside the operating hours of such buses, in which case the actual cost of transportation incurred shall be reimbursed. Or at the Company's option, transportation may be provided. Likewise no overtime transportation reimbursement will be paid to those employees who are required to work overtime contiguous to their regular scheduled work hours and who operate their personal motor-car or motor cycle/scooter.

(b) Additional Overtime Trips

In the event an employee is required to work overtime on his day off, scheduled day of rest, gazetted public holiday or as a result of a "Call-back" to work he will be reimbursed in accordance with his normal mode of travel as follows:-

i)

Motor-Car

Flat rate of RM0.70 per kilometer

     

ii)

Motor Cycle/Scooter

Flat rate of RM0.25 per kilometer

     

iii)

Bus

Actual fare

     

 

Transportation reimbursements in accordance with the above schedule will be based on actual mileage driven. Where the appropriate mode of travel is by bus and when such travel is outside the operating hours of such buses, employees will be reimbursed the actual cost of transportation incurred, or at the Company's option, transportation may be provided.

For the purpose of this Article, normal mode of travel refers to his regular means of travel during normal working days.

 

ARTICLE 23 - REIMBURSEMENT OF MEAL EXPENSES

 

I An employee who is requested to work overtime will be entitled to meal reimbursements of eighteen Ringgit only (RM18.00) per meal as follows:

A) For Overtime Work on Normal Working Days

i) Employee who works two (2) hours of overtime or more immediately preceding the commencement of his normal working time: or

ii) Employee who works two (2) hours of overtime or more immediately following his normal quitting time.

iii) Subsequent meal reimbursement preceding (i) or succeeding (ii) above shall be upon completion of every four (4) hours of overtime worked.

iv) Employee who is required to work overtime outside his normal scheduled hours of work and completes at least four (4) consecutive hours. Subsequent meal reimbursement shall be upon completion of every four (4) hours of overtime worked.

B) For Overtime Work on Rest Days, off Days and Gazetted Public Holidays

i) Employee is required to work overtime and completes at least four (4) consecutive hours:

ii) Subsequent meal reimbursement after having qualified the first reimbursement shall be four (4) hours per meal basis.

II When an employee is required to work outstation on Company's business involving overnight stay, per diem reimbursements where applicable are as follows:-

Perdiem

Malaysian Ringgit

Breakfast

10.00

Lunch

18.00

Dinner

18.00

Incidentals (Laundry and Tips)

15.00

Overnight Accomodation

99.00

Total

160.00

 

Where transportation is required, reimbursement shall be as per Article 22 (b) or actual taxi or bus fare where applicable.

 

Alternatively, in lieu of the RM160.00 per diem, an employee may opt to stay at Company designated hotels and he will be reimbursed actual single occupancy rate and a fixed reimbursement of RM61.00 for meals and incidentals.

TABLE OF CONTENTS

 

PART V - BONUS

ARTICLE 24 - CONDITIONS FOR BONUS PAYMENT

(a) For the year 2008 and each subsequent year thereafter during the period of this Agreement, the Company shall pay a bonus equivalent to two and one-quarter (2.25) months' salary to all employees covered by this Agreement. Bonus or a pro-ration of it will be paid in December of each year.

(b) Only employees who have completed a full calendar year shall receive the full bonus for that year.

(c) New employees, engaged after the effective date of this Agreement, shall receive a proportionate share of the bonus, payable in the year of employment, based upon completed months of service up to December 31st of that year only after completion of their probationary period.

(d) Bonus shall be prorated by one-twelfth (1/12th) for each month of service. A period of fifteen (15) days or more in a month shall be regarded as a full month; a lesser period shall be disregarded.

(e) Employees who take a leave of absence without salary shall lose a proportionate share of the bonus payment for the period of such absence in accordance with the formula set out under sub-article (d) above.

(f) Employees who leave the service of the Company prior to December 31st of any year for which a bonus is payable shall receive a proportionate share of the bonus payable in that year upon leaving the service of the company. However, no bonus, or any part thereof, shall be paid in accordance with this part to employees who are discharged for misconduct or breach of contract of service or resign to avoid such discharge or to new employees whose service is terminated during their probationary period.

TABLE OF CONTENTS

 

PART VI - HOURS OF WORK

ARTICLE 25 - WORK WEEK

 

(a) For the purpose of this Agreement, a Work Week will be considered a period of thirty-nine (39) hours for employees located at the Headquarters Office and forty-two (42) hours for employees located elsewhere.

(b) Details of daily hours of work at each location shall be scheduled by the Company from time to time.

(c) The Company shall undertake to discuss with the Union before implementation of any proposed revisions in the existing Work Week time schedule.

(d) Work Week time schedule as scheduled by the Company will not apply to Sales Trainees and Salesmen.

TABLE OF CONTENTS

 

PART VII - TRANSFERS

 

ARTICLE 26 - PERMANENT TRANSFER REIMBURSEMENT

 

A Permanent Transfer is a transfer of more than six (6) months' duration away from the normal work area which involves an employee in having to move house and family. Reimbursement is not payable if the transfer does not require the employee to move house.

(a) A transfer reimbursement equivalent to one and a half months' salary subject to a minimum of Malaysian Ringgit one thousand two hundred (RM1200.00) where the employee is not provided with furnished Company housing.

(b) In addition to (a) above, a per diem "settling in" allowance will be paid to employees living in temporary quarters up to a maximum of fourteen (14) days. The rate of per diem "settling in" allowance shall be Malaysian Ringgit one hundred and sixty (RM 160.00) per day.

(c) The Company will bear the cost of transport charges for the employee and his immediate family. The Company will also bear the cost of transporting reasonable personal effects e.g. basic furniture, cooking utensils and other household equipment and a personal car but not pets or other similar items. The Company will also bear the reasonable cost of packing the above personnel effects and will insure them against fire or loss or breakages during transit. Any customs duty payable on any used personal effects will also be borne by the Company. All the above arrangements have to be made through the Company.

(d) One-time reimbursement of school text books, school uniforms (2 suits per child) and school fees for one month in respect of school children of employee living with him, if different school text books and uniforms are required.

(e) Time off from work with pay up to five (5) working days and round trip economy class air transportation or any other means of transportation approved by the Company for the employee and his wife from the old location to the new location to look for housing. The employee will also be eligible for expenses incurred base on the appropriate per diem as per Article 23 (II).

An employee will be expected to give as much notice as possible prior to vacating his residence. where one calendar month's notice is required of the employee, the company upon submission of satisfactory proof will reimburse the employee for the unused portion of rental in lieu of notice up to a period not to exceed one calendar month.

Where he has prepaid rentals or deposits, the Company upon submission of satisfactory proof, will reimburse the employee for such unrecoverable from the lessor up to a period no to exceed one calendar month.

 

ARTICLE 27 - REIMBURSEMENT FOR PROLONGED SEPARATION

 

Prolonged Separation Reimbursement will be paid to an employee who on transfer cannot be accompanied by his family for the following reasons:

(a) Children at school taking examinations at the end of the current term.

(b) Children at school and within six (6) months of sitting for a qualifying examination.

(c) Children unable to obtain admission to either a Primary or Secondary School in the new area.

(d) Illness of wife or dependents, proof for which a doctor's certificate will be required.

(e) If on the date of transfer of the employee his wife is pregnant and the anticipated delivery date of the child is within two (2) months of the transfer date, prolonged separating reimbursement shall be paid for the period commencing from the effective date of the transfer until two (2) months after the birth of the child.

The employee concerned will be required to furnish either a medical certificate or a birth certificate or both in support of his claim for the reimbursement. The reimbursement will be paid only if the wife does not join the employee.

(f) If the employee's wife is in employment and is required to serve notice of termination to her employer, the prolonged separation reimbursement shall be payable up to a maximum period of two (2) months dependent upon the notice period required by her employer. In this event, the prolonged separation reimbursement is payable effective after the utilization of the maximum of fourteen (14) days settling in allowance.

(g) Subject to the recommendation of the Manager concerned, a flat rate of Malaysian Ringgit twenty five only (RM25.00) shall be payable up to a maximum period of six (6) months commencing after the utilization of the maximum of fourteen (14) days settling-in allowance.

 

 

ARTICLE 28 - FAMILY VISITS

 

During the period of prolonged separation, as set out in Article 27 above, the employee will be provided with a return passage to visit his family for each completed four (4) calendar weeks of separation. In the event that the employee does not avail himself to this facility, no cash payment in lieu will be made. Such period or periods shall be included for computing his maximum entitlement of six (6) months. During the period of his reunion with the family, he shall not be entitled to the benefits under Article 27.

ARTICLE 29 - REPATRIATION TO HOME TOWN

 

On the retirement or termination of service, except termination on ground of misconduct or breach of contract of service by the employee, the company shall reimburse the employee for himself, his wife, unemployed children under 21 years of age and dependent parents, economy air fare or any other means of transportation as approved by the Company between the point of last assignment and the town form which he was employed. The employee must provide proof that his parents have been actually living with him and will continue to live with them if he intends to obtain traveling fare for them. The Company would also bear any reasonable cost of transportation and insurance of personal effects shipped in accordance to the Article on Permanent Transfer.

The Company shall not be responsible to reimburse the employee if the journey is not taken two months immediately after his retirement. However, the Company may consider extending the period of entitlement depending on the merit of each case.

TABLE OF CONTENTS

 

PART VIII - PUBLIC HOLIDAYS

 

ARTICLE 30 - GAZETTED PUBLIC HOLIDAYS

(a) The Company shall grant to all its employees all public holidays gazetted by the Government in the State of Sabah.

(b) Should a gazetted public holidays fall within the period when an employee is on annual leave, the employee shall receive one additional day's leave for each such holiday falling within such period. Such additional day or days shall be taken as an extension to the annual leave.

(c) Where a gazetted public holiday falls on an off-day, a day off in lieu shall be given either on the preceding working day or the following working day.

TABLE OF CONTENTS

 

PART IX - WORKING CONDITIONS

 

ARTICLE 31 - WORKING CONDITIONS

 

It is the objective of the Company to provide safe and healthy working conditions throughout its operations and to minimize the incidence of industrial accidents and illness among its employees. For this purpose the Company shall continue coordinated safety programs in all areas of operations and employees shall follow safety rules under these programs.

 

PART X - ANNUAL LEAVE

 

ARTICLE 32 - GENERAL

 

            All employees shall be entitled to the following paid annual leave:

Calendar Year

 

Number of Working Days

(Continuous Service in the Company)

 

Employee on

39-hour week

Employee on

42-hour week

       

1 - 4 Calendar Years (inclusive)

 

14

15

5 - 9 Calendar Years (inclusive)

 

17

18

10 - 15 Calendar Years (inclusive)

 

20

21

16 - 20 Calendar Years (inclusive)

 

22

23

21 Calendar Years and above

 

24

25

       

TABLE OF CONTENTS

ARTICLE 33 - SCHEDULING VACATION

 

Employees are entitled to annual leave only after twelve (12) months of service with the Company.

All annual leave shall normally be taken in one continuous period in each calendar year at a time mutually satisfactory tot he Company and the employee in accordance with a leave schedule to be established. An employee may, at his option, accumulate his annual leave for not more than two (2) consecutive years which shall be taken in conjunction with his second (2nd) or third (3rd) consecutive years' full annual leave entitlement and under the following conditions:

(a) That the employee gives notice of his intention to do so in writing in the first year during which he proposes to accumulate his annual leave entitlement

(b) That the following minimum number of working days annual leave shall be taken in each calendar year of service:

o Employee with not more than five(5) years of service - 12 days

o Employee with more than five(5) years of service - 15 days; and

(c) That accumulated leave not taken by the second or third consecutive year as the case may be, through no fault of the Company, shall be forfeited.

ARTICLE 34 - DISABILITY WHILE ON VACATION

 

An employee becoming disable while on vacation may have his vacation extended one day for each day of disability certified by a Company approved doctor. Medical leave claimed for disability occurring where no Company approved doctor is available should be certified by a registered medical practitioner and may be subject to verification and endorsement by the Company Medical Advisor. It is the responsibility of the employee to ensure that the Company is notified prior to such extension, unless he has an acceptable excuse.

 

PART XI - LEAVE OF ABSENCE

 

ARTICLE 35 - GENERAL

 

A leave of absence is time spent away from the job during the employee's normal scheduled working hours, with or without pay and granted at the discretion of the Company. The Company will give sympathetic consideration to all employee's requests for any type of leave of absence mentioned below. However, before granting their requests, the Company is governed by the basic principle that in the interest of operations, it must be in a position to spare the employees from their jobs and the reasons for their requests should be acceptable to the Company.

 

ARTICLE 36 - SPECIAL LEAVE

 

During his service with the Company, an employee may apply and be granted unpaid leave of absence up to a maximum period of six months at any time after the first three continuous years of service for the purpose of travelling to a country or countries outside East Malaysia subject to the following conditions:

(a) Such leave of absence shall be granted at a time which shall cause the least interference in the Company's operations;

(b) The employee shall produce travel documents for review by the Company;

(c) The Company shall not underwrite nor guarantee any expense in connection with such leave of absence;

(d) The due date the employee returns to work is to be established prior to departure and if the employee desires to return to work at a date earlier than the due date, he shall advise the Company at least one week in advance;

(e) The Company shall furnish the employee with a letter guaranteeing re-employment on return to duty at his former work location provided conditions set forth under sub-sections (a) through (d) of this Article are complied with;

(f) The Company cannot assume responsibility for the return to Sabah of any employee who because of immigration regulations, legislation, transportation difficulties, financial and service regulations, or other cause fail to return and report for duty on the due date;

(g) Failure of an employee to report for duty upon the expiration of his leave of absence shall be considered a breach of his contract of service with the Company as if the employee has been terminated on grounds of misconduct or breach of contract of service.

 

ARTICLE 37 - STUDY LEAVE

 

(a) The Company shall give consideration to applications for one unpaid leave of absence for a period not to exceed twelve (12) months in order that the employee may further his studies, provided that such further studies shall result in and beneficial to both the employee and the company in the employee's present or future assignments with the Company. Such unpaid leave to be subject to the conditions contained in Article 36 and will not be included in the calculation for service credit.

(b) An employee may also apply for study leave of a shorter duration to sit for examinations, subject to the conditions in Article 35.

 

ARTICLE 38 - COMPASSIONATE LEAVE

 

I         The Company shall grant compassionate leave with salary to an employee under the following conditions:

o

Employee's marriage

- 3 working days

(once in Company's service)

o

Birth of his legal child

- 3 working days

o

Marriage of his legal child

- 2 working days

o

Death of a member of his immediate family

- 3 working days

 

                   II

a)

Such leave shall be taken as close as possible to the event and shall not be accumulated.

 

 

b)

An employee must secure prior permission for such compassionate leave except in connection with the death of an immediate family member.

 

 

c)

For the purpose of this clause only, the immediate family members include first wife, husband, legal children, parents, parents-in-law, the employee's grandparents, and the employee's brothers and sisters.

 

 

d)

The Company may consider their bona fide cases based on their merits of each case.

 

ARTICLE 39 - MATERNITY LEAVE

 

Upon presentation of a certificate from a Company approved doctor, the Company shall grant an employee a total of two (2) calendar months maternity leave with pay, to be taken as far as possible one month before confinement and one month after confinement.

Maternity leave shall be effective only after completion of twenty-eight (28) weeks of pregnancy.

Absence from work due to miscarriage or premature birth during the first twenty-eight weeks of pregnancy shall not be considered as maternity leave but as sick leave under Article 42 of PART XII.

 

ARTICLE 40 - TIME-OFF FOR UNION BUSINESS

 

An employee intending to carry out his duties or to exercise his rights as an officer of a trade union shall apply in writing to the Company for leave of absence stating the duration of and the purposes for which such leave is applied for and the Company shall grant the application for leave if the duration of the leave applied for is for a period that is no longer than what is reasonably required for the purposes stated in the application.

Provided that an employee shall not be entitled to leave with pay for the duration of his absence if the purposes for which he is absent from work are not to represent the members of his trade union in relation to industrial matters concerning his employer.

TABLE OF CONTENTS

 

PART XII - SICKNESS BENEFITS

 

ARTICLE 41 - CLINICAL CARE

 

(a) For employees in active service, the Company shall absorb costs of clinical care when prescribed by a Company approved doctor. However, charges in the case of pregnancy and those arising from proven misconduct or negligence will not be for the Company's account.

AGREEMENT

AGREEMENT

between

EXXONMOBIL BORNEO SENDIRIAN BERHAD

and

SABAH PETROLEUM INDUSTRY WORKERS UNION

2008 - 2011

 

TABLE OF CONTENTS

PART I - GENERAL

Article 1 - Parties to the Agreement

Article 2 - Preamble

Article 3 - Union Recognition

Article 4 - Management Function

Article 5 - Union Function

Article 6 - Scope of Agreement

Article 7 - Duration of Agreement

Article 8 - Legislation

Article 9 - Modifications and Amendments

Article 10 - Number and Gender

Article 11 - Text In English

Article 12 - Definitions

PART II - PROBATION AND PROMOTION

Article 13 - Probationary Period

Article 14 - Promotion

PART III - PAY AND GROUP CLASSIFICATIONS

Article 15 - Group Classifications

Article 16 - Annual Increment

Article 17 - Unsatisfactory Employee

PART IV - ALLOWANCES, OVERTIME PAY AND REIMBURSEMENTS

Article 18 - Acting Assignment and Allowance

Article 19 - Pay for Overtime Work

Article 20 - Call Back

Article 21 - No Compounding

Article 22 - Reimbursement of Transportation Expenses

Article 23 - Reimbursement of Meal Expenses

PART V - BONUS

Article 24 - Conditions for Bonus Payment

PART VI - HOURS OF WORK

Article 25 - Work Week

PART VII - TRANSFERS

Article 26 - Permanent Transfer Reimbursement

Article 27 - Reimbursement for Prolonged Separation

Article 28 - Family Visits

Article 29 - Repatriation to Home Town

PART VIII - PUBLIC HOLIDAYS

Article 30 - Gazetted Public Holidays

PART IX - WORKING CONDITIONS

Article 31 - Working Conditions

PART X - ANNUAL LEAVE

Article 32 - General

Article 33 - Scheduling Vacation

Article 34 - Disability While on Vacation

PART XI - LEAVE OF ABSENCE

Article 35 - General

Article 36 - Special Leave

Article 37 - Study Leave

Article 38 - Compassionate Leave

Article 39 - Maternity Leave

Article 40 - Time-Off for Union Business

PART XII - SICKNESS BENEFITS 

Article 41 - Clinical Care

Article 42 - Sick Leave

Article 43 - Prolonged Illness

Article 44 - Medical Examination

PART XIII - EXISTING BENEFITS

Article 45 - Existing Benefits

PART XIV - DISCIPLINE

Article 46 - Disciplinary Procedure

PART XV - GRIEVANCE PROCEDURE

Article 47 - General

Article 48 - Grievance Defined

Article 49 - Grievance Procedure

Article 50 - Arbitration

Article 51 - Extension of Time Limits

Article 52 - Grievance Forfeited

Article 53 - Form for Processing a Grievance

Article 54 - Grievance of a General Nature

PART XVI - UNIFORMS

Article 55 - Uniforms and Laundry

Article 56 - Protective Clothing/Safety Shoes

PART XVII - RETIREMENT BENEFITS

Article 57 - Retirement Benefits

EXHIBITS

EXHIBIT 1 - GROUP CLASSIFICATION - POSITION TITLES


 

PART I - GENERAL

ARTICLE 1 - PARTIES TO THE AGREEMENT

 

THIS AGREEMENT is made this ________ day of ________________, 2008 between the SABAH PETROLEUM INDUSTRY WORKERS UNION, Block N, 2nd Floor, Lot 4, Sinsuran Complex, P. O. Box No. 11087, Kota Kinabalu, Sabah, hereinafter called "the Union", a trade union of employees registered pursuant to the Trade Union Act 1969 and EXXONMOBIL BORNEO SENDIRIAN BERHAD (Company No:8823D), a Company incorporated with limited liability in Malaysia and having its registered office at EMB Company Secretary's Office, 28th Floor, Menara ExxonMobil, Kuala Lumpur City Center, 50088 Kuala Lumpur, Malaysia, hereinafter called "the Company".

In case either the Company or the Union changes its name or merges with other companies or organizations to the effect that the Company or the Union is wholly or partly absorbed by the other organization, the provisions of this Agreement shall remain valid for the employees for which this Agreement was applicable at the time the change of name or the merger took place, for the remaining period of validity of this Agreement.

ARTICLE 2 - PREAMBLE

 

It is the intent and purpose of this Agreement to ensure industrial peace and mutually beneficial relationship with justice between the parties hereto in matters concerning terms and conditions of service for employees in positions represented by the Union; to stabilize industrial relations within the Company; to clarify the rights and responsibilities of the Company, its employees, the Union and its memberships; to provide an orderly and effective means of conducting any negotiations or resolving any misunderstandings or grievances during the life of this Agreement.

Both parties acknowledge the fact that the well being of the Company as well as its employees is dependent upon a common determination to work together with the closest cooperation. It is under such a relationship of mutual respect and mutual confidence that management and employees will be in a position to contribute their share in the common efforts for the improvement of the general economy and the raising of the standard of living of the employees.

In view of the above, both parties agree that during the life of this Agreement neither party will take unilateral action nor present demands which are not in accordance with the provisions already agreed upon, unless agreed to by both parties.

 

ARTICLE 3 - UNION RECOGNITION

 

The Company recognizes the Union as the sole collective bargaining body for its employees in the recognized bargaining unit with respect to salaries, hours of work and other terms and conditions of service applicable to such employees.

 

ARTICLE 4 - MANAGEMENT FUNCTION

 

(a) It is recognized that the operation of the business and the direction of the work force are the functions and responsibilities of the Company. Management functions include, but are not limited to the rights to hire, promote, discipline or discharge for proper cause, to create jobs, to discontinue jobs or lay off for lack of work, to specify job content and to determine the number of employees required, the right to make rules and regulations governing the conduct and safety of employees, to establish the methods, processes and means of operations and to institute or discontinue any operation or method of production.

(b) The Company's exercise of its rights in the management of the business shall not violate any of the expressed provisions of this Agreement nor shall they be used to discriminate against any member of the Union or employee.

 

ARTICLE 5 - UNION FUNCTION

 

It is recognized that the Union maintains the right as the sole bargaining body to make representation against all Company's actions which are contrary to or tend to diminish the value of the provisions of this Agreement, and to bargain collectively for its members relative to salaries, hours of work and other terms and conditions of service.

 

 

ARTICLE 6 - SCOPE OF AGREEMENT

 

This Agreement, including the Exhibits marked Exhibit 1 through Exhibit 4 constitutes the entire Agreement between the Company and the Union relating to salaries, hours of work and other terms and conditions of service of regular employees.

This Agreement supersedes all the other previous Collective Agreements made between the Company and the Union.

 

ARTICLE 7 - DURATION OF AGREEMENT

 

This Agreement shall be deemed to have come into effect on the 1st day of May, 2008 and subject to Article 16 Annual Increment, shall continue to remain in force for a period of three years and thereafter until superseded by a new Agreement or terminated as provided below:

(a) Either party may serve on the other three months' written notice to negotiate on new terms and conditions of employment, but no such notice shall be served earlier than the 1st day of February, 2011. The party that serves the notice shall also submit proposals on terms and conditions of employment for negotiation. Pending the outcome of the negotiations, the provisions of the current terms and conditions of employment shall prevail until superseded by new terms concluded between the parties or awarded by the Industrial Court.

OR

(b) This Agreement may be terminated by either party by giving three months' written notice but such notice shall not be served before the 1st day of February, 2011.

 

ARTICLE 8 - LEGISLATION

 

In the event that any legislation should supersede, vary, repeal or add to any of the provisions of this Agreement, then the relevant provisions of this Agreement shall be amended accordingly. However, if the benefits contained in this Agreement are more favorable, these benefits, with the exceptions of Articles 19, 20 and 21, shall continue to apply if it is so permitted by law. The effective date of such amendment shall be the effective date of the new law.

ARTICLE 9 - MODIFICATIONS AND AMENDMENTS

 

Notwithstanding the provisions of Article 6, upon the request of either party at any time during the period or extended period of this Agreement, both parties may discuss and consider whether or not any modifications and/or amendments arising from operational changes need to be made. All modifications and / or amendments arrived at mutually shall be in writing signed by the Union President and the Director of the Company or their designated representatives and shall be jointly deposited with the Industrial Court for cognizance. After the court has given cognizance, such modifications or amendments shall be binding on the parties from such date and for such period as may be specified in the modification or the amendment Agreement provided that such period shall not commence earlier than the effective date of this Agreement.

 

In the event of a change in the interpretation of any of the provisions of this Agreement, it is agreed that the resultant benefit, if any, will be limited in its retroactivity to the time when the matter was first officially raised by either party.

 

ARTICLE 10 - NUMBER AND GENDER

 

Where the context so permits words importing the singular shall include the plural and vice versa, and words importing the masculine gender shall include the feminine gender.

ARTICLE 11 - TEXT IN ENGLISH

 

The Agreement shall be prepared in English. A copy of the Agreement will be given to all employees.

 

ARTICLE 12 - DEFINITIONS

In order to assist both parties in interpreting and understanding the meaning of certain terms of this Agreement, the following definitions are made:

Words and phrases shall be construed according to the Definitions as follows:-

Company Approved Doctor - Shall mean a medical practitioner whose name is contained in a list of approved medical practitioners circulated by the Company among employees from time to time.

Day - A day is a period of twenty-four (24) consecutive hours from midnight to midnight.

Employee - Shall mean a locally engaged person employed under a contract of service written or implied in or about the business of the Company in Sabah to whom this Agreement applies, but excludes all persons specifically employed by the Company on a temporary basis.

Family - The spouse and dependent children of the employee.

Salary - Shall mean the fixed monthly sum payable to an employee for services with the Company excluding bonus, overtime payments, and other allowances of whatsoever nature.

Salary Group - The range of salary defined by a minimum and a maximum to which a number of comparable position classifications are assigned.

Scheduled Day of Rest - Shall be deemed to be Sunday or, when in a work week an alternate day other than Sunday is observed as the rest day, such alternate day.

Wife - The legal wife of the employee as registered in Company records.

Work Day - A day which contains regular scheduled working hours for an employee.

Work Period - The scheduled hours of work on a day on which an employee is scheduled to work.

Formula for Computing Hourly Rate of Pay - For purpose of determining an hourly rate of pay the following formula will be used:

Monthly Salary x 12 = Hourly Rate

52 x Number of Hours per Work Week

TABLE OF CONTENTS

PART II - PROBATION AND PROMOTION

ARTICLE 13 - PROBATIONARY PERIOD

 

(a) All newly engaged employees in the following categories shall be considered to be on probation for up to twelve (12) months:

                                                                                                                            Sales Trainee

                                                                                                                            Salesman

(b) All newly engaged employees other than those considered in sub-section (a) above, shall serve a probationary period of six (6) months. In the event that after the normal 6 months probationary period the employee has not proven himself to be competent or suitable for the job, a further extension of 3 months probationary period may be imposed.

(c) Following completion of the stipulated probationary period, as covered under (a) or (b) above, the employee shall be advised in writing by the Company by the last day of the probationary period whether he has been accepted for regular employment. In the event the newly hired employee does not receive a written notice from the Company by the last day of his probationary period, it is assumed that his employment with the Company is confirmed immediately following the last day of his probationary period.

(d) A newly hired employee whose services are terminated during his probationary period will not be entitled to termination benefits.

 

ARTICLE 14 - PROMOTION

(a) An employee who is promoted shall be informed in writing at the time of the promotion. The length of the probation, if any, shall not be more than 6 months.

(b) Upon promotion to a higher classified position the employee's salary shall be adjusted by the accrued annual increase at the rate applicable to his salary group prior to his promotion or a pro-ration thereof, plus a promotional increase of not less than ten (10) percent. The employee shall again be eligible for an increase or a pro-ration thereof on the common anniversary date calculated as follows :-

                                                                                                                                 Completed Months of Service

                                                                                                                                     Since Date of Promotion             x     Annual Increment Rate

                                                                                                                                                      12

(c) In the event the Company decides not to confirm the employee in his new position, he will be redirected to a position compatible with his ability, and the company undertakes that the employee will continue to receive the salary appropriate to his position immediately prior to the position he held on probation.

TABLE OF CONTENTS

 

PART III - PAY AND GROUP CLASSIFICATIONS

ARTICLE 15 - GROUP CLASSIFICATIONS

 

All existing positions in the represented unit covered by this Agreement are listed in Exhibit 1. Each position title is classified in the Classification Structure and Salary Scales.

The position title listing in Exhibit 1 is made only for the purpose of determining rates of pay for employees assigned to these positions.

 

ARTICLE 16 - ANNUAL INCREMENT

 

a) The annual incremental rate shall be four (4%) per cent of base salary subject to a minimum as stipulated in Exhibit 2. The common anniversary date for all employees shall be the first (1st) January of 2009, 2010 and 2011.

b) Thus, on the common-anniversary date i.e. January 1 of each year, all employees who have completed twelve months of active service since the last incremental date except those who are at or above their respective job rates, or those who have proven to be unsatisfactory, or those who are on a leave of absence without pay or those on temporary suspension from work shall receive an annual increase computed below subject to the maximum of the salary group for the assigned position as shown in Exhibit 2 - Classification Structure and Salary Scale.

 

                                                                                                                        Completed Months of Active

                                                                                                                        Service Since Last Increase         x     Appropriate Incremental Rate

                                                                                                                                        12

c) Notwithstanding the provisions of clause (b) above, new employees shall receive their first annual increase only upon completion of twelve months of service. On the common anniversary date following his first annual increase, the employee shall be eligible for a prorated increase calculated as follows:

 

                                                                                                                        Completed Months of Active

                                                                                                                        Service Since Last Increase         x     Appropriate Incremental Rate

                                                                                                                                                12

ARTICLE 17 - UNSATISFACTORY EMPLOYEE

 

(a) When an employee has shown himself to be an unsatisfactory employee, he will be informed in writing at least three months in advance of his anniversary date about his faults or shortcomings and how he may correct them. This will enable him to make improvements and thus be eligible for an increase.

(b) If his performance is still unsatisfactory by the time of his anniversary date, an increase will be denied until such time as his work performance has improved and warrants granting the applicable increase. The denied increase that may later be approved cannot be made retroactive but will become effective the beginning of the payroll period following the approval of such an increase.

(c) If the deferral is for a period of three (3) months or less, such an employee will again be eligible for a subsequent increase on the next common anniversary date. However, if the deferral is for a period of more than three (3) months, his next increase will be reduced by one-twelfth (1/12) of an increment for each month beyond three (3) months and will be calculated as follows:

                            Annual Increment Rate x 1/12 x Number of months beyond Three Months

(d) For the purpose of this Article, the term "unsatisfactory" performance includes "inefficient performance" and "misconduct".

TABLE OF CONTENTS

 

PART IV - ALLOWANCE, OVERTIME PAY AND REIMBURSEMENT

 

ARTICLE 18 - ACTING ASSIGNMENT AND ALLOWANCE

 

(a) Types of Job Status - There are two (2) types of Job Status for employees in the represented unit:

i) Normal Status - This is the status of an employee filling his job assigned on a permanent basis or any other position classified in his respective group.

ii) Acting Status - This is the status of an employee assigned on a temporary basis to a position in a higher group classification and who is responsible for the full and proficient performance of the position to which he is assigned.

(b) Acting Assignment and Allowance - An employee assigned to a position in a higher classification on acting status will be paid an acting allowance effective the date of the assignment in accordance with the rates below:-

i) For acting in a position one job group higher - 25 % of the starting rate of the group in which he is acting per working day basis;

ii) For acting in a position two or more job groups higher - 30 % of the starting rate of the group in which he is acting per working day basis :

                                

                            Acting Allowance = (Min. monthly salary applicable to or  personal salary whichever is higher/22) x Acting Rate  x  No. of  Days

iii) For acting in a CAE position - 30 % of his salary per working day basis:

                            Acting  Allowance = (Personal Salary/(52 x No. of hours worked per work week)) x 12 x 8 hours x 30%

                               

ARTICLE 18 - ACTING ASSIGNMENT AND ALLOWANCE (Cont'd)

 

iv) For acting in management position - 40% of employee's own salary group maximum per calendar day basis:

                            Acting Allowance  =   (Employee's Own Salary Group Maximum / 365) x 12 x 40%

 

v) While an employee is assigned on a temporary basis to a position in a higher group classification and is receiving an acting allowance, the acting allowance shall not be used for computing overtime, vacation pay, sickness or disability benefits, redundancy, termination or resignation allowances and bonus.

vi) While an employee is assigned on a temporary basis to a management position and is receiving an acting allowance he may elect to continue membership in the Union; however, during such period of temporary assignment the Company shall not recognize Union representation for him in respect of his acting assignment.

vii) An official and prior advice will be given to the employee before he can assume an assignment on an acting basis.

 

 

ARTICLE 19 - PAY FOR OVERTIME WORK

 

(A) Overtime pay shall be paid to all employees, except Sales Trainees and Salesmen, covered by this Agreement for overtime performed at the request of the Company in excess of normal hours of work. Consent from the employee to work overtime shall be obtained but such consent shall not be unreasonably withheld.

(B) Employees shall be paid in accordance with the following overtime rates:

                            i) Overtime hours worked on a normal working day and hours worked on a non-working day: 1.5 times the hourly rate.

                            ii) Overtime hours worked on employee's rest day:

                                        a) For work which does not exceed half his normal hours per day: 4 x 2.0 hourly rate

                                        b) For work which exceeds half up to his normal hours of work:

                                            No. of hours worked x 2.0 hourly rate

                                        c) For work which exceeds his normal hours of work: No. of hours in excess x 3.0 hourly rate

                            iii) Overtime hours worked on gazetted public holiday:

                                        a) For work which does not exceed his normal hours per day: 8 x 2.0 hourly rate

                                        b) For work which exceeds his normal hours of work per day: Hours in excess of normal hours of work per day x 3.0

(C) For overtime work between the hours of 12 midnight and 6.00 a.m., regular day scheduled employees shall be paid 2.0 x the hourly rate of such overtime hours worked. For continuing overtime work from mid-night to 6.00 a.m. and up to the an employee's normal starting time in the morning, the overtime rate shall be 2.0 x the hourly rate. However, for overtime work starting between 6.00a.m. and the employee's normal starting time in the morning, the rate shall be at 1.5 x hourly rate.

(D) Where a gazetted public holiday is observed by the Company on a day other than the actual gazetted day, the observed day only will be the public holiday for overtime payment purposes. Provisions as in b (iii) above shall apply.

(E) The overtime pay rate shall be that applicable for a monthly salary of up to a maximum of Ringgit Malaysia one thousand five hundred only (RM 2500).

 

ARTICLE 20 - CALL BACK

 

(a) "Call-back" work is work outside an employee's normal work period and is not contiguous to or an extension of the normal work period or planned overtime work. It is recognized that "Call-back" is necessary from time to time in meeting operational requirements.

(b) When an employee is called back to work, he shall receive a minimum of four (4) hours straight time pay or the applicable rate of pay under Article 19 whichever is greater whether or not he performs work for four (4) hours.

(c) When "Call-back" work is completed and is then followed by another "Call-back", this will be considered a separate "Call-back" even though it may occur in the same four hour period.

                    (d) The "Call-back" will commence at whichever time is later.

i) The time he is instructed to report: or

ii) The time he actually reports.

 

ARTICLE 21 - NO COMPOUNDING

 

When more than one rule provides that work is payable at a rate in excess of straight time, pay is based solely on the rule providing the highest rate.

 

 

ARTICLE 22 - REIMBURSEMENT OF TRANSPORTATION EXPENSES

 

The employee shall be responsible for his transportation to and from his normal place of residence and his place of work. It is only when the Company requires additional trips to be made over the normal or when additional expenses be incurred through compliance with Company's request. That such transportation expense will be reimbursed. For the purpose of this Article, the normal place of residence refers to his place of residence during his normal working days.

(a) No Additional Overtime Trips

For employees who normally travel to or from their work by bus and are required to work overtime contiguous to their regular work schedule, no transportation reimbursement will be paid except outside the operating hours of such buses, in which case the actual cost of transportation incurred shall be reimbursed. Or at the Company's option, transportation may be provided. Likewise no overtime transportation reimbursement will be paid to those employees who are required to work overtime contiguous to their regular scheduled work hours and who operate their personal motor-car or motor cycle/scooter.

(b) Additional Overtime Trips

In the event an employee is required to work overtime on his day off, scheduled day of rest, gazetted public holiday or as a result of a "Call-back" to work he will be reimbursed in accordance with his normal mode of travel as follows:-

i)

Motor-Car

Flat rate of RM0.70 per kilometer

     

ii)

Motor Cycle/Scooter

Flat rate of RM0.25 per kilometer

     

iii)

Bus

Actual fare

     

 

Transportation reimbursements in accordance with the above schedule will be based on actual mileage driven. Where the appropriate mode of travel is by bus and when such travel is outside the operating hours of such buses, employees will be reimbursed the actual cost of transportation incurred, or at the Company's option, transportation may be provided.

For the purpose of this Article, normal mode of travel refers to his regular means of travel during normal working days.

 

ARTICLE 23 - REIMBURSEMENT OF MEAL EXPENSES

 

I An employee who is requested to work overtime will be entitled to meal reimbursements of eighteen Ringgit only (RM18.00) per meal as follows:

A) For Overtime Work on Normal Working Days

i) Employee who works two (2) hours of overtime or more immediately preceding the commencement of his normal working time: or

ii) Employee who works two (2) hours of overtime or more immediately following his normal quitting time.

iii) Subsequent meal reimbursement preceding (i) or succeeding (ii) above shall be upon completion of every four (4) hours of overtime worked.

iv) Employee who is required to work overtime outside his normal scheduled hours of work and completes at least four (4) consecutive hours. Subsequent meal reimbursement shall be upon completion of every four (4) hours of overtime worked.

B) For Overtime Work on Rest Days, off Days and Gazetted Public Holidays

i) Employee is required to work overtime and completes at least four (4) consecutive hours:

ii) Subsequent meal reimbursement after having qualified the first reimbursement shall be four (4) hours per meal basis.

II When an employee is required to work outstation on Company's business involving overnight stay, per diem reimbursements where applicable are as follows:-

Perdiem

Malaysian Ringgit

Breakfast

10.00

Lunch

18.00

Dinner

18.00

Incidentals (Laundry and Tips)

15.00

Overnight Accomodation

99.00

Total

160.00

 

Where transportation is required, reimbursement shall be as per Article 22 (b) or actual taxi or bus fare where applicable.

 

Alternatively, in lieu of the RM160.00 per diem, an employee may opt to stay at Company designated hotels and he will be reimbursed actual single occupancy rate and a fixed reimbursement of RM61.00 for meals and incidentals.

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PART V - BONUS

ARTICLE 24 - CONDITIONS FOR BONUS PAYMENT

(a) For the year 2008 and each subsequent year thereafter during the period of this Agreement, the Company shall pay a bonus equivalent to two and one-quarter (2.25) months' salary to all employees covered by this Agreement. Bonus or a pro-ration of it will be paid in December of each year.

(b) Only employees who have completed a full calendar year shall receive the full bonus for that year.

(c) New employees, engaged after the effective date of this Agreement, shall receive a proportionate share of the bonus, payable in the year of employment, based upon completed months of service up to December 31st of that year only after completion of their probationary period.

(d) Bonus shall be prorated by one-twelfth (1/12th) for each month of service. A period of fifteen (15) days or more in a month shall be regarded as a full month; a lesser period shall be disregarded.

(e) Employees who take a leave of absence without salary shall lose a proportionate share of the bonus payment for the period of such absence in accordance with the formula set out under sub-article (d) above.

(f) Employees who leave the service of the Company prior to December 31st of any year for which a bonus is payable shall receive a proportionate share of the bonus payable in that year upon leaving the service of the company. However, no bonus, or any part thereof, shall be paid in accordance with this part to employees who are discharged for misconduct or breach of contract of service or resign to avoid such discharge or to new employees whose service is terminated during their probationary period.

TABLE OF CONTENTS

 

PART VI - HOURS OF WORK

ARTICLE 25 - WORK WEEK

 

(a) For the purpose of this Agreement, a Work Week will be considered a period of thirty-nine (39) hours for employees located at the Headquarters Office and forty-two (42) hours for employees located elsewhere.

(b) Details of daily hours of work at each location shall be scheduled by the Company from time to time.

(c) The Company shall undertake to discuss with the Union before implementation of any proposed revisions in the existing Work Week time schedule.

(d) Work Week time schedule as scheduled by the Company will not apply to Sales Trainees and Salesmen.

TABLE OF CONTENTS

 

PART VII - TRANSFERS

 

ARTICLE 26 - PERMANENT TRANSFER REIMBURSEMENT

 

A Permanent Transfer is a transfer of more than six (6) months' duration away from the normal work area which involves an employee in having to move house and family. Reimbursement is not payable if the transfer does not require the employee to move house.

(a) A transfer reimbursement equivalent to one and a half months' salary subject to a minimum of Malaysian Ringgit one thousand two hundred (RM1200.00) where the employee is not provided with furnished Company housing.

(b) In addition to (a) above, a per diem "settling in" allowance will be paid to employees living in temporary quarters up to a maximum of fourteen (14) days. The rate of per diem "settling in" allowance shall be Malaysian Ringgit one hundred and sixty (RM 160.00) per day.

(c) The Company will bear the cost of transport charges for the employee and his immediate family. The Company will also bear the cost of transporting reasonable personal effects e.g. basic furniture, cooking utensils and other household equipment and a personal car but not pets or other similar items. The Company will also bear the reasonable cost of packing the above personnel effects and will insure them against fire or loss or breakages during transit. Any customs duty payable on any used personal effects will also be borne by the Company. All the above arrangements have to be made through the Company.

(d) One-time reimbursement of school text books, school uniforms (2 suits per child) and school fees for one month in respect of school children of employee living with him, if different school text books and uniforms are required.

(e) Time off from work with pay up to five (5) working days and round trip economy class air transportation or any other means of transportation approved by the Company for the employee and his wife from the old location to the new location to look for housing. The employee will also be eligible for expenses incurred base on the appropriate per diem as per Article 23 (II).

An employee will be expected to give as much notice as possible prior to vacating his residence. where one calendar month's notice is required of the employee, the company upon submission of satisfactory proof will reimburse the employee for the unused portion of rental in lieu of notice up to a period not to exceed one calendar month.

Where he has prepaid rentals or deposits, the Company upon submission of satisfactory proof, will reimburse the employee for such unrecoverable from the lessor up to a period no to exceed one calendar month.

 

ARTICLE 27 - REIMBURSEMENT FOR PROLONGED SEPARATION

 

Prolonged Separation Reimbursement will be paid to an employee who on transfer cannot be accompanied by his family for the following reasons:

(a) Children at school taking examinations at the end of the current term.

(b) Children at school and within six (6) months of sitting for a qualifying examination.

(c) Children unable to obtain admission to either a Primary or Secondary School in the new area.

(d) Illness of wife or dependents, proof for which a doctor's certificate will be required.

(e) If on the date of transfer of the employee his wife is pregnant and the anticipated delivery date of the child is within two (2) months of the transfer date, prolonged separating reimbursement shall be paid for the period commencing from the effective date of the transfer until two (2) months after the birth of the child.

The employee concerned will be required to furnish either a medical certificate or a birth certificate or both in support of his claim for the reimbursement. The reimbursement will be paid only if the wife does not join the employee.

(f) If the employee's wife is in employment and is required to serve notice of termination to her employer, the prolonged separation reimbursement shall be payable up to a maximum period of two (2) months dependent upon the notice period required by her employer. In this event, the prolonged separation reimbursement is payable effective after the utilization of the maximum of fourteen (14) days settling in allowance.

(g) Subject to the recommendation of the Manager concerned, a flat rate of Malaysian Ringgit twenty five only (RM25.00) shall be payable up to a maximum period of six (6) months commencing after the utilization of the maximum of fourteen (14) days settling-in allowance.

 

 

ARTICLE 28 - FAMILY VISITS

 

During the period of prolonged separation, as set out in Article 27 above, the employee will be provided with a return passage to visit his family for each completed four (4) calendar weeks of separation. In the event that the employee does not avail himself to this facility, no cash payment in lieu will be made. Such period or periods shall be included for computing his maximum entitlement of six (6) months. During the period of his reunion with the family, he shall not be entitled to the benefits under Article 27.

ARTICLE 29 - REPATRIATION TO HOME TOWN

 

On the retirement or termination of service, except termination on ground of misconduct or breach of contract of service by the employee, the company shall reimburse the employee for himself, his wife, unemployed children under 21 years of age and dependent parents, economy air fare or any other means of transportation as approved by the Company between the point of last assignment and the town form which he was employed. The employee must provide proof that his parents have been actually living with him and will continue to live with them if he intends to obtain traveling fare for them. The Company would also bear any reasonable cost of transportation and insurance of personal effects shipped in accordance to the Article on Permanent Transfer.

The Company shall not be responsible to reimburse the employee if the journey is not taken two months immediately after his retirement. However, the Company may consider extending the period of entitlement depending on the merit of each case.

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PART VIII - PUBLIC HOLIDAYS

 

ARTICLE 30 - GAZETTED PUBLIC HOLIDAYS

(a) The Company shall grant to all its employees all public holidays gazetted by the Government in the State of Sabah.

(b) Should a gazetted public holidays fall within the period when an employee is on annual leave, the employee shall receive one additional day's leave for each such holiday falling within such period. Such additional day or days shall be taken as an extension to the annual leave.

(c) Where a gazetted public holiday falls on an off-day, a day off in lieu shall be given either on the preceding working day or the following working day.

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PART IX - WORKING CONDITIONS

 

ARTICLE 31 - WORKING CONDITIONS

 

It is the objective of the Company to provide safe and healthy working conditions throughout its operations and to minimize the incidence of industrial accidents and illness among its employees. For this purpose the Company shall continue coordinated safety programs in all areas of operations and employees shall follow safety rules under these programs.

 

PART X - ANNUAL LEAVE

 

ARTICLE 32 - GENERAL

 

            All employees shall be entitled to the following paid annual leave:

Calendar Year

 

Number of Working Days

(Continuous Service in the Company)

 

Employee on

39-hour week

Employee on

42-hour week

       

1 - 4 Calendar Years (inclusive)

 

14

15

5 - 9 Calendar Years (inclusive)

 

17

18

10 - 15 Calendar Years (inclusive)

 

20

21

16 - 20 Calendar Years (inclusive)

 

22

23

21 Calendar Years and above

 

24

25

       

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ARTICLE 33 - SCHEDULING VACATION

 

Employees are entitled to annual leave only after twelve (12) months of service with the Company.

All annual leave shall normally be taken in one continuous period in each calendar year at a time mutually satisfactory tot he Company and the employee in accordance with a leave schedule to be established. An employee may, at his option, accumulate his annual leave for not more than two (2) consecutive years which shall be taken in conjunction with his second (2nd) or third (3rd) consecutive years' full annual leave entitlement and under the following conditions:

(a) That the employee gives notice of his intention to do so in writing in the first year during which he proposes to accumulate his annual leave entitlement

(b) That the following minimum number of working days annual leave shall be taken in each calendar year of service:

o Employee with not more than five(5) years of service - 12 days

o Employee with more than five(5) years of service - 15 days; and

(c) That accumulated leave not taken by the second or third consecutive year as the case may be, through no fault of the Company, shall be forfeited.

ARTICLE 34 - DISABILITY WHILE ON VACATION

 

An employee becoming disable while on vacation may have his vacation extended one day for each day of disability certified by a Company approved doctor. Medical leave claimed for disability occurring where no Company approved doctor is available should be certified by a registered medical practitioner and may be subject to verification and endorsement by the Company Medical Advisor. It is the responsibility of the employee to ensure that the Company is notified prior to such extension, unless he has an acceptable excuse.

 

PART XI - LEAVE OF ABSENCE

 

ARTICLE 35 - GENERAL

 

A leave of absence is time spent away from the job during the employee's normal scheduled working hours, with or without pay and granted at the discretion of the Company. The Company will give sympathetic consideration to all employee's requests for any type of leave of absence mentioned below. However, before granting their requests, the Company is governed by the basic principle that in the interest of operations, it must be in a position to spare the employees from their jobs and the reasons for their requests should be acceptable to the Company.

 

ARTICLE 36 - SPECIAL LEAVE

 

During his service with the Company, an employee may apply and be granted unpaid leave of absence up to a maximum period of six months at any time after the first three continuous years of service for the purpose of travelling to a country or countries outside East Malaysia subject to the following conditions:

(a) Such leave of absence shall be granted at a time which shall cause the least interference in the Company's operations;

(b) The employee shall produce travel documents for review by the Company;

(c) The Company shall not underwrite nor guarantee any expense in connection with such leave of absence;

(d) The due date the employee returns to work is to be established prior to departure and if the employee desires to return to work at a date earlier than the due date, he shall advise the Company at least one week in advance;

(e) The Company shall furnish the employee with a letter guaranteeing re-employment on return to duty at his former work location provided conditions set forth under sub-sections (a) through (d) of this Article are complied with;

(f) The Company cannot assume responsibility for the return to Sabah of any employee who because of immigration regulations, legislation, transportation difficulties, financial and service regulations, or other cause fail to return and report for duty on the due date;

(g) Failure of an employee to report for duty upon the expiration of his leave of absence shall be considered a breach of his contract of service with the Company as if the employee has been terminated on grounds of misconduct or breach of contract of service.

 

ARTICLE 37 - STUDY LEAVE

 

(a) The Company shall give consideration to applications for one unpaid leave of absence for a period not to exceed twelve (12) months in order that the employee may further his studies, provided that such further studies shall result in and beneficial to both the employee and the company in the employee's present or future assignments with the Company. Such unpaid leave to be subject to the conditions contained in Article 36 and will not be included in the calculation for service credit.

(b) An employee may also apply for study leave of a shorter duration to sit for examinations, subject to the conditions in Article 35.

 

ARTICLE 38 - COMPASSIONATE LEAVE

 

I         The Company shall grant compassionate leave with salary to an employee under the following conditions:

o

Employee's marriage

- 3 working days

(once in Company's service)

o

Birth of his legal child

- 3 working days

o

Marriage of his legal child

- 2 working days

o

Death of a member of his immediate family

- 3 working days

 

                   II

a)

Such leave shall be taken as close as possible to the event and shall not be accumulated.

 

 

b)

An employee must secure prior permission for such compassionate leave except in connection with the death of an immediate family member.

 

 

c)

For the purpose of this clause only, the immediate family members include first wife, husband, legal children, parents, parents-in-law, the employee's grandparents, and the employee's brothers and sisters.

 

 

d)

The Company may consider their bona fide cases based on their merits of each case.

 

ARTICLE 39 - MATERNITY LEAVE

 

Upon presentation of a certificate from a Company approved doctor, the Company shall grant an employee a total of two (2) calendar months maternity leave with pay, to be taken as far as possible one month before confinement and one month after confinement.

Maternity leave shall be effective only after completion of twenty-eight (28) weeks of pregnancy.

Absence from work due to miscarriage or premature birth during the first twenty-eight weeks of pregnancy shall not be considered as maternity leave but as sick leave under Article 42 of PART XII.

 

ARTICLE 40 - TIME-OFF FOR UNION BUSINESS

 

An employee intending to carry out his duties or to exercise his rights as an officer of a trade union shall apply in writing to the Company for leave of absence stating the duration of and the purposes for which such leave is applied for and the Company shall grant the application for leave if the duration of the leave applied for is for a period that is no longer than what is reasonably required for the purposes stated in the application.

Provided that an employee shall not be entitled to leave with pay for the duration of his absence if the purposes for which he is absent from work are not to represent the members of his trade union in relation to industrial matters concerning his employer.

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PART XII - SICKNESS BENEFITS

 

ARTICLE 41 - CLINICAL CARE

 

(a) For employees in active service, the Company shall absorb costs of clinical care when prescribed by a Company approved doctor. However, charges in the case of pregnancy and those arising from proven misconduct or negligence will not be for the Company's account.

(b) In the event of genuine emergency and where a Company approved doctor is not available, the nearest registered medical practitioner may be consulted.

(c) The Company would consider providing optical and dental care to an employee who, as a result of an on-the-job accident, requires such care. Such optical and dental care shall be provided within one year of the accident. Any optical or dental equipment/item required under such care shall be provided on a one-time basis. The design and choice of such equipment/item, if provided, shall be at the sole discretion of the Company in consultation with the Company doctor.

ARTICLE 42 - SICK LEAVE

 

Sick leave shall be defined as a period of absence from work which is certified by a Company approved doctor. Failure to comply with the instructions of a Company approved doctor including a complete medical check-up shall automatically cancel the benefits set forth in this Article.

Sick leave as defined above, shall be granted, in each calendar year, in accordance with the following sickness and disability schedule.

 

 

Employee Service

Days at

Full Pay

After First

30 Days at

half Pay

Total

Benefit

Days Pay

(Completed Years)

     
       

3 months through 5 completed years

30

30

45

 

6 months through 10 completed years

30

45

52.5

 

11 through 15 completed years

30

60

60

 

16 through 20 completed years

30

90

75

 

21 years and above

30

120

90

ARTICLE 43 - PROLONGED ILLNESS

 

(a) In the case of prolonged illness resulting from tuberculosis, cancer, poliomyelitis, leukemia and leprosy, an employee shall be granted leave in accordance with the following prolonged illness schedule:

 

Employee Service

Months at

Full Pay

Months at

Half Pay

     

6 months to less than 12 months

1

-

1 completed year of service

2

-

2 completed year of service

2

2

3 completed year of service

3

3

4 completed year of service

4

4

5 completed year of service

5

5

6 completed year of service

6

6

7 completed year of service

7

7

8 completed year of service

8

8

9 completed year of service

9

9

10 completed year of service

10

10

11 completed year of service

11

11

12 or more completed years of service

12

12

 

Twelve (12) months at full pay and twelve (12) at half pay is the maximum payment under this schedule.

(b) In certain instances, based upon the prognosis of the Company approved doctor, the Company on a case by case basis, may at its sole discretion consider other prolonged illness cases as coming within the provisions of sub-article (a) above.

(c) In cases where early prognosis, certified by a Company approved doctor indicates six (6) months or more of prolonged illness, resulting from tuberculosis, cancer, poliomyelitis, leukemia and leprosy, the employee may, at his option, elect to retire from the service of 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 eligible, the balance, if any, of prolonged illness payments as set forth in the prolonged illness schedule to which the employee would have been entitled in accordance with his years of service. However, in no case, shall the amount of such lump sum payment exceed the benefit which would have been paid for the period set for recovery by the Company approved doctor.

 

ARTICLE 44 - MEDICAL EXAMINATION

 

Employees are required to undergo periodic medical examination by a Company approved doctor as directed. Failure by an employee to comply with this requirement may subject him to disciplinary action. The cost of medical examinations required by the Company and conducted by a Company approved doctor shall be for the Company's account.

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PART XIII - EXISTING BENEFITS

 

ARTICLE 45 - EXISTING BENEFITS

 

a) The Company shall continue to provide and the employee shall continue to enjoy any existing benefits not covered by or in excess of the provisions of this Agreement.

b) All employees shall be entitled to participate in any one or all of the following benefit plans administered by the Company:-

1) ExxonMobil Medical Plan;

                    2) Group Life Plan;

                    3) Accidental Death and Dismemberment Plan;

4) Home Ownership Assistance Plan;

5) ExxonMobil International Business Travel Policy;

6) Education Refund Plan; and

7) Employee Discount Plan.

c) The Company guarantees that none of the above benefits shall be terminated suspended or diminished except to reflect integration of changes in legislation.

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PART XIV - DISCIPLINE

 

ARTICLE 46 - DISCIPLINARY PROCEDURE

 

a) The Company recognizes that the majority of its employees sincerely want to do what is required of them. However, as in any organization there may be a few employees, who for various reasons, fail to observe the rules and standards of good work performance. If these differences are overlooked, the attitudes and work habits of the entire group will soon be affected. The Company's disciplinary procedure has, as its basic intention, the teaching and correcting of employees where necessary.

b) The Company may administer any disciplinary action including dismissal, when in its judgement, cause exists warranting such disciplinary action.

c) Depending upon the seriousness of the case, disciplinary actions may include any of the following:-

i) warning, which may be verbal or written;

ii) suspension without pay for a period not exceeding seven (7) working days;

iii) deferment of increment;

iv) stopping increment up to a maximum of two (2) years;

v) downgrading;

vi) termination of service with one month's notice or pay in lieu; or

vii) dismissal without notice for serious offences.

d) If the employee feels that the discipline has been unjustly administered, this difference of opinion may be resolved through the Grievance Procedure. Failing to resolve such difference through the Grievance Procedure, the Union may report the case to the Labour Department under the provisions of the Industrial Relations Act, 1967 or any other law as may then be in force. In cases of dismissal, however, the Union may immediately present any differences of opinion to the Director through the intermediary of the Human Resources Manager.

TABLE OF CONTENTS

 

PART XV - GRIEVANCE PROCEDURE

 

ARTICLE 47 - GENERAL

 

(a) It is the desire of both parties that employee grievances should be settled as fairly and as quickly as possible. Therefore, when an employee or a group of employees or the Union has a complaint about salaries, hours of work and other terms and conditions of service, or the application of any provision of this agreement as it affects such an employee or a group of employees or the Union, it shall be handled in the manner outlined below. Meanwhile, the good relations between both parties will be maintained and opportunity be widely extended to either party to carry out their tasks.

(b) This formal procedure should in no way prevent any employee from consulting his immediate supervisor at any time in regard to any misunderstanding concerning terms and conditions of service. Before a grievance can be processed, the employee shall in good faith and within twenty-one (21) calendar days from the date the matter about which his complaint occurred, discuss his complaint with his immediate supervisor alone or accompanied by his Union Representative.

(c) Any complaint shall be considered null and void if the employee does not discuss with his supervisor within twenty-one (21) calendar days from the date the matter about which he complains occurred.

 

ARTICLE 48 - GRIEVANCE DEFINED

 

If an employee's complaint about salaries, hours of work and other terms and conditions of service or the application of some other provisions of this Agreement as it affects such an employee is not satisfactorily settled within fourteen (14) calendar days of presentation to his immediate supervisor, the complaint may then constitute a grievance and may be processed as provided in Article 49.

 

ARTICLE 49 - GRIEVANCE PROCEDURE

 

First Step

If an employee or a group of employees have a grievance, he or they will submit his or their grievance in writing to the Immediate Supervisor within fourteen (14) calendar days after the complaint becomes a grievance. The Immediate Supervisor will settle the grievance through discussions with the Union in the presence of the employee(s) concerned.

Second Step

If in the First Step no settlement is reached within fourteen (14) calendar days after being presented to the Immediate Supervisor, the grievance will be referred in writing within fourteen (14) calendar days to the Functional Manager, who will arrange for a meeting with the Union.

Third Step

If no settlement is reached in the Second Step above within fourteen (14) calendar days, the grievance may be presented again in writing within fourteen (14) calendar days to the Director or his designated representative through the Human Resources Manager who shall arrange a meeting with the Union.

 

ARTICLE 50 - ARBITRATION

 

If no settlement is reached under the provisions of Article 49 - Grievance Procedure - within fourteen (14) more calendar days, the grievance may then be reported to the Ministry of Human Resources under the provisions of the Industrial Relations Act, 1967, or such other law as may then be in force.

 

ARTICLE 51 - EXTENSION OF TIME LIMITS

 

In all sections of the foregoing procedure where a time limit is specified such time limit may only be extended by mutual agreement of the Union and Management.

 

ARTICLE 52 - GRIEVANCE FORFEITED

 

If at any time the grievance is not referred to the next step by the employee or if the employee fails to attend any meeting arranged by the Company in connection with the grievance, within the time limit specified in each step, unless failure by the aggrieved employee to attend such meeting is beyond control, the grievance will be considered as settled.

 

ARTICLE 53 - FORM FOR PROCESSING A GRIEVANCE

 

A sample form on which grievance information is to be submitted in each step of the above procedure is shown in Exhibit 3.

 

ARTICLE 54 - GRIEVANCE OF A GENERAL NATURE

 

A grievance involving a dispute between the Union and the Company may be referred by the Union to the Human Resources Manager (through the Functional Manager) who shall then arrange Union/Management meetings for discussion and solution of the problem. If these differences cannot be resolved, the grievance as processed may then be reported to the Ministry of Human Resources under the provisions of the Industrial Relations Act, 1967 or such other law as may then be in force.

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PART XVI - UNIFORMS

 

ARTICLE 55 - UNIFORMS AND LAUNDRY

 

(a) Positions requiring uniforms as determined by the Company from time to time shall be provided with three (3) suits of uniforms per year. The design and type of the uniforms shall be determined by the Company.

(b) Replacement of uniforms shall be made at intervals of twelve (12) months. However, should an employee through normal wear and tear require replacement earlier, the company will be prepared to replace the uniform on presentation of the old one.

(c) All the employees who are issued with these uniforms shall wear them when on duty. Failure to comply may result in withdrawal of such issues.

(d) The Company shall reimburse laundry expenses of up to Malaysian Ringgit forty only (RM40.00) per month to all employees supplied with uniforms.

 

ARTICLE 56 - PROTECTIVE CLOTHING /SAFETY SHOES

 

The Company shall provide appropriate protective clothing including raincoat and safety shoes to the following employees:-

Industrial Workers

Terminal Clerks

Operations Assistants

Operative Technicians

 

These items shall be provided on a personal basis renewable when conditions warrant it. Safety shoes shall be issued on the initial basis of two (2) pairs and subsequently be replaced when conditions warrant it.

All employees shall take necessary measures to safeguard the protective clothing/safety shoes from loss and damage.

 

PART XVII -  RETIREMENT BENEFITS

ARTICLE 57 - RETIREMENT BENEFITS

a)    With effect from July 1, 2005 the Company shall contribute each month, 16% of the salary for the month to the Employees Provident Fund. Such contribution shall be deemed to be inclusive of the Company's contribution to the Employee Provident Fund as may be prescribed by law from time to time.

 

b)    With effect from July 1, 2005, an employee shall not be entitled to any other retirement benefits from the Company in respect of service from the aforesaid date.

 

c)    In respect of service prior to July 1, 2005, an employee shall be entitled to retirement benefits as set out in the schedule below:

SCHEDULE OF BENEFITS

i) Retirement at age 55 to 60, or termination due to
medical disability
1.5 month's pay x years of
Accredited Service minus total
company's EPF contributions in
excess of the 7.5%.
ii) For those who have notified Human Resources
Department within 12 months from January 1,
1992 only, retirement at employee's request at
 age 50 to below 55 (with 20 or more years of
service only)
1.25 month's pay x years of
Accredited Service minus total
Company's EPF contributions in
excess of 7.5%.

d)    The lump sum retirement benefit under Article 57 (c) (i) above will be paid upon retirement at age 55 to 60 or as a result of medical disability at any age as certified by the Company's panel of doctors.

 

 

e)    For those who qualify, the lump sum retirement benefit per Article 57 (c) (ii) above will be paid upon retirement at age 50 and above, but below 55.

 

f)        The minimum benefit payable by the Company under Article 57 (c) (i) due to medical disability shall be 12 months' base salary at the time of medical disability.  For service after June 30, 2005, the Employment (Termination and Lay-Off Benefits) Regulations 1980 shall apply.

 

g)        For the removal of doubt, the provisions of Article 45 (Existing Benefits) shall not apply to the Retirement Benefits Plan of the Company in force prior to July 1, 2005 except in terms of clause (c) of this Article 57.

 

h)         "Accredited Service" will mean all years service prior to July 1, 2005.

 


EXHIBITS

 

Exhibit 1

GROUP CLASSIFICATION - POSITION TITLES

Group     -    Position Titles

A            -    Industrial Worker II

B            -    Industrial Worker I

C            -    Fitter or Clerk V

                    Operative Technician

C1          -    Former Tank Truck Drivers (PIO only)

D            -    Clerk IV

E             -    Clerk III

F             -    Senior Clerk II

                     Terminal Clerk

 

G             -   Operations Assistant

                     Senior Clerk I

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