CONTENT

 

Clause                                                                                                                                  Page

1.       Parties to the Agreement 3

2.       Scope of Agreement......................................................................................................... 3

3.      Duration, Termination and Modification of Agreement………………….…………………..3

4.       Declaration of Principles................................................................................................... 4

5.      Settlement of Disputes         ……………………………………………..…………………...4

6.       Effect of Legislation........................................................................................................... 5

7.       Union Recognition............................................................................................................. 5

8.       Periodic Meetings between the Company and the Union................................................. 5

9.       Time-Off for Union Business............................................................................................ 5

10.     Stoppages of Work........................................................................................................... 6

11.     Productivity........................................................................................................................ 6

12.     Grievance Procedures...................................................................................................... 6

13.     Check-Off System............................................................................................................ 8

14.     Exclusion of New Demands.............................................................................................. 8

15.     Definitions.......................................................................................................................... 8

16.     Hours of Work................................................................................................................... 9

17.     Overtime and Excess Hours........................................................................................... 10

18.     Rest Period...................................................................................................................... 11

19.     Travel Time...................................................................................................................... 11

20.     Company Holiday............................................................................................................ 12

21.     Annual Leave................................................................................................................... 12

22.     Maternity Leave/Miscarriage............................................................................................ 13

23.     Unrecorded Leave............................................................................................................ 14

24.     Emergency Leave............................................................................................................ 14

25.    Sickness Benefit …………………………………………………………………………......14

26.    Industrial Health, Safety And Environment….……………………………………..………..15

27.    Industrial Accident Pay……………………………………………………………………….15

28.    Salary Scales………………………………………………………………………………….15

29.    Total Cash……………………………………………………………………………………..16

30.    All Factor Adjustment…………………………………………………………………………17

31.    Business Performance Bonus……………………………………………………………….18

32.    Supplementary Pay (Contractual Bonus)…………………………………….……………..19

33.    Promotions…………………………………………………………………………………….19

34.    Acting Allowance……………………………………………………………………………...20

35.    Call Out Pay…………………………………………………………………………………...20

36.    Shift Allowance………………………………………………………………………………..20

37.    Offshore Allowance………………………………………………………………………......22

38.    Standby Allowance…………………………………………………………………………...23

39.    Meal Reimbursements……………………………………………………………………….24

40.    Business Travel Accommodation And Allowances  ………………………………………24

41.    Transfer   ……………………………………………………………………………..………24

42.    Kilometer Reimbursement ……………………………………………………………….....24

43.    Medical And Job-Related Benefits…………………………………………………………..25

44.    Retrenchment Benefits………………………………………………………………………25

45.    Retirement, Resignation And Termination Benefits………………………………………..26

46.    Defined Contribution Scheme (DCS)……………………………………………………….26

47.    Interpretation of Agreement…………………………………………………………………..26

 

 

 

Schedules

 

Schedule I:          Job Titles/Groups Clerical & Operational Employees. 28

Schedule II:          Job Titles/Groups Supervisory & Specialist Staff 29

Schedule III         Salary Scales CLERICAL & OPERATIONAL EMPLOYEES.. 30

Schedule IV:        Salary Scales SUPERVISORY & SPECIALIST STAFF. 31

Schedule V:         Notice of Substitution. 32

Schedule VI:        Individual/Collective Grievance Form.. 33

     


1.      PARTIES TO AGREEMENT

The parties bound by this Agreement made this Tenth day of October 2005 are SABAH SHELL PETROLEUM COMPANY LIMITED, a Company incorporated under the laws of England and having its local registered office at 2-10-1, 9th Floor, Wisma San Hin, Plaza Wawasan, Lorong Wawasan, 88000 Kota Kinabalu, Sabah (hereinafter referred to as "the Company") and the SABAH PETROLEUM INDUSTRY WORKERS' UNION, a Trade Union having its registered office at 2nd Floor, Block N, Lot 4, Sinsuran Complex, P.O. Box 11087, 88811 Kota Kinabalu, Sabah, being a Trade Union of employees registered pursuant to the Trade Unions Act 1959 (hereinafter referred to as "the Union").

 

 

2.      Scope of Agreement

The Company gave due recognition to the Union on the fifteenth day of January 1980 as the exclusive collective bargaining body in respect of and on behalf of employees who are members of the Union.

 

(a)     The terms of this Agreement shall be binding on all the "Company's Employees", as defined in Clause 15(d) of this Agreement.

 

(b)     Where, in this Agreement, there is reference to male employees, any entitlement shown will apply also, in equal measure, to female employees, except where the text clearly indicates otherwise.

 

3.      Duration, Termination and Modification of Agreement

(a)     This Agreement shall be effective from 1st October 2005 and shall continue to remain in force until 30th September 2008.  After 30th September 2008, this Agreement shall continue to be in force unless either party gives to the other three (3) months' prior notice in writing of its intention to terminate the Agreement with a view to commence negotiations for a new agreement/award.

 

(b)     At any time after 1st July 2008, either party may give the other notice in writing of its desire to start negotiations with the object of entering into a new agreement, and two months before the termination of this Agreement, both parties shall be prepared to enter into negotiations for a new agreement to run from the date of the termination of this Agreement, if permitted by law.  The party that gives notice in accordance with this part of this Clause should at the same time, submit such revisions of this Agreement as it intends to request.

 

(c)     Where, on expiry or termination of this Agreement, a new agreement has not been concluded between the parties, hereto, or an award by the Industrial Court has not been handed down binding the parties hereto, then the terms and conditions of this Agreement shall continue to be in force until superseded by a new agreement or an Industrial Court Award.

 

(d)     This Agreement shall, by virtue of Section 17(1) of the Industrial Relations Act, 1967, also be binding on:

 

(i)      any successor, assignee or transferee of the Company or the Union; and

 

(ii)     all workmen who were employed in the Company or part of the Company and all workmen who subsequently became employed in the Company or part thereof.

 

(e)     During the life of this Agreement, neither the Company nor the Union shall seek to vary any of its terms unless otherwise stated in this Agreement and in the manner therein provided.  Where any such variation is made, it shall be jointly deposited by both parties with the Industrial Court for its cognizance within one month from the date of the agreement of the said variation.  After the Court has given cognizance, such variation shall be binding on the parties from such date and for such period as may be specified in the Variation Agreement, provided that such period shall not commence earlier than the effective date of this Agreement.

 

 

4.      Declaration of Principles

The following principles are understood and agreed as basic in the relationship between the Company and the Union:

 

(a)     The Union recognises the Company's right to employ such people as it wishes in such numbers as it wishes.  The determination of job contents, rules and regulations on operations and safety, of work procedures and work schedules is the function of the Company's Management.  The Company, in the management of its business shall not violate any of the expressed provisions of this Agreement;

 

(b)     The Company and the Union agree that, regardless of the Company's right to manage and conduct its own business, there should be notification and/or consultation with the Union before important decisions are made on various matters of mutual interest bearing upon the conditions of employment of employees;

 

(c)     This Agreement supersedes and replaces all previous agreements/awards on conditions of employment; and

 

(d)     The Union has the right to make representations with respect to the Company's actions which are contrary to, or diminish the value of, the provisions of this Agreement on conditions of employment, or are against the interests of the Union.

 

 

5.      Settlement of Disputes

Any question that arises on the implementation or interpretation of this Agreement, shall be referred to the Industrial Court for a decision in accordance with the Industrial Relations Act 1967.

 


 

6.      Effect of Legislation

Should any change in legislation affect matters included in this Agreement, the terms of this Agreement will be changed to conform with such legislation unless the benefits conferred by this Agreement exceed those conferred by such change of legislation.  Under no circumstances will benefits granted under this Agreement be added to similar benefits provided for by such change of legislation.

 

 

7.      Union Recognition

(a)     The Company recognises the Union as the sole collective bargaining body over all matters set out in this Collective Agreement, for all Company employees who are members of the Union.

 

(b)     The Company confirms it will not seek to restrain any employee from joining the Union.

 

 

8.      Periodic Meetings Between the Company and the Union

The Company and the Union feel the need for a continuing dialogue on various matters of mutual interest bearing upon the conditions of employment of the Company's employees.  To this end, it is agreed to hold regular meetings at times to be mutually agreed between representatives of the Union and the Company.  Minutes of all such meetings shall be recorded and subject to mutual agreement between representatives of the Union and the Company within three weeks of such meetings, failing which the matter will be re-discussed.  It is also agreed that both parties will cooperate to resolve any issues raised by either party without undue delay.

 

 

9.      Time-Off for Union Business

(a)     The Company shall consider time-off with pay to be granted for Union officials requiring leave in connection with Union business not related to the Company.  Such time-off with pay must receive prior permission but shall not be unreasonably withheld.

 

(b)     The Company shall also consider time-off with pay to Union officials and members to attend Union training, educational courses, symposium and seminars, subject to the following conditions:

 

(i)      Such courses/seminars have been approved by the Ministry of Human Resources/State Human Resources Office;

 

(ii)     The Union advises the Company in writing the names of the participants to such courses/seminars well in advance but not less than one week prior to departure of the participants;

 

(iii)     The number of participants is limited to three per occasion; and

 

(iv)    The participants can be released without affecting operations and schedules.

 

 

10.    Stoppages of Work

The Union and the Company agree that, during the life of this Agreement, there shall be no strike, lockout, work stoppage or any other form of industrial action by either party arising out of the terms and conditions agreed herein, or arising out of any other matter whatsoever unless in accordance with the law in force.

 

 

11.    Productivity

(a)         The Company and the Union recognise the need to bring about and maintain a high level of productivity and efficiency.

 

(b)         Both parties, therefore, accept the basic concept that every employee will perform as required any work which, in the opinion of the Company, he has the ability to perform satisfactorily.  Provided that in the event of any grievance arising out of the clause herein, there can be recourse to the Grievance Procedure provided for in Clause 12 of this Agreement.

 

 

12.    Grievance Procedures

For the purposes of this Agreement, the term "grievance" refers to any complaint arising out of the interpretations or applications of this Agreement affecting the Company's “Supervisory and Specialist Staff” and “Clerical and Operational Employees”.

 

It is the intention of both the Company and the Union that grievances should be resolved as quickly and as equitably as possible.  To this end, the following procedures will apply:

 

A.      Individual Grievances

 

No grievance will be accepted unless presented at Stage 1 within one (1) month after the date of origination or discovery of the facts or events upon which the grievance is based.

 

Stage 1

 

An employee who has a grievance shall submit his grievance in writing on a Grievance Form as shown in Schedule VI to the Team Leader who will attempt to resolve the issue within two (2) weeks.

 

Stage 2

 

If the grievance is not resolved at Stage 1, the employee may take the matter up with his Manager/Senior Manager who will attempt to resolve the issue within one (1) week.

 

Stage 3

 

If the grievance remains unresolved at Stage 2, the employee may formally submit the Grievance Form to the Country Employee & Industrial Relations Manager who will decide within two (2) weeks and whose decision (the reason for his decision must be stated in writing) will be final, insofar as this procedure for the grievance within the Company is concerned.  At this stage, a Union member appointed or nominated by the Union Executive Council may accompany the employee.

 

 

B.      Collective Grievances

 

No grievance will be accepted unless presented within one (1) month after the date of origination or discovery of the facts or events upon which the grievance is based.

 

Stage 1

 

A grievance from a group of two (2) or more employees:

 

(a)     From the same Team - shall be submitted by the employees in writing in a Grievance Form as that shown in Schedule VI, to the Team Leader/Manager/Senior Manager who will attempt to resolve the issue within two (2) weeks.  The Team Leader/Manager/Senior Manager to whom the grievance is submitted shall be one level immediately below the General Manager in the Directorate or his appropriate delegate.

 

(b)     From different Teams or from the Union to the Company - shall be referred directly to Stage 2.

 

Stage 2 – COUNTRY EMPLOYEE & INDUSTRIAL RELATIONS MANAGER LEVEL

 

If the grievance is not resolved at Stage 1 or, under (b) above is referred to Stage 2, the employees may formally submit the Grievance Form to the Country Employee & Industrial Relations Manager (copied to the Union) who will attempt to resolve the issue within two (2) weeks.  At this stage, the employees will be represented in discussion(s) with the Country Employee & Industrial Relations Manager two (2) Union members who must first obtain the written authority of the Union Executive Council to represent the employees concerned.  The decision of the Country Employee & Industrial Relations Manager, which must be stated in writing, will be final insofar as this procedure for the grievance within the Company is concerned.

 

 

Conciliation

 

In the event that the foregoing (Individual and Collective grievances) processes fail to resolve the grievance(s), both the Company and the Union will have the right to refer the dispute to the Director General for Industrial Relations for conciliation.

 

 

 

 

INDUSTRIAL RELATIONS ACT

 

If the dispute still remains unresolved after conciliation proceedings by the Director General for Industrial Relations, both parties agree to refer the dispute for settlement under the provisions of the Industrial Relations Act in force.

 

 

13.    Check-Off System

(a)     The Company will make arrangements to deduct employees’ monthly salaries, with the consent of the employees concerned through the Union, for payment of the Union's subscription fees, which will be credited to the Union’s bank account on a monthly basis by the Company.

 

(b)     Nothing in this Clause shall prevent the employee from withdrawing his consent in which case he shall serve on the Company seven (7) days notice (after endorsement by the Union) exclusive of the day the notice is served.

 

 

14.    Exclusion of New Demands

(a)     The Union and the Company undertake not to put forward or support during the life of this Agreement any new or further demands, whether or not in connection with the contents of this Agreement or matters which were subject to bargaining during the negotiations, after the negotiations have been completed and agreement reached.

 

(b)     However, if during the life of this Agreement, market competitiveness and business performance so warrant, both parties agree to consider re-opening discussions on Salary Scales and/or on Total Cash.

 

 

15.    Definitions

For the purpose of implementing this Agreement, the following definitions shall have the meaning hereinafter:

 

(a)     Basic Salary means the fixed monthly amount payable to employees within the ranges as laid down in Schedule III and Schedule IV of this Agreement and does not include supplementary pay, performance related bonus, overtime payments, location allowance, roster allowance, shift premiums or any other allowances or any other payments.

 

(b)     Supplementary Pay (Contractual Bonus) means:

 

For COE    -        2.25 months’ Basic Salary payable over 12 months.

 

For SSS    -        2 months’ Basic Salary payable over 12 months.

 

Subject to Clause 31 on Business Performance Bonus, BUSINESS PERFORMANCE BONUS is paid in March of each year.  The amount of Business Performance Bonus paid to the employee is a percentage of the employee’s basic salary + supplementary pay as at 31st March of each year.

 

(c)     Company Approved Doctor means any registered medical practitioner duly authorised from time to time by the Company Medical Officer.

 

(d)     Company Employees means all Clerical and Operational Employees and Supervisory and Specialist Staff in regular full time employment and who occupy jobs specified in Schedule I and Schedule II of this Agreement.

 

(e)     Rest Day means the Company official rest day, defined as:

 

(i)      Day workers (on and offshore) – Saturday and Sunday unless mutually agreed otherwise.

 

(ii)     Roster workers ‑ The days off as prescribed in the Roster Schedule.

 

(iii)     Shift workers ‑ The rest days as prescribed in the Shift Schedule.

 

(f)      Roster Workers means all employees, other than shift employees, who are required to work on such roster 14 days on x 12 hours x 14 days off.

 

(g)     Shift Workers means all employees who are engaged in work which by its nature/operation requires to be carried on continuously or continually on an alternating/rotational basis.

 

 

16.    Hours of Work

(a)     Day Workers (on and offshore)

 

The basic work week shall consist of 40 hours Monday to Friday (both days inclusive).  The schedules of working hours, for starting and finishing work, shall be arranged and may be changed by the Company to meet operational requirements.

 

Day workers who may be required to work offshore from 6 a.m. to 6 p.m. shall retain the basic work week of 40 hours Monday to Friday inclusive.  Any hours worked in excess of the basic work week shall be paid as overtime.

 

(b)     Roster Workers

 

Employees on a roster of 14 days on x 12 hours x 14 days off work 168 hrs. per cycle. Any hours worked in excess of 160 hrs. per cycle shall be paid as overtime.

 

(c)     Shift Workers

 

Shift workers work such shift schedules as are laid down from time to time by the Company.  In order to ensure continuity of operations, all shift workers shall remain on duty until relieved by the succeeding shift or until permitted to leave by the Supervisor in charge; in which case for the purposes of calculating overtime the period of initial overtime of more than 15 minutes will be compensated and rounded up to 30 minutes.

 

(d)     The Company undertakes to discuss with the Union any proposed changes of work schedules from existing arrangements.

 

(e)     The Company and the Union agree that, as far as work operations permit, the basic Company work week will be as specified for each of the above categories of employees.  However, it is also agreed that employees may be expected to work beyond the basic hours, as and when required by the Company.

 

 

17.    Overtime and Excess Hours    

 

(a)     For the purpose of this Agreement, "Overtime" means the time worked in excess of the normal hours of work defined in Clause 16.  Periods of overtime of more than 15 minutes will be compensated.

 

(b)     Overtime will be approved only when such overtime is authorised by the Manager/Team Leader/Supervisor.

 

(c)     If an employee is required to work in excess of his normal hours of work, he shall not be given time-off in lieu of overtime pay.

 

(d)     Shift Workers are eligible for overtime for hours worked in excess of 40 per week produced by the average shift cycle [see Clause 16(c)].  This is payable in addition to Shift Premium.

 

(e)     Roster Workers are eligible for overtime for hours worked in excess of 12 hours per day or 40 hours per week produced by the average roster schedule [see Clauses 16(b) and 37].  This is payable in addition to Offshore Allowance.

 

(f)      Overtime payment shall include cases where the employee is required by the Company to attend training, courses, seminars, conferences and workshops during his rest days, then overtime compensation shall be payable subject to a maximum of 8 hours per day.

 

(g)     Employees who work overtime in accordance with this Clause will be   

                  paid as follows:

 

(A)    Clerical and Operational EmployeeS

 

(i)      On Normal Working Days and Rest Days

 

All employees will receive 1½ times the ordinary hourly rate for all hours worked.

 

(ii)      On Company Holidays (as defined in Clause 20)

 

(a)     If the Company Holiday falls on a normal working day

 

          Employees working on a scheduled roster or shift will receive, in addition to the normal day's pay, 1½ times the ordinary hourly rate for the hours worked according to the roster or shift and, thereafter, twice the normal hourly rate.

 

          All other employees will receive, in addition to the normal day's pay, 1½ times the ordinary hourly rate for the first 8 hours worked and, thereafter, twice the normal hourly rate.

 

(b)     If the Company Holiday falls on an Official Rest Day

 

          All employees will receive twice the normal hourly rate for each hour worked.

 

(iii)     Work Performed After Midnight

 

          Employees who are required to work in excess of their normal hours of work (as defined under Clause 16 "Hours of Work") between midnight and 6.00 a.m. will receive twice the normal hourly rate for the hours worked.

 

 

                  (B)    Supervisory and Specialist Staff

 

                  The Company agrees that in determining the salaries of employees it shall take into account a reasonable number of additional hours which the Company expects its employees may have to work, namely 10 hours in a one month period.  In the event that these additional hours, including work on Company rest days, and Company Holidays, exceed the norm of 10 hours in a one month period, the Company agrees to make an additional payment to the employees so affected for any "excess" hours worked.  Such payment will be made in the month immediately following the one month period, at the rate of RM27.00 per hour.  Periods of overtime of more than 15 minutes will be compensated.

 

 

18.    Rest Period

Employees should receive a minimum of 8 hours rest period between one normal work period and the next.  This does not include traveling time from work place to home and vice versa.  If circumstances arise in which by observing normal time for starting work after considerable excessive hours worked, less than a minimum of 8 hours would be available for rest, then the actual starting time should be adjusted so as to afford an 8-hour rest period before starting work.  For the purpose of payment, employees concerned will then be deemed to have started work at the normal starting time.  Where for operational reasons such a rest period of 8 hours cannot be afforded any hours worked within the 8 hours period shall be compensated in accordance with Clause 17.

 

 

19.    Travel Time

Time spent traveling to and from the expected place of reporting for work is not worked time but time spent in waiting for Company transport for reporting to work and after completion of day’s work or traveling on duty including attending official meetings will be regarded as worked time.

 

 

20.    Company Holiday

Every employee shall be entitled to a paid holiday as follows:

 

   For Kota Kinabalu based employees   :

   For all offshore employees                  :

 

All Public Holidays gazetted for the State of Sabah.

   For Labuan based employees             :

All Public Holidays gazetted for F.T. Labuan including Good Friday

 

A Company Holiday falling on an official Company rest day as defined in Clause 15 will be compensated for as follows:

 

(a)     Day Workers

 

(i)      Where the Company Holiday falls on a Saturday, the Company will substitute the Company Holiday with the normal working day immediately preceding.

 

(ii)     A Company Holiday falling on a Sunday will be compensated for by substituting the next working day off in lieu.

 

(b)     All Other Workers (shift and roster workers)

 

          A Company Holiday falling on an official Company rest day will be compensated in accordance with the provisions of Clause 36 for shift workers and Clause 37 for roster workers.

 

However, the Company reserves the right to call on any employee to work on these Company Holidays for operational reasons.

 

 

21.    Annual Leave

(a)     All employees shall have a fixed annual leave with pay of eighteen (18) working days.

 

(b)     At the end of any calendar year, leave not already taken may be carried over to the following year.  Such a carry over, however, must be limited to a maximum of 15 working days.

 

          Any outstanding leave over this maximum will be forfeited whether accumulated with or without ‘for operational reasons’.

 

(c)     As recognition of long service, the following additional leave with pay will be granted to employees on the occasion of annual leave each year:

 

         Service                        Additional Days

         10th - 24th year             5 working days

         25th year & above         7 working days

 

(d)     As an alternative, if these additional days are chosen not to be taken then, subject to mutual agreement and provided written notice is given, pay in lieu will be granted to employees prior to going on annual leave.

 

(e)     An employee's annual leave as mentioned above will be further extended by the number of Company Holidays to which an employee is entitled under Clause 20 falling within the period of leave.  Consideration will be given, on the basis of the recommendation of the Company Medical Officer, Government Medical Officer or any other registered medical practitioner who are duly authorised by the Company to extending leave in the case of any hospitalisation or serious illness of the employee occurring during annual leave.

 

(f)      Special Leave - It is recognised that there can be occasions when staff will require shorter leave days taken at different time throughout the year to attend to personal and/or domestic matters.  Such leave application(s) will be granted, subject to operational requirements.  The leave day(s) taken will be deducted from an employee’s annual leave entitlement.

 

(g)     With respect to Muslim staff who have REGISTERED to perform the Haj and in their case they may carry over leave to the following year up to a maximum of 40 working days.

 

(h)     Where an employee who is on paid annual leave becomes entitled to sick leave while on such annual leave, the employee shall be granted the sick leave, and the annual leave shall be deemed to have not been taken, following endorsement by Company doctors at the Lutong Industrial Clinic, in respect of the days for which sick leave is so granted.  Employees will submit sick leave chits to Labuan Occupational Health Officer for submission to Company doctors at the Lutong Industrial Clinic.

 

 

22.    Maternity Leave / Miscarriage

(a)     Maternity Leave

 

(i)      Upon presentation of a medical certificate by the Company Medical Officer, Government Medical Officer or any other registered medical practitioners who are duly authorised by the Company, all female employees will be granted sixty (60) d