1998 - 2001 Collective Agreement Between Shell Timur Sendirian Berhad And Sabah Petroleum Industry Workers Union

Contents   CLAUSE 1 Parties to the Agreement CLAUSE 2 Preamble CLAUSE 3 Title CLAUSE 4 Duration of Agreement CLAUSE 5 Union Recognition CLAUSE 6 Management Function CLAUSE 7 Union Function CLAUSE 8 Existing Benefits CLAUSE 9 Definitions CLAUSE 10 Principles of Salary Administration CLAUSE 11 Acting Assignment and Assignment of Additional Duties CLAUSE 12 Overtime CLAUSE 13 Pay for Work on Rest Days and Public Holidays CLAUSE 14 Shift Premium CLAUSE 15 Call Out Pay CLAUSE 16 Bonus  CLAUSE 17 Probation on Recruitment CLAUSE 18 Hours of Work CLAUSE 19 Annual Leave CLAUSE 20 Public Holiday CLAUSE 21 Special Leave CLAUSE 22 Maternity Leave CLAUSE 23 Sick Leave and Medical Benefits CLAUSE 24 Paid Leave of Absence CLAUSE 25 Time-Off for Union Business CLAUSE 26 Reimbursement of Meal Expenses CLAUSE 27 Reimbursement of Transport Expenses CLAUSE 28 Reimbursement of Outstation Expenses CLAUSE 29 Reimbursement of Permanent Transfer Expenses  CLAUSE 30 Grievance Procedure CLAUSE 31 Uniforms  CLAUSE 32 Laundry  CLAUSE 33 Health and Safety  CLAUSE 34 Reimbursement of Driving Licence Fees Appendix I Job Groups / Job Titles Appendix IA - Administration  Appendix IB - Operations  Appendix IC - Technical  Appendix II Uniforms and Footwear  Appendix III 39-Hour Week Jobs / 42-Hour Week Jobs Appendix IV List of Supervisory Jobs Appendix V Grievance Procedure Appendix VI Special Grievance Procedure Appendix VII Grievance Form Signatories to the CA Letter of Exchange Summary of changes in Hospitalisation, Clinical & Maternity Benefits

CLAUSE 1 - PARTIES TO AGREEMENT This agreement is made this 12th day of November 1998 between the SABAH PETROLEUM INDUSTRY WORKERS UNION of 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 Union Act 1959 (hereinafter called "the Union") of the one part and SHELL TIMUR SENDIRIAN BERHAD, a Company incorporated in Malaysia and operating in the State of Sabah and the Federal Territory of Labuan, Malaysia, having its registered office at Bangunan Shell Malaysia, Off Jalan Semantan, Damansara Heights, Kuala Lumpur, Malaysia (hereinafter called "the Company") of the other part. In case either the Company or the Union changes its name or merges with other companies or organisations to the effect that the Company or Union is wholly or partly absorbed by the other organisation, the clauses of this Agreement shall continue to cover the employees to which this Agreement is applicable at the time the change of name or merger takes place, for the remaining period of validity of this Agreement.

CLAUSE 2 - PREAMBLE The objective of this Agreement is to provide for a clear understanding of the relationship between the Company and the Union in matters concerning the terms and conditions of service for all employees represented by the Union, to stabilize their terms and conditions of service for the duration of this Agreement and to provide means of resolving misunderstandings or grievances arising during the currency of this Agreement either as a result of differences in interpretation or any other matters. Acknowledging 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 co-operation, the parties to this Agreement affirm their desire to create a relationship of mutual respect and confidence. The provisions of this Agreement have been accepted by the Union and the Company in full and complete settlement of all claims by either party regarding the general terms and conditions of service of employees as at the date of this Agreement, and neither party has any further claim against the other in respect of such general terms and conditions of service and, accordingly, during the currency of this Agreement neither the Company nor the Union shall seek to vary, modify or annul any of its terms and conditions in any way whatsoever, save as is herein provided or by operation of law. Both the Company and the Union agree that in the event of a change in the interpretation of any of these clauses, it is voluntarily and freely agreed by both parties that the resultant benefit, if any, will be limited in its retroactivity to the time when the matter was first raised by either party.  After this Agreement has been signed, all employees covered by the Agreement shall receive a copy of this Agreement printed in English or Bahasa Melayu by the Management. In the event of any disagreement over interpretation of the Agreement, the English version shall prevail.  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 on dates to be mutually agreed between representatives of the Union and the Company, It is also agreed that both parties will co-operate to resolve any issues raised by either party without undue delay.

CLAUSE 3 - TITLE The title of this Agreement shall be the " Collective Agreement between SHELL TIMUR SENDIRIAN BERHAD and the SABAH PETROLEUM INDUSTRY WORKERS UNION, 1998 - 2001".

CLAUSE 4 - DURATION OF AGREEMENT A. This Agreement shall commence with effect from 1st August 1998 and shall continue to remain in force for a period of three years from that date. After 31st July 2001 this Agreement shall continue to be valid unless either party gives to the other three months prior notice in writing of its intention to terminate the Agreement. B. 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 Collective Agreement or an Industrial Court Award. C. In the event that any legislation should change any of the provisions, of this Agreement, then the relevant provisions of this Agreement shall be amended accordingly. However, if the relevant provisions of this Agreement are more favourable, they will continue to apply, if it is so permitted by law. The effective date of such amendment shall be from the effective date of the new law. Further, all modifications and/or amendments arrived at mutually shall be in writing signed by the Company's and Union's designated representatives and shall be 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.

CLAUSE 5 - UNION RECOGNITION  The Company recognizes the Union as the sole collective bargaining body relating to salaries, hours of work and other terms and conditions of employment, for employees holding the bargainable positions as shown in Appendix I.

CLAUSE 6 - MANAGEMENT FUNCTION It is recognized that except as otherwise specifically provided herein, the management of the business, including initiation of action, the direction and management including determination of the number of the work force, job content and job level, the establishment of rules and regulations on operations and safety, the efficient utilization of its workforce, tools and equipment, and the determination of the means, methods, process, materials, procedures and schedules of production is the function of management. The Company's exercise of its right in the management of the business shall not violate any of the expressed provisions of this Agreement, nor shall it be used to victimise any members of the Union. The Company shall advise the Union wherever possible, before implementing changes to existing work force, job contents and rules and regulations on operations and safety.

CLAUSE 7 - UNION FUNCTION It is recognized that the Union maintains the right, as the collective bargaining body, to make representations in respect of the 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 in positions in the recognized bargaining units relating to terms and conditions of service.

CLAUSE 8 - EXISTING BENEFITS Notwithstanding the provisions of this Agreement, any existing benefits provided for by the Company and not superseded by this Agreement shall continue to remain in force. The Company may, by agreement with the Union, alter, amend, suspend or terminate any of these existing benefits as the Company may consider advisable or necessary.

CLAUSE 9 - DEFINITIONS In this Agreement, unless there be something in the subject matter or context inconsistent therewith :- A. COMPANY APPROVED DOCTOR Means a medical practitioner whose name is contained in the list of the Company Approved Medical Practitioners circulated by the Company amongst the employees from time to time. B. EMPLOYEE Means all engaged persons in the permanent employment with the Company who are covered by this Agreement as listed in Appendix I and shall also include any person temporarily seconded to other firms or companies, but who shall remain as an employee of the Company. C. QUALIFYING SERVICE Means service expressed in years and calendar months for the purpose of computing Resignation/Termination, Death in Service of Retirement Benefits. Each completed month of service with the company shall be computed as one-twelfth of a year, and a period of 15 calendar days or more in a month shall be regarded as a month, and any lesser period shall be disregarded. D. NUMBER AND GENDER Where the context so admits, word imparting the singular number shall include the plural number and vice-versa and words imparting only the masculine gender shall include the feminine gender. Where provisions of this Agreement apply to the employee only , such provisions cover both male and female employees. E. DAY Means a period of twenty-four consecutive hours from midnight to midnight. F. REST DAY Means a Sunday for a day employee; for a shift employee who does not have a regular day of rest, his rest day shall be the first off day in a week. G. SALARY Means the fixed monthly sum payable to an employee for the service with the Company excluding bonus, overtime payments, shift premium and other allowances of whatever nature. H. TEMPORARY TRANSFER Means a temporary assignment from the normal work area of an employee up to maximum period of six consecutive months. I. WEEK Means a continuous period of seven days.

CLAUSE 10 - PRINCIPLES OF SALARY ADMINISTRATION A. JOB TITLES, JOB GROUPS AND SALARY GROUPS The job titles that fall within each salary group are set out in Appendix I and are made only for the purpose of determining rates of pay for employees assigned to these jobs. Any changes to Appendix I occasioned by operational requirements will be notified to the Union by the Company. B. PROMOTION (i) It is the Company's policy to promote from within the organisation as far as possible if a vacancy occurs which needs to be filled. In selecting the candidate, the Company will consider his suitability in terms of his ability to perform the job and in terms of his seniority of service in the Company. In the event that a suitable candidate from within the Company cannot be found, the Company will recruit to fill the vacancy. (ii) An employee who is promoted shall be informed in writing at the time of the promotion of the length of the probationary period, if any, he shall be required to serve. At the end of the period of probation, but not later than one weeks thereafter, he shall be advised in writing by the Company whether he is confirmed in his new position. The probationary period may be extended provided always that the period of probation shall not be more that six months. (iii) During his probation, the employee shall receive a Temporary Promotional Allowance of not less than 13% of his salary, or the difference between his salary and the minimum of the higher salary group to which he is promoted, whichever is greater. (iv) An employee on promotion shall be placed in the salary group of the higher job group and be given an adjustment of not less than 13% of his salary as from the date of his confirmation. If such a salary adjustment does not bring the employee's salary to the minimum of the appropriate higher salary group, he will be given another adjustment to bring him to this minimum. An employee who receives a salary adjustment on promotion shall not be deprived of his annual increment as set out in sub-clause B above. (v) In the event that the Company decides not to confirm the employee in his new position, he will be reassigned to a position compatible with his ability, and the employee will revert to the salary group appropriate to his position immediately prior to the position he held on promotion. Thereafter, at the first opportunity that a vacancy arises at a higher level for which the employee has the appropriate experience, the employee shall be considered.

CLAUSE 11 - ACTING ASSIGNMENT AND ASSIGNMENT OF ADDITIONAL DUTIES ACTING ASSIGNMENT 1. (i) When an employee is assigned to act in a position higher than his own during the absence of the substantive holder and is responsible for the proficient performance of that position fully, he will be paid an Acting Allowance. The assignment is contingent upon formal notification in writing stating the period and purpose for which he is placed in the acting position. (ii) For acting assignments in all positions, wherever possible, preference will be given to employees in the next lower job group having regard to their ability to act, the relationship between the nature of his job and the higher job, the location of the incumbents, career progression, availability of manpower and other pertinent considerations. 2. The Acting Allowance will be calculated on a daily basis for each day worked in accordance with the following formula:- (i) for acting in a position one job group higher - 25% of the employee's own salary divided by 22. (ii) for acting in a position two or more job groups higher- 30% of the employee's own salary divided by 22. (iii) for acting in a Senior Staff position - 40% of the employee's own salary, divided by 22. 3. An employee on acting assignment will continue to enjoy the benefits relative to his substantive position. 4. An employee acting in worksite Manager / Head positions will be paid Acting Allowance for the full duration of his assignment, inclusive of off days, rest days and public holidays falling within the period. B. ASSIGNMENT OF ADDITIONAL DUTIES 1. General  It is recognized that subject always to the Union's right to make representation with respect to the Company's actions, employees may be assigned other jobs or allocated part of the duties of other jobs from time to time as required. If an employee considers that he has been unjustly instructed to take on duties other than his own, it is agreed that he will first carry out these instructions and subsequently lodge a complaint which will be processed in accordance with the Grievance Procedure as set out in Appendix V and VI. 2. On Permanent Basis (i) If an employee's job contents have been changed, his job will be re-evaluated. In the event that:- (a) the job is upgraded, the employee will be placed in the appropriate higher salary group: or (b) the job is downgraded or remains in the same group, the employee will continue to progress in his existing salary group.  (ii) If an employee is unable to discharge the full responsibilities of the job assigned to him due to unsuitability, he will be re-assigned to another job more suitable to him. If the job to which he is re-assigned is in the lower salary group, he shall, from the date of re-assignment, progress in accordance with the lower salary group. In the event that the employee's former salary on re-assignment is already in excess of the maximum salary of the lower salary group, than his current salary will be regarded as a personal maximum and no further increment will be granted to him. Notwithstanding the above an employee who becomes incapacitated or unsuitable for his present job arising from ill health through no fault of his or an industrial accident through no fault of his shall continue to progress in his current salary group. (iii) If an employee is assigned a job in a lower job group as a result of reorganization, he will continue to progress in his original salary group until he has reached the maximum of that higher salary group. 3. On Temporary Basis If an employee is assigned additional duties on a temporary basis and if these do not result in any increase in responsibilities, he will continue to be paid in accordance with his existing salary group. If the additional temporary duties involve an increase in responsibilities, the employee will be paid Acting Allowance in accordance with the provisions of Clause 11A, for the period he is assigned these additional temporary duties.

CLAUSE 12 - OVERTIME A. Overtime shall be paid to an employee when he is requested by the Company to work in excess of his normal working hours. B. Subject to the provision of sub-clause C and F below, overtime work performed shall be paid at 1 1/2 times the hourly rate, except that where such work is performed between mid-night and 6.00a.m the overtime rate shall be 2 times the hourly rate. Where the overtime covers the entire period from midnight to 6.00a.m., and continues after 6.00a.m., the period after 6.00a.m. shall be at 2 times the hourly rate. C. For a shift employee whose normal working hours cover not less than 4 hours of the period from midnight to 6.00a.m overtime work performed as a continuation of his shift shall be paid at two times the hourly rate. D. Where a regular day employee is requested to work through the normal lunch break and no time-off is given in lieu thereof, the period so worked shall be paid as overtime at 1 1/2 times the hourly rate. E. For the purpose of computing payment under this clause the hourly rate of pay shall be:- 12 x the monthly wages 52 x the number of hours per work-week F. The maximum hourly rate shall be that applicable to a monthly salary of RM1600.00 G. Any overtime worked each day shall be rounded up to the nearest 15 minutes. H. For the purpose of Clause 12 and 13, "Wages" shall be defined as Basic Salary, Shift Premium, Temporary Promotional Allowance and Acting Allowance.

CLAUSE 13 - PAY FOR WORK ON REST DAYS AND PUBLIC HOLIDAYS A. REST DAY Any employee who is required by the Company to work on his scheduled day of rest shall be paid as follows:- (a) For work which does not exceed 4 hours, he will be paid an extra day's salary at the ordinary rate of pay. (b) For work which exceeds 4 hours but does not exceed 8 hours, he will be paid 2 times the hourly rate of pay for the period worked. (c) For work which exceeds 8 hours, he will be paid 3 times the hourly rate of pay for every additional hour so work after the first 8 hours. B. PUBLIC HOLIDAY Any employee who is required by the Company to work on a gazetted public holiday applicable to his place of work shall be paid as follows:- (a) For work which does not exceed 8 hours, he will be paid 2 days wages at the ordinary rate of pay. (b) For work which exceeds 8 hours, he will be paid 4.5 times the hourly rate of pay for every additional hour so worked after the first 8 hours, a part of an hour being calculated as one hour for this purpose. C. In the case of an employee earning more than RM 1600.00 per month, the rate of payment for work performed on rest days and public holidays, shall be calculated at the fixed salary of RM1600 per month. D. The formula for calculating the hourly rate of pay for the purpose of computing payment under this clause shall be in accordance with sub-clause 12E above.

CLAUSE 14 - SHIFT PREMIUM A. A shift premium shall be paid to an employee assigned to shift work at the following rates. 3 cycle - RM 300.00 per month 2 cycle - RM 200.00 per month When the shift covers the period from midnight to 6.00 a.m it shall be considered as a 3-cycle shift for the purpose of this Agreement. B. In the event that an employee is taken off shift work either because of cessation of such shift work or because of transfer to day work, his shift premium shall be withdrawn without compensation. The withdrawal of the shift premium will be effective as from the first day of the month following the cessation of the shift work. C. An employee working on shift will continue to receive the appropriate shift premium, as set out in sub-clause A above, while he is :- (i) on annual leave, accumulated leave or compassionate leave:- (ii) on sick leave up to a maximum period of two months:- (iii) relieving another employee on day work on a temporary basis up to a maximum period of two months.

CLAUSE 15 - CALL-OUT PAY A. Where an employee is called out from his home to work outside normal working hours, he shall receive a minimum payment equivalent to 4 hours straight time pay or applicable overtime rate for the actual hours worked, whichever is greater. An employee called out for such work but subsequently not required to work shall receive call-out pay equivalent to 4 hours straight time pay. B. Each separate request to come from home shall be considered as a separate call-out even if two or more call-outs occurs in the same 4 hour period. C. For the purpose of computing overtime payment for each call-out, overtime shall be deemed to commence from the time an employee reports for duty. D. A meal reimbursement as in Clause 26 is payable for any call outs which occurs any time between the following:- (i) 5.30a.m through 7.30a.m (ii) 12.00noon through 2.00p.m (iii) 6.00p.m through 8.00p.m (v) The first call-out after midnight through 5.30a.m

CLAUSE 16 - BONUS A. For the year 1998 and each subsequent year during the currency of this Agreement, the Company shall pay a bonus equivalent to two (2) months last drawn salary, including any Temporary Promotional Allowance where applicable, to each employee, such bonus to be paid at the end of each year. B. An employee who takes leave of absence without pay shall lose one fifty-second of the bonus payment for each week of such absence. C. A new employee engaged after 1st January shall receive a proportional share of the bonus payable in the year of employment based upon the completed months of service up to 31st December of that year. A period of 15 days or more in a month shall be regarded as a month and any lesser period shall be disregarded.  D. An employee who leaves the service of the Company prior to 31st December of any year, for which a bonus is payable, shall receive a proportional share of the bonus based upon number of days of service prior to leaving the service of the Company but no bonus, or any part thereof, shall be paid in accordance with this Clause to any employee who is discharged for proven misconduct or breach of contract of service.  E. If any contributions to the Employees Provident Fund and the Social Security Scheme are payable by an employee in respect of any bonus, such contribution shall be deducted the Company under the provisions of the relevant Ordinances.

CLAUSE 17 - PROBATION ON RECRUITMENT A. A newly engaged employee covered by the following positions shall be placed on probation for a period of up to twelve months:- (a) Positions requiring technical and/or (b) Professional qualifications B. A newly engaged employee, other than those specified in sub-clause (A) above, shall serve a probationary period of up to six months. C. Following completion of the stipulated probationary period under either sub-clause (A) or (B) above, the employee shall be advised in writing by the Company within seven working days after such probationary period has been completed whether he has been accepted for regular employment. D. At any time during the probationary period, a newly engaged employee may have his services terminated at the discretion of the Company if he is considered by the Company to be unsuited for the job for which he was employed. E. Any employee whose service is terminated, due to not being confirmed in his employment, or, who resigns during the probationary period, shall not be entitled to any termination benefits.

CLAUSE 18 - HOURS OF WORK A. Employee in Job Group A to C1 and certain positions in Job Groups K to N listed in Appendix III shall work 42 hours per week. All other employees in Job Groups K to N shall work 39 hours per week. B. Working hours shall be deemed to have commenced from the time an employee reports to his place of work and to terminate at the time he leaves his place of work in accordance with the schedule of working hours for the workplace. Notwithstanding the foregoing, the normal lunch break for the a day employee shall not constitute time worked. C. Schedules of working hours including the introduction where necessary of a break between shifts, at each worksite shall be laid down by the Company from time to time. The Company shall undertake to discuss with the Union any proposed changes of work schedules before implementation.

CLAUSE 19- ANNUAL LEAVE A. An employee becomes eligible for annual leave on the anniversary date of his joining the Company. During the first 12 months in service, an employee may apply to take advance annual leave provided he has urgent matters to attend to. The Company shall consider each case on its merit. B. An employee shall be entitled to annual leave on the following scale:-   Service with Company Employees on 39-hour week No. of Working Days Employees on 42-hour week No. of Working Days 1st up to 4th year of service 13 14 5th up to 10th year of service 17 18 11th up to 15th year of service 19 20 16th up to 20th year of service 22 23 Over the 20th year of service 24 25 C. Annual leave shall normally be taken in one continuous period in each calendar year to the mutual satisfaction of the Company and the employee subject to the provisions of sub-clause D and E below. All annual leave shall be taken in accordance with leave rosters to be established. D. If for operational reasons it is not possible for the employee to take his annual leave in one continuous period, then the leave period may be spilt subject to the mutual satisfaction of the Company and the employee. E. An employee may at his option accumulate a portion of his annual leave over a period not to exceed 3 consecutive years entitlement subject to the following conditions:- (i) that the employee gives notice of his intention to accumulate leave during the first year of the three year period.  (ii) that a minimum of 5 working days leave shall be taken in each year of service within the accumulate period; and (iii) that the carried-over leave not taken by the end of the third consecutive year shall be forfeited by the employee, unless such leave cannot be granted by the Company for operational reasons. F. An employee becoming ill or injured while on annual leave may have his leave extended by one day for each day he is certified sick by a Company Approved Doctor, as being unfit for work (were he not on annual leave). The employee shall inform the Company wherever possible, before such extension of annual leave. Medical leave claims for disability occurring where no Company Approved Doctor is available and is certified by other doctors is subject to confirmation by the Company's Chief Medical Advisor.

CLAUSE 20 - PUBLIC HOLIDAY A. The Company shall recognise all Public Holidays gazetted for the State of Sabah and the Federal Territory of Labuan, respectively. B. Should a gazetted Public Holiday fall within the period when an employee is on annual leave, the employee shall be given an additional day's leave for each such Public Holiday falling within the period. Such additional day or days shall be taken as an extension of annual leave. C. Where a gazetted public holiday falls on an off day, the Company will substitute the public holiday to either the normal working day immediately preceding or the next normal working day immediately succeeding. Where a gazetted public holiday falls on a rest day, the next working day immediately succeeding shall be a paid holiday in substitution thereof. Where an employee is required to work on the substituted Public Holiday, he will be paid in accordance with the provisions of Clause 13. D. Where for operational reasons, a day off in lieu cannot be given (as in the case of regular shift employees) payment in lieu accordance with the provisions of Clause 13 shall be given.

CLAUSE 21 - SPECIAL LEAVE A. Once during his service with the Company, an employee shall be permitted unpaid leave of absence up to a maximum of 6 months for the purpose of travelling abroad subject to the following conditions:- (i) that he must have completed five continuous years of service with the Company. (ii) that he must undertake to resume work with the Company on his return from such leave. (iii) that the date of his return to work is established prior to departure, and if he desires to return to work earlier than the fixed date, he will advise the Company accordingly. (iv) that the Company shall provide the employee with a letter guaranteeing him continuation of employment on his return within the time limit of his leave of absence. (v) that failure to report for work on the agreed date without just cause or excuse shall be considered a breach of his service with the Company reserves its right to take disciplinary action against such employee as it deems fit. (vi) that the employee shall produce travel documents for inspection by the Company. (vii)that the Company shall not be called upon to underwrite or guarantee any expenses in connection with such leave. (viii) that the Company assumes no responsibility for the return of the employee to the state of Sabah or the Federal Territory of Labuan and this applies to any Immigration regulations, legislation, transportation difficulties or other causes, nor will the Company assume financial and service obligations should the employee fail to return on the agreed date; and (ix) that such leave of absence shall be taken at a time agreed to by the Company and which will least interfere with the operations of the Company.  B. Furthermore, additional unpaid leave of absence not exceeding six months' duration may be granted at the Company's discretion subject to the conditions in sub-clause(A) above. C. In addition to the foregoing, the Company shall give consideration to an employee who applies for one unpaid leave of absence for a period not to exceed twelve months in order that the employee may further his studies provided that such further studies shall result in and be beneficial to both the employee and the Company in the employee's present or future assignments within the Company. Such unpaid leave is subject to the conditions in sub-clause(A) above. D. Notwithstanding sub-clause(A.i) above, for an employee who wishes to make pilgrimage, the minimum period of service with the Company to qualify for such leave of absence shall be one year. Such unpaid leave is subject to conditions in sub-clause(A) above.

CLAUSE 22 - MATERNITY LEAVE A. The Company shall grant a female employee a total of 60 calendar days maternity leave on full pay upon presentation of a medical certificate from a Company Approved Doctor. Maternity leave may only be taken after completion of the seventh month pregnancy. B. Absence from work due to miscarriage during the first 28 weeks of pregnancy shall not be considered as maternity leave, but as normal sick leave.

CLAUSE 23 - SICK LEAVE AND MEDICAL BENEFITS A. SICK LEAVE 1. Sick leave is defined as a period of absence from work which is certified by a Company Approved Doctor. Failure to comply reasonably with the instructions of a Company Approved Doctor, including a complete medical check-up, shall automatically forfeit the benefits set forth in this clause. 2. (i) Sick leave as defined above, but excluding absence from work due to industrial accidents or prolonged illness in (B) hereof, shall be in accordance with the following sickness and disability schedule:-    Employee Service Days at Full Pay per year Days at Half Pay per Year Up to 5 years (inclusive) 30 30 6 to 10 years (inclusive) 30 45 11 to 15 years (inclusive) 30 60 16 to 20 years (inclusive) 30 90 21 years and over 30 120 (ii) For the purpose of calculating Sick Leave entitlement above, the limit to which the employee will be entitled shall be related to the scale applicable at the time he commences such sick leave. (iii) Notwithstanding the above, in the case of sick leave where hospitalisation is necessary as certified by a Company Approved Doctor, the limit of sick leave to which the employee is entitled will be 60 days on full pay. B. PROLONGED ILLNESS 1. In the case of prolonged illness resulting from tuberculosis, cancer, poliomyelitis, leukaemia, leprosy and in certain other instances based upon the prognosis of a Company Approved Doctor, an employee shall be granted leave in accordance with the prolonged illness schedule:-   Employee Service Full Pay Month Half Pay Month Less than 1 year of service but after completion of probation 1 - 1 completed year of service 2 - 2 completed years of service 2 2 3 completed years of service 3 3 4 completed years of service 4 4 5 completed years of service 5 5 6 completed years of service 6 6 7 completed years of service 7 7 8 completed years of service 8 8 9 completed years of service 9 9 10 completed years of service 10 10 11 completed years of service 11 11 12 completed years of service and above 12 12 Twelve months at full pay and twelve months at half pay is the maximum entitlement under this schedule. 2. Prolonged illness benefits shall commence from the date of diagnosis of the specified prolonged illness. 3. In cases where early prognosis, certified by a Company Approved Doctor, indicates six months or more of prolonged illness as defined in sub-clause(B.1) above, the employee may at his option, elect to leave the service of the Company. In such cases the Company shall pay, in one lump sum, in addition to such other payments for which he may be eligible, the balance, if any, of the 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. C. HOSPITALISATION, SURGICAL, CLINICAL AND MATERNITY BENEFITS SCHEME 1. Hospitalisation, Surgical, Clinical and Maternity Benefits. Every employee shall be eligible to participate in the contributory AIA Medical Insurance Scheme. The employee shall contribute a monthly premium as per the agreed rate based on the plan applicable to the employee, while the balance will be contributed by the Company. The employees share of the premium payment and any recovery of excess medical expenses shall be made through salary deduction. 2. Clinical Treatment For employees in active service, the Company shall absorb costs of consultation, medicines, injections, x-rays and pathological examinations under this treatment when prescribed by a Company Approved Doctor. 3. Dental and Optical Charges The Company shall not accept any charge whatsoever in respect of dental treatment or optical prescriptions unless it is as a direct result of on-the-job accident. 4. The Company in consultation with the Union shall review:- (a) clinical treatment for employees referred to in sub-clause(C2) above  (b) the Hospitalisation, Surgical and Clinical and Maternity Benefits Scheme referred to in sub-clause(C1)  in the event of a form of National Health Service or other type of government sponsored medical scheme being introduced. 5. Any suggestion from the Union on matters concerning the AIA Group Medical Insurance Scheme will always receive the careful consideration of the Company.

CLAUSE 24 - PAID LEAVE OF ABSENCE The Company will grant paid leave to an employee under the following circumstances :- (a) Death of a member of - 3 working days employee's immediate family  (b) Marriage of employee - 3 workings days on the first occasion in the Company's service.  (c) Birth of legal Child - 3 working Days (d) Marriage of legal child - 2 working Days. When a particular case merits additional consideration, the Company may extend the number of days indicated above. Any other bona fide cases may also be considered based on the merits of the individual case. The employee must obtain prior permission for such paid leave of absence. In connection with the death of an immediate family member, the employee must make every endeavour to inform his Supervisor of the circumstances at his normal reporting time for work. For the purpose of this clause, the employee's immediate family is defined as including the employee's legal wife or wives or husband as registered in the Company's records, legal children, parents, parent in law, grandparents, brothers and sisters.

CLAUSE 25 - 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 or the 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 two weeks prior to departure of the participants. (iii) The number of participants limited to three per occasion. (iv) The participants can be released without affecting operations and schedules.

CLAUSE 26 - REIMBURSEMENT OF MEAL EXPENSES A. A meal Reimbursement will be paid to an employee when:- (i) He works two hours of overtime or more immediately preceding the commencement of his normal working time. (ii) He works two hours of overtime or more immediately following his normal quitting time. (iii) He is called out to work overtime outside his normal scheduled hours of work and completes four consecutive hours. (iv) He, being a regular day employee, works through the normal lunch period. In the case of shift employees, however, work on Public Holiday which is part and parcel of the employee's shift roster shall not be considered a call out from home and the employee shall not be entitled to a meal reimbursement. B. A second or subsequent meal reimbursement shall be upon the completion of every 4 hours of overtime worked. C. An employee on temporary transfer to another worksite and not covered by the provisions of the clause on Outstation Reimbursements, will receive payment of a meal reimbursement for normal hours worked at his new worksite for each working day for a period not exceeding one calendar month from the date of his transfer. D. The provisions of this clause shall apply equally in respect of work performed on Rest Days And Public Holiday. E. A meal Reimbursement shall be $8.50.

CLAUSE 27 - REIMBURSEMENT OF TRANSPORT EXPENSES A. The Company and the Union agree to the principle that it is the employee's responsibility to meet his own transport costs when travelling to and from his home and workplace. B. If an employee is called out to work on his Rest Day, Off Day or on a Public Holiday, he shall be reimbursed at the following rates:- (i) During the operating hours of buses, at 25 cents per km. (ii) Outside the operating hours of buses, at Company Car Mileage rates. (subject to a maximum of 30 km per single journey.) (iii) If the employee's means of transport is by car, at Company Car Mileage rate. (subject to a maximum of 30km per single journey.) C. An employee who is requested to work before his normal starting time and/or beyond his normal quitting time, and who as a result is required to make a journey outside the operating hours of buses shall be reimbursed at Company Car Mileage rates (subject to a maximum of 30km per single journey) He shall not be reimbursed transport costs if the journey involved is taken within the operating hours of buses. D. In the case of a shift employee, work on Public Holidays which is part and parcel of the employee's shift roster shall not be considered a call-out from home, and the employee shall not be entitled to transport reimbursement.

CLAUSE 28 - REIMBURSEMENT OF OUTSTATION EXPENSES A. An employee who is required to proceed outstation on Company business or is on temporary transfer necessitating his taking up residence in his new work place shall be entitled to a daily reimbursement of :-    Meals : Breakfast RM 9.00 Lunch RM 14.00 Dinner RM 18.00 Laundry /Incidentals RM 6.00 Transport RM 6.00 The reimbursement for Laundry / Incidentals is payable from the second consecutive day and that for transport expenses covers travel to and from accommodation and worksite Hotel reimbursement will be based on actual hotel accommodation expenses for a single standard room in Company approved hotels. B. Notwithstanding the provisions in sub-clause A above, when an employee decides to reside in private accommodation, he will be entitled to all-in reimbursement to cover all expenses at the following rates :- JG A - K - RM 92.00 JG L - N - RM 106.00 C. When an employee is required to proceed outstation on Company business or on temporary transfer, he will be entitled to the following class of travel:- JG A - K - Second Class rail / sea or economy class air JG L - N - First Class rail /sea or economy class air

CLAUSE 29 - REIMBURSEMENT OF PERMANENT TRANSFER EXPENSES A Permanent Transfer is a transfer of more than six months duration away from an employee's normal work area which necessitates his having to take up residence in the new place of work. Where an employee goes on Permanent Transfer he shall be entitled to the following reimbursements and benefits:- A. EXPENSES ON TRANSFER  (i) Married Employees : A married employee shall be paid 1 ½ months salary, subject to a minimum payment of RM1500  (ii) Single Employees: A single employee shall be paid 1 month's salary subject to a minimum payment of RM1000.00 B. EXPENSES ON RESETTLEMENT A lump sum one time payment of one month's salary will be paid to an employee when he settles into his new home. This payment is contingent upon the payment of transfer expenses in A above. C. EXPENSES ON INITIAL ACCOMMODATION In order to allow an employee, on Permanent Transfer, obtain suitable accommodation in his new place of work, the employee may visit such new place of work, accompanied by his spouse for a period not exceeding six calendar days, inclusive of travel time, in which event , he shall be reimbursed expenses so incurred in accordance with Clause 28 of the Agreement. Transport expenses for spouse shall be at half the rate of the employee. Hotel accommodation in such cases shall be based on a double-room basis. D. TRAVEL ENTITLEMENT In addition to paying the fare of the employee, the Company shall pay travelling expenses, to the employee's new place of work, for the employee's wife, children under 21 years of age and parents dependent on and living with the employee. The class of fares shall be as follows:- JG A - K - Second class rail / sea / economy air JG L - N - Economy class air or first class rail / sea E. TRANSPORTATION OF PERSONAL EFFECT The Company will also bear the cost of transporting reasonable personal effects, e,g. basic furniture, cooking utensils and other household equipment. The Company will bear the reasonable cost of packing the above personal effects and will insure them against all risks during transit up to a maximum of RM 30,000.00. Any customs duty payable on used personal effects will also be borne by the Company. F. EXPENSES ON PROLONGED SEPARATION 1. An employee whose dependants are unable to accompany him to his new place of work owing to one of the following reasons shall be entitled to claim Prolonged Separation Expense Reimbursement. (i) Children taking school examination at the end of the current term. (ii) Children at school and within six months of sitting for a qualifying examination. (iii) Children unable to obtain admission to either a primary or secondary school in the new area. (iv) Illness of wife or other dependants for which a doctor's certificate will be required. The Prolonged Separation Allowance for the above instances shall be subject to a maximum period of 6 months from the effective date of his transfer. 2. Prolonged Separation Expenses Reimbursement shall also become payable under the following circumstances but the period will be limited as set out therein:- (i) On the date of transfer the employee's wife is pregnant and is expected to be confined within two months of such transfer, subject to production of a medical certificate of birth certificate, as the case may be. The reimbursement will cover the period from the date of transfer until two months after the birth of the child. (ii) On the date of transfer the employee's wife is in employment and is required to give notice of termination of employment to her employer. The above payment will be for maximum period of three months, depending upon the length of notice required by her employer, calculated from the date of transfer. (iii) On the date of transfer the employee's spouse is in employment and is seeking transfer to the employee's new location. The above payment will be for a maximum period of three months, calculated from the date of transfer, payable only when the employee's spouse is actually transferred, the transfer to be within one year from the employee's transfer. Family visits under Clause 29G will be limited to the first 3 months of the separation. 3. Prolonged Separation Expense Reimbursement referred to in this Clause shall be payable at a rate of RM25.00 per day. G. FAMILY VISITS During the period of prolonged separation as set out in F above, the employee will be provided with a return passage to visit his family once for each completed four weeks of separation. In the event that the employee does not avail himself of this facility, no cash payment in lieu will be made. H. REPATRIATION TO HOME TOWN (i) On the retirement or termination of service by the Company of the employee concerned, the Company shall reimburse him the travelling expenses in accordance with sub-clause D above, for himself, registered wife, children under 21 years of age and parents dependent on him, in order to repatriate them to their home town and original place of employment. In addition, the Company will also bear the cost of transporting his personal effects in accordance with sub-clause E above . Employees are advised to inform the Company within six months of their retirement the intended date of repatriation, which in any event should be within 5 years from the date of retirement. (ii) In the event of death of employee while in employment or before repatriation takes place, his dependants may, if they so wish, be repatriated to the employee’s home town or original place of employment as per sub-section (i) above. I. The Company shall consider reimbursing employees who immediately prior to transfer are living in rented premises and who as a result of the transfer, are required to forfeit the rental paid in advance. The employee shall submit the appropriate documents for the Company's consideration.

CLAUSE 30 - GRIEVANCE PROCEDURE It is the desire of both parties to this Agreement that a grievance arising between an employee and the Company or between the Union and the Company be settled as equitably and as quickly as possible. A. DEFINITION OF GRIEVANCE A grievance shall be defined as a complaint by the employee concerned which he brings to the attention of his immediate Supervisor and which is subsequently not settled to the satisfaction of that employee. B. GRIEVANCE PROCEDURE INVOLVING AN INDIVIDUAL EMPLOYEE (i) The agreed Procedures to be followed in processing an alleged grievance by an employee are set out in Appendices V and VI. These procedures may be varied, however, to suit the organisation of departments and worksites and the specific grievance procedure to be followed within each department or worksite will be by agreement between the Union Representative and the Departmental Manager concerned, always providing that the principles of the procedures as set out in Appendices V and VI are adhered to. (ii) All employees who report directly to Area Engineer, Distribution Manager, Area Accountant shall be subject to the Special Grievance Procedure. (Appendix VI) C. EXTENSION OF TIME LIMITS FOR INDIVIDUAL GRIEVANCES  At all stages of the foregoing procedures under sub-clause B where a time limit is specified, such time limit may only be extended by mutual agreement of the aggrieved employee or his representative and the Company. D. UNION GRIEVANCE AGAINST THE COMPANY OR COMPANY GRIEVANCE AGAINST THE UNION Step 1 The Union may within 15 days notify the Area Manager/Distribution Manager in writing of any alleged grievance relating to general matters not arising out of an individual grievance which shall be dealt with under the provisions of sub-clause B above; thereafter any such grievance shall be discussed between the Union and the Company within 15 days of receipt of the Grievance notification by the Company. or The Company may, within 15 days from the date on which an alleged grievance relating to matters outside the scope of the Agreement comes to its attention, notify the Union in writing of such alleged grievance. Any such grievance shall be discussed between the Company and the Union within 15 days of receipt of the grievance notification by the Union.  Step 2 If the grievance cannot be settled to the mutual satisfaction of the parties, both parties agree to refer the dispute for conciliation to the Director General of Industrial Relations under the provisions of the Industrial Relations Act, 1967. Step 3 If the dispute still remains unresolved after conciliation proceedings by the Director General of Industrial Relations, both parties agree to refer the dispute for arbitration in accordance with the provisions of the Industrial Relations Act, 1967 and to accept the award. E. TIME LIMIT FOR GRIEVANCES Any grievance whatsoever shall be considered null and void after two months have lapsed from the date on which the grievance occurred, should no action be taken by the aggrieved party to present his grievance. F. EFFECTIVE DATE OF RESULTANT BENEFIT The Company and the Union agree that should any grievance result in a change in any term or condition of service, it is voluntarily and freely agreed by both parties that the resultant benefit, if any, will commence from the time the grievance was first raised by either party.

CLAUSE 31 - UNIFORMS A. The issue of uniforms to an employee shall be made where, in the judgement of the Company, the employee's duties involve him in regular contact with the public. Uniforms may also be issued to employees in other positions because of the special nature of their work and to such other positions as may be determined from time to time by the Company. B. A uniformed employee shall be provided with uniforms and footwear in accordance with the scales as laid down in Appendix II. An employee issued with uniforms shall be required to wear them when at work. C. Uniforms shall be replaced at the end of each 12 monthly period after the date of issue or earlier if the condition warrants this. D. Footwear issued by the Company shall remain in use until reasonable repairs are no longer practicable when they shall be replaced. Reasonable costs of repairs shall be for the account of the Company. E. Raincoats shall be made available at all worksites to employees who have to carry out duties in rainy weather. F. Raincoats shall be issued on an individual basis, renewable when conditions warrant it.

CLAUSE 32 - LAUNDRY A uniformed employee shall be provided laundry free of charge or in lieu thereof a cash reimbursement of RM36.00 per month.

CLAUSE 33 - HEALTH AND SAFETY A. The Company recognizes that it is an important function of management to provide safe working environment and conditions for its employees and will continue to take such measures as it deems appropriate to safeguard the industrial health and safety of all employees. B. The Company will provide safety/protective clothing/apparel to employees where the Company has identified that such clothing/apparel is necessary. C. It is recognized that no industrial health and safety schemes can succeed without the full support and participation of the employees; and, with this in mind, it shall be in the best interest of employees to adhere closely to all industrial health and safety regulations laid down from time to time by the Company or any legislation. D. Any suggestions from the Union on matters concerning industrial health and safety will always receive the careful consideration of the Company.

CLAUSE 34 - REIMBURSEMENT OF DRIVING LICENCE FEES The Company will reimburse the driving licence fees of employees who are required to drive Company vehicles as an integral part of their daily duties.