Introduction

The Executive Council of the Sarawak Bank Employees’ Union has great pleasure in presenting this Report to the 18th Triennial Delegates Conference (TDC). This report covers the 3 years period up to 31 July 2014 and incorporates the Financial Statement for the 3 years period ending 31 March 2014 of both the General Funds and SBEU Benevolent Fund.  

COLLECTIVE AGREEMENT

We continue to dispute SCBA’s refusal to honor the MOU on extending the benefits granted to our counterpart in West Malaysia and Sabah to SBEU for the 2006-2008 SCBA/SBEU Collective Agreement, specifically on the Annual Increment amount, COLA and 2% additional to Sabah employees. We are appealing against the decision of the Industrial Court and High Court to the Court of Appeal and hearing is fixed on 29/9/2014. 

We have also concluded the 2012-2014 Collective Agreement with a 13% salary adjustment for Non-Clerical and 10% salary adjustment for the Clerical and Special Grade,  ex-gratia of 2% yearly for 3 years to be paid for the clerical and special grade cadres. Those who are at the maximum of the salary range will have one additional increment.  The CA provides for job empowerment and new duties, including sales function to raise the job value of our members.

THE FINANCE SECTOR

The Banking & Financial Industry continued its reforms and consolidation with the mergers of the EON Bank into Hong Leong Bank in May 2011. Total number of Bank/Finance companies Branches in Sarawak stood at 167.

We are very concern about the impending merger between CIMB Bank, RHB Bank and MBSB which we believe is not the interest of consumers, reduce competition, destroy jobs and does not create value.  It will result in a bank that is risky as it may become too big to fail. We remain skeptical whether these mergers & restructuring will succeed in the long term.  Research in Europe has shown that only 15% of mergers are successful.

We regret that the merger appears to be top driven without consultations with all stakeholders.

The Banks and Finance Companies have performed well with record profitability for the 3 years ending 31/12/2013.

RESTRUCTURING, RE ENGINEERING & REDUNDANCIES

A major source of concern is the continuing deteriorating employment environment in the Banking Industry.  Banks continued to outsource jobs.  We foresee further reduction in jobs in the Banking Sector that will have an impact on SBEU's membership. 

We deeply regretted the closure of HSBC Bank Commercial Banking in Sarawak and the underhand tactics deployed by the Bank to coerced and pressure its staff to take up the VSS and the lack of integrity and honesty of the CEO.

We managed to minimize the adverse impact on our membership by making organizing our core focus.  Unfortunately our application to expand our scope to cover all employees in the financial sector has yet to be approved by DGTU. This is unacceptable as all players are now integrated into the Financial Services Act from four Act, namely, BAFIA, Exchange Control Act, Insurance Act and Payment Systems Act. It is obvious that financial industries have become one industry; offering integrated financial services and products.

Compared to the previous 3 years, there were fewer VSS during the period with only Hong Leong Bank, CIMB Bank and HSBC introducing such schemes.   Employees are applying for the VSS as they are generally disillusioned with their jobs which have become more stressful, target driven and competitive due to the ever increasing demand from shareholders to increase profits.

DISPUTES

Major trade disputes during the period are with SCBA over the refusal to honour the MOU on extension of benefits for the CA 2009-2011 and with HSBC on the closure of its Commercial Banking. We must take the most severe form of action including strike action to protect the livelihood and security of our members, otherwise other banks can follow suite and make similar decision detrimental to the membership.

PERFORMANCE

The performance of SBEU officials at HQ and Branch level in managing the union has room for improvement.  It is crucial that we improve to place greater emphasis on the quality of SBEU programme and activities.  We need to further enhance the initiative and resourcefulness of officials.  They must be proactive in the management of SBEU, display commitment. A passion for the job and always strive.  All officials and EXCO must display leadership and lead by example and built teamwork.  We need develop second line officials, especially women so that we are ready to take on the challenging roles in SBEU.

MEMBERSHIP

Members continued to be very supportive and united. Their patience and perseverance have been justly rewarded by the Industrial Court when it handed down its award 798/2002.  Members also contributed RM962,637.26 after the signing of the 2012-2014 CA.

FUTURE

The future looks challenging for unions in the country in general and in the Banking Industry in particular.  Yet SBEU is positive that there are opportunities.  We must adapt and change; and we must be allowed by the authorities.  While we gear ourselves to meet the challenges of the future, we must not forget our past.  We must do what we are set up to do: to ensure that bank employees get good pay and other benefits for their labour, to be employed in meaningful jobs and to see that our workplace are safe and congenial.

These are the tasks that SBEU officials and members, with hard work, vision dedication and professionalism of officials plus the solidarity and support of all members, will succeed in achieving.

This 18^th Triennial Executive Council report is divided into the following sections.

        1.        MEMBERSHIP

      2.        ADMINISTRATION & MANAGEMENT

      3.        FINANCE

      4.        COLLECTIVE AGREEMENT

      5.        INDUSTRIAL RELATIONS

      6.        TRAINING & EDUCATION

      7.        VALUE ADDED SERVICES

      8.        AFFILIATION

      9.        WOMEN & SOCIAL WELFARE

     10.       RESOLUTIONS OF 17^TH TDC HELD IN 2011

     11.       APPENDIXES