AWARD

Anna Ng Fui Choo:

[1] This is a Ministerial reference under s 26(2) of the Act made on 5 November 2015 for an award in respect of the dispute over the proposed 2nd Collective Agreement (CA) pertaining to the terms and conditions of employment applicable to the employees who come within the scope of the CA.

[2] The union averred that collective bargaining commenced on 10 January 2014 followed by many sessions of negotiation but both parties were unable to conclude the 2nd CA. The proposed CA is meant for the period from 1 January 2014 to 31 December 2016. Both parties had agreed on the articles in the proposed 2nd CA in Annexure 1 except for Article 10 pertaining to "Salary Structure". Alluding to this issue, the Union pleaded the following in para 8.1 of the Statement of Case:

[3] The one and only article that is disputed relates to the salary structure so the case of Penfibre Sendirian Berhad Penang v. Penang & S Prai Textile & Garment Industries Employees' Union [1986] 1 MELR 86; [1986] 1 ILR 323 is relevant. The said award laid down some guidelines that the court is to take into consideration when it decides on wage-related disputes: