Penang Port Operator Rapped For Union Busting With Secret Pay Scheme

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An exclusive salary scheme was offered to selected officers of Penang Port Sdn Bhd, with members barred from joining the officers’ association, the Industrial Court was told. (PPSB pic)
PETALING JAYA: A salary scheme offered in secret to selected officers of the Penang port concessionaire, barring them from membership of the senior officers’ association, has been declared as tantamount to union busting
Penang Port Sdn Bhd, a subsidiary of MMC Corporation group, was ordered by the Industrial Court in Penang not to repeat such union-busting actions.
In a strongly worded judgment, court chairman Rusita Lazim found in favour of the port’s senior officers’ association, which said it was the sole body representing executives and members of the management group.
Rusita chaired a panel comprising workers representative Faizal Abd Rahim and employer’s representative Luwe Chin Kei.
She said the panel upheld the association’s contention that Penang Port’s offer of the special scheme to 45 selected officers, without consulting the association, was against the Industrial Relations Act
She also said the association had successfully proven that the company had introduced a management and employees scheme “with the aim of weakening and destroying the association” by providing an offer of benefits very different from the collective agreement.
“As such, the panel has proven that the company had violated the Industrial Relations Act 1967,” she said in a 51-page judgment.
However, the association’s plea for the new scheme to be declared null and void was turned down as the scheme had  already been implemented for the select group.
She said the decision was conditional on the company ensuring that the association would not file another case of union busting against it.
The association said Penang Port introduced the exclusive scheme in 2019 after negotiations to replace the existing collective agreement for 2016-2018 broke down leading to a case pending at the Industrial Court.
“The firm also deliberately started employing new officers under contract who cannot become members of the association. Those opting for the scheme would also cease to become members of the association,” the association said.
“It also stopped lump sum payments for those who had reached their maximum basic salaries for officers, although the support staff were still being given this incentive.”
However, Penang Port claimed that the management had met the association to discuss a new collective agreement several times.
The company contended that the association need not be consulted about the new scheme as it was for an exclusive group. Those involved had been given sufficient time to consider the terms before accepting the offer.
“The scheme was voluntary and the officers were not forced into accepting them,” the company said. It contended that the association has no locus standi to challenge the offer.
Penang Port Sdn Bhd is part of the ports division of MMC Corporation, a conglomerate controlled by tycoon Syed Mokhtar Albukhary, with government-linked companies holding a 30% stake. - FMT

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