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SCBA made an offer during final negotiations on 18/9 to increase basic salary by 30% and to abolish the 2 months contractual bonus and future performance bonus to be at absolute discretion. This means that the actual salary increase is 11.43% after discounting the Bonus.
SBEU press for certain improvements, safeguards and assurances of the performance bonus.
SBEU successfully convince SCBA to give a higher effective salary increase by adding in the Bonus first before calculating the 30%. This means that the salary increase goes up by another 1.9% to 13.33%. After adding in Swak Allowance, gross salary increase range from 13.33% to 16.1%. Bonus paid for 2006 would remain so salary increase is 16.66% + 16.1% = 32.76% for that year.
All CEOs of the banks, in their ABM meeting on 19 Sept decided that they are unable to give a guaranteed pool of performance bonus each year. However instead of absolute discretion they are now prepared to pay performance bonus where bank makes a profit based on banks’ and individual performance and if they pay other grades of employees they must pay SBEU members as well.
ABM also agreed to an open appraisal systems and most importantly, employees can challenge their appraisal ratings and performance bonus payouts through SBEU.
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Whilst the deal falls short as far as our demand of a guaranteed pool is concern, it meet some of our expectations in the 16.1% salary increase & Salary Structure, which will also go up.
The lack of a guaranteed pool is a big concern. However, the 2 months contractual bonus is already paid to us via the salary increase and would remain with us forever. Any performance bonus is an additional bonus. Future salary increase will be based on a higher salary and Swak allowance will increase. O/T rates & loan entitlements will go up.
We also feel that the linking of performance pay to bank’s performance and individual performance make it imperative for banks to pay performance bonus if the performance justify it. SBEU retains the right to challenge any non-payment.
Accordingly SBEU EXCO put the deal to members to vote whether or not to accept. We recommend to members to vote for the deal as we think the benefits outweigh the cons. We are also conscious of the need to ensure that clerical remains relevant employees in the banks.
Further given the current industrial relations climate in West Malaysia and the ineffectiveness of the trade union movement, the only other option is to take the matter to court. Whether or not we can get a better deal would be outside our control.
Salary Conversion And Annual Increment With OT Rates Table
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