Euromedical Industries which is embroiled in a union dispute with its employees today said it is not opposed to the latters unionisation bid but to their choice of joining a union for rubber workers which is deemed unsuitable.

The companys managing director Peter Ring said the National Union of Employees in Companies Manufacturing Rubber Products (Rubber Workers Union) is considered inappropriate because of the products manufactured by the company and the industry that they fall under.

Danish multinational Maersk Medical, which in 1998 purchased a 75 percent stake in the Euromedicals operations in Sungai Petani, Kedah, has faced criticism in Denmark for allegedly violating its employees rights in refusing their bid to join the Rubber Workers Union.

The Malaysian law and court has agreed that the Rubber Workers Union is not the right union. The case that is pending now is an appeal of the (earlier) judgment that Euromedical was right in disputing it, Ring told malaysiakini .

The bid of employees to join the Rubber Workers Union was first approved by the Human Resources Ministry in 1988 but this was later overturned when the ministrys order was challenged by the company at the High Court.

An appeal is currently pending at the Appellate Court.

According to Ring, the employees could have filed a request to the management to form an internal union but no such action was taken.

Asked if the management would agree to such a request, Ring said he could not give an answer to this as no such application has been made.

If they want to form (an internal) union, there are ways of doing that. If they followed the proper procedures, the management will be obliged to interact with them and stay within the requirements of Malaysian law, he added.

Sacking over strikes

Ring also said there is no connection between the union issues and the sacking of four workers following two strikes in December last year.

The strikes were basically illegal strikes. We followed the book in dealing with them and we went further by calling in officers from the Industrial Relations Department and the Labour Office to talk to the employees, said Ring, adding that the officers were involved within two hours of the strikes.

He added that the management had tried its best as a caring employer by giving ample opportunity to the employees to return to work.

We carried out a fair investigation and found adequate proof that four people were actively involved in planning and carrying out the strikes. The decision to dismiss them was based on (their) proven involvement, said Ring.

The strikes, which were held on Dec 27 and Dec 31 last year, involved some 300 workers who were dissatisfied with the managements decision against paying a bonus.

When questioned, Ring said the bonus to employees was not contractual but discretionary based on the companys financial performance.

Last year, the company made a financial loss. We have explained to employees in August and October last year that the bonus will not be paid given the financial situation of the company, he revealed.

We have not held back any salaries nor have we delayed any salaries, because these are contractual obligations. But the bonus is not contractual, he added.

OECD guidelines met

Last Thursday, a former employee told malaysiakini the payment of one-month bonus had been a practice of the plant for the past 10 years regardless of whether the company makes a profit or otherwise.

However, Ring said today the company had been making profits until last year when it made the decision not to pay out bonuses to the employees.

Meanwhile, Ring also said that Maersk Medical, as the partial owner of Euromedical, is confident that it is not in violation of any rules under the Organisation for Economic Cooperation and Development (OECD) guidelines.

It will be a big surprise if (the decision) goes against us, said Ring.

The complaint against Maersk Medical was brought to Denmarks Ministry of Occupation by two strong trade union groups in the country. Maersk Medical has been requested to meet with the ministry on April 16 on this matter.

Euromedical is a company which was registered in Malaysia. It is not certain which rules or guidelines apply. We have complied with Malaysian law, Ring added.

National union preferred

Meanwhile, industrial relations officer of the Rubber Workers Union K Veeriah said employees have not applied to form an internal union because they preferred association with a national union.

The employers prefer an in-house union because the leadership will have to come from within the company. [Whereas] workers prefer representatives from outside as it involves issues such as negotiations and collective bargaining, said Veeriah when contacted.

The Rubber Workers Union has larger resources and greater exposure in these matters, he added.

According to Veeriah, employers should respect the decision of their workers in choosing their representatives as it is a part of the employees right to freedom of association.

Euromedicals plant manufactures single-use medical equipment such as Foley catheters and respiratory tubes.

The company employs some 800 plant workers, of which 80 percent are women.