Malayan Commercial Banks' Association (MCBA) said it was compelled to stop deducting union fees due to conflicting instructions given to the banks by two factions of the National Union of Bank Employees, who both claimed to be the legitimate faction.

In a press statement today, MCBA president Nik Hassan Nik Mohd Amin said there was an "uncertainty in the leadership" of the union since the middle of the year as the issue is still pending in court.

"MCBA has been put to notice by one faction of the legal consequences if the banks continue to remit trade union subscription to the office of the union which this faction says is being "illegally occupied" by the other faction," he said.

"As the director-general of Trade Unions is unable to decide which faction is the legitimate one in view of the court actions and stay orders, the banks are thus forced to grant leave facilities according to the Collective Agreement to representatives of both factions," he added.

Nik Hassan's response came following the picket by more than 200 employees outside Bumiputra-Commerce Bank in Kuala Lumpur today to protest against the decision by MCBA to stop deduction of union fees.

Human Resources Minister Dr Fong Chan Onn and the director-general of Trade Unions Izhar Harun are classifying the dispute by the two factions inside the NUBE as an internal matter which the unions must resolve.

No jurisdiction

Recently, the Kuala Lumpur High Court struck out the suit by NUBE honorary general secretary J Solomon against the union and five central executive committee members because it said that it had no jurisdiction to hear the grouse.

The dispute started when Solomon was removed from his post and accused of incompetence.

He was further bared from holding any post in the union and later sought legal redress on his "wrongful removal" and the High Court granted him an injunction, placing him as the lawful general secretary of NUBE.

However, matters took a turn for the worse when the union's National Executive Council upon receiving numerous complaints from its members from Kuala Lumpur, Kedah and Seremban decided to convene a triennial general meeting at the said branches.

However, the branches were said to have fixed the meeting on a working day, failing also to adhere strictly to the secret ballot procedures in the constitution, resulting in the suspension of officials of the three branches. The offices were also sealed in April.

Legal consequences

NUBE general treasurer Mohd Noor Basir was suspended for his failure to ensure that the Kuala Lumpur branch strictly adhered to the secret ballot procedure. His suspension was also to facilitate investigation into the alleged RM1.3 million and RM23 million losses suffered by the union.

Nik Hassan, who is also Bank Bumiputra-Commerce Bank vice-president (policy control department), said that the banks were advised of the legal consequences including contempt proceedings if the banks were viewed to be giving legitimacy to one of the disputing factions.

"In view of this situation, the practice to deduct union subscriptions was stopped. This, however, does not stop an employee from remitting union dues directly if the employee so wishes," he said.

Nik Hassan also thanked Fong for his assistance in the matter, saying the banks have suggested to the ministry that if it were acceptable by both factions, union subscription can be deducted and kept in a trust account and administered by a public trustee.

He said the proposal will absolve the banks from any legal consequence and will answer the various concerns voiced by the parties regarding the consequences when a union member falls out of benefit when subscriptions are not paid for a certain period.