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Nube fails appeal linked to bank's VSS exercise
The National Union of Bank Employees (Nube) failed in its appeal linked to a bank’s 2017 voluntary separation scheme (VSS) of its employees.
The Federal Court today dismissed Nube’s appeal leave bid over a 2010 memorandum of understanding (MOU) between the union and HSBC Bank.
The MOU states that HSBC is to give a three-month notice...
The National Union of Bank Employees (Nube) failed in its appeal linked to a bank’s 2017 voluntary separation scheme (VSS) of its employees.
The Federal Court today dismissed Nube’s appeal leave bid over a 2010 memorandum of understanding (MOU) between the union and HSBC Bank.
The MOU states that HSBC is to give a three-month notice to Nube before any implementation of VSS or retrenchment of the bank’s employees.
The union said HSBC only notified it in December 2016, two months before the bank carried out a VSS exercise in February 2017.
Established in 1958, Nube seeks to improve the working conditions of bank clerical and related employees through collective bargaining.
The three-person apex bench chaired by Chief Judge of Sabah and Sarawak Abdul Rahman Sebli unanimously ruled the MOU was not binding as it was not deposited with the Industrial Court.
Rahman said this contravened Section 17 of the Industrial Relations Act 1967, and ordered Nube to pay RM30,000 costs to HSBC.
On June 24, 2010, Nube and HSBC inked the MOU to ensure the protection of employer-employee rights during any work restructuring.
In late 2016, HSBC began a restructuring exercise and invited interested employees to apply.
The bank notified Nube about the exercise on Dec 19 of that year, with the VSS carried out in February 2017.
MOU not binding - court
In 2018, Nube brought the matter to the Industrial Court, which later dismissed it on the grounds the MOU was not registered.
The Kuala Lumpur High Court and Court of Appeal upheld the outcome, leading to today’s apex court appeal.
The other member judges of the Federal Court bench are Zabariah Mohd Yusof and Rhodzariah Bujang.
Counsel K Shanmuga acted for Nube, while lawyer N Sivabalah appeared for HSBC.
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