The National Union of Bank Employees (NUBE) has launched a strong appeal for the independence of Malaysia's Industrial Court, asserting that the power vested in the Human Resources Minister to appoint its President and Chairpersons poses a significant threat to the rights of bank workers.
The appeal by the union's secretary general J. Solomon follows the recent emphasis by Malaysia's Chief Justice Tun Tengku Maimun Tuan Mat on the need to safeguard the impartiality of judicial appointments. Addressing the 24th Commonwealth Law Conference in St Julian's Bay, Malta, on April 8, Tengku Maimun cited proposals to remove the Prime Minister from appointing judges via amendments to the Judicial Appointments Commission Act 2009 and the Federal Constitution.
Drawing a direct parallel to the Chief Justice's concerns about political influence within the broader judicial system, NUBE argued that the principle of impartiality was even more crucial for the Industrial Court, where employees constantly sought justice in disputes with employers.
"The recent pronouncements by her Ladyship regarding the crucial need to safeguard the impartiality of judicial appointments resonate deeply with the concerns of the NUBE," Solomon said in an interview with Newswav.
“NUBE firmly believes that the logic behind removing the Prime Minister's sole appointment power for judges applies with even greater urgency to the Industrial Court, where the Minister and the Industrial Relations Department are often directly involved in disputes.”
NUBE has pointed out that for decades, Malaysian bank employees have relied on the Industrial Court to mediate and adjudicate disputes.
However, the current system, where the Human Resources Minister holds the prerogative to appoint the head and arbiters for four-year terms, with potential extensions at the Minister's discretion, undermines the court's perceived impartiality.
"The prerogative (and) discretion (held by) the Minister, does not give security of tenure to these arbiters," Solomon emphasised.
"Further, and more importantly, it creates a perception of bias favouring the Minister in matters where the Minister's involvement in appointment becomes a matter of dispute."
Past instances where the Minister has not extended the contracts of Chairpersons lend credence to these concerns, Solomon said.
"The Industrial Court President and Chairpersons must be appointed by an independent commission and not the Minister. There must be security of tenure for these Chairpersons and their removal, if necessary, must be set out," he asserted.
The NUBE chief said the Minister and the Industrial Relations Department are constantly faced with legitimate grievances on compensation, breaches of collective agreements and unfair dismissals.
“The arbiters of the Industrial Court must be able to decide on these matters without any concerns about their job security," Solomon said.
He said NUBE was particularly concerned with the lobby power of the 17 member banks in the Malayan Commercial Banks Association (MCBA) and their ability to escalate to the Industrial Court — via incumbent Human Resources Minister Steven Sim — matters that had barely been negotiated with the union. (https://www.businesstoday.com.my/2025/02/01/nube-perplexed-collective-agreement-was-rushed-to-courts/)
He said banking workers lost annual Festival Aid payments that began in 2023, and had negotiations for a new Collective Agreement over wages and other benefits delayed after referrals to the Industrial Court made at the behest of the MCBA, with little input from NUBE. (https://www.nst.com.my/news/nation/2025/02/1171327/no-obligation-banks-pay-festival-aid-rules-industrial-court)
"Removing the minister's prerogative in deciding the makeup of the Industrial Court will not just be a procedural change; it will be a fundamental necessity to ensure that the Industrial Court is regarded as a completely independent body without any executive influence," Solomon added.
ends
Freelance Writer M. Krishnamoorthy (www.imkrishna.net) is a media coach, adjunct professor and undercover journalist. He has freelanced with Bernama, NST, The Star, and Malaysiakini. He also freelances as a fixer/coordinator for CNN, BBC, German and Australian Television networks and the New York Times. As an undercover journalist, he has highlighted society's concerns.
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