Federal Court did not rule Alliance guilty of union-busting, claims bank

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KUALA LUMPUR (July 15): Alliance Bank Malaysia Bhd clarified that the Federal Court did not rule it was guilty of union-busting or had broken any law, after several news publications and portals had over the weekend, reported that the court had done so.

In a statement, the bank said the Apex court had merely affirmed the decision by the Minister of Human Resources that the employees in question were not engaged in an executive, managerial, confidential and security capacity.

It also said that the court affirmed that the minister was not obliged to provide the report and investigation, upon which he based his decision on.

“The promotion exercise conducted in 2012 was a genuine effort on the bank’s part to help improve the career prospects and advancement of deserving employees, and to cater for business exigencies.

“In any case, the employees involved were not denied union representation, and are represented by another union body,” the bank said.

The National Union of Bank Employees (Nube) had taken Alliance and Bank Muamalat to court seven years ago, as the union said the banks had promoted clerical staff to executive positions, despite their duties remaining largely clerical.

The union said the banks’ move to promote these employees was union-busting, as it was intended to force the staff out of unions.

Alliance's share price rose 2 sen or 0.54% to RM3.74 today, bringing a market capitalisation of RM5.79 billion.