KUALA LUMPUR (Dec 24):  Hong Leong Bank Berhad (HLBB) said today it is committed to an amicable solution with its union NUBE over an industrial dispute, but added it could not do more since the case has been handed over to the industrial court.

Yesterday, the 40,000-strong National Union of Bank Employees (NUBE) warned HLBB to reinstate 27 of its sacked members or “face the wrath of its entire membership which might affect the bank's operations and reputation”, Bernama reported.

The union, which had so far picketed for 50 hours in front of the bank's headquarters in Jalan Perak in Kuala Lumpur, warned it would continue to do so for 10 hours daily until the matter is resolved, its secretary-general J. Solomon told a press conference yesterday.

In response to NUBE’s threat, HLBB’s group managing director/chief executive officer Tan Kong Khoon said today: “HLBB remains committed to working towards an amicable resolution.

“At this point however, as the matter has been referred to the Industrial Court, the bank is not in a position to comment further.”

In a press statement, Tan indicated that before February 2013 the bank had embarked on a rationalisation exercise as part of its continuing efforts to review its business and maintain competitiveness.

He said throughout the rationalisation exercise period, the bank had ensured that its employees received adequate support to facilitate their move.

“All employees affected by the exercise were informed about their relocation in February 2013 and a notice of transfer was issued in June 2013 with an initial transfer date of 18 September 2013. This date of transfer was subsequently deferred until 18 November 2013… Relocation expenses and monthly housing allowances were also provided to those affected.”

Tan added that staff who did not report to their new centres on Nov 18 were issued a reminder to report for duty accordingly.

In response, the NUBE lodged a trade dispute against HLBB over the bank’s rationalisation exercise and the matter was referred to the Industrial Relations Department for reconciliation.

As the reconciliation was unsuccessful, the Human Resource Minister referred the matter to the Industrial Court on Dec 6, 2013.

Hong Leong Bank’s statement, however, did not mention how it would deal with the 27 allegedly sacked and how to resolve the whole industrial dispute.

With this mild statement that effectively means no proactive or positive action, Hong Leong Bank’s management is unlikely to see any amicable resolution to this industrial dispute in the near future.

The continuing picketing in front of Hong Leong Bank’s headquarters in Kuala Lumpur may not auger well for the bank as well as its controlling shareholder tycoon Tan Sri Quek Leng Chan.

In fact, the issue will go national and viral if the NUBE is able to win sympathy and support from more Members of Parliament (MPs).

According to Solomon, six MPs had raised the matter in Parliament and Human Resources Minister Datuk Richard Riot had promised to provide written answers to their query.

With the support of the Malaysian Trades Union Congress (MTUC) to ensure that “justice is done” to the bank’s workers, Hong Leong Bank’s management can expect to see more negative reports ahead and a marathon draining battle with the union.

And whether or not this huge financial institution has a strong case in this rationalisation and the alleged dismissal of the 27, past industrial cases have shown that more damage can be done to employers than employees.

And whatever the outcome of this industrial dispute, Hong Leong Bank will have to pay a heavy price – at least to its image.