2nd Collective Agreement Negotiation (2012 ~2014)

Petrochemicals (M) Sdn Bhd and National Union of Petroleum and Chemical Industrial Workers (NUPCIW)
Date: 15th December 2011 Venue: Sapphire 1, Level 4, Grand ParagonHotel Time: 9am ~ 5pm Attendance: Management Team: NUPCIW Team: T. Naruse (Team Leader) Shamsudin Waitmoon(Local committee chairman) Winston Ho (Advisor) Shamsul Shuib @ Lin (Local Secretary) BH LIM (Spokesman) Surip Abdullah Mohd Haznan Ros (D. Spokesman) Mohd Azhar Othman Imawana Ithanin (Secretary) Mohd Norzaini Mohamad Kidzir Phang Siew Kiong Mohd Razif Md Rasip Nafida Hassan Abdul Ghani Hassan Lai Lee Ching ----------------------------------------------------------------------------------------------------------------------------------------9:10am Mr Imawana (Secretary) re-cap the last minute: Artic le 5 Item Recognition Union proposal Include supervisor Mgmt Counter proposal No, as supervisor is acting as Mgmt represensative esp in night shift Noted , PACKAGE Remarks Noted by Union

10

Shift Allowance

1st RM3 (1.5) 2nd RM6 ( 4) 3rd RM10 (8.5)

If cannot 1st & 2nd shift, only for 3rd shift

11 20

Overtime Retirement Age Bonus Uniform Acting Allw

21 22 30

11.6 RM9 (6) Meal Allowance >2 hrs OT Change 20.1 Attaining age 60yr . 2.3mths +3 Tshirt 30.2.3 RM18 for 8 hours Acting as Operator or Supervisor 30.2.4 RM9 for 4 hours

Noted, No

PACKAGE

No,

PACKAGE OK

Noted,

PACKAGE

2nd Collective Agreement Negotiation (2012 ~2014)

Petrochemicals (M) Sdn Bhd and National Union of Petroleum and Chemical Industrial Workers (NUPCIW)
Acting as Operator Change RM400 Revise 10%

32

SRA Appendix 1 Implementatio n

No, PACKAGE PACKAGE

PACKAGE

9.25am - Mr CP Tan Hope that the negotiation can be concluded by December 2011 in view of the Company is still making profit. With the economic down turn in Europe, USA, Japan Tsunami and flood in Thailand, the negative economic impact will be tremendous for next few years. As such, The Management is proposing a reasonable package and hope that the Union members are able to accept. 9.30am - Mr BH Lim Explained the reasons of PLWS are promoted by the management. Its for the improvement of work performance & productivity. He also explained the Companys investment in the new machine at CD in Year 2011 is to up-grade and improves our productivity & quality in order to compete in the export markets in future. 9:45 am - Union would like to know the reason on lump sum payment Management explained that because the Company is very concern about future business condition and would strive to keep our competitiveness in the market. Thus, the proposed 3% adjustment is to sustain the future manpower cost. Other additional costs are to be traded off with a onetime lump sum payment in 2011, in view of the Company is making profit and able to absorb extra cost in this year. 9:50am - Union after discussion with HQ & proposed:Implementation 7% with no lump sum payment Recognition: Drop negotiation Shift allowance: Drop negotiation SRA: Drop negotiation Appendix 1: Drop negotiation The Management requested Union to reconsider Managements proposal

9.57am - Union counter proposed:Implementation: 5% SRA : RM250 (Increased by RM50) 10am rest 2

2nd Collective Agreement Negotiation (2012 ~2014)

Petrochemicals (M) Sdn Bhd and National Union of Petroleum and Chemical Industrial Workers (NUPCIW)

11:10am Management counter proposed:Salary adjustment (Implementation) set at 3% and incresed the onetime lump payment by 50% to RM180,000 to trade off other factors. The Union counter proposed to the Management for a 5% salary adjustment (implementation) , with a lump sum payment of RM150,000 and no increase in SRA. The Management would like to maintain 3% salary adjustment (implementation) and negotiate the lump sum payment. 11:30am - The Union still maintained the 5% salary adjustment (implementation) and SRA increased to RM250 without lump sum payment. 11.40am Alternatively, The union counter proposed to maintain the 5% salary adjustment (implementation) and SRA proposal to be reduced from RM250 to RM240, without lump sum payment. 11:50am The management counter proposed a 4% for salary adjustment (implementation) with RM150,000 lump sum payment. The Union insisted no negotiation on the 5% salary adjustment (implementation) as the minimum mandate from HQ. 12:00 Lunch 2:00pm The management would like to maintain the 3% salary adjustment and proposed to increase the lump sum payment to trade off the other factors. On the enquiry by Mr Winston on the distribution of lump sum payment either by equally distributed by Union members or based on their basic salary, The union replied that the lump sum payment is to be distributed base on basic salary in consideration of seniority.

As Discussion on date: 15th December 2011 Artic le 5 Item Recognition Union proposal Include supervisor Mgmt Counter proposal No, as supervisor is acting as Mgmt Remarks of Negotiation Dropped 3

2nd Collective Agreement Negotiation (2012 ~2014)

Petrochemicals (M) Sdn Bhd and National Union of Petroleum and Chemical Industrial Workers (NUPCIW)
represensative esp in night shift 10 Shift Allw
1st RM3 (1.5) 2nd RM6 ( 4) 3rd RM10 (8.5)

Noted , PACKAGE

Dropped

11 20

Overtime Retirement Age Bonus Uniform Acting Allw

11.6 RM9 (6) Meal Allowance >2 hrs OT Change 20.1 Attaining age 60yr . 2.3mths

Noted, No

PACKAGE

Dropped Dropped

21 22 30

No, PACKAGE

Dropped OK

+3 Tshirt 30.2.3 RM18 for 8 hours Acting as Operator or Supervisor 30.2.4 RM9 for 4 hours Acting as Operator Change RM400

Noted, PACKAGE

Dropped

32

SRA

PACKAGE

RM240 or lump sum payment of RM150,000 Dropped Union -5% , Management - 3%

Appendix 1 Implementatio n

Revise 10%

PACKAGE PACKAGE

The Management will call for a short meeting on 16 th December 2011,Friday, if the Union proposal is accepted by the Top Management. The next meeting will be decided later.

On behalf of management represensative :________________________ 4

2nd Collective Agreement Negotiation (2012 ~2014)

Petrochemicals (M) Sdn Bhd and National Union of Petroleum and Chemical Industrial Workers (NUPCIW)
( Takumi Naruse)

:_______________________ ( Lim Boon Hoe)

On behalf of NUPCIW Local Committee : _________________________ (Shamsudin Waitmoon)

: __________________________ (Shamsul Shuib @Lin)