Industrial Relations of Labour

A fundamental principle of economics dictates that land, labour, capital and entrepreneurship are four factors of production forming the building blocks of any business organisation including Hok Huat Group for producing goods and services to satisfy a myriad of needs and wants of living population.

Labour embraces physical and intellectual exertions of human efforts but it is a unique factor of production by virtue of its perishability, heterogeneity, wage inelasticity of supply and immobility.

This distinctiveness of labour entails several factors for consideration and evaluation by the Group in endeavouring to preserve a harmoniously as well as productively industrial relationship with labour. 

In this pursuit, the Group adopts important policies exemplifying in：

  • the provision of workers’ quarters, 
  • rationalisation of overtime work,
  • employability of new recruits,
  • cultivation of positive attitude,
  • promotion prospect, and
  • environmental safety,

which are focally geared towards optimising the contribution of labour force in adding value to FFB when processing them into saleable palm oil products.

The initiative of good labour relations undertaken by the Group is characterised by promoting and maintaining industrial harmony, by preventing and resolving any differences or disputes arising from employer-labour relationship in concordance with the regulations of Industrial Relation Act 1967. 

In practising so, the Group has formulated for implementation a fair, credible and recognised code of industrial relation practices in the form of disciplinary and grievance procedures to deal amicably with any alleged breach of employment contract by either one of the signatory parties (employer or employee) to the contract. 

Disciplinary Procedures

If a potential disciplinary matter arises, the Group would investigate in order to establish the facts promptly before memories of events fade. A written record would be kept for later reference. Having established the facts, the Group decides whether to drop the matter, deal with it informally or arrange for it to be handled formally.

The following code of practice on disciplinary procedures set out the principles followed by the Group to achieve a reasonable standard of behaviour when trying to resolve any alleged breach of employment contract by workers:

Encourage employees to improve/modify behaviour in preference to imposing a punishment 

Inform employees of complaints against them in advance of a meeting, and provide them with an opportunity to state their case prior to forming judgement

Ensure that any disciplinary action is not taken until the facts of the case are established and that the action is reasonable in the circumstances

Avoid dismiss employees for a first disciplinary offence, unless it is a case of gross misconduct 

Give employees written explanations for any disciplinary action taken, making sure they know what improvement is expected and how it will be monitored

Give employees an opportunity to appeal if they are disgruntled by the decision or outcome

Deal with issues reasonably without unnecessary delay and act consistently

Grievance Procedures

Grievances are concerns, problems or complaints that workers have about some aspects of their work. It could be related to a work colleague, a manager’s attitude, an operational decision, application of a policy or a working relationship. Issues that may cause grievances include:
  • terms and conditions of employment;
  • health and safety;
  • personal relationships at work;
  • any form of bullying and harassment;
  • new working practices; and
  • working environment as well as fair opportunity.
  Grievance procedures are used by the Group to deal with employees’ grievances fairly, transparently and without unreasonable delay. A responsible person is assigned to whom employees can apply for the purpose of seeking redress of any grievance relating to their employment, and by whom any further steps are to be followed from the making of such an application.

Grievance procedures involve the use of following steps of remedial actions:

STEP 01 : Informal Resolution

Most grievances are of a non-serious nature that should be resolved informally with immediate supervisor. This has advantages particularly where there might be a harmonious relationship between a superior and a subordinate. It also allows for problems to be resolved quickly.

STEP 02 : Formally Written Complaint

If it is not possible to resolve a grievance informally, the concerned employee may raise the matter formally, and without unreasonable delay, with his/her manager. If the complaint is against his/her manager, the employee would be allowed to approach that person’s superior. The employee should raise the grievance in written form setting out the nature of the grievance and how it might be resolved.

STEP 03 : Formal Meeting

A formal meeting would be held without unreasonable delay after a written grievance is received. Workers have a statutory right to be accompanied at any such meeting and be allowed to explain their grievance and how they think it should be resolved. Consideration should be given to adjourning the meeting for any further investigation that is deemed necessary.