A dispute has been settled and a first collective agreement is in place in Malaysia’s paper industry. ICEM assisted its affiliate Paper and Paper Products Manufacturing Employees’ Union (PPPMEU), as did Norwegian trade union Fellesforbundet in achieving recognition and a contract at a Malaysian Newsprint Industries mill in Pahang.

Malaysian Newsprint is 34% owned by Norske Skog, with whom ICEM and Fellesforbundet have a Global Framework Agreement. The matter was brought before the Norwegian-based company by Fellesforbundet.

A union was formed at the nine-year-old mill in October 2004 and, in March 2005, a government ministry verified PPMEU certification. The union submitted proposals toward a first collective agreement in July 2005, but the company stalled in meeting its bargaining obligations. When the company finally did meet with the union, it informed the union that 70 of 220 workers were in “executive” capacities and exempt from the union, even though they perform manual tasks.

The ICEM and Fellesforbundet attention to the dispute, and no doubt the formal intent-to-strike notice issued by PPPMEU on 15 May, brought pressure on management to settle. The initial three-year collective agreement will be backdated to 1 October 2005. Even though the scope of the bargaining unit wasn’t resolved, it will now be submitted to a Malaysian Industrial Court. Other partners in the newsprint mill include the Hong Leong Group of Malaysia (34%), the New Straits Times newspaper (21%), and Rimbuan Hijau Group of Malaysia (11%).