PART ONE
The Incident
In June 2008, SYARIKAT GETAH BAGUS SDN BHD faced a series of actions by its employees who are members of the National Union of Employees of Rubber Goods (NUERG).
The Tyre Division of the Company was plagued by increasing absenteeism, malingering and production delays on the part of the tyre operators. The Production Manager, Mr. John Ho, alarmed over the deteriorating state of production performance had expressed concern at a recent company conference of Department Heads (10 June 2008) as to whether he could adequately meet the quotas required while ensuring at the same time the quality and reliability of the products especially tyres.
The decline in quality and failure in meeting production requirements had given rise to many complaints from customers and dealers who had asked the Supplies Manager to replace tyres, which had hardly been on the road for three months. A massive number of rejects had been received for replacement as well as from the Inspectorate Unit.
On 12 June 2008, John Ho, who was very perturbed over the decline in production as well as productivity, called into his office the Worksite Chairman, Tan See Seng, a senior operator with eighteen years’ service. John Ho was under much pressure as he had also received another special order (the previous week) for production of 10, 000 truck tyres for the government. An official from the Ministry of Labour’s Industrial Relations Department had met representatives of the Company and the Union, only a week ago, to stress the importance of this order, which was urgent and had to be accorded priority.
The following conversation ensued:-
John Ho: Look here, See Seng. I am fed up with the current situation in Tyre Production. We cannot meet the Middle East orders fully at this rate. What has become of your men this month and in May? Complaints about poor performance and sidewall patching are increasing. Rejects are mounting up and