While I was blog-hopping, I stumbled upon Jason’s entry who wrote about his encounter with a group of Maybank employees picketing outside of their branch office. I never knew about the strike before this, and upon further information-digging via the search engine, I discovered that the strike has been going on for quite some time, and started way back in September 2007.
Apparently, a number of YouTube videos are also uploaded depicting a number of strikes in different Maybank branches that include Maybank’s head office, Sungai Petani branch and Batu Pahat Branch. Below is the strike in Maybank’s head office (Menara Maybank) uploaded by Penny in YouTube (update: video removed. Click here to view Maybank’s head office strike).
When approached, the staff told that they were protesting the bank’s decision to take away their contractual bonus, which can be up to 3 months and instead replaced it with 30% salary increment.
Is that so? Let’s do some simple calculation here. For ease of reference, allowances, EPF calculations, SOCSO and others are excluded in the calculation.
Say the staff’s basic salary is RM2500. A 3 months contractual bonus means in a year he is entitled to get an additional RM7500. This RM7500 is paid either:
1. Lump sum payment (i.e. at the end of the year, he will get the RM7500 in one time payment).
2. Pro-rated payment every month. This means he will get additional RM625 on top of the RM2500 basic salary every month. (RM625=RM7500 divided by 12). So his monthly pay will come up to RM3125.
3. A combination of both. We are talking about many possibilities of combinations here. Perhaps the first 2 two months bonuses are prorated, and the other month paid at the end of the year, and so on.
Now, an increment of 30% salary means RM3250, hence an additional of RM750 per month. In 12 months, RM750 equals to RM9000.
So by calculation, the 30% salary increment is better. But why the strike? It seems something does not add up well here. Major media and newspapers did not do coverage on the strikes by the bank employees. Did we miss something here? You can see there is a lot of emotion involved in the strike. Just look at the badges. They were saying things like:
Boycott Maybank! Bank Rompak Bonus Kami. Maybank Kejam & Parasit!
From my own observation, there is a lot more than a bonus-increment issue. Further, since the 3 months contractual is not fixed and can be lower, that means the calculations and justification above can be simply void if we take account those staff who get less than 3 months bonus. A discussion in Praveen’s blog revealed some new stories and fresh perspectives too about the strike.
If this is an effort by Maybank to reward high performing employees more than the low performing employees, than I agree with their move. Perhaps, they are taking off the contractual-based bonus and replace it with performance-based bonus. Reward, bonuses and recognition should be given when it’s due, and each employee deserves them based on what he or she has contributed. It is a fair transaction that bonus should never be distributed equally to employees but based on their work performance.
But then again, it is not as easy as said. Some people can get away with lots rewards and bonuses kissing their bosses’ asses but contribute little, especially organizations that run with very loose key performance indicators. A few diligent people who work hard but not close with the boss get less. We are talking politics here.
Pictures courtesy of My1stPath.