"NGO: 069/ 2024 COLLECTIVE AGREEMENT BETWEEN KLM ROYAL DUTCH AIRLINES AND FOREIGN AIRLINES EMPLOYEES’ UNION PENINSULAR MALAYSIA Valid from 1" January 2024 to 31% December 2026s.1 Pi 12017) eh IBU PEJABAT Eo LEMBAGA HASIL DALAM NEGERI MALAYSIA " MENARA HASIL Ps PERSIARAN RIMBA PERMAL * CYBER 8, 62000 CYBERIAVA KERAJAAN MALAYSIA __ SELANGOR DARUL EHSAN MALAYSIA SIJIL SETEM ASAL STAMP CERTIFICATE (Gila okatkan sj stom i ke atas surt cara sebagai bukl penyeteman) eas aac hi stan cefeae ote marument as evsence cf saging (cara Bayaran Pepren Method FPX TRANSACTIONS: No, AdjuikastAcuceston No, {GO1ES2C8F 1XFO23 (SALINAN 113) Jonis Surat Cara COLLECTIVE AGREEMENT Te OF nstuen SURAT CARA UTAMA Tarikh Surat Cara (95/03/2024 Date Orinstunan! Balasan Considaaton RM 0.00 MaklumatPinak Pertama /Penjual/ Pemberva Pac) Yonb/ Taner /Asinat KLM ROYAL DUTCH AIRLINES, (0623411, 195002000086) MoktumatPinak Kod /Pemboll/Penorima Sze Pry /Pucase/ Tansee Assignee FOREIGN AIRLINES EMPLOYEES UNION PENINSULAR MALAYSIA, (542) Butiran Harta /Surateara Prope /isbuen Desbon=// COLLECTIVE AGREENENT BETWEEN KLM ROYAL DUTCH AIRLINES AND FOREIGN AIRLINES EMPLOYEES UMION PENINSULAR MALAYSIA 1ST JANUARY 2634 “91ST DECEMBER 2025, MALAYSIA (Dengan ii clsahkan surat cara in! dsetem dan dlindors seperti maklumet oi bawah: No rateus Prodan Tena Apo i.KKBSHAH/120) “wlth Coa ed Oa nonasz4 nant Pert hala i Son woe pata & warpanentsoemy aimed apa Men pnt “suena ois Samp Cuenca ba esa sss asl gn my ey ee eb _nyisaconatr eared toa sae eae —tamatlend —[Article Parties 10 The Agreement ie “Duration and Termination of Agreement _ __Termination of Empl Misconduct, Hours of Woi ~ Compensation for Overtime, Call Out iternity Leave. 22 Salaries 23 ‘Annual Salary Review 24 Promotion : Laundry Allowance / Safety Shoes |"26~Retrenchment Benefits iH ~_27__ Retirement and Company's Provident Fund 28 jeal Breaks and Allowances __ Shift Allowance ~~ Transport Allowance Bonus 33 34 32 35 [39 40. ‘Annex A__ Salary Ranges, Bonus. Jubilee Check-off [Annex B Job Titles _ Signatories NSiG Article 1 Article 2 Article 3 FK Parties to The Agreement This agreement is made onthe $- ALacch 9024 between KLM Royal Dutch Airlines (and any successor, assignee or transferee) having its registered office at B-I13A-05 Menara Suezcap 2, KL Gateway, No.2 Jalan Kerinchi, 59200 Kuala Lumpur (hereinafter called “the Company”); and Foreign 1es Employees’ Union Peninsular Malaysia (or any successor thereto), @ trade union registered under the Trade Ordinance 1959 having its office at No.35 Jalan BSE4/14, Bandar Sri Ehsan, 42700 Banting, Selangor (hereinafter called “the Union”). ifle ‘This agreement shall be known as the “KLM Royal Dutch Airlines and Foreign Airlines Employees’ Union Peninsular Malaysia Collective Agreement 2024.” Duration and Termination of Agreement 3.1 This agreement shall take effect from 1* January 2024 and shall remain in force for a period three (3) years until 31% December 2026 and thereafter until and unless it is superseded by a new agreement or by an Award of the Industrial Court, 32 During the period of agreement, either party may seek to vary, modify, annul or add to any of its terms. by mutual agreement, legislation or by an award of the Industrial Court. 33 In the event one of the parties wants to vary any terms of the agreement this party shall notify the other party thereof in written with substantiation and specific proposal to variation. No later than thirty (30) calendar days thereafter both parties will discuss the variations proposed and try to find mutual agreement in due time. 34 In the event both parties agree to vary any of the terms of the Agreement, both parties shall jointly deposit such variation of the terms of agreement with the Industrial Court for its cognizance within one month from the date of Agreement on the said variation. 35 Negotiations for a new agreement may commence between 3 and 6 months prior to the expiry of the existing agreement. KLM and FAEU will both nominate three (3) representatives to be mandated for these negotiations. Parties will agree on a joint negotiation process and set a schedule of meetings to enable this process. Parties will commit toa reasonable and constructive attitude, 3.6 Both parties may mutually agree to terminate this agreement by either party giving three (3) months? notice in writing for purposes of renegotiation of a new Collective Agreement. " Eda © afArticle 4 Article 5 Article 6 Article 7 Article 8 Fk Avbitration ‘Any dispute relating to re-negotiation, interpretation or implementation of this ‘Agreement shall, unless settled by negotiations between the Company and the Union, be referred to the Industrial Court in accordance with the provisions of the Industrial Relations Act, 1967 Recognition of the Union 5.1 “The Company recognizes the Union as the collective bargaining principal in respect of and on behalf of all permanent employees covered by this agreement. 52 This Agreement shall cover all monthly paid locally engaged employees of the Company in Malaysia with the exception of covenanted staff, probationary employees, managerial staff, confidential staff and temporary employees engaged for a period not exceeding six months in any one year. 53 Employees within the scope of this Agreement and who are not union members shall not be offered more favorable terms and conditions of employment than those laid down in this Agreement. 34 ‘The Company undertakes to provide each employee with a copy of this Agreement within one month of the date of signing the Agreement. Existing Benefits ‘Notwithstanding the provisions of this Agreement, any existing benefits provided by the ‘Company and not superseded by this Agreement shall continue. However, this shall be reviewed by both parties ifhvhen the Company’s operational requirements necessitate a change to certain existing benefits. Legislation Effective from the date of implementation of any new Laws by the Government of ‘Malaysia pertaining to any provisions of this Agreement then such provision of this Agreement, shall be open to discussion and revisions will not be inconsistent with the Law. Probation 81 All employees on initial appointment shall be on probation for a period of three months. The Company may at its discretion extend the probationary period for a further period not exceeding three months. In no case shall the probationary period for joining staff exceed a total of six months. Should an employee serving a probation period become ill for any period, the probation period shall automatically be extended by the length of such. illness, including the first weok thereof. 82 During the probation period the employee, as well as KLM, can terminate the service contract by giving 24 hours’ notice. However, reason for such termination shall be given. i thetArticle 9 Article 10 FE 83 ‘At the end of the probationary period the service relation expires unless confirmed by a final letter of appointment. Termination of Employment 91 ‘The employment of the employee may be tertninated by either side giving the other side one month notice in writing. This notice of termination becomes effective from the date of delivery to the other party by registered post or upon personal delivery/receipt. The period of notice will commence on the day following the date of receipt of notice. 92 Extraordinary Dismissal The Company is entitled to terminate the employment with immediate effect for the following reasons: (@) Ifthe employee submits false documents or gives false information or details about or in connection with himself; (b) Ifthe employee commits a criminal offence, involving moral turpitude or dishonor, or any criminal offence connected with his employment; (©) fhe commits a breach of trust or gross negligence or refuses to obey an instruction or order given by an officer of the Company or makes derogatory remarks ageinst his colleagues or officers of the Company; (@ Ifthe employee, while on duty, has been found intoxicated; (©) If the employee refuses to undergo a medical examination requested by the Company, all costs of such examination being bome by the Company; (O If the employee impugns the reputation of the Company to a third person; (g) If the employee discloses information conceming the Company, its business and/or any of its customers, which may have come to his knowledge during employment with the company; (h) Ihe commits a breach of any of the duties imposed upon him. 93 Death ‘The contract of the employee terminates upon death of the employee. 94 Grievances It is furthermore understood that grievances, hearings, etc are strictly heard and followed in accordance with the procedure stipulated by the laws, employment acts and Article 10 of this Agreement. Misconduct / Discipline 10.1 “The Company may on the ground of proven misconduct inconsistent with the fulfillment of the express or implied conditions of service, and after due inguiry may: (a) Serve a verbal warning; or (b) Issue a written waming; or (©) Downgrade the employee; or (@ Dismiss without notice; or (e) Suspend the employee from work without payment of wages for a period not exceeding one week. ok |Article 11 Article 12 FE 102 For the purposes of inquiry and if found to be necessary, the employee will be heard in regard to complaints and allegations made against him which may be harmful or disadvantageous to him, before such complaints are recognized and recorded as a reprimand in his personnel file. His comments will also be recorded. 10.3 A record of all warnings issued to an employee will be kept in file. After ‘two years from the date on which the warning was given, any warning thus recorded will be removed. 104 For the purpose of inquiry and if found to be necessary, the period as, mentioned in the Article 10.1.¢ may be extended for one more week. During this period the employee shall be paid not less than half of his/her wages. 10.5 ‘The employee shall have the right to have the Company’s deci reviewed under the provision of Grievance Procedure in this Agreement under Article 36, Hours of Work il The working honrs of an employee shall be forty (40) hours per week excluding meal breaks. 12 ‘The Company may at its discretion require an employee to work on a regular rotating shift but no split shifis, Employment Act Section 60 covers. 3 ‘The Company may roster the shifts as it sees fit for any period of the day or night including roster of shifts to work through midnight. Compensation for Overtime, Work on Sundays and Public Holidays 12.1 Definitions 211 Overtime means hours worked at the request of the official of the Company in authority and in excess of 40 hours per week. In the event that, overtime becomes necessary, itis distributed as evenly as possible among, employees performing the same type of work 12.1.2 Sunday work means work performed at the request of the official of the ‘Company in charge on Sundays between the hours of 0.00 and 24.00. 12.13 Public holiday work means work performed at the request of the official of the Company in charge on public holidays between the hours of 0.00 and 24,00. The Company shall observe the Public Holidays per calendar ‘year as officially gazetted by the Government 121.4 Night work means work performed at the request of the official of the Company in charge between the hours of 23.00 and 7.00 provided that at least one full hour of work is performed during that time. : day Q de12.2 Compensation for Overtime Each hour of overtime shall be compensated based on the normal hourly rate as follows:- (2) 150% for cach hour on @ normal working day; (b) 200% for each hour on a rest day, Sunday or non-gazette public holiday; (©) 300% for each hour on gazette public holidays. Article 13 Call Out 1B ‘When employees are called back to work for duty due to diversions, etc; this is regarded as normal overtime. 132 Town office or airport staff called back for airport duties either at the airport or at town office will be compensated travelling cost and meal allowance as per Article 28. Where town office staff are called back for town office work, only overtime is paid. Article 14 Work on Rest Days and Public Holidays It is recognized by the Union that the operational requirements of the airline may necessitate work on a rest day, public holiday or a need for overtime as stipulated in Article 12 and 13 so that our obligations as a fully responsible Company can be met. Consent to the above will not be unreasonably withheld. Article 15 Public Holidays 15.1 All employees shall be entitled to all Government gazette and announced Public Holidays in Peninsular Malaysia and in the state (including Federal Territory) in which they are working. 15.2 Where any of the public holidays or any other day substituted thereof falls on an employee's rest day or within the period during which the employee is onsick leave, annual leave to which the employee is entitled, or overseas on duty/training, the Company shall grant another day as paid holiday in substitution for such public holiday. 153 For clarification, the rest day refers to the second off day of the week Article 16 Annual Leave 16.1 ‘All employees are entitled to annual leave per calendar year as below: (a) Employees after one (1) up to and including four (4) years continuous service with the Company shall be entitled to 15 working days annual leave, (b) Employees with five (5) and six (6) years continuous service shall be entitled to 19 working days annual leave. (© Employees with seven (7) up to and including ten (10) years continuous service shall be entitled to 26 working days annual leave. (@ Employees with eleven (11) years continuous service or more shell bbe entitled to 28 working days annual leave. otArticle 17 FE 16.2 16.3 ‘Annual leave shall normally be taken in full in the year which it falls due ata time to suit the Company’s convenience and where possible, at a time suitable to the employee concemed, A maximum of seven (7) days may be carried forward at the end of each calendar year. Any leave balance will be forfeited after April 1* of the following year unless the Company decides otherwise. Jn the event of an employee retiring or resigning except to avoid dismissal from the service of the Company, annual leave for that year shall be calculated in proportion to the number of completed montis he/she has served the Company in that year Medical Leave 171 172 173 174 175 NS ‘Casual Medical Leave ‘An employee will on certification and recommendation of the Company doctor, or in circumstances where their services are not available within a reasonable time or distance by a private medical practitioner (including a dental practitioner), be eligible to paid sick leave not exceeding an ageregate of thirty (30) days in any one calendar year subject as otherwise stated in this article. Casual medical leave will mean 3 consecutive days on any one occasion with a doctor's eertificate and will not include period of hospitalization Non-casual Medical Leave ‘An employee will be entitled to a maximum of sixty (60) days paid non- casual medical leave per calendar year provided that the employoo produces proof of illness or a medical certificate or a certificate issued by the Company Medical Practitioner. A medical certificate or certificates for entitlement to non-casual medical leave shall be submitted by the employee electronically as soon as reasonably practical. The original copy can be submitted upon the employee's return to work. ‘The Company shall recognize medical leave approved by Government Hospitals and clinics. Registered medical practitioner means a medical practitioner registered under the Medical Act, 1971. In emergency cases an employee may seek medical attention from a registered medical practitioner and the Company undertakes to recognize the medical certificate issued by the private clinic. The Company also undertakes to refer his case fo a company doctor at the first practical instant, The Company has the discretion to define an emergency. ‘An employee who absents himself on sick leave shall inform the Company of such leave within forty-eight (48) hours or as soon as possibie of the commencement thereof, failing which he/she shall be doomed to be absent from work without permission of the Company and without reasonable excuse for the days on which he/she has been absent from work. a |Article 18 17.6 Granting of paid sick leave according to Article 17.1 will be refused if, (@) The employee docs not meet the requirement as per 17.5. (b) The disability arises while the employee is engaged in employment that is not approved by the Company. (©) The employee fails to undergo a medical examination(s) as required by the Company. 117 Payment received from the National Sickness Insurance Institute or from any other insurance fund or source to which the Company may have contribute, is dedueted from the remuneration to be paid by the Company under 17.1 above. If the employee has failed to assert his rights for such payments, the amount which would have been due to him shall be deducted from the remuneration paid or to be paid by the Company under 171 Medical Benefit 18.1 ‘The employees and their family shall enjoy the privilege of free medical ‘reatment and free medicines as prescribed subject to the following conditions in this Article, The expression “family” as used in this Article shall be confined to the employee’s lawful spouse and children below 21 years of age who are not married or gainfully employed, unless otherwise specified. 18.2.1 Hospitalization and Surgical Cost For hospitalization and surgical cost, the following rules apply: = aconfirmation by the Company's panel doctors is necessary, = only employees with more than twelve consecutive months of service with the Company shall be eligible, = the employee and his family shell be entitled to free hospital accommodation and ward charges up to an aggregate of thirty (30) days in any one calendar year, = any extension of this maximum in one calendar year for each person. shall be given consideration by the Company upon the recommendation of the Company's doctors. 18.2.2 Room Entitlement ‘Where hospitalization is necessary, all staff based in Kuala Lumpur shall be entitled to a 4-bedded room in any panel hospital appointed by the ‘Company. Should a 4-bedded room be unavailable, then an upgrade to a 2-bedded room shall be given until such time that the 4-bedded room becomes available again. Staff based in Penang shall be entitled to a 6- bedded room as provided by the current panel hospital. Should a 6-bedded room be unavailable then an upgrade to a 2-bedded room shall be given until such time that the 6-bedded room is available. Should the panel hospital in Kuala Lumpur and Penang change for whatever reason, the ‘maximum entitlement shall always be that of a 4-bedded room and if not available, a 2-bedded room will apply until the 4-bedded room is available. |. NS18.2.3, 18.2.4 184 18.5 18.6 Ng General and Outpatient Treatment and Specialist Consultation ‘The cost of general and outpatient treatment and specialist treatment will be on Company’s account on a personalized receipt basis, up to a maximum of MYR 150.00 per occurrence. Specialist consultation should not be sought for common illnesses. The Company reserves the right to reject perceived unjustified claims. The cost of physiotherapy will be bome by the Company only if it is recommended by the Company doctor as a follow-up to a serious injury. The Company reserves the right to reject perceived unjustified claims. Claims Spouses Claims by spouses of employees who are not gainfully employed shall be subject to a maximum of MYRS,000.00 per calendar yeer. ‘The Company shall not bear the cost of any of the following: (@) Any expenses in respect of abortion except due to rape or under doctor's instruction which would endanger the life of the mother; (b) Any expenses in respect of pregnancy, confinement or miscarriage; (©) Any expenses in arising out of self-inflicted injury or disease caused by misconduct; (@ Any expenses in respect of any illness or accidents arising out of and in the course of employment which constitutes a valid claim under the terms of the Social Security Act; (e) Any expenses incurred in respect of sufferings, illness or disablement arising from any attempted suicide, the performance of any unlawful act including illegal gatherings and / or demonstrations, any breach of the peace or disorderly conduct or any exposure to unjustifiable hazard ‘except in cascs of endeavoring to save human life, provoked assault and the use of drugs as prescribed by Company's doctors; (0, Any expenses for treatment in mental cases which have been certified; (g) Any oxpenses for physiotherapy except as specified in Article 18.2.3. ‘The Company shall provide all employees and family with free dental treatment hereby excluding dental fixtures, against receipts up to a maximum of RM $50 per calendar year. Therefore, upon reaching the maximum claimable amount, no further claim will be possible that year. Anemployee after twelve consecutive months of service with the company shall be granted a basic medical checkup every two (2) calendar years. Female employees shall be allowed to do a mammogram and pap smear test every 2 years with the option to swap with the basic medical checkup. For clarity, ifa female employee decides to do the mammogram/pap smear test every year, she will forgo the basic medical checkup. ‘The Company shall bear the costs to employees only for corrective spectacles, contact lenses, and eye consultation fees up to a maximum of MYRS70 per two (2) calendar years, against receipted bills. ‘LAY Qo LpArticle 19 Article 20 Article 21 18.7 It is further agreed that, if and when a National Health Service or other type of Government sponsored medical benefits scheme is introduced, the whole Article of Medical Benefits shall be open to re-examination. 18.8 ‘The company shall at all times retain the right to investigate and execute, in cooperation with the union, the level of the liability covered via medical insurance. Compassionate Leave On receiving due notice, the Company shall grant its employees special leave with full pay for any of the following reasons: - (@) Birth of a child of a male employee — Seven (7) days. (b) Death of a member of the employee's family — Three (3) days. (©) First legal marriage of an employee's brother, sister ot children — One (1) day. (@) In the event of a change of domicile: = Employee with houschold of their own - One (1) day. = Employee without their own household ~ Half (4) day. (©) In cases where the employee is involved in natural disasters such as fire, floods, etc. ~ Two (2) days. (0 On the occasion where a family member is hospitalized but subject to the conditions below — Two (2) days. - Reason for approving the extra days; - All annual ieave must have been utilized; and - Final approval is subject to management discretion. (g) Any other reasons considered adequate by the Company - Two (2) days. ‘The expression “family” in this article shall mean a spouse, child, parent, grandparent, father-in-law, mother-in-law, brother or sister of the employee. Matrimonial Leave ‘An employee who whilst being in the service of the Company marries for the first time during his or her lifetime shall be entitled to five (5) days of paid matrimonial leave. Maternity Leave 211 Female employees shall be entitled to ninety eight (98) consecutive days maternity leave with pay of the basic salary according Article 17.2 on condition that they return to the Company's service after the maternity leave period; Article 17.7 applies accordingly. 212 Maternity leave shall not commence earlier than a period of thirty (30) days immediately preceding to the confinement of a female employce or later than the day immediately following her confinement provided that, where a medical officer or the registered medical practitioner appointed by the Company certifies that the female employee as a result of her advanced state of pregnancy is unable to perform her duties, satisfactorily, the employee may be required to commence her matemity at any time during a period of fourteen (14) days preceding to the date of her confinement, as determined in advance by the medical officer or registered medical practitioner appointed by the Company. Lhe g ds NSArticle 22 Article 23 Fe 213 214 Salaries 22.1 22.2 Ifa female employee, after giving notice to the Company that she expects, to be confined, commences her matemity leave and dies from any cause during the cligible period, the Company shall pay the person nominated by her or if there is no such person, to her personal legal representative salary at the rate calculated from the day she commenced her maternity leave to the day of her death. Leave on account of miscarriage or abortion measures during the first six (©) months of pregnaney shall not be considered as maternity leave but as normal sick leave. ‘The employee will be paid in local currency once a month based on calendar months. All employees are graded and will be paid a salary in accordance with the range provided by the scale comesponding with his grade as per Annex A. ‘The employee will be paid a 13" month salary in December each year in respect of the period of January to December of the same year. The payment value will be equivalent to one month’s basie salary, based on the monthly basic salary paid during the respective period. A pro-rated payment will be made for new employees with less than one year of service. No payment of 13! month will be made for those leaving service, except for the following reasons; a) Medical boarding out; b) Retirement; ©) Retrenchment Annual Salary Review 23.1 23.2 No There will be an annual review of the salaries based on the budget allocation defined by head office. The amount will be confirmed on a yearly basis. ‘The review will include consideration of a general increase to salary and salary bands, and an individual merit increase based on performance in the previous year, as assessed under the Company's appraisal system. {In determining the budget for the salary review, the Company shall refer to the Country inflation, 2s determined by the central measure of inflation (currently ISA). The value of the general increase and the merit increases shall be shared first with the Union and then with the staff in advance of implementation. Salary increases shall be paid in line with agreed salary band principles. Should the total of the salary plus the respective increment amount exceed the maximum of the employee's grade, the maximum of the grade shall be applied, Further increases are only possible should the maximum levels increase or should the employee be promoted to a higher grade. ‘The annual increment will be paid retroactively from the 1* of January of cach yeat after the employee's final fixed performance rating is determined after the end of the Company's financial year, this will normally be implemented in April of each year. vee d t23.3 The employee will be appraised according to the Company's appraisal system. Should any appraisal be disputed, then Article 36 shall apply. Article 24 Promotion 24.1 Promotion from one grade to another will be entirely at the Company's discretion, and based on job vacancies and/or the changing needs of the business. Experience, qualifications and merit will be taken into account. However, if all things ere equal, seniority will prevail 24.2 An employee on promotion from one grade to a higher grade will receive an increase of 10% of his last drawn salary. 243 The Company shall advertise job vacancies together with details of qualifications, experience and ability required. Such advertisements will normally be distributed by email and / or published on intemal notice boards or intranet pages at least two weeks before closing date. Article 25 Laundry Allowance / Safety Shoes 25.1 Employees who come into direct contact with the general public and are required by the Company to wear uniform in accordance with the waiform regulations as directed by the Company. 25.2 Uniforms should be kept spotless for which the Company will give a cleaning allowance of RM102.30 per month. The allowance shall be adjusted according to the annual general increase. 25.3 Staff working at the airport who is assigned to ramp or baggage duty shall be entitled to purchase safety shoes, against reccipts up to MYR350.00 per calendar year, Therefore, upon reaching the max claimable amount, no further claim will be possible that year. Article26 Retrenchment Benefits 26.1 Inthe event of retrenchment, the notice period and the benefits agreed upon shall be as follows: Notice of Termination (a) For employees with less than two years continuous service ~ one (1) ‘month notice or one (1) month’s pay in lieu thereof; (b) For employees with two or more year’s continuous service — two (2) months” notice or two (2) month’s pay in lieu thereof. 26.2 Retrenchment Benefit ‘The quanta below are per year of service or proportionate there (@) Ten (10) years and below — 1 1/3 months (b) Above 10 years ~ 1% months 263 Retrenchment pay will be paid in addition to any other entitlement due to the employee concemed including pay in lieu of notice where the period of os "Lhy @ denotice is not required to be worked out, and Provident Fund monies due and payable according to the rules of the fund. 26.4 —Alllmonies due to the employee will be paid in one lump sum not later than the last day ofhis contract of service subject to any necessary tax clearance. 26.5 The Company agrees to lay-off employees on the “last in first out” principle subject to the Company’s assessment of the relative skills, merit and ability of the individual employee, The Company agrees to put the provisions in writing and be circulated to all employees and notify the union well in advanee. 26.6 The company shall inform all employees and Union with as much notice as possible regarding retrenchment. Article27 Retirement and Company’s Provident Fund 27.1 The age of retirement for all employees shall be 60 years of age. 27.2 An employee will have the option to retire at the age of 55 based on the following conditions: (a) The retirement is mutually agreed upon by the Company and the employee. (©) A three (3) month notice period is given. (c) Travel benefits will apply as per normal rules of the company laid down in the worldwide corporate HR policy of the Company, 27.3 Unless advised that the employee's services are extended beyond the retiring age, an employee attaining the age of 60 years shall retire from the Company as follows: (@) An employee whose birthday falls between 1* January and 30" June shall retire on 30 June of the year of retirement; and (b) An employee whose birthday fall between 1* July and 31" December shall retire on 31* December of the year of retirement; (©) Extension of employment beyond the retiring age shall be by mutual consent and subject to medical fitness. 274 Contribution to the Employee's Provident Fund shall be as follows: (a) For all employees up to the age of 55, clauses 27.5 to 27.7 shall apply. For avoidance of doubt, this includes the month where the employee celebrates his 55* birthday. (b) For all employees above the age of 55, the Company shall contribute the statutory EPF rate 275 Subject to clause 27.6 below the Company shall contribute to the Employee's Provident fund three percent (3%) more than the statutory EPF rate provided always that the EPF contribution rate does not exceed seventeen percent (17%). 27.6 In the event that the statutory EPF rate shall exceed seventeen percent (17%) the Company shall pay to,the Employee's Provident Fund such _— 7percentage as shall make a total of twenty percent (20%) provided always that: (@) The Company shall be under no obligation whatsoever to contribute more than the statutory EPF rate in the event that such rate is twenty percent (20%) or more; and (b) The Company shall at all times comply with the provisions of the Employee's Provident Fund 1951 Act or re-enactment thereof, 27.7 The following table is set out by way of illustration ‘The statutory rate payable to the Employee’s Provident Fund standing in the Ist column of the table below and the extra rate payable by the Company to the Employee's Provident Fund set opposite respectively in the 2nd column, ‘Statutory rate payable by the | Extra rate payable by the Company to the Company to the Employee's Employee's Provident Fund Provident Fund 1 17% 3% 2. 19% 1% 3. 20% 0% 4. 21% The Company will not pay anything extra to the Employee’s Provident Fund but will in compliance with the Act, pay the statutory rate of 21% Article 28 Meal Breaks and Allowances 28.1 All employees handling aircraft arrivals or departures working through normal meal times shall be granted a meal allowance as follows: Breakfast RMIL70 Lunch RMI4.70 Dinner RMI1630 Supper RM9.20 28.2 Employees will be allowed during their ordinary work a meal break in accordance with the following table: (a) Breakfast. - A break of one hour between 0600 — 0800 hours. (b) Lunch - A break of one hour between 1200 - 1400 hours. (©) Dinner - A break of one hour between 1800 —2000 hours. (@) Supper - A break of one hour between 0001 — 0200 hours. 28.3. Meal rates shall be adjusted according to the annual general increase. | “hhy Q dyCc Article 29 Article 30 Article 31 fe Shift Allowance 29.1 29.2 29.3, A shift allowance will be paid to employees who are shift workers engaged on a regular rotating roster on any day of the week as described below:~ (@) Day roster - Between 8.00am and 8.00pm : RM 183.50 (b) Late roster - Between 12.00pm and 12.00am : RM 192.70 (©) Night roster - Between 8.00pm and 8.00am : RM 201.90 Minor adjustments to the working hours above will not automatically trigger a change in category or allowance value, The allowances shall be adjusted according to the annual general increase. ‘An employee who is required to perform shift duties for any period loss than one month will be paid a shift allowance as per Article 29.1 on a pro- rata basis An employee who is required to work two shifts a day shall be compensated a transport reimbursement of MYR30.00 for commuting to/from work/home in between shifts. ‘Transport Allowance 30.1 30, 30.3, 312 NS “Town office employees who are required by the Company to work during flight dates at the aixport shall be reimbursed taxi fares. ‘An employee who is stationed at the Kuala Lumpur International Airport shall be paid transport allowance as below:~ Staff residing > 30km fiom the airport -RM720.00 Staff residing <30km from the airport - RM360.00 ‘An employee who is stationed at the Penang International Airport shall be paid a transport allowance as below:~ Staff residing on Penang Island ~ RM260.00 Staff residing on the Mainland ~ RM390.00 ‘An employee who is stationed at the Kuala Lumpur town office shall receive a subsidized transport allowance of RM190.00. ‘The Company shall pay a bonus in accordance to the employee's variable performance rating for the review period. The bonus quantum per performance rating is set out in Annex A. ‘An employee who has not completed one year’s service with the Company but has completed his probationary period or who retires in the course of a year shall be entitled to a bonus proportionate to that year. ‘The bonus shall be paid after the employee's final variable performance rating is determined after the end of the Company’s financial year, normally "LRy @ deCc Article 32 Article 33 Article 34 Fe Insurance 32.1 All employees shall be entitled to compensation in accordance with the provisions of the Workmen’s compensation Act 1952. 32.2 The Company Undertakes to insure employees handling cash or cargo for a sum of RMS0,000.00 against death or injury through robbery in the course of his employment with the Company. 32.3 On the death of the employee, any amount due to the employee shall be paid to his legal personal representatives. The sum shall be in addition to the compensation payable under the Workmen’s Compensation Act 1952. 32.4 Employees who are required by the Company to travel by airon Company's business may insure themselves at Company's expense against personal accident up to a limit of RM100,000.00 per person and against theft, accidental loss and/or damage to personal baggage. Altomatively, such cover may be directly purchased by the Company. Employees should check whether cover is in place before incurring any such expenses. Confidential Information 33.1 The plans, processes and business affairs of the Company are strictly confidential. Staff either during their employment or after leaving the ‘Company are not permitted to publish, or cause to be published, any article, book, photograph, letter, or give any interview, broadcast, lecture, or speak ‘on any matter which concerns the Company or its associates, without the prior approval of the management. 33.2 Amy request for such information should be referred to the General ‘Manager of the Establishment or Region. Medical Boarding Out 34.1 An employee who is certified by the Company’s doctor or an appointed Government Hospital to be mentally unsound, or suffering from an illness requiting prolonged treatment such as cancer, leukemia, cerebins thrombosis, ete., shall upon confirmation of such illness by the Company’s doctor be granted paid leave as follows: (a) The first six months period (1-6 ); full pay (b) The second six months period (7-12 months); half (4) pay (©) The third six months period (13-18 months); no pay. 34.2 At the end of the 18 months period, upon the recommendation of the Company doctor or government hospital authority, the employee may be medically boarded out 34.3 Any employee who is medically boarded out will be paid as follows: (@) Six (6) months last drawn basic salary plus; (b) An additional one (1) month’ last drawn basic salary for each completed year of service with the Company with a maximum of 18 months Salaries, subject to review on the Perkeso scheme.‘The maximum amount payable under this Article shall be twenty four (24) months of the last drawn basic salary. 34.4 The above benefit shall only be applicable to employees who have completed a continuous period of twelve (12) months’ service with the Company. Article 35 Acting Allowance 35.1 An employee who is directed by the Company to act and take full responsibility of a post ofa higher grade for not Jess than five (5) working days, will be entitled to an acting allowance. 35.2 The acting allowance will amount to the difference between the employee's current basic salary and the basic salary the employee would be entitled to in the event of his promotion to the higher position. The allowance is subject toa minimum of RMI20.00 and a maximum of RM300.00 per month. ‘The allowance will be paid on a pro-rata basis if the acting period is less than one month, 353 The line manager will formalize the acting up arrangement by a written notification to the delegated nominee and to HR. Article 36 Grievance Procedure 36.1 Both parties to this Agreement desire that grievance arising between an employee and the Company to be settled fairly and without delay. 36.2 With the aim of reaching Agreement at the lowest possible level and maintaining continuous good relations between the parties, processed with in accordance with the procedure set out herein below: (@) All grievances whether individual or group in nature shall be raised and discussed initially with the supervisor of the individual or group concerned. (b) If the grievance is not immediately resolved under sub-clause (@), it shall be referred by the supervisor to the manager for a decision. (©) If the grievance is not resolved under sub-clause (b), a grievance committee shall be formed consisting of two members representing the Union and two members representing the Company. The committee shall meet within ten days from the date of the grievance having been submitted under sub-clause (6) and will endeavor to resolve the grievance without delay. (@ Ifthe grievance cannot be resolved by the grievance committee, it shall then be discussed between the Union and the Company. (©) If there being no settlement at this level, the grievance may be referred by either party to the Ministry of Labor and Manpower under the provisions of the Industrial Act 1967 and its subsequent acts and amendments. (8 In the absence of the Regional General Manager or Country Sales Manager Malaysia, the matter should be raised with an altemative Manager. Pe NS : Q BY Q L4Article 37 Article 38 Article 39 Article 40 be Information to Union and Staff ‘The Company agrees in principle, to inform the Union representative and the employee or employees concemed of any transfer, substantial roster change or re- organization giving at least two weeks’ notice in advance and whenever possible in unforeseen emergency circumstances. Duties On Partner Airlines Due to changes in the industry, staff duties are no longer confined to that of the company’s but also to that of partner airlines handled by the establishment. As such, staff are bound to perform these duties as instructed by the respective department heads but limited to the number of working hours as per Article 11 jubilee 39.1 Anemployee who has twenty five (25) years continuous service with the ‘company will be granted one (1) month bonus & KLM pin plus one day off on the anniversary day with additional two (2) days ennual leave, 39.2 Anemployee who has forty (40) years continuous service with the ‘company will be granted one (1) month bonus & KLM pin plus one day offon the anniversary with additional five (5) days annual leave. heck-Off ‘The company agrees to deduct the monthly Union subscription from the pay of the employees who are registered Union members providing the company receives a written request from the employee to do so. | Uns atAnnex A Salary Ranges Grade [Minimum (MYR) | Maximum (MYR) Effective | IstJanuary 2023 | 1* January 2023 1 1,500 4,963 2 1,894 5,761 3 2,340 6,984 4 2,785 8,151 5 3,343 9,316 6 4,233, 11,031 7 3,125 12,745 & 6,017 14,463 9 6,908 16,178 From 1* January 2023, the minimum and maximum amounts will be increased by the annual general increase percentage, Bonus Performance Rating Bonus as % of monthly salary ‘5 Substantially above required level 100% 4 Above required level 75% 3 Achieved required level 50% [2 Nearly at required level 25% 1 Under required level 0% Fr Ny : Q MY Q id+5 Annex B Grade 1 Passenger Engineering Cargo Grade 2 Passenger ‘Ground Services Supervisor, Ticketing and Services Executive ‘Engineering Apprentice Mechanic Cargo ‘Cargo Handling Supervisor, Customer Service Representative Grade3, Passenger Ticketing and Services Executive, Ground Services Supervisor, Local Commercial Coordinator Engineering Mechanic 2 Cargo Cargo Handling Supervisor, Operations Supervisor, Senior Customer Service Representative Graded Passenger Ticketing and Services Executive, Ground Services Supervisor, Account Manager Engineering Mechanic I Cargo ‘Sales Manager, Operations Supervisor Grade Passenger Local Commercial Coordinator, Account Manager, Ground Services Supervisor Engineering | Line Certifying Mechanic ‘Cargo Sales Manager Grade 6 ‘Commercial Engineering Engineer Cargo Grade7 ‘Commercial Engineering Engineer Cargo Grades ‘Commercial Enginecring Senior Engineer Cargo Grade 9 Commercial | Engineering Duty Engineer Cargo FENGIn witness of the Collective Agreement the parties hereto have hereunto set their hands on Signed by for and behalf of KLM Royal Dutch Airlines Fetaheleceee Femke Kroese Regional General Manager South East Asia & Oceania & Nalni Sommasundaram Regional HR Business Partner South Fast Asia & Oceania ih “Andrew Lee Tian Hock Finance Manager Penge Ne (Mh qi PendngPenikt Pendaftaren Pusat Perjanjian Kolektif fahkamah Perusahaan a, Salinan asai Perjanjian Kolektif ini telah diiktiraf oleh Mahkay Ee jini, ers ertarikh 8 iis 21¢ Signed by for and behalf of Foreign Airlines Employees’ Union Peninsular Malaysia a Abdul Rahman Jailany President oo Adam Zainfin Assistant infin F x Adrian Gurza Vijay Shop Steward | & Affanthan Joshua Shop Steward [2 Shashi Sundram Shop Steward