AEON SIGNS FIRST COLLECTIVE AGREEMENT WITH WORKERS' UNION

SHAH ALAM, July 25 (Bernama) -- AEON Co. (M) Bhd (AEON) today signed its first Collective Agreement with the AEON Workers' Union, ensuring the welfare of over 10,000 employees within the retail and supermarket chain.

Human Resources Minister Steven Sim Chee Keong witnessed the signing of this landmark agreement, which was signed by AEON deputy managing director Tsugutoshi Seko, Human Resources chief officer Dr Kasuma Satria Mat Jadi, AEON Workers' Union president Hamidah Mohamad and its secretary-general Muhammad Fadhli Muhammad Zamsuri.

Also present were AEON managing director Naoya Okada and UNI Malaysia Liaison Council (UNI MLC) president Datuk Mohamed Shafie BP Mammal.

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Under this agreement, employees in grades G1, G2, G3, and J1 including roles such as operations managers, sales assistants, cashiers and bakers will benefit from insurance coverage, leave entitlements, bonuses, salary adjustments, minimum annual salary increments, and religious leave for those with 15 or more years of service.

Sim, in his speech, commended the agreement as a pioneering effort in the retail sector, highlighting the commitment of both parties to improving employee welfare.

He said the 2024-2026 Collective Agreement, based on the concept of smart partnership between employers and employees, is essential for ensuring business sustainability and economic stability, while also fostering social stability through stakeholder negotiations.

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This collective bargaining also introduces elements of co-determination, allowing both employees and employers to participate in decision-making processes, creating a win-win scenario.

“The agreement will provide both financial and non-financial benefits, enhancing working conditions in alignment with the MADANI economic vision, which seeks fair income, a meaningful quality of life, and a work environment that respects human rights," he said.

Sim also highlighted that the AEON Workers' Union received a grant of RM18,000 under the Trade Union Affairs Programme (PHEKS) to support its management and activities.

Meanwhile, Naoya said the agreement is a significant milestone for the company, coinciding with AEON's 40th anniversary this year.

"AEON's initiative in implementing this agreement also shows its commitment as a responsible employer dedicated to providing an inclusive workplace, and the company will continue to focus on employee training and development, ensuring a safe and thriving environment for all," he said.

Meanwhile, Dr Kasuma Satria said to stay competitive in the retail sector, AEON will prioritise the welfare of its employees, recognising them as a key asset.

He said the collective agreement would strengthen the relationship between employers and employees, fostering better cooperation and support to help AEON achieve its goal of becoming Malaysia's premier retailer, offering exceptional shopping experiences to all customers.

“AEON is committed to effective human resource practices, providing employees with career development opportunities from their first day through to retirement, while ensuring their welfare and well-being throughout,” he added.

-- BERNAMA