Bargaining Process for Amico Holdings Tom had just returned from a meeting with his union friends at the Malaysian Trade Union Congress (MTUC) and was reflecting on what the meeting was about. He had been working for Amico Holdings (a timber manufacturing company) for the past 10 years and had seen the company through ups and downs. The meeting with officials at MTUC was fruitful as some terms and conditions had been drawn up. Tom had seen that the work conditions had not improved much over the years, and together with four other colleagues, Mr. Muhammad, Mr. Taib, Mr. Sugu, and Mr. Rahma, he had formed the Amico Union Group (AUG) on August 25, 2008. As the leader of the union, Tom felt that it was time to enter into a collective bargaining agreement between Amico and the newly formed union. "An application for union recognition was sent out to the minister in December 2009, and it has already been approved. We now have the green light to enter into a collective bargaining agreement with Amico Holdings. However, the management of Amico Holdings filed an appeal against the High Court decision," said Mr. Muhammad. "We need to fight for more wages, allowances, sick leave, annual leave, retirement, and termination benefits. It is our right!" said Tom. "Those are our basic rights!" a crowd of union supporters at the meeting shouted. The atmosphere at the MTUC office was getting chaotic. "Several letters have been sent to the industrial relations court. I think we should now proceed to the high courts," said the MTUC president. "Tom, please get the documents ready so we can pursue this matter, and hopefully we can come to a compromise on this with Amico Holdings." "I hope this matter can be resolved as soon as possible, otherwise I think we should all go on strike," said Tom to his secretary.

Questions

1. Why would the management of Amico Holdings not want to go through the process of collective bargaining?

2. What are the benefits of going through the collective bargaining process?