Groundbreaking agreement signed between AEON Co. and AEON Workers Union in Malaysia

On 25 July 2024, a landmark collective agreement was signed between the AEON Workers Union and AEON Co (Malaysia) at a ceremony in Kuala Lumpur, Malaysia. This agreement, covering the period from 2024 to 2026, coincides with AEON’s 40th anniversary in the country and sets a new standard for Malaysia’s retail sector.

Based on a SMART constructive labour-management partnership concept, the agreement will benefit over 10,000 employees within AEON’s retail and supermarket chain. It provides for enhanced insurance coverage, improved leave entitlements, bonuses, salary adjustments including minimum annual salary increments, and religious leave for long-serving employees with 15 or more years of service. Notably, the agreement also introduces elements facilitating co-decision-making processes for both employees and employers.

The agreement 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 Secretary-General Muhammad Fadhli Muhammad Zamsuri.

Minister of Human Resources Steven Sim Chee Keong, AEON Managing Director Naoya Okada, and the President of the UNI Malaysia Liaison Council (UNI MLC) Datuk Mohamed Shafie BP Mammal witnessed the signing ceremony.

In a news report, Minister Sim praised the collective agreement, noting its alignment with the ministry’s vision of fair income, meaningful quality of life, and a work environment that respects human rights.

UNI MLC President Shafie expressed appreciation for the Ministry of Human Resources’ supporting the union. The AEON Workers’ Union, a member of UNI Malaysia Liaison Council, received a grant of RM18,000 under the Ministry’s Trade Union Affairs Programme (PHEKS) to support its activities.

UNI Asia & Pacific Regional Secretary Rajendra Acharya voiced strong support for the agreement, stating, “This is wonderful news for the AEON workers and union and shows the fruit of our Global Framework Agreement that enabled extensive dialogue and engagement with AEON management over the years. We also thank the strong support from UA ZENSEN and the Federation of AEON Group of Workers’ Unions (FAGWU) that made this possible. Congratulations!”

UNI Global Union has maintained a Global Framework Agreement with AEON’s parent company in Japan since 2014, which facilitates dialogue and union organizing wherever AEON operates.