SHAH ALAM, June 9 (Bernama) -- Perusahaan Otomobil Nasional Sdn Bhd (PONSB) and Proton Tanjung Malim Sdn Bhd (PTMSB) have signed collective agreements with their respective workers unions which incorporate new and improved financial and social benefits.

The agreements covered a period of three years starting from Jan 1, 2010, and included an average of 7.5 per cent increase in salary across the board.

"The agreements were drafted to allow Proton to remains as a competitive employer in the Malaysia automotive industry," said Proton Holdings Bhd's managing director Datuk Syed Zainal Abidin Syed Mohamed Tahir.

Speaking at the signing ceremony here on Wednesday, he said the agreements would benefit 4,195 PONSB employees and 2,204 PTMSB employees with improvements in transport allowance, laundry assistance, medical benefits and condolence contribution.

"The agreement will create a motivated and skilled workforce, and obtain employees' commitment towards increasing productivity," Syed Zainal said.

"It will also encourage a harmonious industrial climate and instill awareness among employees on the consequences of the National Automotive Policy," he said.

This was the eighth collective agreement signed by PONSB and the second for PTMSB.

Syed Zainal signed on behalf of Proton while the PONSB Workers Union was represented by president Mohammad Fauzei Yusuf and the PTMSB Workers Union by president Mohd Yusmar Omar.

The signing was witnessed by Proton chairman Datuk Mohd Nadzmi Mohd Salleh.

-- BERNAMA