Gana Prakash400 workers to picket outside steel miller Megasteel Sdn Bhd Megasteel on 14th August 2018 to demand retrenchment compensation. Megasteel ceased operation at its Banting Complex and terminated their entire workforce of 800 on 31 August 2016.
Despite subjecting the workers to extreme hardship for a prolonged period of 8 months Megasteel, has not made any effort to settle the termination benefits due to the workers.
At the time of retrenchment on 31 st August 2016 Megasteel gave a written notification to every employee that their termination benefits calculated according the provisions of Termination and Lay-off Regulations would be paid but the company has requested for a grace period due to its financial difficulties.
Under clause 11 of the EMPLOYMENT (TERMINATION AND LAY-OFF BENEFITS) REGULATIONS 1980 benefits due to the workers should be paid not later than 7 days after the relevant date but currently it is 24 months overdue.
Frustrated by Megasteel’s long silence, workers sought the help of the Jabatan Tenaga Kerja to secure their Termination Benefits. On 25 th June 2018 the Union submitted a report to the new Minister of Human Resource M. Kulasegaran seeking his urgent intervention and assistance to resolve this long standing issue but they are disappointed with Kulasegaran’s complete silence thus far.
All the workers had to endure a 50% wage cut from January to August 2016 before the eventual termination. Many still remain without gainful employment and the few who have secured alternate employment are at minimum wage levels due to loss of seniority. The 20 year old Megasteel is reported to have suffered heavy losses for many years.
CJMY
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