BANTING: More than 200 employees of Megasteel Sdn Bhd - Lion Group staged a peaceful protest in front of the company’s factory today, demanding fair compensation.
Raja Badrulizaman, who represented the employees at the picket, said that they were called for a meeting on March 31 and told that most of the employees will either be relocated or have their services terminated.
However, on Apr 1, they were given a 24-hour notice of termination from the company.
Badrulizaman, who worked as a mechanical executive for eight years, claimed most of the employees who were laid off were permanent staff while contract employees remained working with the company.
"How this is fair to us? Many of us here have worked for more than 10 years, and there are some senior employees with 30 over years of experience.
"If the company wants to cut cost or is facing financial problems, there are many ways to save the company instead of terminating us.
Badrulizaman claimed that they have not received their March salary yet.
"How are we going to apply for jobs at other places when we have been laid-off with immediate effect? We consider our dismissal unlawful," he said.
He said they want the company to give them the option of choosing between re-employment or a Voluntarily Separation Scheme (VSS), before they terminate their services.
Meanwhile, Lion Group Corporate Communications Department representative, Quah Le Ching, said the company had organised several town-hall sessions with its employees to brief and engage them on the business challenges and the unavoidable decision to lay off and retrench employees.
Quah said the company is also providing support and training for the employees to seek alternate employment.
"With regards to this, Megasteel has sought the assistance of the Labour Department and other companies for job placements for its employees.
"Megasteel and local steel manufacturers have been badly affected by rampant imports at dumping prices the past several years.
"This has resulted in low orders and low capacity utilisation of 20 per cent to 30per cent with the major steel mills incurring heavy losses of more than RM2 billion in 2014 and bank borrowings in excess of RM12 billion," she said.
She said Megasteel is running its operations intermittently leading to many employees being laid off or retrenched.
She said the management of Megasteel understands and is concerned with the plight of its employees whose livelihood are being threatened.
"The company has and will continue to engage with all stakeholders and the relevant authorities to try and address the unavoidable issue of lay off and retrenchment of its employees given the present difficult business environment.
"We are with constant consultation with the authorities such as the JTK and Industrial Relations Department.
"Megasteel is also in discussion with the Metal Industry Employees Union (MIEU) to seek an amicable solution to the employees’ plight and concerns," she said.