KUALA LUMPUR: Utusan Melayu (M) Bhd has been instructed to pay in full its 815 workers’ September and October salaries by the end of this month.
The Human Resources Ministry has also instructed the company, which ceased its operations on Oct 9, to pay in full unpaid compensation to its workers who had opted for its voluntary separation scheme (VSS).
Utusan, which published Malay-language newspaper Utusan Malaysia and its sister publication Kosmo!, had offered VSS to 708 of the total 1,523 workers as part of its efforts to restore its poor cash flow.
“During a meeting between UHY Advisory Sdn Bhd (the interim liquidator appointed by Utusan) and the Department of Labour in Peninsular (JTKSM) at the latter’s headquarters in Putrajaya on Oct 11, the company (UHY) had been asked to ensure that all affected workers received their compensation according to the Employment Act 1955.
“The newspaper’s company, on the other hand, has been asked to submit the Employment Retrenchment Form and issue a notice of termination or pay the indemnity to its workers,” the ministry said in a statement.
Checks by JTKSM showed that Utusan had been suffering cash flow constraints since May last year.
The company subsequently issued a memorandum on its dire state of cash flow on Oct 9, which also stated that it would cease operations with immediate effect on the same day.
Utusan, which commenced its preliminary process of liquidation on Nov 30 last year, had also tried to sell off its assets to restore cash flow but those efforts failed.
This compelled the company to undertake a creditors’ voluntary liquidation through the appointment of UHY Advisory as the interim liquidator.
Although UHY Advisory completely took over the company on Oct 8, the fate of the newspaper’s 815 workers, especially involving their unpaid salaries, remained unknown.
The workers affected by the liquidation of the company will file claims to seek unpaid salaries with Labour Department office here soon.
“JTKSM also suggested that UHY Advisory and Utusan with the cooperation of the Labour Department to carry out programmes to provide employment advice to help the affected workers,” the ministry said.
The programmes will involve JobsMalaysia, the Social Security Organisation (Socso) and the Credit Counselling and Debt Management Agency (AKPK).
The ministry said a briefing session would be conducted by UHY Advisory for Utusan employees at Dewan Besar Utusan at the company’s office (in Jalan Chan Sow Lin) at 3.30pm on Oct 30.
“The briefing is organised to discuss actions and efforts that would be taken to lessen the burden of the workers affected by the company’s liquidation.”