Why We Had To Let Engineers Go

>> Friday, June 19, 2009

Agni Energie Sdn Bhd, a company specialising in high-efficiency performance and environmentally-friendly power generation technology, denied it had terminated 100 engineers at its Shah Alam workplace.

MCPXIt also denied claims that termination notices were not given out to the affected workers prior to Friday's exercise.

Its chief executive director Dr Sri Lingam said the number of staff affected was 66 and not 100. The company has in its employ 225 workers.

“31 are engineers and project managers, while 19 are technicians, laboratory and support staff. The remaining 16 are information technology, finance and administration staff,” said Lingam said in a statement.

“The staff were briefed on the unfortunate circumstances and why we had to let them go. They were given an opportunity to question the directors as in a question-and-answer session.”

'Our right to restructure'

Lingam said the present economic climate had necessitated the rescheduling of several projects in view of clients reassessing their priorities.

“This translated to excess resources, which could no longer be supported - hence the restructuring exercise. Companies retain a right to restructure or reorganise under law, and often do so in economically challenging times,” he said.

On Saturday, Malaysiakini reported that 100 staff were caught by surprise when they arrived for work. They claimed they received termination letters without prior notices.

An employee who requested anonymity told Malaysiakini that he was shocked to learn that all the employees were given termination letters..

The company, which is involved in environmental friendly power generation technology, including fuel cell technology, fuel processing technology, cogeneration technology and solar thermal energy generation technology, had announced last February that it was awarded a renewable energy plant contract in Sarawak.

Lingam said the affected staff were given early releases to seek alternatives avenues for employment. He also said the labour office has been duly informed as required by law.

'Action if rules are flouted'

When contacted, the affected workers denied that they had been briefed over the matter.

“I also do not believe the management reported the matter to the labour department,” the source said, adding between 60 and 100 staff were given termination letters.

The workers also claimed they had not been paid their May wages and, to make matters worse, they are now facing the prospect of being laid off.

The source said several of those affected have lodged reports with the Labour Department.

Companies, under labour law, are required to pay their employees' wages, at the latest by the seventh of each month.

In a related development, a labour department spokesperson from Subang Jaya said they were investigating the matter.

He reminded companies that they should inform the labour department a month ahead if they wished to offer voluntary separation schemes or terminate their employees.

“Action can be taken against employers who failed to do so. Similarly, workers denied their wages can lodge a complaint with the department,” he said.

from http://www.malaysiakini.com/news/106533


Super Mega Termination Event - 12th June 2009


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