IPOH: The two-hour termination notice issued to 370 management and union staff of APM Industries Holdings Bhd factory was not done in accordance to the law.
State Education, Human Resources and Multimedia Committee chairman Datuk Dr Zambry Abdul Kadir said two-month notice should be given to the employees.
Most of the workers have been with the company for more than 10 years, he said recently.
He said the two-month notice was necessary to allow the workers to find alternative jobs.
Imagine, now the workers are given immediate notice to stop work. How are they going to feed their families? he said after a meeting with workers representatives, union members, company representatives and the Labour Department.
We hope the company will help the workers based on humanitarian considerations, he said, adding that the company had given its assurance to pay two months salary to the retrenched workers.
However, no time frame had been set for the payment, he said.
He noted that the companys factory at Jelapang Industrial Estate had ceased operations on July 7 - the day the workers received their termination letters.
It was the third such exercise by the company. It had retrenched 280 workers in March and April as part of its plan to cease operations. The company supplied harness wire to Perusahaan Otomobil Nasional Bhd (Proton).
Dr Zambry said APM Industries Holdings was under receivership and it was being managed by audit firm Ernst and Young.
The companys other factory at Kampung Gajah, with 255 staff, was also under receivership, he added.
In a related development an MP has called on the Government to set up a retrenchment fund to assist those who were laid off.
Taking a leaf from the Social Security Organisation, Ipoh Barat MP M. Kulasegaran suggested that each of the countrys 15 million workers pay RM1 per month to the fund.
When workers are retrenched, the money can be paid out to them to help them financially, he told a press conference here yesterday.
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