by Ketua Pembangkang and DAP Secretary- General, Lim Kit Siang, on Friday, 26th August 1977:
Call for disciplinary action against an Industrial Relations Officer in the Labour Ministry who openly sided with management in the dispute concerning over 400 workers in Malaysia Fancy Plywood & Veneer Co. Ltd. in Kuala Lumpur.
I call on the Minister of Labour, Dato Lee San Choon, to take disciplinary action against an Industrial Relations Officer in his Ministry who openly sided with the management in a dispute involving over 400 workers in Malaysia Fancy Plywood Veneer & Co. Ltd. at 5th mile, Klang Road, Kuala Lumpur.
The plywood factory shut down sections of its factory on 1st July on the ground of boiler breakdown. When workers affected by the shut down picketed, the factory retaliated by a complete shutdown. That the boiler breakdown was not the genuine cause of the shutdown of the factory can be seen from the fact that at a meeting convened in the Industrial Relations Office on 7th July, the management had promised to resume production. However, the management went back on its promise, and decided to continue with the shut-down, which is still going on.
As a result of this shut-down, over 400 workers have lost their means of livelihood. Taking their into account, a few thousand persons are suffering/ dependants.
Over 75% of the work force, or over 300, are Malays, who will be very hard hit in view of the present Puasa month.
The shut-down, which is entering its third month soon, has no end in sight. The management claims that it may resume production in October, but this date has been postponed so many times that the workers are very dubious about it.
Whether the company resumes production eventually or not, whether this be after six months or more, the crying question is how are the 400 workers and their dependants going to look after their basic needs.
In a collective agreement entered into by the plywood management and the Sawmill and Timber Industry Workers’ Union, Paninsular Malaysia, it is provided that that in case of retrenchment, employees with three years of service shall be eligible for one month’s salary for each year of services; while employees with more than three years’ service will be eligible for two months’
salary for each year of service.
Large number of the workers have more than three years’ service.
The factory management has evaded its responsibility by insisting that it was not retrenching the workers. It also refused to pay the workers any allowance or compensation during the period off shut-down.
When the workers and their union representatives pressed for payment to the workers, the Industrial Relations Officer handling the dispute sided with the management by telling the union representatives that the management was not a “welfare department”. I also received reports that this officer had been most obstructive and hostile to the union representatives.
Workers and Malaysians as a whole do not want Industrial Relations Officer who do the job of management representatives in Ministry meetings. Such officers should either by disciplined or transferred to another Ministry.
The Malaysia Fancy Plywood and Veneer Company Bhd. is not making losses. Last year alone, it did more than $7 million worth of sales. It started as a pioneer industry in 1968 enjoying all the tax benefits for seven years. It should realise its responsibility to workers and their dependants, who had contributed to the profits which the plywood factory had made since 1968.
The workers have found that the plywood management has very powerful influence at all levels of government, and could get its way in virtually all matters.
This is wrong and a black mark on the various government department concerned, for this means that the government departments are siding managements against workers.
I call on the Labour Minister Dato Lee San Choon to immediately intervene in this matter, for I hope I do not have to expose the various ways which the management of this plywood factory had used to gain influence in government departments.