Malaysia

Malayan Cement unit hauled to court over lay-offs at Rawang plant

During initial stages of retrenchment exercise, company allegedly fails to consult union group

Updated 5 years ago · Published on 15 Feb 2021 7:00AM

Malayan Cement unit hauled to court over lay-offs at Rawang plant
YTL Cement Bhd has obtained Malaysia’s first cement plant located in Rawang, where it has planned a RM200 million refurbishment and modernisation exercise, eyed for completion in three years. – Facebook pic, February 15, 2021

by Arjun Mohanakrishnan

KUALA LUMPUR – Malayan Cement Bhd subsidiary, the Associated Pan Malayan Cement Bhd (APMC), is being taken to the industrial court for lay-offs at its Rawang plant.

This is based on a document, dated February 5, from the Industrial Relations Department.

Malayan Cement, formerly known as Lafarge Malaysia Bhd, is itself a subsidiary of YTL Cement Bhd – one of the largest companies listed on Bursa Malaysia.

Malaysian Trades Union Congress (MTUC) general council member A. Sivananthan claimed that a collective agreement prior to YTL’s takeover is still valid. 

“The collective agreement is still in play, and there are disputes over it, which will be raised in court.”

He said another matter of dispute between the workers and the company is over alleged union-busting.

Referring to Section 8 of the Industrial Relations Act 1967, Sivananthan claimed that during the initial stages of the retrenchment exercise, the company failed to consult the Cement Industries Employees Union (CIEU).

“During the initial meeting, the company was supposed to meet with the CIEU. Instead, representatives met only with the worksite committee.”

While the worksite committee is part of the CIEU, it only operates at the company-level, while the union operates nationally.

Lafarge previously held majority shares in APMC, until YTL Cement acquired it in 2019.

YTL Cement now owns up to 77% of Lafarge Malaysia.

Upon the takeover, YTL also obtained Malaysia’s first cement plant located in Rawang, where it has planned a RM200 million refurbishment and modernisation exercise, eyed for completion in three years.

“The moment YTL took over the plant, it seemed more interested in injecting money to modernise the plant,” Sivananthan alleged.

He expressed hope that retrenched workers will be reinstated back to the company once the trial is over. 

“They should be reinstated as this is not a permanent retrenchment, given that the plant’s refurbishment is only temporary.” – The Vibes, February 15, 2021

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