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KUALA LUMPUR: China Construction Communications (ECRL) Sdn Bhd (CCC-ECRL) has taken the necessary steps to streamline its workforce for the Ministry of Finance (MOF) instruction to suspend work on the 688 km from the East Railway Link)
He pointed out that the affected personnel comes mainly from non-critical departments.
"This rationalization exercise was carried out in accordance with the employment contracts between the staff and the CCC, ECRL, and also complies with all international and Malaysian laws and regulations," he added, adding that the The company also offered pay cuts and unpaid leave to other staff members.
a state-controlled China Communications Construction Co Ltd (CCCC) unit, which is listed on the Hong Kong and Shanghai Stock Exchange, issued a statement on the exercise of layoff.
The Edge Financial Daily report On July 11, CCCC fired Malaysian staff a week after the suspension order at the beginning of the month. When questioned, the company only said that it was in full investigation to clarify the incident.
It was reported that a source close to CCCC had said that as many as 30% of local company employees related to the ECRL project would eventually be laid off due to suspension. This figure suggests that about 675 jobs held in Malaysia were at risk, based on the previous CCCC statement that there were 2,250 local employees. Another source said that Chinese employees involved in the ECRL project also needed to be redeployed soon in the middle of the suspension.
According to sources, the employment contracts of the dismissed workers contain a clause providing for an automatic termination if the ECRL project is suspended. or finished. Such a clause is not unusual in project-based employment, but the speed of termination has surprised Malaysia Rail Link Sdn Bhd (MRL) because it is not clear how long the project could resume.
MRL is a wholly-owned unit of the Minister of Finance Inc., the business vehicle of the Ministry of Finance. It was created as the owner of the ECRL project
. Following this, a letter from MRL to CCC-ECRL, which was seen by The Edge Financial Daily, showed that MRL stated in the letter that In the letter dated July 17, MRL also indicated that it required CCC-ECRL to officially notify the staff who had been registered as "responsible for the demobilization of your staff"
. "You are required to maintain this staff during the suspension period to avoid any unforeseen actions by the authorities, such as the closure of your site's offices, or the imposition of penalties."
The reference to Registered personnel likely refers to on-site compliance officers, who, by regulation, must surrender to regulatory authorities for investigations and audits.CIDB refers to the Construction Industry Board Malaysia, which regulates construction activity. JKKP is the Malay acronym for the Department of Occupational Safety and Health
The media statement yesterday also claimed that MRL has requested the retention of a number of local staff to secure the Malaysia Railroad Sdn Bhd, CCC-ECRL has also retained a considerable number of local staff to secure work sites, " he said.
The company also indicated in the statement that it intends to extend its cooperation to the Malaysian government and other related authorities during the project review and hopes that the suspension of work will only be temporary.
"We look forward to lifting the suspension order as soon as possible," he noted. The ECRL project was the subject of close scrutiny as Finance Minister Lim Guan Eng underlined its high cost of RM 81 billion, which is significantly higher than the original price of ECU 55 billion. RM indicated by the previous government.
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