Tuesday, August 20, 2019

Utusan workers picket unpaid salaries after so long - Fight for your rights fast before it is too late?

Well, the workers of Utusan picketed  ... but why did they not picket in June and start taking action the moment their wages(or part) was held back? Why did they go the Magistrate Court, and get a court order - a security bond with one or more sureties? Why did they not claim at the Human Resource Department? Waiting in reliance to verbal assurances of employers is really not smart...

Close to 100 staff from Utusan Malaysia’s editorial department staged a protest today over unpaid salaries outside their office here.
On August 9, The Malaysian Insight quoted an unnamed source as saying that executive staff salaries had also been delayed for two months, with some receiving only RM2,000 as part of their June wages.
The problem with a lot of workers in Malaysia is that many chose to sit around quietly even when Employers fail to pay their wages in time...or delays payment of wages... They believe in 'words', not even written agreements that the delayed wages will be paid...And who made these 'promises'...

Now, when your employer does not pay wages at the time wages are due...you need to get worried that the employer may be having no capacity now or maybe even in the future to pay your wages..

If you delay payment of your loans, then automatically you will be liable to a 'penalty' which usually is interest...Well, for delayed wages, there is not even any interest that you become entitled to... This must change, and delay in payment of wages means that the employer should be paying INTEREST for the delay - it must be daily interest...maybe 8% interest per annum for each day delayed [Will that be fair - well, some workers are bound by loans whereby they may be liable to higher daily interest rates...]

The EMPLOYMENT ACT has a REMEDY - well, if you did not get paid in time or wages delayed, you can file a summons in the Magistrate Court to protect yourself - and the court could order the Employer to 'security by bond' ...

78  Employee's remedy when employer about to abscond (Employment Act 1955)

(1) If any employee complains to a Magistrate that he has reasonable grounds for believing that his employer, in order to evade payment of his wages, is about to abscond, the Magistrate may summon such employer and direct him to show cause why he should not be required to give security by bond to remain in Malaysia until such wages are paid; and if, after hearing the evidence of such employer, the Magistrate decides that such bond shall be given the Magistrate may order such employer to give security by bond in such sum as to the Magistrate seems reasonable, that he will not leave Malaysia until the Magistrate is satisfied that all the just claims of such employee against him for wages have been paid or settled.

(2) If the employer fails to comply with the terms of such order to give security, he shall be detained in prison until arrangements have been made to the satisfaction of the Magistrate for settling the claims of such employee:
Provided that-
(a) such employer shall be released at any time by the committing Magistrate on security being furnished or on his paying either the whole or such part as to the Magistrate seems reasonable of all just claims of such employee against him for wages or on the filing of a petition in bankruptcy by or against him; and
(b) in no case shall the period of such detention exceed three months.
(3) The bond to be given by an employer shall be a personal bond with one or more sureties, and the penalty for breach of the bond shall be fixed with due regard to the circumstances of the case and the means of the employer.

(4) If on or after a complaint by any employee under subsection (1) it appears to the Magistrate that there is good ground for believing that the employer complained against has absconded or is absconding or is about to abscond, the Magistrate may issue a warrant for the arrest of such employer and such employer shall be detained in custody pending the hearing of the complaint unless he finds good and sufficient security to the satisfaction of the Magistrate for his appearance to answer the complaint.

(5) For the purposes of this section a certificate purporting to be signed by the Director General and issued to the Magistrate to the effect that wages claimed have been paid or settled shall be sufficient evidence of the payment or settlement thereof.
 
What is interesting is that this 'Security by bond', which is 'a personal bond with one or more sureties,'... Now since, many employers may be COMPANIES, that one or more sureties is very important as they will be usually the Directors or major shareholders ...so, even if the Employer company account has no more monies, you can still go after these Directors and/or major shareholders to recover your debt...

The only issue is words 'when employer is about to abscond', what does it mean? 

If your employer is a sole proprietor or a partnership - then they cannot run away. Their business 'bankrupt' - No problem because the individual proprietor and the partners are liable to settle what is owing to workers personally - from their own wealth.

No money...well then their other assets could be sold and the money is there...

Running away from Malaysia puts these individuals out of the jurisdiction of the Malaysian courts and this may be a problem..they could also 'escape' by transfering their 'wealth' overseas...

But when the employer is a COMPANY, then the fact that the company may empty their company accounts and/or dispose their assets should also mean that this Company employer is 'about to abscond'...

If the company does not have any money to pay unpaid wages, then unless workers have a personal guarantee of Directors and/or major shareholders ...they may end up with not getting any 'unpaid wages'....but if there is an application to the Magistrate court...then they may get a 'bond with one or more sureties,'...which is equivalent to a personal guarantee...so if Company no money, no problem for the workers can still go after the guarantors and/or sureties personally...to get their money..

Banks are SMART - when they give loans to Companies, the almost always insist on personal guarantees by individual persons, usually the Directors and sometimes majority shareholders... Maybe the law need to be amended, that for wages and other payments to workers, Directors will be also personally liable as 'guarantors' or 'sureties'..

Well, did the Utusan workers, who have had their salary delayed filed an application to Court under this section - at least to get a 'bond with one or more sureties' to protect their claim and rights?

Did the Utusan workers, when their salary was delayed even file a claim at the Human Resource Department?

Are they hoping for UMNO or the 'Pejuang Melayu' or the government to pay their unpaid salary and other money claims...payable by their employer? WHY should government or UMNO or Najib or 'pejuang melayu' pay their salary that is due and payable by their employer Utusan...who has nopw indicated they are ceasing publications...?

Mana, mana pejuang Melayu? Mana, mana Umno mana? (Where are the defenders of the Malays?
Where is Umno?),” the workers chanted during their peaceful gathering.

Well, if your rights are violated, then you are responsible for fighting for your own rights ... I believe some of these workers are Union members, did their Union not advise them? 

Remember Malaysia have bad Union laws, which says that once you cease employment, then you are automatically no longer a Union member...and as such the Union cannot help/assist former members...That law must be changed, Union membership can only be terminated by the Union as to how it wants to. [Even if out of employment, when such problems arises, a Union is important - really Union membership ending should not be determined by LAW but by the Union and its membership by their own rules...]

They seem to members of the Union - did the Union secure their wages by getting a Personal Guarantee of Directors?  

Did they get the employer to pay interest for the delay?

Now, apparently, many of the former workers have signed  a Voluntary Separation agreement - so, they agreed the resign on condition that the Employer company pay them a sum of monies...and now, they too are complaining that they have net yet received their payment? 

As of December 2018, approximately 800 employees have accepted the voluntary separation scheme as the company embarked on a cost-cutting measure. However, their payments were also delayed.

Did that Agreement contain a clause where individual Directors or shareholders provided a Guarantee - if the Company cannot pay, these persons personally will pay...

NO - then, they have been foolish - for if their employer company has no more monies...they may have no more remedy... Did their lawyers or Union advise them to get this 'guarantee'...?

If you did not get paid pursuant some voluntary separation agreement - that monies may no longer be considered 'wages' - because even the Employment Act in that section that deals with 'Priority of Debt" says ' "wages" includes termination and lay-off benefits, annual leave pay, sick leave pay, public holiday pay and maternity allowance.{The priority debt section is found below - Section 31  Priority of wages over other debts (Employment Act 1955))


Does this include money still due and payable under some Voluntary Separation Agreement? It may not be considered 'wages' - though a lawyer may argue and the courts may decide otherwise. But, on the face of it, it may no longer be considered 'wages' and as such no priority of debt?

Will the Malaysian government pay the Utusan workers their claims? That is not fair unless the government takes on the obligation pay all workers under any employer, who have claims for outstanding wages and other monies due...Side question - did the past Malaysian government use the peoples' monies to bail or help out Utusan?

Workers in Malaysia, and also their Trade Unions, must learn more about worker and trade union rights ...and they have to really 'fight' for their RIGHTS...and the fight must start as soon as the employer breaches their rights ...

Trusting employers ...relying on personal assurance is simply not wise. Well, at least get it in writing ...or use the courts fast to secure your rights first...

The BN government was pro-employer - so in the MAS case, they even created a law that made the new MAS not liable for monies still owing to workers by the old MAS. There, despite of so many Unions, most did not lead in the fight for rights save maybe one. 

Trade Unions in Malaysia need to REFORM - they need to energize themselves and be more active in defending and promoting worker rights...New 'stronger' pro-worker leaders are maybe needed... 

Utusan workers stage protest over unpaid salaries, plead for help

Utusan Malaysia workers protest over unpaid salaries in front of Utusan headquarters in Kuala Lumpur August 19, 2019. — Picture by Ahmad Zamzahuri
Utusan Malaysia workers protest over unpaid salaries in front of Utusan headquarters in Kuala Lumpur August 19, 2019. — Picture by Ahmad Zamzahuri
KUALA LUMPUR, Aug 19 — Close to 100 staff from Utusan Malaysia’s editorial department staged a protest today over unpaid salaries outside their office here.

The group, made up of journalists, graphic artists and photographers, said it was hard enough, as it is, just to stay afloat.

Mana, mana pejuang Melayu? Mana, mana Umno mana? (Where are the defenders of the Malays? 
Where is Umno?),” the workers chanted during their peaceful gathering.

“Even to come to work we have to borrow money.

“The papers are published every day right? That’s because of our work. Even without our salaries, we have never slacked off, “ a staff from the company, Nik Mohd Hasmazi Hassan told reporters.

He said that almost all the staff resorted to borrowing money even for basic need such as meals and pleaded that their plight is resolved quickly.

“Each of us is still trying to find other jobs but it is difficult because of our age.

“Imagine if both husband and wife opted for the VSS? How are they going to survive? Where is Utusan’s promise?” Siti Ainiza Kamsari, another staff of the beleaguered publication and senior journalist, told reporters.
Utusan Malaysia workers protest over unpaid salaries in front of Utusan headquarters in Kuala Lumpur August 19, 2019. — Picture by Ahmad Zamzahuri
Utusan Malaysia workers protest over unpaid salaries in front of Utusan headquarters in Kuala Lumpur August 19, 2019. — Picture by Ahmad Zamzahuri
VSS refers to the voluntary separation scheme. Utusan Malaysia’s management had reportedly offered the scheme to many workers of the company, but to date, has yet to pay them the promised severance sum.

The picket today started at 1pm and ended at 2pm, amid police presence.

On August 9, The Malaysian Insight quoted an unnamed source as saying that executive staff salaries had also been delayed for two months, with some receiving only RM2,000 as part of their June wages.

“Husbands and wives working in Utusan have to bring their children to the office because they cannot afford to send their kids to a nursery or babysitter. Some staff have accumulated debts over the past two months,” the source reportedly said.

Last year, staff of newspapers Utusan and Kosmo! threatened to picket following a similar wage issue, but called it off after the management came up with an amicable solution.

The source said Utusan and Kosmo! staff are giving the management until August 19 to resolve the issue, or they will proceed with the protest.

As of December 2018, approximately 800 employees have accepted the voluntary separation scheme as the company embarked on a cost-cutting measure. However, their payments were also delayed.

The Utusan Group, which publishes Utusan Malaysia and Kosmo!, is currently on PN17 status on the Malaysian Stock Exchange after failing to pay an outstanding debt of nearly RM1.2 million to two banks. - Malay Mail, 19/8/2019

Nearly 100 picket at Utusan office over unpaid wages

Current and former Utusan Melayu employees protest outside the main office in Kuala Lumpur today. 

KUALA LUMPUR: Nearly 100 current and former employees of Utusan Melayu Bhd demonstrated in front of the daily’s main office here today, claiming the company had failed to pay them their wages for one and a half months now.

National Union of Journalists (NUJ) president Taufik Razak, who was present at the gathering, said he had attended a meeting earlier with Utusan’s management and executive chairman.

He said he was informed that the company has no funds to pay either overdue or current wages, and claimed it could face closure within weeks.

“This is because they do not have any money and have failed to sell off their assets,” Taufik, who is also Utusan NUJ branch chairman, said.

NUJ claimed earlier this month that Utusan, which publishes Malay dailies Utusan Malaysia and Kosmo, owes salaries to 769 workers, with complaints of delays in payments and claims since January.

“Even Umno has not given any information on keeping Utusan alive because Umno also has no money,” Taufik said.

“So I’m pleading with Umno and Umno members to help us workers who have helped them in the past, and to look at our condition.”

Taufik claimed Utusan had been unable to sell off its assets in part because many of its buildings do not have a certificate of fitness.

Consequently, he said, the management has to wait for approval from the authorities before they can sell these assets.

“You can imagine how bad Utusan’s management was – they thought Umno would always stay in power,” he added.

Nik Mohd Hasmazi, who has worked as a graphic designer at Utusan for 23 years, said employees were like flood victims who must resort to financial aid for daily necessities.

He said it is especially difficult for him as a father when his son asks him for money for allowance.

“My son, who is in Form 3, even asked me to give him RM5 instead of the usual RM7 because he wants to help me.

“We love the company, that’s why we have not left it. Even though we have not been paid, we have not abandoned the work.”

Malaysian Trades Union Congress secretary-general J Solomon, who was also present, claimed there had been a lack of effort by the management in selling off the company’s assets.

“Even if they can’t sell their properties, they must find a way to mortgage the properties to at least pay the salaries of the 200 workers involved,” he said.

He also called for a revamp of the editorial board, saying journalists should not be blamed for following instructions.

Likewise, he urged the government to intervene, saying Prime Minister Dr Mahathir Mohamad and prime-minister-in-waiting Anwar Ibrahim were once supported by Utusan as well. - FMT, 19/8/2019

31  Priority of wages over other debts (Employment Act 1955)


(1) Where by order of a court made upon the application of any person holding a mortgage, charge, lien or decree (hereinafter referred to as "the secured creditor") or in the exercise of rights under a debenture the property of any person (hereinafter referred to as "the person liable") liable under any of the provisions of this Act to pay the wages due to any employee or to pay money due to any contractor for labour is sold, or any money due to the person liable is attached or garnished, the court or the receiver or manager shall not authorize payment of the proceeds of the sale, or of the money so attached or garnished, to the secured creditor or the debenture holder until the court or the receiver or manager shall have ascertained and caused to be paid, out of such proceeds or money, the wages of such employee, or the money due to any contractor for labour under a contract between him and the person liable, which the person liable was liable to pay at the date of such sale, attachment or garnishment:

Provided that this section shall only apply to the sale of a place of employment on which-
(a) any employee to whom wages are due as aforesaid;
(b) any employee to whom wages are due by such contractor for labour as aforesaid;
[Am. Act A1419:s.9]
(c) any contractor for labour to whom money is owed on account of the sub-contract by the contractor for labour as aforesaid,
[Am. Act A1419:s.9]
was employed or worked at the time when such wages were earned or such money accrued due, and to the proceeds of the sale of any products of such place of employment and of any movable property therein used in connection with such employment and to any money due to the person liable on account of work performed by such employee or contractor for labour or derived from the sale of the products of such work:
[Am. Act A1419:s.9]
Provided further that-
(a) where the person liable is an employer the total amount of the wages of any employee to which priority over the claim of a secured creditor is given by this section shall not exceed the amount due by the employer to the employee as wages for any four consecutive month's work;
(b) where the person liable is a principal and where the wages are claimed from such principal under section 33 the total amount of the wages of any employees to which priority over the claim of a secured creditor is given by this section shall not exceed the amount due by the principal to the contractor at the date of the sale, attachment or garnishment unless the contractor is also a contractor for labour;
[Am. Act A1419:s.9]
(c) where the person liable is a contractor or sub-contractor who owes money to a contractor for labour the total amount due to such contractor for labour to which priority over the claim of a secured creditor is given by this section shall not exceed the amount due by such contractor for labour to his employees (including any further contractors for labour under such first-mentioned contractor for labour) for any four consecutive month's work.
[Am. Act A1419:s.9]
(2) In this section, except for the second proviso, "wages" includes termination and lay-off benefits, annual leave pay, sick leave pay, public holiday pay and maternity allowance.


Utusan no more?

‘Utusan Malaysia’ workers holding a picket outside the company’s headquarters in Kuala Lumpur yesterday. PIC BY SUPIAN AHMAD
AFTER 80 years, Utusan Malaysia, the bastion of Malay journalism, may be rolling out its final print edition tomorrow.

It is learnt that its editorial staff, in a special briefing yesterday, were told that the company no longer had the financial means to continue its operations, and as such, would bid farewell to its print operations.

Speaking to the New Straits Times, a worker said the briefing was conducted by Kosmo! editor Lokman Othman, who conveyed the news.

An audio clip of the briefing by Lokman was made available to the NST.

“Our last paper will be published on the day after tomorrow (Wednesday). On the front page, there will be a notice to inform readers that we will cease publication on Wednesday.

“This means that tomorrow (today) we will work for the Wednesday publication. After that, we don’t have to work.”

It is learnt that they were told that new investors were interested in acquiring the newspaper.
Utusan Melayu’s building in Jalan Chan Sow Lin, Kuala Lumpur. PIX COURTESY OF UTUSAN ONLINE
 
However, the staff were also told that this could mean that the workforce would be trimmed substantially.

They were told the company’s online operations would continue. However, any return of Utusan Malaysia and Kosmo!’s print editions might need only 60 employees from Utusan and 60 from Kosmo! from its present workforce of 800.

The news came hours after hundreds of workers from the publication, including journalists, graphic artists and photographers, held a picket outside the company’s headquarters to demand outstanding salaries and severance payments.

National Union of Journalists president Taufek Razak, who led the picket, said a meeting was held between staff representatives and Human Resources Ministry personnel yesterday.

He said Utusan Malaysia executive chairman Datuk Abdul Aziz Sheikh Fadzir admitted that they had financial problems.

The decision to shutter the print operations was made by the board of directors at a meeting earlier yesterday.

“We were told that the company has no money to pay the workers or run the business,” said Taufek.
Aziz is expected to address the company’s employees at a townhall session at 4pm today.

The Utusan Group reportedly failed to pay salaries since June and had, prior to this, delayed the payment of salaries.

Salaries of executive employees were reportedly delayed for two months, with the last partial payment of RM2,000 paid in June.

The company previously carried out a voluntary separation scheme, which reduced the number of workers from 1,400 to 823. However, VSS payments were also delayed.

The newspaper’s readership started declining in 2004, but major financial problems came about following the change of government in the 14th General Election last year.

Utusan Malaysia traces its roots to 1939 when it was first published as Utusan Melayu. It was founded by Yusof Ishak, who later became the first president of Singapore, and Abdul Rahim Kajai, dubbed the father of Malay journalism.

Kosmo! on the other hand was launched on Aug 30, 2004.

In its heyday, Utusan Malaysia’s circulation peaked at 350,000 copies a day in the 1990s and was one of the largest selling newspapers in Malaysia.


‘Board of the view that it can’t meet Bursa requirements’

The Board of Utusan Melayu (Malaysia) Bhd (“Utusan” or “the Company”) wishes to announce that Utusan is unable to submit its Regularisation Plan as prescribed under Paragraph 8.04(3) and Paragraph 5.1 under Practice Notes 17 (‘PN17’) within twelve (12) months from the date of its admission as PN17 issuers.

After taking into consideration of the losses incurred in the first two quarters of 2019 and cash flow constraints, the Board is of the view that the Group will not be able to meet Bursa’s requirements to uplift the PN17 status. The Group is also not be able to find any potential investor to participate in order to revive the Group, mainly due to its huge liabilities.

The above is without prejudice to Bursa Securities’ rights to proceed to suspend the trading of the listed securities of Utusan and to de-list the Company in the event:

(i) The Company fails to submit a regularisation plan to the authorities on or before 19 August 2019;
(ii) The Company fails to obtain the approval from any of the regulatory authorities necessary for implementation of its regularisation plan; and,
(iii) The Company fails to implement its regularisation plan within the time frame or extended time frame stipulated by any of the regulatory authorities.

Upon occurrence of any events set out in (i) to (iii) above, the Company is aware that Bursa Securities shall take any relevant action including to suspend the trading of the listed securities of Utusan on the 6th market day after the date of notification of suspension by Bursa Securities and de-list the Company, subject to the Company’s right to appeal against the delisting.

This announcement is dated 19 August 2019.
Former prime minister Tunku Abdul Rahman Putra Al-Haj unveiling a plaque to mark the opening of Utusan Melayu Press Ltd building in Jalan Chan Sow Lin in Kuala Lumpur in 1965.
 
Chequered history of ‘Utusan’ 

1939: First Utusan Melayu copy published in Jawi.
1941-1942: Temporarily suspends its operations during the Japanese occupation of Malaya and Singapore.
1945: Moves its headquarters to Cecil Street, Singapore.
1959: Relocates to Kuala Lumpur.
1961: Utusan staff, led by journalist Said Zahari, hold a strike to protest Umno’s bid to control Utusan Melayu’s editorial policy.
1964: Mingguan Malaysia starts publication.
1965: Utusan’s building in Jalan Chan Sow Lin officiated by first premier Tunku Abdul Rahman Putra Al-Haj.
1967: Utusan Malaysia starts publication. Utusan Melayu and Mingguan Malaysia start printing in Romanised version.
1982: Former premier Tun Hussein Onn opens Utusan’s new printing plant.
1991: Utusan’s printing plant in Gong Badak opens.
1994: Utusan listed on the Kuala Lumpur Stock Exchange. Circulation peaked at 350,000 copies.
1996: Electronic newspaper Utusan Malaysia Online launched.
2004: Circulation declines to 250,000 copies.
2016: Circulation further declines to 144,438 copies.
2018: Utusan switches from broadsheet newspaper to tabloid size. Eight hundred employees accept the voluntary separation scheme after the 14th General Election.
- New Straits Times, 20/8/2019


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