Malaysia, Prime Minister Anwar Ibrahim and his 'Unity' government and all Malaysians are now put in a difficult 'embarrassing' position on the Israeli Oppression of Palestinian Issue - when a Malaysian Company is suing another pro-Palestinian Malaysian group because of a call to boycott companies and brands that are pro-Israel.
Malaysia has always maintained a strong consistent position - it does not have diplomatic relationship with Israel, and recently also...
In the latest move in support for the Palestinian cause, Malaysia has banned vessels from an Israeli shipping company from docking at its ports.Prime Minister Datuk Seri Anwar Ibrahim said also barred from Malaysian ports are ships bearing the Israeli flag and those bound for that nation.....Anwar said the move was in response to Israel violating international laws and ignoring humanitarian principles through its continuous atrocities against Palestinians. - Star, 21/12/2023
So, what will be the response to this commencement of this legal suit by a Malaysian company... I believe that McDonald's Malaysia have the legal right - BUT is it morally right? or acceptable from a human rights perspective?
Was this suit commenced on the 'Orders' or 'Instruction' of the US-based McDonald's? Did the Malaysian company need the approval or consent of McDonald's?
After all, in the US, since 2016, 28 states have passed
laws requiring individuals and businesses that receive government
contracts – from substitute teachers to construction workers — to
certify that they will not participate in boycotts of Israel or Israeli
settlements in the West Bank.[Of course, all legal challenges, save one, have found that these laws are unconstitutional] . Yes, there are laws that protect Israel in US - that is against freedom of expression, opinion ...and certainly against the right of public participation.
So, how will the Malaysian government react? Would they ask this Malaysian Company to drop the suit? How will the other Malaysian shareholders in this company react? Will they push for a Shareholder General Meeting to ask the company to revisit the decision to sue? Will shareholders and Directors sell off their shares or resign? Well, nothing seems to be happening ...Should we call on McDonald's Malaysia and Gerbang Alaf Restaurants Sdn Bhd.
It all started when....
McDonald's Israel said on its social media accounts last week that it has given thousands of free meals to Israel Defense Forces personnel. On Sunday, the franchise stated again that it was donating meals, "to all those who are involved in the defence of the state, hospitals, and surrounding areas." : The Thomson Reuters Trust Principles. Then, McDonald's Corp declined to comment.
It is this move that led to protest actions against McDonald's worldwide ... including calls for boycott..
McDonald's Malaysia is certainly linked to McDonald Corporation, a US-based Corporation, and is likely to be a FRANCHISEE, and the franchise owner is Malaysian Company Gerbang Alaf Restaurants Sdn Bhd.
Is Gerbang Alaf Restaurants Sdn Bhd. the only franchisee of Mcdonald's in Malaysia - maybe YES maybe NO >> maybe there are other Mcdonald's franchisees in Malaysia... we do not know? Uncertain here..
Being a FRANCHISEE, means that you generally do not have total independence to do as you please - and you have to follow what the FRANCHISOR(McDonald's) want - and that could also include the position that they take with regard the Palestinian Issue or other human rights issue.
In most franchise agreements, the franchisor will or do receive directly or indirectly what the consumer spends at a McDonald's outlet. Hence, taking imposing an 'economic sanction' by State or even the ordinary lay consumer is acceptable. One expression of protest by the consumer is BOYCOTT...
Today, when there is a human rights violation in a factory - it is no longer seen as just the factory's responsibility - but the entire supply chain. So, it is common to see protests and even 'calls for boycott' at major outlets like H&M,etc when workers in some factory that supplies H&M have their rights violated.
It was indeed a sad day when McDonald’s Malaysia sued a Malaysian movement promoting boycotts against Israeli interests(the BDS, a pro-Palestinian Malaysian coalition) for RM6 million in defamation damages,etc it received international media attention.
A statement of claim dated Dec 19 was filed by McDonald’s Malaysia, through the franchise owner Gerbang Alaf Restaurants Sdn Bhd.
It seeks an unconditional apology from BDS Malaysia within 48 hours and RM6 million in damages, comprising RM3 million for loss of revenue, RM1.5 million for employees who were laid off and RM1.5 million for expiry of materials.
Gerbang Alaf Restaurants also seeks an injunction against BDS Malaysia from its calls for a boycott of McDonald’s Malaysia, among other franchises, allegedly for “colluding with Israel in the genocide of the Palestinian people”.
Gerbang Alaf Restaurants Sdn Bhd is most likely the FRANCHISEE and McDonald's is the FRANCHISOR.
Can the Franchisee take a position different from the position of the Franchisor(McDonald's?)?
Gerbang Alaf Restaurants Sdn Bhd - it is a Malaysian company because it is registered in Malaysia, but are the shareholders even Malaysians or is it in fact a 'foreign company' - who are the Directors? Well, I could not find any info on the net..
The extend of the US support not just for Israel, but also Israeli Settlements in Occupied Territories like West Bank is shocking- Laws have been enacted, that effectively 'prevents' the people in US from participating in boycotts related to Israel...
'Since 2016, 28 states have passed laws requiring individuals and businesses that receive government contracts – from substitute teachers to construction workers — to certify that they will not participate in boycotts of Israel or Israeli settlements in the West Bank. My client, the Arkansas Times, was asked to sign such a certification in order to renew its advertising contract with a state technical college. Although the Arkansas Times does not boycott Israel, it refuses to be bullied by the state into disavowing its civil liberties. As Alan Leveritt, the publisher, put it: “If we signed the pledge, I believe, we’d be signing away our right to freedom of conscience. And as journalists, we would be unworthy of the protections granted us under the First Amendment.”
These anti-boycott laws have affected Americans from all walks of life. A teacher in Kansas was told that she could not participate in the state’s teacher-training program because she refused to sign the anti-boycott form. A lawyer in Arizona was told that he could not be paid for his work on behalf of incarcerated people because he refused to sign the certification. And a child speech pathologist in Texas lost her contract with a local school district because she refused to sign. Engineers, writers, journalists, and even university students who want to judge high school debate tournaments have all been asked to certify that they do not participate in boycotts of Israel or Israel-controlled territories. One town in Texas even briefly required victims of Hurricane Harvey to sign the anti-boycott certification as a condition of receiving disaster relief funds.' - ACLU WEBSITE
In NAACP v. Claiborne Hardware Co., the US Supreme Court in 1982 unanimously upheld the First Amendment right of Black Mississippians to boycott local businesses in protest against segregation and racial inequality. The decision established that politically-motivated consumer boycotts are fully protected by the Constitution. As a result, today, people of all political stripes can proudly exercise their right to boycott — from right-wing boycotts of companies that support Planned Parenthood to left-wing boycotts of companies that support the National Rifle Association. Now, that long-standing precedent has been called into question.
Should we call on McDonald's Malaysia to withdraw this legal suit????
McDonald’s sues pro-boycott movement for RM6mil defamation damages
However, the BDS Malaysia coalition denies defaming the fast-food chain and said it would let the court decide on the matter.
PETALING JAYA: A movement promoting boycotts against Israeli interests said today it is being sued by McDonald’s Malaysia for RM6 million in defamation damages.
BDS Malaysia said it received a writ of summons accusing the group of defaming the fast-food franchise through its calls for a boycott of McDonald’s Malaysia, among other franchises, for allegedly “colluding with Israel”.
BDS Malaysia said in a statement: “They claim their business has suffered lately and are blaming us. We categorically deny this (defaming McDonald’s Malaysia). We have therefore decided to let the court decide on the matter.”
McDonald’s Malaysia confirmed filing a suit against BDS Malaysia, saying the action was taken to protect its rights and interests.
“While we understand and respect that the act of boycotting is an individual decision, we believe that it should be based on facts and not false allegations.
“We have been transparent and consistent with our communications that McDonald’s Malaysia does not support nor condone the current conflict in the Middle East and like all Malaysians, our utmost sympathies go out to the innocent victims in Gaza,” it said in a statement.
A statement of claim dated Dec 19 was filed by McDonald’s Malaysia, through the franchise owner Gerbang Alaf Restaurants Sdn Bhd.
It seeks an unconditional apology from BDS Malaysia within 48 hours and RM6 million in damages, comprising RM3 million for loss of revenue, RM1.5 million for employees who were laid off and RM1.5 million for expiry of materials.
Gerbang Alaf Restaurants also seeks an injunction against BDS Malaysia from its calls for a boycott of McDonald’s Malaysia, among other franchises, allegedly for “colluding with Israel in the genocide of the Palestinian people”.
The statement also made reference to several posters which included McDonald’s Malaysia’s logo which were shared by BDS relating to companies allegedly “profiting from the genocide”.
“There were also incidents where the plaintiff’s employees were threatened and shamed on social media,” Gerbang Alaf Restaurants said.
BDS Malaysia, an independent coalition of various organisations and individuals is part of the worldwide Palestinian-backed boycott, divestment, and sanctions movement which calls for a boycott of Israeli and international companies involved in the violation of Palestinian rights.
Franchises such as McDonald’s and Starbucks have faced calls for boycotts in Malaysia over alleged links with Israel.
In October, it was reported that the 21,000 workers of
McDonald’s Malaysia were facing uncertainty following the boycott
campaign. - FMT, 29/12/2023
Mcdonald's announces new developmental licensee for M'sia & Singapore
KUALA LUMPUR: McDonald’s Corporation today announced Lionhorn Pte. Ltd as the Developmental Licensee (DL) for its Malaysia and Singapore markets.
In a statement, McDonald's said Lionhorn is led by Sheik Fahd and Abdulrahman Alireza, who bring 20 years of experience as the DL for the nearly 100 McDonald’s restaurants in the Western and Southern regions of Saudi Arabia.
"This transaction marks another milestone in our company’s ongoing efforts to identify strategic partners, who share our values, vision to accelerate growth and scale across diverse markets as well as drive innovation.
"It places us closer to our customers and the communities we serve," said McDonald’s President and Chief Executive Officer, Steve Easterbrook.
The new DL assumed ownership of the McDonald’s business in Malaysia and Singapore on Dec 1, 2016, which includes a total of 390 restaurants, more than 80 per cent of which were company-owned.
Financial terms of the transaction were not disclosed.
Under the DL structure, McDonald’s transferred its ownership interest in McDonald’s Malaysia and Singapore and granted a license to the DL to run McDonald’s restaurant operations in these markets.
The DL partner will provide the capital necessary to support and grow the business and will pay an initial franchise fee and an ongoing royalty to McDonald’s.
Leading the day-to-day management of the Malaysia and Singapore markets, respectively, will be local operating partners Azmir Jaafar and Kenneth Chan, both of whom previously held senior leadership positions at McDonald’s and together possess over 40 years of experience.
"Local leadership and market knowledge will be key to driving business success in Malaysia and Singapore," said Azmir Jaafar, Operating Partner and Managing Director McDonald’s Malaysia.
This announcement, McDonald's said, follows a rigorous evaluation and selection process over the past year.
As part of its turnaround plan announced in May of 2015, McDonald's said it is committed to refranchising 4,000 restaurants by end-2018 with the long-term goal of becoming 95 per cent franchised.
With this transaction, McDonald’s has now refranchised about 1,300 restaurants. -- BERNAMA, NST, 2/12/2016
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