AS giant megastore Robinson Co (Malaya) Sdn Bhd closed its operations in Malaysia last year due to poor sales triggered by the COVID-19 pandemic, a union leader alleged that the company shuttered without giving proper notice and compensation to its employees.
“In 1975, we signed a tripartite Code of Conduct between the Government, employers’ group and unions on how to deal with issues such as labour and retrenchments.
“So, there is a procedure on how to close down businesses but from what I was told, Robisons’ employees were not in the loop (about the business shutdown) until it was too late,” UNI-Malaysia Labour Centre (UNI-MLC) president Datuk Mohamed Shafie BP Mammal told FocusM.
Based on a termination letter issued to one if its employee by liquidator Datuk Robert Teo of RSM Malaysia that was sighted by FocusM, the staff was informed that Robinson would settle all outstanding salary, approved claims, commissions and overtime by Nov 30 last year (being the last working day).
It added that it would further settle unused annual leave via payments before Dec 31 last year.
“Please be advised that pursuant to Section 527 of the Companies Act 2016, any unsecured claims against the company will only be paid after claims of the preferential creditors have been discharged in full,” the notice said.
However, Shafie was unimpressed by the notice and accused the Government of failing to protect workers’ rights, especially when the economy was sluggish in view of the current health crisis.
“Companies are supposed to inform the labour department before conducting such exercise. What is the Human Resources Ministry (MOHR) doing?
“From what I understand, Robinsons’ staff were left unaware of what was happening. The company owners quietly handed over the matter to the liquidator to handle it. Imagine their employees’ surprise when all of sudden, their bosses went missing and the liquidator have taken over,” he claimed.
What is MOHR, MITI doing?
Shafie said that as soon after the liquidator stepped in, Robinsons’ employees were served with termination notices without any retrenchment benefits.
“The least Robinsons’ owners should have done it to inform its employees and be transparent with them before making such decision. I believe this not unique. Many companies have closed down during the pandemic without offering proper compensation to its staff,” he added.
In urging MOHR to investigate the matter, Shafie queried what happened to monies offered under the Wage Subsidy Scheme for these companies that closed their shutters during this trying times.
“The International Trade and Industries Ministry (MITI) should also look into this. It was they who offered multinational companies such as Robinsons’ license to operate in Malaysia,” he remarked.
FocusM is in the midst of seeking clarification from Robinsons’ liquidator with regard to the matter.
Robinsons’ established its business in Malaysia back in 1928 by setting up its first outlet at the present-day site of the OCBC Bank head office located by the Masjid Jamek LRT station on Jalan Tun Perak.
The 160-year-old business stood firm against the ravages of two World Wars and the Great Depression before bowing out due to COVID-19. – Jan 24, 2021.
