Kula: Utusan to face legal action over unfair treatment

KUALA LUMPUR:

Legal action will be taken against Utusan Melayu (M) Bhd which left its employees in a lurch with a sudden notice that it was ceasing operations and moving towards liquidation, says the Human Resources Minister.

M. Kulasegaran (pic), who was asked whether it was fair for Utusan to serve its employees such short notice, said the company had flouted the law.

“They must follow the law. They have not followed the law. So we must take the necessary action,” he told reporters at the PLWS 2019 Awards Day Human Resources Minister’s Cup at a hotel here yesterday.

On Wednesday, 862 employees of the Utusan media group were informed of the company’s decision to cease operations.

With neither a termination letter nor a job offer for the workers, they were also asked to vacate the building by 1pm on Wednesday, with the company still owing them two months’ salary.

Utusan executive chairman Datuk Abd Aziz Sheikh Fadzir said that poor cash flow, mounting debts and declining sales led to the board of directors arriving at the decision on Monday.

Prime Minister Tun Dr Mahathir Mohamad said yesterday that some of the previous employees would be rehired by the new management taking over Utusan.

“Utusan will be managed by a new company that will take it over. As far as the workers are concerned, some of them will be taken back to work with the new Utusan,” he said.

It was announced that Aurora Mulia Sdn Bhd had acquired a 70% stake of Utusan-owned Dilof Sdn Bhd, which is the company holding the printing permits for the four newspapers under the Utusan group – Utusan Malaysia, Mingguan Malaysia, Kosmo! and Kosmo! Ahad.