AAM staff to be paid on Oct 31

> Man­age­ment gives new time­line to set­tle back­dated wages


SHAH ALAM: Even af­ter more than two months, the em­ploy­ees of the Au­to­mo­bile As­so­ci­a­tion of Malaysia (AAM) and its sub­sidiaries have yet to get their back­dated salaries.

The salaries were due on Oct 17, but the man­age­ment had cited “un­avoid­able cir­cum­stances which was be­yond ex­pec­ta­tion”, as the rea­son for not be­ing able to pay the salaries on time.

How­ever, the man­age­ment has now pro­vided a new cut-off time, and the pay­ment will be made on Oct 31.

An in­ter­nal cir­cu­lar bear­ing the sig­na­ture of AAM’s chief ex­ec­u­tive of­fi­cer, Eu­gene Tay, dated Oct 14, sighted by theSun re­vealed that em­ploy­ees of the as­so­ci­a­tion’s head­quar­ters and branches na­tion­wide as well as its sub­sidiaries — AAM Travel Plan­ners Sdn Bhd, AAM Mo­tor­sports Sdn Bhd and AAM Au­to­mo­tive Cen­tre Sdn Bhd — have still not re­ceived their July salaries.

Tay had also urged staff, through the cir­cu­lar, to be pa­tient with the man­age­ment, which was try­ing to solve the is­sue.

On Aug 17, dozens of em­ploy­ees pick­eted out­side AAM’s head­quar­ters in Shah Alam over un­paid wages and Em­ploy­ees Prov­i­dent Fund (EPF) con­tri­bu­tions, which had not been re­mit­ted for close to a year, theSun re­ported. In a sub­se­quent re­port on Aug 18, it was re­ported that the mo­tor­ing as­so­ci­a­tion was plan­ning to sell its head­quar­ters to bail it­self out of mount­ing debts and fi­nan­cial woes, which in­cluded un­paid salaries.

Ac­cord­ing to the same re­port, AAM chair­man Tunku Mudzaf­far Tunku Mustapha said the EPF con­tri­bu­tions would be set­tled once the sale of as­sets was fi­nalised.

He also said the sit­u­a­tion was be­cause al­most 90% of the branches were los­ing money.

How­ever, the sale of the head­quar­ters was called off af­ter mem­bers ob­jected to the move at a spe­cial gen­eral meet­ing held on Oct 3.

Pre­vi­ously, theSun was told by EPF that AAM had not re­mit­ted con­tri­bu­tions since Novem­ber last year and le­gal ac­tion had been ini­ti­ated.

The as­so­ci­a­tion, which has been around for more than eight decades, has RM4.5 mil­lion in debts. An­nual re­ports showed that AAM had been run­ning on losses for close to a decade.


Rows of taxis at a yard in Seri Kem­ban­gan, Se­lan­gor.

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