PKNS: Immediate Terminations of staff violated proper procedures - RM2million per year and not RM7million

A group of 22 former contract employees of Selangor subsidiary PHSB have claimed that their employer violated proper procedure when it abruptly terminated their contracts on February 4.

In a statement today, the group claimed that they were called into an unscheduled meeting that morning and each of them were then given their termination letters, stating that it was with immediate effect. They claimed to have not even received a notice of 24 hours.

Spokesperson for the group Dr Alif Aiman Abdullah also challenged the official reason given for their termination, which was that it was part of a re-structuring exercise by PHSB and parent company PKNS.

Alif Aiman said none of the usual processes involved in a corporate restructuring exercise, such as developing process flows, assessing manpower needs, and revenue and cost projections, were done either by the senior staff of PKNS or PHSB.

“Where are the above reports? No handover procedures were followed, no replacements announced. Staff were simply asked to immediately leave the premises,” he said.

“The explanation that this shameful act was conducted as part of a restructuring exercise therefore holds no credibility and is seen as yet another sham,” said Alif Aiman, who is former head of marketing of PKNS.

He said all PHSB staff were seconded and placed in positions within the parent company PKNS, the Selangor government’s development arm.

Two days after they were terminated, Selangor Menteri Besar Tan Sri Abdul Khalid Ibrahim defended the move, saying it would save the company RM7 million a year.

Abdul Khalid said the termination was above board and according to procedures as stated in their contracts. The employees would also be given two months' severance pay.

Abdul Khalid said the termination of the employees was in line with the integrity pact policy implemented by PKNS to ensure good corporate governance.

Those dismissed were asked to reapply to PKNS later and would be deployed according to its needs.

The move was criticised by Malaysian Trades Union Congress (MTUC) deputy president Abdullah Sani Abdul Hamid, who described the sudden termination as "cruel" and accused the corporation of violating the law.

Alif Aiman also refuted claims that the company would be saving RM7 million from the exercise, claiming that the salaries of the 22 last year only amounted to RM2 million.

“PHSB have helped them reap hundreds of millions of ringgit each year since joining PKNS, yet do not share in most bonuses or perks. Where is all this money being used?

“Where does PKNS get its RM7 million ringgit cost for PHSB staff from? Their salaries for 2013 were only RM2 million. By comparison, PKNS staff salaries were about RM70 million for the same period.

"PKNS overheads for 2013 was over RM150 million. Were there any cost savings made before putting key loyal staff and their families in hardship?” he asked.