The Human Resource Ministry today said it was "shocked" by claims by workers of Scomi Engineering Bhd (SEB) that they have not been paid their salaries for six months.
Deputy Minister Mahfuz Omar said the non-payment of salaries by employers for such a long period of time was an offence under Section 19 of the Workers Act.
"I watched the press conference by the workers of Scomi Engineering Bhd this morning and I was shocked.
"Under the act, salaries are meant to be paid not later than the seventh of every month. Workers don't have to wait for six months before lodging a complaint," Astro Awani quoted Mahfuz (below) as saying.
He added he has been made to understand the workers had lodged a report at the Labour Department in Rawang and action was expected to be taken soon.
"Unfortunately, Scomi Engineering does not have a workers' union. That is perhaps why they had to act by themselves. We have to look at what had stopped them from having a union in the first place."
At the press conference, the affected workers called for their employer's parent company to act immediately on the matter.
Some of them were reported to be in dire straits to the extent of having to get by by cutting grass or working as e-hailing drivers.
No compromise
The group's spokesperson, Saiful Affendee Mohd Rais claimed that more than 100 workers of the engineering company have not been paid their cumulative salaries, estimated to be around RM1.8 million, since last June.
He also claimed their employer had been deducting the workers' salaries for EPF contributions but not depositing them into their EPF accounts since January last year.
"We have lodged reports against our employers both individually and by groups but the company has failed to settle our salary payments.
"The workers are now being hounded by the Inland Revenue Board (IRB) and banks for pending payments," he revealed.
The episode has rendered most of the workers unable to live normal lives, he said.
"Some had to surrender the ownership of their vehicles, houses or pawn their belongings just to get by and there are several of us on the verge of being declared bankrupts.
"We urge the parent company (Scomi Group Bhd) pay serious attention to our plight and pay us immediately. We will not settle for a compromise and will not work for the company until our demands are met," said Saiful, a veteran of 27 years at SEB.
He hoped the government would intervene in the matter but not blacklist the company so that it can settle its dues to the employees (some seen above).
Restructuring under progress
In a statement to Malaysiakini later, Scomi Group Sdn Bhd said it was undergoing a restructuring exercise to strengthen the group's finances.
Among the measures include placing new shares, it said.
"Scomi is also working towards increasing collections from its customers, especially from SEB's transport sector business.
"SEB is also in the midst of negotiations with several of its clients to sort out several issues regarding outstanding payments.
"Once all these are sorted, the group's finances will improve," said the statement. - Mkini
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