ALOR SETAR: A total of 20 former employees of Kedah Agro Holdings Berhad (KAHB) received compensation ranging from RM6,000 to RM30,000 following the announcement of the company's closure yesterday.
Kedah Menteri Besar Incorporated (MBI) chief executive officer Zafir Annuar Ghazali said the payments were made according to the termination notice based on their respective contracts.
He said the payments were also in accordance with the agreement reached between MBI and the Malaysian Trades Union Congress (MTUC) during discussions at the Industrial Court on April 2.
"I have fulfilled the promise to pay the previously agreed compensation.
"In the next two to three months, former employees will receive their outstanding salaries," he said in a statement today.
Earlier, a brief ceremony was held for the handover of cheques to former KAHB employees at Wisma Darul Aman.
Zafir said they would also strive to secure new jobs for the 20 former KAHB employees as a sign of MBI's concern for their welfare.
"After this, I will discuss with subsidiaries or groups such as the Kedah State Development Corporation (PKNK) to provide job opportunities for former employees," he said.
Yesterday, in confirming that financially troubled Kedah Agro Holdings Bhd had ceased operations Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor said any uncompetitive state-owned companies would have to go.
He also confirmed that termination letters were issued to some Kedah Agro Holdings employees.
According to the letter, which has gone viral since early this month, the board of directors, in a special meeting on Mar 17, had decided to terminate the services of its employees effective March 31.
According to the letter, the company would be paying the employees' dues and other benefits stipulated under the law.
On March 13, it was reported that a notice had been submitted to Kedah Agro Holdings to clear salary arrears of up to nine months.
The company had allegedly not paid its employees' salaries since last September, a violation of Section 19 of the Employment Act.
Human Resources Minister Steven Sim said Kedah Agro Holdings would pay around RM560,000 before Hari Raya Aidilfitri after the decision was made at the recent board of directors meeting.