Some 800 former workers of Nikko Electronics, who were part of the 950 people who lost their jobs overnight after the company closed down its Penang factory in July, have brought their matter to the Labour Court.
They are seeking retrenchment compensation amounting to RM6 million, comprising the termination benefits, and salary in lieu.
The Butterworth Labour Court has fixed a date of 23 September 2008 for the hearing of the case, a new date as the company has failed to fulfill its promise in completing the necessary calculation of the total amount payable.
On 1st July 2008, Nikko Electronics, a company listed on the main board of the Bursa Malaysia, closed down its factory in Prai, Penang unprecedentedly as the company was sent into financial difficulties. It has been losing money for 3 consecutive years and decided to end its 20 years of presence in Prai.
It came as a surprise for close to 1,000 workers who came to the factory in the morning and suddenly found themselves out of jobs. Instead of given a job instruction, they were given the termination letter, leaving most of them in shock. The last-minute decision by the company also created a furore as the workers were not notified in advanced about the closing down, as required by the employment law in malaysia.