Courier Firm Workers Say They Were Terminated Without Pay
Are You Hiring?
Find candidates in 72 Hours with 5+ million talents in Maukerja Malaysia & Ricebowl using Instant Job Ads.
Hire Now
A total of 680 employees of a leading courier service provider in the country, Nationwide Express, received notice of termination of employment starting tomorrow until January 24.
Some of them, who have worked for more than 30 years, said they would be phased out without compensation.
Staff say they were not paid in full
An employee, Mohd Hezri Rusli, 42, received a notice on December 1 last informing him that the date of termination of his employment would be effective on January 24.
He has been a driver for the past 13 years and said that the company did not pay the salary in full.
"Suddenly, on December 1, we all got a notice that our jobs were terminated. Some will expire tomorrow, December 22, and some end on January 24.
"I don't think it's fair for the company to give us a termination notice like that without the company specifying to pay compensation or the like to us.
"If we no longer work at this company, what other work can we find in a short period and the age is already beyond the requirements of other companies?" he told the media after meeting with the Selangor Industrial Relations Department.
Employees refer to the Department of Labour
According to Mohd Hezri, in the meeting, they were asked to refer to the Selangor Department of Labour (JTK) by filing a claim for the company's actions against them.
He said if the company promised compensation payments, it would be considered to ease the burden of all the workers who will quit from tomorrow until January 24. Still, they were informed that they would not receive any payment.
"This is why we came here, hoping to claim our rights, but the department informed us to refer to JTK Shah Alam.
"We hope this problem can be solved soon, considering the current cost of living is very high, and we don't have a regular source of income to support the family," he said.
Accompanying the group at the protest were representatives from the Malaysian Trades Union Congress (MTUC) to represent them in discussion with ROS officials.
Workers to establish a committee
According to Kamarul Baharin Mansor, the secretary-general of the MTUC, ROS representatives advised employees to take their cases to the Labour Department since the ROS could not assist them.
"To have their requests heard by the labour department, the workers have now chosen to form their committee.
In addition, Kamarul expressed the expectation that by doing this, they would draw the government's attention, specifically the Ministry of Human Resources, which would intervene on their behalf.
Nationwide Express ceases operations
In Malaysia's tough and competitive operating situation, Nationwide Express Courier Services Bhd is the latest last-mile delivery service to cease operations.
Following filing a winding-up petition, the company announced in a statement that it is currently taking procedures to discontinue business operations gradually.
The firm's head of strategic sales and marketing, Syahrindah Azman, explained in a statement that the petition for winding up the business might eventually result in the stoppage of business and operations, which would ultimately lead to the closure of the entire company.
One of the top courier companies in the nation was Nationwide Express, which was established by the late billionaire Tan Sri Basir Ismail. Its beginnings date back to 1985.
The company announced in the statement that it would stop operating as of December 15.
"We wish to put on records that we have always valued the business relationship between us over the years, and once again wishes to thank you for your support," Syahrindah said.
On its website, Nationwide Express lists 1,100 dedicated workers, more than 300 vehicles in its fleet, and 500 motorcycle couriers. With 150 branches and agents across Malaysia, Singapore, and Brunei, it can handle more than 40,000 parcels daily.
The current landscape of the courier industry
The announcement by Nationwide Express came shortly after KTM Distribution Sdn Bhd, which had operated in the courier and logistics industry for 38 years, announced that it would cease operations on November 1.
According to KTM Distribution, the closure of its business was part of a restructuring effort.
CJ Century Logistics Holdings Bhd, previously known as Century Logistics, is another firm that has left the last-mile delivery business. Last year, it sold its loss-making courier subsidiary for roughly RM7.5 million.
Despite the Covid-19 pandemic's explosive rise in demand for courier and last delivery services over the past three years, many e-commerce platforms outsource their services to delivery companies, and other players like GDEX Bhd and Pos Malaysia Bhd have experienced consecutive quarters of losses.
In Malaysia, the last-mile delivery market operates in a highly competitive setting, with 122 licences for couriers have been issued. In contrast, Indonesia has 42 courier licences despite having a population of 273 million, while Thailand, which has a population of 70 million, has only issued half as many as Malaysia.
Visit the HR Library to acquire all relevant HR resources.
Contact here for more information on hiring employees.