After battling in court since 2014 for unlawful retrenchment, a total of 709 former workers of Perwaja Steel Sdn Bhd finally received compensation totaling RM8.645 million. Prime Minister Datuk Seri Ismail Sabri Yaakob handed over compensation cheques to them, with each getting between RM3,000 and RM21,000.
Perwaja, set up in 1982 under the country’s heavy industrialisation policy, changed ownership several times after running into financial and other problems before it eventually ceased operations.
Many who lived within the vicinity worked at the steel factory only to be told suddenly that they have been retrenched. MTUC Sec-Gen said despite the mill playing an important role for Pahang said “But the way the former workers were retrenched was very sad. They were not paid their salaries for up to six months and were not allowed to enter the factory. Only a notice was posted on the entrance of the premises,”.
With this Malaysia’s black spot 80’s corporatisation scandal could now be closed for good, the Perwaja steel mill was ex-Prime Minister Tun Dr. Mahathir’s brainchild that ended up in mismanagement, corruption, and its eventual failure.