Perwaja allowed to quash case referred to Industrial Court


KUALA LUMPUR: The High Court has allowed steel manufacturer Perwaja Steel Sdn Bhd, on Friday, to quash the Human Resources Minister’s decision to refer the dismissal of 895 workers to the Industrial Court.

Justice Hanipah Farikullah ruled the Minister had failed to consider that Perwaja Steel had ceased operations at Kemaman, Terengganu.

“It is impossible for the workers to ask for reinstatement,” she said. “The minister failed to consider the evidence before him.”

“The factory had closed down as a result of financial restructuring.”

She added the Minister knew the factory had shut down. “It’s not within his powers to refer the case to the Industrial Court.”

Justice Hanipah said the aggrieved workers can take other action against their former employer.

No cost was ordered.

Speaking to reporters after the proceedings, the workers’ lawyer Mohan Ramakrishnan said he had advised his clients to file an appeal.

Perwaja Steel filed a judicial review on December 28 last year, seeking to quash the Minister’s decision to refer the workers’ complaint to the Industrial Court.

The steel company also sought a prohibition order against the Industrial Court hearing the workers’ dismissal complaint.

It was previously reported that Perwaja Steel shut down its’ Kemaman factory operation and laid off 1,500 workers.