LGE: Those losing jobs over MMC-Gamuda contract termination can be re-hired

KUALA LUMPUR: Lim Guan Eng today played down concerns of potential job loss following Putrajaya’s termination of MMC-Gamuda’s contract to build the underground portion of the MRT Line 2 (MRT2).

The finance minister said a majority of those affected by the contract termination could be re-hired by the new contractor.

Yesterday MMC-Gamuda said the termination would result in “immediate job losses” to over 20,000 people involved in the project from a supply chain of over 600 Malaysian companies.

“If the project continues, many of these workers can be employed when the contract is awarded,” Lim told reporters when met on the sidelines of the “Malaysia A New Dawn” forum here.

On Sunday, after announcing the termination of MMC-Gamuda’s contract, Lim had said all unfinished underground work would be retendered via an international open tender process.

Putrajaya terminated MMC-Gamuda’s contract after the two parties failed to reach an agreement over cost reduction and related issues.

Lim said the decision was made after the government felt it could achieve “further significant savings”, compared with the offer made by MMC-Gamuda, through retendering the underground work package.

Yesterday, MMC-Gamuda said the termination would unjustifiably expose MMC-Gamuda to “a flood of lawsuits for compensation from terminated employees, sub-contractors, suppliers, manufacturers, and so on, whose contracts will similarly be terminated due to no fault of theirs”.