
The announcement was made at an event in Chukai, Kemaman, Terengganu, where he gave out the compensation to the affected workers.
“I am in Kemaman today to give out the compensation to 709 former workers of Perwaja Steel Sdn Bhd, after they were laid off on November 2014,” Ismail said in a Twitter thread.
“Their case, which has been tried in court for more than seven years, is finally over, with compensation amounting to RM8.645 million.”
Each recipient will receive between RM3,000 and RM21,000, he added.
The case on the dismissal of the workers from the steel mill was brought to the Kuala Lumpur High Court.
The company’s mill in Kemaman laid off its workers in November 2014 after it ceased operations.
The workers were told in July 2014 that the company was facing financial problems and it would undergo a restructuring of its business operations.
Speaking at the same function, Ismail said he was confident the new leadership of the Malaysian Trades Union Congress (MTUC) would work with the government in improving the welfare of workers.
“Usually, in terms of perception, labour unions are considered as against employers. When mentioning unions, the people would usually assume unions would not agree with employers and unions would also usually not agree with the government.”
He said MTUC could play an important role in creating a good relationship between employers and employees.
“I also hope the labour unions would work with the government to improve the welfare of workers.”
He said employers also need to ensure a harmonious environment at the workplace is achieved for the benefit of workers.
MTUC secretary-general Kamarul Baharin Mansor said Perwaja had contributed a lot to Kemaman’s development.
“But the way the former workers were retrenched was very sad. They were not paid their salaries for up to six months and not allowed to enter the factory. Only a notice was posted on the entrance of the premises.”