Following the dismissal of 19 contract staff of PKNS Holdings Sdn Bhd (PHSB) last Monday, there has been much focus on the company and the crisis that has resulted.

Here, we just touch on the background to the events that followed.

PHSB was formed to help supply talent or individuals to ensure that PKNS is able to compete with other private companies in the state.

A former PHSB staff told Malaysiakini that the main function of the PKNS subsidiary company was, following Othman Omar's appointment as general manager on Feb 1, 2009, to implement a new direction for PKNS.

Speaking on condition of anonymity, the former staff, who served with PHSB and PKNS, explained that PHSB is to help PKNS generate higher profit.

This came after Selangor Menteri Besar Abdul Khalid Ibrahim directed PKNS to compete openly and on a level playing field, unlike its previous role under the Umno-BN regime.

“The difference is that PKNS is governed by an enactment, unlike PHSB. Hence, it has the task of improving the economy and being an agent of Selangor's development in building affordable housing.”

“The advantage PKNS has is that it has a huge landbank, but since 2008-2009, it has been required to pay the price and premium, like any other private company.

“Hence, PKNS has to compete to get talent from the private sector and pay them according to the salaries in that sector, which are not based on the government scale,” the senior PHSB staff explained.

Contract staff experts in their fields

The contract workers employed by PHSB are therefore experienced in their respective fields and are successful professionals.

It is illogical, the staff member said, to claim that hiring contract staff for PHSB results in a loss to PKNS as they helped the government-linked corporation to make a profit of RM400 million a year.

“In 2011, PKNS has received the highest profit under Othman, resulting in staff getting seven months’ bonus. It must be remembered that permanent staff get the bonus, while the contract workers are given a nominal sum,” he said.

The contract staff in PHSB do not even get housing and critical allowances, or the cost of living allowance and medical benefits that the PKNS staff are given.

On Tuesday, it was reported that PKNS group human resources division head Rina Sarif , who also had her contract terminated, said that they have contracts of between six months and two years remaining before being given the boot. 

“I was human resource manager for 18 years. Where is there such termination like this? This is not 24 hours’ notice of termination as it was done immediately. Contracts are supposed to be the livelihood of the workers.

“Where are contracts like this (instant termination)?” Rina said.

Khalid last Thursday denied that he acted heartlessly in terminating the contracts of the PHSB staff as some of them are getting high compensation.

“If we were heartless, we would not give two months’ (wages as) compensation. Some are getting more than RM60,000,” Khalid had said, adding that the termination was a cost-cutting measure to save RM7 million for PKNS as there was duplication of posts between contract and permanent staff.

However, those who were terminated disputed the figure, saying that their total wage allocation was only RM2 million last year.

“As comparison, the salaries of the PKNS (permanent staff) were about RM70 million during that same period. The overhead costs of PKNS in 2013 was more than RM150 million.

“Is the austerity move at the expense of the loyal workers and their families?” asked PHSB senior marketing manager Aliff Aiman Abdullah ( right ), who is leading actions initiated by those who were sacked.

Malaysian Trades Union Congress deputy president Abdullah Sani Abdul Hamid, who was among the first workers’ leaders to meet the affected PHSB staff, described the state action as truly heartless and said it constituted a betrayal, for which Khalid should be replaced as Selangor menteri besar.