Journalists who were retrenched on Jan 11 without prior notice by the Sun Media Corporation have been offered settlement payment by the end of the month if they agreed to severance terms stipulated by the dailys management.

National Union of Journalists-Sun branch chairperson K Kannan told malaysiakini today that he is aware that the dailys management had offered several retrenched journalists an immediate payment if they accepted the terms stated in their retrenchment letters.

The payment would be on the condition that it represents full and final settlement as to any other claims, he said during a telephone interview.

However, Kannan added that he had not been personally told of the offer although he had heard that such things have taken place.

Selective offer

Another former journalist with The Sun said that the management had made the offer selectively via telephone calls to several former employees as well as information by word of mouth.

The journalists are also asked to withdraw all outstanding legal actions filed at the Industrial court and to sign an indemnity clause, said the journalist.

Sources say about half of the 26 NUJ members who were among the 42 laid off on Jan 11, had accepted the deal. The remainder, who are non-union members, are also said to have signed for the package.

According to NUJ general secretary Hong Boon How, the management cited financial difficulties as the reason they could not improve on the settlement terms during a March 7 meeting between the two sides chaired by Industrial Relations Department officer K Kesavan.

During the meeting at Putrajaya, the dailys managing director Philip Karuppiah repeated the managements offer to those sacked on Jan 11 as including retrenchment benefits of one-and-a-half-month pay for every year served for those employed for more than five years, or one-month pay for every year served for those employed less than five years.

The management also offered to pay all bonuses, overtime and claims for the year 2001.

Earlier, the NUJ had asked for compliance to collective agreement terms which included retrenchment compensation comprising 12 months full salary for the journalists sudden dismissal and one month bonus for 1998 which is part of the annual two-month contractual bonus owed to them.

The union also demanded for their retrenchment benefits to be based on a revised 2002 salary to take into account annual increments as well as continued payment of wages until the full settlement of all sums owing to those sacked.

Up to members

When asked, Kannan said that the union will not be telling its members whether to accept or reject the deal.

It depends on their individual stand. They, too, have lives to go on with and they decide if it is appropriate or timely to accept the offer, he said.

The unions stand [remains that] the management should have paid the increment and 1998 bonuses, he added.

Meanwhile, Hong asserted that the case filed by retrenched journalists at the Industrial Court will continue since the management does not intend to improve on the offer for compensation.

Our lawyers have informed us that the union has a good chance of succeeding, he said, adding, however, that the case may go up to years.

Hong also questioned the manner in which the offer was made by the management.

When the company made the counter-offer, they refused to put things down in black and white. The offer was read out during the meeting and recorded only as the minutes of meeting, he explained.

It would be better if we have a copy (of the offer terms) as assurance that a firm commitment has been given by the management, Hong added.

Karuppiah could not be reached for comment on the matter.

Plot

Trouble began to dawn on The Sun when the daily published a front-page report of a plot to kill the countrys top two leaders.

The Dec 25 report was at first brushed off by Prime Minister Dr Mahathir Mohamad but criticised the following day, and this prompted the management to disclaim the report. Several, including senior editorial staff, were suspended; two resigned on their own accord.

Following this, journalists of the beleaguered daily took to the streets calling for the reinstatement of their colleagues and payment of their bonuses.

On Jan 11, the management retrenched more than 40 employees citing financial reasons. But the axed staff claimed that picketers and union members were deliberately targeted.

More than a week later, it was announced that fledgling media company Nexnews intends to buy a substantial stake in The Sun .

On Feb 28, the company sacked 256 of its remaining 411 staff in one of the biggest retrenchment exercises in the countrys journalistic history.

The paper, with a circulation of about 82,000, has suffered an estimated loss of RM200 million since its inception in 1993.