The 70 workers of an electronics company who picketed for about a week to protest the company's refusal to acknowledge their union and other demands have had a 'happy ending'.

The workers, employees of Swedish mobile phone manufacturer Ericsson which was recently taken over by US-based Flextronics Technology, were suspended for their union activities when they started picketing on April 29.

However, today they were not only reinstated with full pay but also had their local branch of the Electrical Industry Workers Union (EIWU) union recognised by the firm's new owner.

When contacted, Flextronics Shah Alam Sdn Bhd human resources manager Norbaya Sarif confirmed the dispute between the union and the company has been resolved.

Marketing and communications manager Nina Pusadas however claimed that the company did not refused to recognise the union as alleged by the workers.

"We never said that we will not recognise the union. Due to a change of entity Ericsson Mobile Communications Sdn Bhd to Flextronics there are certain requirements by law for the union to re-apply for recognition," Pusadas told malaysiakini today.

"We are just waiting for them to re-submit their application," she added.

Pusadas also said the picket was "not representative of our employees". She claimed that those who picketed were not workers of Flextronics.

The workers were caught in a bind when the company changed hands. Under Ericsson, the workers were allowed to join the EIWU. The problem arose because Flextronics is categorised as an electronic, not electrical, company of which there is no national union.

No response

EIWU secretary-general T Manyam said the union decided to picket after several letters detailing the workers' laments sent to the Ministry of Human Resources since December last year failed to get any response.

"After the picket, the Industrial Relations Department under the HR ministry called for a meeting between the workers and the management," he said.

"After a three-hour meeting which took place in Putrajaya today, the company agreed to reverse the suspension of the 70, give them back their pay, recognise the union and honour our contractual agreement," he added.

Meanwhile, the Malaysian chapter of Geneva-based International Metalworkers' Federation in which EIWU is a member defended the workers' action.

The federation's general-secretary, N Gopalkrishnan, said Flextronics had refused to recognise not only the union but terms and conditions under the workers' contractual agreement, previously endorsed by Ericsson.

"The employees enjoyed better working environment, terms and conditions while at Ericsson Why should worker protection be removed [when companies change names]?" he queried, in a press statement to malaysiakini today.

Several union leaders have also hailed the efforts of the workers to fight for their rights and said that the picket "worked wonders".

Flextronics is a leading global provider of electronic manufacturing services, with about 1,500 workers in Malaysia. It has offices in 27 countries across four continents.