A picket this morning by workers representing the Sarawak Forestry Department Employees Union (UFES) marred the official launch of the newly-established Sarawak Forestry Corporation (SFC) Sdn Bhd.

The workers, who are mainly employed on contract, are uncertain about their job prospects following the creation of the company to take over most of the management functions of the Forestry Department.

Some 100 placard-carrying union members picketed outside the hotel in Kuching where a media conference was being held to announce the official start of the company's operations.

Speaking to reporters, SFC deputy chairman Abdul Rahman Hamzah reiterated that none of the Forestry Department staff affected by the corporatisation exercise would be forced to resign or retrenched.

Job losses

However, he admitted that, of the 2,000 employees, only 250 had been absorbed by the SFC. Among those who were left out were many workers who are employed on contract or daily-paid basis.

While Abdul Rahman indicated that the rest would be taken in gradually, he could not say how long the entire process would take.

The 1,200-strong UFES has staged pickets a number of times throughout Sarawak since the state government first announced the transfer of key functions of the Forestry Department to a corporatised body three years ago.

Abdul Rahman is permanent secretary to the Ministry of Resource Management and Planning, which oversees forestry matters in Sarawak.

The Forestry Department will now handle only the licensing of forest concessions, leaving SFC to manage the state's timber resources on a purportedly long-term sustainable basis.

Sarawak's forests yield some RM6 billion worth of timber exports annually, largely through finished products such as plywood, veneer and moulding and round logs.

Its timber trade is controlled by several conglomerates, many of which are listed on the Kuala Lumpur Stock Exchange.