A US-based microchip company in Kuala Lumpur stands accused of unfairly dismissing 16 security personnel and outsourcing the security services to a professional company.

The workers, some in service for more than 20 years, claim that they were only given a very short notice - five hours - and were not given any opportunity to negotiate their retrenchment benefits.

The company, ChipPac (M) Sdn Bhd, told the retrenched workers that it had decided to out-source the security department for reasons of "efficiency and standardisation with our sisters companies worldwide".

"We were called to the human resources department at about 8am on July 15 and by 1pm, each of us were given a letter terminating our employment services," said the group's spokesperson Mohd Pathyhi Muhammad.

"There were no discussions or negotiations. The termination letter states that our termination benefits will be in accordance with the law," he added.

The termination letter, a copy which is obtained by malaysiakini , contained the reasons for the termination - efficiency and standardisation - as well as termination benefits calculation which averages about RM20,000 per worker.

Escorted out

The company also offered to assist the workers to gain employment with the professional security outfit that was contracted to provide security arrangements beginning July 16

However, Mohd Pathyhi said the workers had refused this offer as the benefits at the company were not the same as what they had enjoyed with ChipPac.

"What we really want is our old job back. We are disappointed with the manner the company laid us off," he added.

"What is more hurting is that immediately after giving the termination letters, we were made to hand over our company badges, locker keys and uniforms on the spot and then escorted out by a HR department official."

He added that their next step was to lodge a complaint to the Industrial Relations Department within the next 60 days as allowed by the law.

Pickets

In the meantime, the workers have decided to picket in front of ChipPac to gain publicity. They conducted three pickets yesterday, and Mohd Pathyhi said this will continue.

ChipPac officials are not available for comments with HR director Mohammad Fuad, who signed the retrenchment letters, being away at meetings.

ChipPac's website proclaims itself as one of the world's largest and most diversified providers of semiconductor assembly and test services with factories in Korea, China, Malaysia and the United States.