ECRL contractor confirms staff layoffs

PETALING JAYA (July 23): China Communications Construction (ECRL) Sdn Bhd (CCC-ECRL) has confirmed that it is rationalising its staff count following the suspension of the East Coast Rail Link (ECRL), without stating the number of employees cut.

In a statement today, the company said the affected staff were from non-critical departments and it has retained a "consideratble number of local staff to secure work sites", in accordance with asset owner Malaysia Rail Link Sdn Bhd's request.

"This rationalisation exercise has been carried out in accordance with the employment contracts between the staff and CCC-ECRL, and is also in compliance with all international and Malaysian laws and regulations.

"All affected staff have been compensated fairly and according to prevailing contracts," it said.

CCC-ECRL has also offered its other staff pay reduction and non-pay leave.

"We are hopeful that the suspension of work is only temporary. We wish to continue extending our cooperation and assistance to the Malaysian government and other related authorities during the review of this project. We look forward to the lifting of the work suspension order as soon as possible," it said.

Channel News Asia had earlier reported that half of its 2,000 employees were let go and quoted a local manager as saying she had no choice and that most of the affected staff were locals.

The news outlet also said just 30% of its workforce were foreign.

A source told The Star that the staff were mostly unskilled workers who could be hired again at any time.