BSMH 3013Industrial RelationsSem:A_____Class Grp: ______Case Study: ____

Date: _______Small Group:______

Names :Matric No:

The economic downturn has badly impacted Syarikat Moonlight Sdn. Bhd. and has led to the decline of 50% in the company's profit. To ensure the company's continuous existence, they have decided to restructure the departments in the company. The decisions taken by management will involve the retrenchment of 20% of senior employees who have worked for the companies for more than 20 years. This is seen as a greater cost reduction strategy as the senior workers are paid higher salaries. The 20% workers involved are not satisfied and have been on strike because they felt that their termination was on unfair basis and they plan to bring the case to the arbitration level.

Based on the above scenario:-

Justify your answers based on the relevant sections and acts outlined under the Malaysian Labour Laws. Write the answers under each respective questions.

a.State the steps to be taken by the company to ensure that the retrenchment procedure done is seen as a fair act as outlined by The Codes of Conduct for Industrial Harmony 1975. (50 marks)