Malaysia: union condemns dismissals at XSD International Paper

PPPMEU won a secret ballot for union recognition on 31 July, securing the support of 63.71 per cent of XSD workers. Following the vote, management reportedly urged union activists to form a company-level union instead, which they refused.

On 11 August, the company announced it was facing a business downturn and issued retrenchment notices to 20 union members. The notices included compensation and payment in lieu of the notice period, with immediate termination of employment.

A clear union busting tactic, the unionists filed a complaint with the Malaysian Industrial Relations Department to demand reinstatement. A further complaint on anti-union discrimination is being prepared.

On 20 August, IndustriALL general secretary Atle Høie wrote to XSD, stressing the blatant violation of Article 2 of the ILO Convention 98 on the right to organize and collective bargaining, which protects workers from acts of anti-union discrimination. He called on XSD to immediately reinstate the 20 union activists and to stop all acts of union busting.

Tom Grinter, IndustriALL pulp and paper director, says:  

“We are disappointed to see the anti-worker behaviour of XSD. XSD must respect its workers’ right to unionize and bargain collectively with the company. We will communicate this union busting case to the network of paper unions and take necessary actions.”

Mohd Firdaus bin Abd Raji, PPPMEU general secretary, says:

“The claim that the XSD is facing a business decline is questionable. Our members said the production activities remain stable and workers are required to do overtime. I urged the company to stop using excuses to retaliate against workers who voted for trade unions. Respect their freedom of association, please!”

XSD International Paper, a subsidiary of Hangzhou Fuyang Sehngda Paper Holding Ltd of China, established operations in Malaysia in 2018 and acquired NTPM Paper Mill (Bentong) in 2020.