JCY International Berhad
28th August 2014
For Immediate Release
Workers Unrest / Factory Fire
Johor Bahru, Johor
We refer to the worker unrest and fire incidence (“the Incidence”) that took place at one of the factories operated by JCY HDD Technology Sdn Bhd (“JCY HDD”), a wholly owned subsidiary of JCY International Berhad (“JCY”), in Kulaijaya District, Johor on 26 August 2014. In relation to the numerous news coverage as well as allegations made by various parties on the Incidence, the Management of JCY wishes to clarify these matters as follow:-
1. JCY HDD’s overtime calculations for daily, rest day and public holiday, both for the hours and rates, are in compliance with Malaysian labour law. JCY HDD had fully complied with Malaysian’s minimum wage requirement of RM900 per month since the first day it came into effect on 1 January 2013. As legally and normally practiced by other companies in the electronic industry, JCY HDD also practices rest day that do not necessarily falls on a Sunday.
2. All salary deductions made by JCY HDD are with approval from relevant government authorities.
3. JCY HDD provides accommodations for its foreign workers, mainly housed in purposed built hostels that are professionally managed by external service providers with all basic amenities included.
4. To ensure its workers welfare, JCY HDD also provides a 24-hour in-house medical clinic at its factories located in Tebrau IV, Johor and appoints external panel clinics for its workers working in Kulaijaya. There is no restriction for workers to seek medical treatments when they fall sick.
5. All foreign workers are covered under mandatory workmen’s compensation insurance. In addition, JCY HDD had in the past few years, made addition payments to deceased foreign workers on compassionate basis. JCY HDD will further enhance this by paying to worker who passed away during their employment a sum equal to the basic pay of the remainder tenure of the employment contract of the worker or a lump sum payment of RM10,000, whichever is higher.
6. Twenty three workers were temporarily separated from Tebrau factory and moved to Kulaijaya factory for the purpose of calming the situation of the workers unrest incidence that took place at a worker hostel located in Tebrau IV, Johor Bahru on 22 and 23 August 2014.
7. In oppose to some reports, the Management wishes to clarify that there was no worker died in any traffic accident throughout the Incidence.
8. The Management wishes to state that all the terms and conditions as stated in the contract of employment are in compliance with Malaysian labour law.
9. The Management was not aware of any mistreatment of workers as alleged by the workers to the media and the Management has initiated investigations on the cases based from the allegations.
10. The Management is of the view that the incidence was a result of miscommunication between all parties concerned and will take steps to further improve the communication.
1. JCY wishes to extend its condolences to the friends and family of the late Mr. Karka Bahadur Nirbula, who died of sickness before the Incidence.
2. JCY condemns any act of violence and will fully cooperate with relevant authorities on any investigation of the Incidence.
1. Contrary to various reports on the scale of damage due to the fire incidence at our Kulaijaya factory, the Management is pleased to inform that the fire only damaged the extended area of one of the factories where some consumable items and few non-crucial equipment and machines were stationed. There was no major damage to the main building or any of the machines within the factory. All of our plants, machineries and stock are covered under Industry All-Risk Insurance.
2. The operations of the factories at Kulaijaya had partially resumed in the morning of 28 August 2014.
Incorporated in 2006, JCY International Berhad (713422-X) (JCY) is one of the largest global precision engineering manufacturers of Hard Disk Drive (HDD) mechanical components. As a multi-component manufacturer, JCY produces base plates, actuator pivot flex assembly (APFA), top cover assembly and antidiscs. JCY has a total of six (6) manufacturing facilities locally and overseas. In Malaysia, its facilities located in Johor, Melaka and Penang. Its overseas facilities are located at Saraburi in Thailand with two facilities in The People’s Republic of China in Suzhou and Guangzhou respectively. With a workforce of approximately 17,000 employees and contract workers, JCY is currently supplies HDD mechanical components to two of the world’s largest players in the HDD market, namely Western Digital and Seagate.
Calvin Lim (Investor Relations, JCY International Berhad)
Address: No 3, Jalan Firma 3, Kawasan Perindustrian Tebrau IV, 81100 Johor Bahru, Johor, Malaysia.
Phone: +60 7 352 5822 (Ext: 202)