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Shell ordered to pay RM50 million to former employees

ShellNews.net: Shell ordered to pay RM50 million to former employees: “The High Court here yesterday ordered Sarawak Shell Berhad (SSB), Sabah Shell Petroleum Company (SSPC) and Trustees of the Shell Sarawak and Sabah Retirement Benefit Fund (RFB) to pay RM50 million, including eight percent interest, to 399 former employees.”

Posted 4 October 04

TUESDAY, SEPTEMBER 21, 2004: MIRI: The High Court here yesterday ordered Sarawak Shell Berhad (SSB), Sabah Shell Petroleum Company (SSPC) and Trustees of the Shell Sarawak and Sabah Retirement Benefit Fund (RFB) to pay RM50 million, including eight percent interest, to 399 former employees.

Prior to that, the High Court had ruled that it was illegal for SSB and SSPC to deduct their contributions to the Employee Provident Fund (EPF) and Retirement Benefit Fund (RFB). On Nov 29, 2002, the 390 former employees filed a civil suit against SSB and SSPC and Trustees of the Shell Sarawak and Sabah Retirement Benefit Fund (RFB).

RFB is a private fund set up by Shell and administered by trustees appointed by the company to provide for certain benefits to the staff upon leaving Shell service after having reached normal retirement age or earlier. The plaintiffs claimed that they are entitled to additional sums from RFB based on the contention that their benefits under the scheme should be payable by the companies without taking into account any other contributions made by the companies, whether to the EPF or to any other fund.

The plaintiffs were presented by counsel Eric Khoo and Gabriel Kok from Miri and Datuk Cyrus Das and Steven Thiru from Kuala Lumpur.

The defendants — Sarawak Shell Berhad, Sabah Shell Petroleum Company and Trustees of Sarawak Shell and Sabah Retirement Benefit Fund — were represented by counsels Jimmy Wee from Miri and Datuk Cicil Abraham from Kuala Lumpur.

The case was heard before Judge Datuk Abciul A.ziz bin Abdul Rahim.

A statement issued by Shell after the hearing slated that the company took note of the court decision delivered yesterday and that they would appeal the decision.

“The company will honour all legal obligations resulting from the final decision of the court, but until the appeal process is exhausted, it is premature to speculate on the nature of the obligation,” the statement said.

(The above article of unknown publication origin was supplied by a kind contributor to this website.)

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