The parties to the dispute are Cycle & Carriage Bintang Bhd., the Company and Cheah Hian Lim, the Claimant.The dispute is over the retrenchment of the Claimant on the ground of redundancy.

According to the Statement of Case, dated 19 April 1990, the Claimant has pleaded, inter alia that he joined the Company on 1 June 1981, as Assistant Trading Manager and subsequently promoted as Dealers Manager.By a letter dated 31 October 1984 (CL2) the Claimant was redesignated as Manager, Branches and Dealers.By the Company's letter dated 16 June 1988, (CL3) the Claimant's services were terminated on the grounds of redundancy.The Claimant contends that his purported termination on the grounds of redundancy was a colourable exercise motivated by mala fides and an act of victimisation.The Claimant also contends that his purported retrenchment on grounds of redundancy amounts to a dismissal without just cause or excuse as his position in the Company was not surplus to requirement as alleged.The Claimant further contends that he was dismissed without just cause or excuse as the purported retrenchment was in violation of the industrial law principle of "last in, first out", and in breach of the Code of Conduct for Industrial Harmony.The Claimant therefore claims that he be reinstated to his former position in the Company without loss of any benefit monetary or otherwise and arrears of wages.

The Company denies the allegations and states that it would adduce evidence at the hearing that by reason of closure of Branches, reduction and inactive dealership network, the Company had to reorganise its activities for commercial reason which had resulted in large scale retrenchments of the Company's employees of various levels totalling about 375 at the material period.Further, prior to the Company's decision to retrench the Claimant, the Company offered alternate employment without loss of benefits which the Claimant had refused to accept.Therefore the Company contends that the Claimant was not dismissed without just cause or excuse as claimed.

The facts are that the Company, Cycle & Carriage Bintang Bhd. is a public listed Company engaged in motor trade industry mainly dealing with Mercedes-Benz passenger cars and commercial vehicles.The motor trade industry suffered a depressed state of economy in Malaysia and the period 1985 to 1988 was the worst period for the industry in 25 years.

Owing to the very exceptional downturn of economy, the Company did carry out, as any other prudent organisation, reorganisation and to implement stringent cost control measures for its survival, and as a duty to its shareholders.To this end, the Company carried out massive retrenchment exercise in stages from about August 1985 which continued till middle of 1988.The said retrenchment involved all levels of employees irrespective of their position, status and grade. CO1 is the list of the retrenchment in the Company for the abovestated period.The situation was bad and the Company was reluctant to do massive exercise at one go and as such it went according to priority and the Company was hopeful that the situation would improve over a period of time.The

Company's Marketing Division and Training Division were wiped off.The Company also removed the General Manager and the Deputy General Manager's posts.

The Claimant was fully aware of the justification for the massive retrenchment ever since the exercise started in 1985.The Claimant admitted that the retrenchments carried out in his own Department was a genuine exercise.He also admitted that he anticipated his own retrenchment in 1985 or 1986.

The Claimant holds a Bachelor of Science degree which he obtained in 1969 from an Australian University.He commenced employment with the Company as Assistant Trading Manager on 1 June 1981.Prior to joining the Company the Claimant had been employed in the motor industry for about 11 years.The Claimant subsequently became Dealers Manager in December 1982.He was given a Company Mer