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2002 MarsdenLR 1182

LABOUR OFFICE MIRI
SARAWAK SHELL BHD – Appellant
Versus
ISMAIL SAHAT & ORS – Respondent


AWARD

The parties with a view to expediting the disposal of the cases and the conclusion of the proceedings have asked the court to make rulings on the following preliminary issues:

i)Was there a need for the company to undertake a reorganisation exercise?; and

ii)Was the company entitled to adopt its own Selection Criteria in place of the retrenchment principle of Last In First Out (LIFO)?

Preliminary Ruling On The First Issue

1

The first question posed to the court for its preliminary ruling must be seen in the proper context of industrial adjudication. Where the court is asked to inquire into the exercise of management prerogatives, its function must be correctly understood. Where pursuant to such exercise, the management decides that workmen are surplus and have to be retrenched and such is alleged to be a dismissal without just cause or excuse, it is not the office of the court to step into the board-room of a business organisation and intrude into what are essentially management decisions, for eg, by holding that it was doing well enough and that there was therefore no need for the management to have made the decision to reorganise its business. The stark and bare question: "Was t

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