Mohd Noramil Daril, who spoke on behalf of a group of AAM members, told FMT that AAM’s top management must give its assurance that the proceeds from the sale of the building would be fully utilised to settle the company’s RM4.5 million debts, including settling the salaries of its employees and reimbursing members.
“We agree to the suggestion to sell the HQ building but on the condition that the company discloses how the proceeds from the sale will be used.
“What will the company do with the money? Will it be used to settle the salaries of staff and other arrears?
“We also want to know if the proceeds from the sale are enough to ensure the company’s financial troubles are resolved.”
He said if the members and workers agreed unconditionally, they were worried that the proceeds from the sale would be used for other reasons, rather than resolving the company’s financial problems.
Noramil added that, generally, the members would push for a motion of no confidence against AAM’s top management should they proceed to sell the building without their approval.
“Most of the members have lost faith in AAM’s top management.
“It has had problems for the past 15 years but nothing to the extent of this financial crisis which has affected the quality of service.”
Echoing similar sentiments, AAM employee representative Mimi Nur Fahariah Majid urged AAM to guarantee that all salary arrears would be resolved and to clear the air on their future as AAM employees.
“If this is the last option to save AAM, we can accept the sale, but if they do not explain their plans after selling the building, then we will object.”
Prior to this, it was reported that AAM wanted to sell its HQ building at Laman Seri, Shah Alam, to help clear its RM4.5 million debts.
AAM Vice-Chairman Wan Zaharudin Wan Ahmad said the sale of the building was necessary as the company could not afford to pay salaries on time and to settle Employees Provident Fund (EPF) contribution arrears.
He said the main factor which led to the company’s financial crisis was a drop in the number of members following intense competition from insurance companies, which also provide breakdown assistance at a lower cost.