Malaysia

UCSF’s 50% pay cut also hits minimum wage earners drawing RM1,200/month

Some staff members have been taking home only RM530 per month since last September

Updated 5 years ago · Published on 28 Apr 2021 9:07PM

UCSF’s 50% pay cut also hits minimum wage earners drawing RM1,200/month
A salary slip showing one of University College Sabah Foundation's minimum wage earners getting a 50% pay cut after mandatory deductions. – The Vibes pic, April 28, 2021

by Jason Santos

KOTA KINABALU – The 50% pay cut imposed since September last year by University College Sabah Foundation (UCSF), owned by Yayasan Sabah, includes those earning a minimum wage of RM1,200 per month.

The Vibes sighted salary slips belonging to several university workers and found that those earning RM1,200 per month had their salaries halved after mandatory monthly deductions.

An internal memo from the university’s vice chancellor Mohamed Haleem Mohamad Razi to the staff in June last year announced the implementation of a temporary austerity measure after student intake dropped sharply.

The university has 146 staff and some 30 of them earn the minimum wage, some below.

Under a cost-cutting scheme, staff were subjected to a 50% pay cut with working hours reduced to 20 hours per week.

The move was initially not implemented after the then-Sabah government led by former chief minister Datuk Seri Mohd Shafie Apdal ordered all state government-linked companies, which includes UCSF, not to impose pay cuts.

Between June and August, all the staff received their full salaries, but following Parti Warisan Sabah Plus’ downfall in September 26 last year, the management began implementing the pay cut.

The pay cut was initially not implemented, after the then-Sabah government led by former chief minister Datuk Seri Mohd Shafie Apdal ordered all state government-linked companies, which includes University College Sabah Foundation, not to impose pay cuts. – The Vibes file pic, April 28, 2021
The pay cut was initially not implemented, after the then-Sabah government led by former chief minister Datuk Seri Mohd Shafie Apdal ordered all state government-linked companies, which includes University College Sabah Foundation, not to impose pay cuts. – The Vibes file pic, April 28, 2021

The salary cap for Sabah and Sarawak under the minimum wage order is RM1,200 and employers found flouting the law and paying below the minimum wage can be fined up to RM10,000 per employee.

The court can also order the employer to pay the difference between the minimum wage and basic wage it pays its workers.

A UCSF staff member speaking on condition of anonymity told The Vibes that he was not able to cover his monthly commitment.

“I have a child and my monthly commitments are around RM800 per month.

“How can I pay my rent, electricity, car loans and others if I’m only earning RM529.65?” he asked.

He also said there were others earning above and below the minimum wage.

“After the 50% deduction, some have only been taking home around RM400 to RM700 per month for the past eight months,” he said.

A meeting was held between UCSF management and parent organisation Yayasan Sabah, after Chief Minister Datuk Seri Hajiji Noor promised to resolve the matter. – The Vibes, April 28, 2021

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