Malaysia

Embattled UCSF in more hot water over pay cuts, despite RM500,000 salary aid

146 staffers suffer 50% wage reductions without notice, Socso demands university return subsidy funds

Updated 5 years ago · Published on 10 May 2021 9:00AM

Embattled UCSF in more hot water over pay cuts, despite RM500,000 salary aid
The pay cuts imposed on University College Sabah Foundation’s staff were allegedly part of the institution’s plan to turn around its business after it ran into financial constraints. – ucsf.edu.my pic, May 10, 2021

by Jason Santos

KOTA KINABALU – The controversy surrounding University College Sabah Foundation (UCSF) here has deepened after the higher education institution allegedly imposed a 50% pay cut on 146 staffers, despite receiving wage subsidies from the Social Security Organisation (Socso).

Sabah Malaysian Trades Union Congress (MTUC) secretary Catherine Jikunan claimed that funding from the subsidy programme had already been channelled to the university, but not a single sen was paid to the staff.

As a result of this, she said, Socso has been asking for the return of the funds given to the university for several months after the imposition of the 50% pay cut.

“The representative from the university said they had also cut down the subsidy after getting the consent of the staff.

“They can do this provided they have consulted the staff. But they never did. So where have the minimum wage subsidy funds gone?” she alleged at a conference over the UCSF controversy recently.

Also present were several employees from the university.

It is understood that Socso had disbursed close to RM500,000 in funds to UCSF.

Under the programme, employers receive a wage subsidy of RM600 for each employee earning less than RM4,000 a month.

It is alleged that from October 2020 until March this year, the salaries of some 146 UCSF staff have been halved after the university ran into financial constraints. The pay cut was part of UCSF’s plan to turn around its business.

The Vibes has yet to get clarification over the matter from the institution’s management and Datuk Ghulam Haidar Khan, director of Yayasan Sabah, which was established through enactment in the Sabah state assembly and is the owner of UCSF.

Jikunan said that the promise of Chief Minister Datuk Seri Hajiji Noor to resolve the salary issue of UCSF staff also appears to have remained unfulfilled so far.

Sabah Malaysian Trades Union Congress secretary Catherine Jikunan says the salary controversy involving University College Sabah Foundation staff could affect Yayasan Sabah’s bid to turn it into a world-class institution – JASON SANTOS/The Vibes pic, May 10, 2021
Sabah Malaysian Trades Union Congress secretary Catherine Jikunan says the salary controversy involving University College Sabah Foundation staff could affect Yayasan Sabah’s bid to turn it into a world-class institution – JASON SANTOS/The Vibes pic, May 10, 2021

According to her, the latest memo issued by the institution’s management stated that it would only pay between 60% and 75% of the salaries from June until August of this year.

She said this should not have happened since the salaries of the workers are already subsidised under Socso’s wage subsidy scheme, and funds had already been allocated by Yayasan Sabah.

“Most of these workers are those from the B40 income bracket, where they earn below RM4,000 monthly.

“Then there are also those who earn minimum wage, and got their wages halved. Imagine that’s only around RM500 plus (monthly pay) after deducting mandatory deductions like Employees Provident Fund and Socso.

How are the staff going to settle their commitments like house rentals, monthly car instalments and debts? How are they going to raise their children with such a small amount of take-home salary?

Jikunan also claimed that UCSF had violated the minimum wage order after also imposing a similar pay cut on employees earning RM1,200 a month.

However, she said they have yet to file an official complaint over the matter to the Manpower Department, adding that there are currently two pending cases awaiting judgment on the UCSF controversy.

The Vibes had earlier reported that from October last year until March this year, the university had deducted 50% from the employees’ salaries. The deduction includes those earning a minimum wage of RM1,200.

Meanwhile, Jikunan said that UCSF’s management should not have imposed the pay cuts even with poor enrolment of students.

She said low enrolment has been expected due to the ongoing pandemic.

She alleged that part of the reason Sabahans are not enrolling in the college is because the courses offered by the university are not recognised by the Malaysian Qualifications Agency.

“I have had students and parents approaching MTUC that they have not received their certificates and still cannot graduate as their courses are not accredited by MQA.

“These people had taken up loans, some of their parents sold their land to make sure their children can get higher education.

“Now, how can their children find work based on their qualifications if their courses are not accredited?” she asked. – The Vibes, May 10, 2021

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