Malaysia

UCSF’s 50% pay cut for minimum wage earners ‘unlawful’

Amid 2 cases in labour court, higher learning centre faces RM10,000 fine if found guilty for salary reductions, says dept source

Updated 5 years ago · Published on 02 May 2021 8:00AM

UCSF’s 50% pay cut for minimum wage earners ‘unlawful’
University College Sabah Foundation near Sembulan, Kota Kinabalu. The institute enacted wide-ranging pay cuts in September, which have come in for criticism as it has not spared low-income staff. – JASON SANTOS/The Vibes pic, May 2, 2021

by Jason Santos

KOTA KINABALU – It is unlawful under the Minimum Wage Order (Amended) 2020 to impose pay cuts on those earning a minimum wage.

A Sabah Labour Department source told The Vibes that if it is true that this is happening at the University College Sabah Foundation (UCSF), it could be fined up to RM10,000.

Speaking on condition of anonymity, the officer, however, noted there are already cases pending in Sabah’s labour court relating to the UCSF pay cut controversy.

“They lodged the reports some time in February this year. 

“One of the cases has already been heard, while the other is still pending management,” said the source.

The first case relates to a salary hike that never materialised, while the second case is over a 50% pay cut imposed by UCSF’s management since September last year.

The labour court has yet to fix a date to hear the second case. 

The officer also noted that the department was unaware that those earning a minimum wage had their pay cut.

It is learnt the salaries of some 146 UCSF personnel have been halved based on a cost-cutting scheme introduced by its vice-chancellor, Mohamed Haleem Mohamad Razi.

Of this number, more than 30 staff members were earning a minimum wage of RM1,200 per month, resulting in them drawing a meagre RM500 in net salary during the past few months.

Efforts to reach Haleem and Yayasan Sabah Director Datuk Ghulam Haidar Khan were unsuccessful. – The Vibes, May 2, 2021

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