College Staff Told to Take Pay Cut or Resign

University Sabah College Foundation (UCSF) is asking staff who disagree with its cost-cutting measures to go on unpaid leave or resign. USCF vice-chancellor, Mohamed Haleem Mohamed Razi gave the ultimatum in a memo dated June 30 to college staff.

“You are supposed to deliver your decision via a form that is included in this memo to the college’s human resource department before noon on July 2,” he said in the memo.

Referring to an earlier memo dated June 15, the vice-chancellor had asked the 200 UCSF staff to agree to a 50% pay cut with working hours reduced to 20 per week. This pay cut is caused by financial problems faced by the college following a significant decrease in student enrolment.

He had also indicated that if the college's financial status did not improve after the coming September student intake, the staff might need to go on unpaid leave from October. 

“A portion of the staff will be placed on unpaid leave from October onwards. They are allowed to find work elsewhere,” Haleem stated in the memo. UCSF only reached 18% of its student enrolment target in April. Earlier, Haleem had said the university had made millions of ringgit from past student intakes.

Response by MTUC

Meanwhile, the Malaysian Trades Union Congress (MTUC) Sabah Division has asked Chief Minister Datuk Seri Shafie Apdal to look into the issue.

MTUC's secretary, Catherine Jikunan, said the administration staff and lecturers had met with MTUC to discuss their problems before UCSF issued the memo. She said the memo mentioned that all of the employees had agreed to accept a 50% pay cut for four months.

“There was no agreement given by the staff to allow UCSF to cut their gross salary to 50%. It was deliberately decided by the management itself without prior consultation with all the staff. All staff were only given the memo after they made the decision,” said Jikunan.

According to Jikunan, the staff also told her that UCSF is taking advantage of the Covid-19 pandemic to carry out salary deduction and failed to fulfil their obligation towards the employees since 2017.

UCSF staff were told that those who do not agree with the pay cut can take unpaid leave or resign.

“As we are all aware, the government has announced a wage subsidy for another three months in order for the employers to retain their staff. Why UCSF did not take this subsidy? Most of the staff are B40 wage earners,” she said.

The staff also said that they did not receive their annual increment and they have been receiving their salary late since February 2019, and the May 2020 salary was only paid half.

UCSF, which was established in 2013, is a subsidiary of Sabah Foundation, a state government-linked company. It has close to 200 staff with 400 students presently enrolled. Shafie is the chancellor of the university.

UPDATE

On July 1, Sabah Chief Minister Datuk Seri Mohd Shafie Apdal has called for reform of the UCSF management to ensure better corporate governance. He also urged the UCSF management to settle the problem immediately and expedite salary payments.

“I have asked the UCSF to update on the matter in the coming meeting,” he said.

Source: Free Malaysia Today & Borneo Post

Update source: Malay Mail

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