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22/04/2009 17:37:31
Re: Pay cut

Hi, I have a similar situation regarding pay cut from my company.

I work in a Malaysia manufacturing company whereby our Corporate company (HQ) is from U.S.A. Recently, the Chairman of the Corporate Group (from U.S) sent a memo to our HR manager informing of pay cut between 5% to 10% for Malaysia plant depending the designation of the employee.

Our HR Manager printed out this Chairman's memo and circulate to affected employees to read which she also attached a name list of those affected employees. We have to sign on this name list after reading the Chairman's memo.

Next, HR Manager together with General Manager called for a short briefing. GM said since is a directive form HQ, we have no choice but to obliged. HR Manager said necessary documents have fowarded to M'sia Labour Office and after getting approval , pay cut will either be in May'09 or June'09. HR Manager "verbally" inform us of our % of pay cut as most of us fall within that category. Next, HR Manager informed us it is a requirement from M'sia Labour Office that we (employee) has to write a letter to our company (employer ) stating the % of pay cut and that we agree to this pay cut. We are told to submit our letter to HR Manager within one week. Most staff feel not fair and unsatisfied to write a letter to employer. Reason being:

1. HR manager said the company cannot issue a standard statement letter to each employee to sign either "agree" or "not agree" to the pay cut as it is against requirement by Labour Office. The letter should come from employee and we are told to indicate the % of pay cut in our letter. Is this true ? Is there any other option in dealing with pay cuts?

2. What is the procedure by Labour Law if a company wants to have pay cut to employees?

3. If we refuse to write the letter or we put "disagree" in the letter, can the company carry on the pay cut process? HR Manager do not answer our questions directly and only said our letters will be fowarded to Labour Office. May I know for what purpose?

4. What is our employee rights on this issue? We feel our HR Manager is not competent in answering our questions.

5. We refuse to write the letter because :-

(a) GM said this letter is just only a "formality record" to Labour Office . Whether we agree or disagree on pay cut, it has to be done since is a directive from corporate office. Is this true ? Are we being told the correct information from both GM and HR Manager?

(b) The company do not give each of us a formal letter informing the % pay cut , what will be our revised salary and other benefit /allowance . Why , we should instead write a letter to agree /disagree to the pay cut? It seems unfair that employee are not being "formally inform" by the company. In Labour Law, should employer give formal letter to each employee regarding pay cut?

6. Will staff under probation also include in this pay cut exercise?

Please advice what course action should we take ?
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KL Siew
22/04/2009 21:34:23
Since the name of Labour Department was brought up, it would be better for you to counter check with that Department. That would be best way to find out whether what the management said was true or not true, or their actions was correct or not correct.
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