MOM Responds to Mustafa’s Cost-Cutting Measures Whereby Staff Go On Unpaid Leave Without End Date

Hearing that Mustafa Centre is no longer open 24 hours a day is like hearing that KFC is no longer selling fried chicken.

In fact, one of the reasons tourists flocked to the shopping centre, in addition to its low prices, was that it was never closed. 

Heck, even Google hasn’t accepted the news.

As you know, the popular shopping centre had to close on 2 April after it was linked to more than 100 Covid-19 cases.

They reopened partially in May, but had to reduce operating hours; they’re now open from 9:30am to 11:30pm.

Cost-Cutting Measures

Going from being one of the most populated shopping centres to being an empty ghost town is going to hurt your revenue, of course.

According to The Straits Times, a manager in the mall said that business is now just 20% of what it used to be pre-pandemic.

That’s why its founder, Mustaq Ahman, has had to resort to implementing some cost-cutting measures.

On 27 Aug, Mustaq sent a letter to all employees of Mustafa group and its related companies.

In it, he said business has been badly affected by the Covid-19 outbreak, and that they are not able to recall their employees to work as a result.

Those workers who’ve not been called back have reportedly been paid a sustenance allowance of $300 a month since June 2020, but that ended in September 2020.

He also urged them to “take on a second employment to earn an income.”

He said the centre will permit resignation letters without any advance notice and even give one month’s basic pay “as a token of appreciation”.

In the letter, he added that the centre is working with unions on various job vacancies that might be available for interested parties.

What got the public’s attention, however, was the news that the founder told his foreign employees his company was unable to renew their work passes, and that he would pay for their plane tickets home and one month’s basic salary.

MOM’s Response

So, how has the Ministry of Manpower (MOM) responded to the measures? Well, they’ve basically flashed a huge thumbs up.

An MOM spokesman said that the company informed the ministry of its measures as early as March, according to The New Paper.

It had also declared to MOM that all government support received had been passed to its employees.

MOM believes that all cost-saving measures, including sending back foreign employees whose work permits have expired, are being implemented fairly.

What might have worked in Mustafa Centre’s favour is that they acquired the support of unions on their cost-cutting measures.

MOM will continue to ensure that any further measures will be implemented fairly and reasonably, said the spokesman.

Some Workers Have Already Found Temporary Jobs

Some of the affected workers have already found temporary jobs while waiting to be called back to work, reported TNP.

Others are rostered for work on a rotating basis.

A Mustafa Centre spokesman said the company is working with the union on temporary positions for affected staff.

Let’s just hope this pandemic ends sooner rather than later so life will return to normal, and we can go back to worrying about errant PMD riders.

Read Also: