Tuesday, January 6, 2009

30% Pay Cut


Photo courtesy of http://www.nurseweek.com

Yes, you hear me right. 30% pay cut. That is the latest news I heard from hubby's friend. This happens in one of the local company, which is involved in value added manufacturing for electronic products. Their CEO just announced the bad news. Effective from January '09, everyone's pay will be reduced by 30%. Sigh…what a surprise to them. Such a shocking news to the employees on the first day of work in year 2009. No doubt, their business is pretty bad even before this economic downturn. The CEO is taking some actions to save the company. Is this against labour law? Anybody have any input?

Just imagine, if one's salary is RM5500, after the pay cut, he earns RM4000 only. How many things he can do with RM1500? Quite a lot, right? What if one's pay just merely RM3000? His salary scale will immediately drop to lower or equal to a fresh graduate. Oh no!

5 comments:

MODERN ROBINSON CRUSOE said...

An ex-company of mine also do the same previously...but better to keep a job with lower pay??? I dunno- depends on individual.....Maybe it's good to keep open options...My colleagues can still get better offer / position in this time of uncertainty & even few of my vendor's liaison person had resigned & changed company as well...Job agency & online job agency or networking (recommendations by others) might be of help....

Kadus_Mama said...

30% cut????? OMG!! That is a very bad news in early new year for sure..!! RM1500 is a lot of money you know..

New Kid on the Blog said...

I rather have a pay cut then given a package. At least every month you will still have a take home pay. Though 30% is a lot, better than nothing.

My ex-company is having a 10% pay cut across the company from top management till Direct Labour level.

Kadus_Mama said...

hi there..just to let you know, you've been tagged by me.. :)

Little Inbox said...

Luckily we still have a job. :)
Heard too many bad news. :(

Kadus Mama, ok, I know what to do next. :)