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Take 6-mth unpaid leave
MALAYSIA'S top investment bank, CIMB, on Monday urged its staff to go on unpaid leave for up to six months in a move to cut costs because of the global economic downturn.CIMB Group chief executive Nazir Razak said the offer to its 36,000 staff was aimed at avoiding layoffs and would involve employees across nine countries, including Indonesia, Thailand and Singapore, the national news agency Bernama reported. 'We don't have a target, but there will be cost savings,' Mr Nazir said. 'It's a positive move and a win-win situation.' He added that in the current economic situation, 'it is fully understood that there is spare capacity'. Any employee in the group is eligible for the initiative - called the Staff Rejuvenation Programme - and the option would be granted after evaluation by senior management, said Mr Nazir. CIMB officials confirmed his comments and said the unpaid-leave programme will start next month. The move, however, will not affect the group's operations as leave is subject to approval and the company can recall the staff when necessary, officials said. CIMB, the country's second-largest bank, is the first major Malaysian company to ask staff to consider taking unpaid leave. The surprise move comes just after a labour group said on Sunday that more than 26,000 people have lost their jobs in the country so far this year. CIMB's move reflects increasing difficulties for Malaysian corporations as the country faces the prospect of its first recession in a decade. The government said earlier this month it expects the economy will grow 1 per cent in the best-case scenario this year and shrink 1 per cent in the worst-case scenario. It had previously forecast growth of 3.5 per cent. Economists have warned that the RM67 billion (S$28 billion) of stimulus measures announced by the government recently may be insufficient to avoid a recession. Posted by: Fred 2009-04-01 |
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