Genting Malaysia Bhd will impose another round of salary cuts as a way to reduce costs during the coronavirus pandemic.
A letter signed by the president and COO Datuk Sri Lee Choong Yan sought an agreement from employees for a temporary variation of the employment contract “to give effect to a reduction in monthly base salary”.
The group’s senior management team has taken a temporary voluntary 20% salary cut for three months and now the group is asking its employees to agree to a temporary reduction of 15% or 20% in basic salary based on the ranks, with some employees asked to consider taking one unpaid day off every week. The salary cuts should last until May.
Resorts World Genting had to announce a temporary shutdown in January amid increasing cases of COVID-19. The company worries that even with vaccines available, it’s unknown when the tourist traffic will stabilise.
“We need to control RWG’s (Resorts World Genting’s) cost base to ensure the sustainability of our business and to help protect as many jobs as possible during this challenging time,” said the group.
Last year, due to the pandemic, the group also had to impose salary cuts. For 2020, Genting Malaysia recorded a loss of RM2.26bn ($350m).