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SINGAPORE – The Ministry of Manpower (MOM) has assessed that the Mustafa Center’s cost reduction measures, which include reducing its foreign labor force, are being fairly implemented.
The ministry said it is in contact with the company and the Singapore Trade and Manual Workers Union about the recent measures, which include sending foreign workers whose work permits have expired.
“We note that the company obtained the support of its union in cost saving measures in view of the bad business situation,” a MOM spokesperson told The Straits Times on Wednesday (September 9).
The spokesperson added that the ministry will continue to ensure that any additional measures are implemented fairly and reasonably.
The popular business milestone was in the news last week after its founder told staff that the company cannot renew its foreign workers’ work passes and would pay for their plane tickets home and a month’s basic salary. .
In a letter, founder and managing director Mustaq Ahmad also urged staff who have not been called to work to take a second job, saying the company will discontinue its support allowance to reduce payroll costs.
The MOM spokesperson said the company had notified the ministry of its cost-saving measures as early as March, when the Covid-19 pandemic was starting to gain momentum here.
The company had also told MOM that all government support received had been transferred to its employees, the spokesperson said.
However, Mustaq said in his letter that the virus situation has seriously affected companies. The mall closed on April 2 after being linked to more than 100 cases of Covid-19, and it is believed to be the starting point for thousands of infections in the dormitories of foreign workers.
After its partial reopening in May, it had to reduce its operating hours and impose strict safe distancing measures.
Mustafa employees that ST spoke to last week said business is still well below pre-pandemic levels.
Some employees have managed to find temporary jobs to supplement their income while they wait to be called back to work.
Mohamed Bhurari, 42, said he had stopped working since April, when his department, Mustafa Air Travel, closed during the blackout period. His boss had warned him that it could reopen next year, Bhurari said.
Their boss has encouraged them to get side jobs in the meantime, and Mr. Bhurari has started working with a freight company. Now he takes home about $ 900, which is 75 percent of his original salary.
“We understand that (the travel agency) cannot open so we have to wait. Hopefully we will return soon,” Bhurari said.
Mustafa employees also said that some of them are currently assigned to work on a rotating basis.
An employee who declined to be named said his supervisor had told him to take a September break. He would have to wait his turn to go back to work, said the employee, who has a Malaysian work permit.
For now, the 52-year-old will be looking for a temporary job.
“It’s not just me, everyone faces the same thing,” said the employee.
When contacted, a spokesman for the Mustafa Center said they are still calculating the exact number of workers who will be affected by the cost-cutting measures.
The spokesperson also added that they are working with the union on the temporary deployments of the affected personnel.
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