A joint committee has suggested that companies should prepare for next year’s economic downturn by reducing workers’ overtime, cutting working hours, laying off staff temporarily and slashing workers’ pay packets.
I have some suggestions of my own:
- Sell off the flashy company cars meant for top management; use fuel-efficient vehicles or the bas kilang.
- No more meal allowances, entertainment allowances, housing allowances, meeting allowances, travel allowances and what-have-you for top management.
- Slash bonuses and salaries of top management. In some companies, the annual bonus of a top executive can be several times the annual wages of a production operator. If companies reward their top management with fat bonuses and hefty salary increments when the company is doing well, they should slash these when times are bad.
If a failed company says it cannot pay adequate retrenchment compensation to its workers, check its accounts to see how much it has in assets. In the case of a company in Prai which recently ceased operations, its workers received paltry compensation. But a check with the company’s latest Annual Report revealed that although the firm had poor liquidity (RM12.8 million in net current liabilities), its net assets amounted to RM50 million.
Meanwhile, the government should immediately start a national retrenchment fund with mandatory contributions from employers (RM1 per worker every month) and employees (RM1/monthly).
With all this talk of gloom, somehow the news of the Perak state government buying 16 new Camrys for its exco members at a cost of RM2.7 million does not seem right. Surely they can make do with their existing cars during these difficult times. What about setting an example and using public transport? If the public transport is poor, do something about it!
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I always thought that a government is an antithesis of a Business. We economies grow, business spend, employ and pay taxes. In the event of a slump, the government SPENDS, the businesses cut back to survive longer. So the thing about government saving money NOW should not be!! The businesses will save/cut back, the government MUST spend in a way that the businesses can stay afloat and provide employment. The thing is the government I know has been spending and spending in good times and bad. That is the problem. We need a PM to be able to think OUT… Read more »
Technology doesn’t always make things cheaper.
Mass production, however, always does.
Government of Malaysia doesn’t hinder the advancement of technology. They have no power over that.
However, the “Middle Men” effect does take place in Malaysia. This one, I fully agree with you.
Ever heard of the millionaire effect? Thats when technology makes everything cheaper. Like what has happen in the computer industry. The reason why everything is so expensive and over inflated is because of the middle man ie; the goverment. With the money we have we should be able to buy more and more stuf not less. Hence there is no need for pay cuts and doing away with workers bonus and other sort of “sacrifices”. Why are we not seeing this? Cos the goverment sets controls and hinder the advancement of new technology. Thats why we end up back at… Read more »
To Sam Gopal, Thank you for making me feel a little bit comfy here — as I’m the only capitalistic pig in the midst of Karl Marx enthusiasts. Thank you again for your explanation. QED indeed. Unfortunately, these “COMMUNIST MANIFESTO” scholars will never buy what you have said. No. For them, take away the boss’s perk is revenge, … take over the boss’s properties is what they are after. They don’t care how much the boss have sacrified in order to help those countless thousands of employees keep their jobs. For them, turning screws is all they can ever do.… Read more »
How did an American senator liken the heads of the American auto industry arriving in their private jets to ask for a government bailout?
Going to a soup kitchen in a tuxedo.
I dont care whether they buy camry or bmw as long they can can bring business to the state , good governance then is fine with me. If corruption is less in the PR state, that will gain more $$$ than 2.7 million spend on camry .. I bet most of malaysian want to have a japanese car instead of proton car. Fuel efficiency is the main criteria , look at long term .. Compare the fuel, maintaince for 5 years for Camry and Perdana, at the end u see almost the same price. Perdana also cost around 100-110 ,… Read more »
“penang” has made a very interesting point! To add another point, MDs or GMs with Company cars, usually are the Owners of the company, IN GENERAL. Please also note that, in almost every company whether local or MNC a very small % give company cars for the Senior Managers or MDs/GMs these days. Most get a Transport allowance. Coming to the point, it is not the basic salary, that is used for budgetary purposes when justifying any employee intake in the company. It is called Total Compensation. When a company pays a Senior Manager/Director RMx, the expectations is that, he/she… Read more »
The govt, private sector employers and employees should immediately establish a ” … national retrenchment fund with mandatory contributions from employers (RM1 per worker every month) and employees (RM1/monthly).”
With this fund, any employee retrenched from 1 Jan, 2009, can obtain some monthly subsistance allowance, with quantum based on number of dependents, for a number of months until being gainfully employed again.
Retrenchment benefits are actually blessing for the top-up management they develop a fomula that give them big portion of the overall budget meant for retrenchment, just like share option. They have golden handshakes by given company car free or token sum. Who can check on them. People the mess public are going thru hardtime. Government say fuel price down & all retailers, hawkers should also reduce their price. Well what about TNB, when the fuel price up crying to government to raise tariff, Express bus operator the same, and now what. what is this la. Shame on IPP & it’s… Read more »
It makes sense, isn’t it?
Take away the big cars from the big bosses and all the jobs would be saved !
Hallelujah !! A Miracle !! Hallelujah !!!!!
Why don’t we move all the big bosses to stay under the bridge? Yeah, make them homeless and all of us can take their place as the big bosses, right?
How come in the 21st century we still have people think like that??
Agree with most of he points you raised, Anil. Another source that can be used to help staff is the mandatory training fund which listed companies have channelled to. Most of the accumulated monies are not utilised and in some cases can be quite a colossal sum.
And how about GLCs? Some of them have been losing millions year after year and yet the top (execs) still ride in expensive cars and entertain like there’s no tomorrow. Not to forget the companies they and their cronies (allegedly) set up to suck money from the companies they run.
In my reply to Ganesh’s reply, well as far as I know the industry I am in does not emulate that n I work for a US based MNC
The gomen officials should use eco friendly bicycles but too bad, those … pdrm are clamping down on cyclists. All the best to jerit cyclists for a better tomorrow!
Remuneration for top execs should be left to the board and ultimately shareholders in the AGM. It’s up to them to play an active role in ensuring the package does not go overboard. Any other type of interference would cause all sorts of ramifications in the market. Shareholder activism is not something many people have heard of, although many are “players” in KLSE, the local casino. On the other hand, what I do not understand is the lack of protection afforded the employees in Malaysia. That should be the focus of restructuring; there is no unions to speak of and… Read more »
Mat Salleh CEOs of top organisations and banks are even working for no pay to help their entity through the recession. Yes, you heard it right, no pay.
It should be emulated by top management in Malaysia.
Not easy. Not easy.
This has got nothin to do with BN or PR. Its those meag huge MNC may it be local or foreign who pays thei top management so well that even the company is making losses, those idoits r stil makin money..anyone can go ask around n u will see wht I said is true…..in short the top management should lead example buyt forgoing their bonusses in times like this….
Ya bad time, why even think of changing to another flashy car.
Do they really about the ordinary men on the street? Its the same whether its the BN or PR state government, get our new cars first then talk…. look at the new Mercedes cars in Trengganu months ago… what is the difference? Selangor state government is also getting a new fleet of Camrys too…
Walk or jog man!!!
Yeah man, they should use public transport 😉