SINGAPORE, Aug 31 — Mustafa Centre will send its foreign workers whose work passes have expired home as the Covid-19 pandemic has gravely affected its business.
These workers will receive one month’s salary, and the company will also pay for their flight ticket home, managing director and founder Mustaq Ahmad said on Thursday (Aug 27) in a letter to all Mustafa employees and the group’s related companies.
Mustaq also said in the letter that Mustafa will stop paying its employees who have not been called to work a “sustenance allowance” of S$300 from Oct 1.
This allowance has been paid out to employees since June this year.
“We urge all employees who have not been called upon to work to take on a second employment to earn an income,” he added.
TODAY has contacted Mustafa to ask how many local and foreign staff will be affected by these measures.
Mustaq said Mustafa’s business has been badly affected by the Covid-19 pandemic and the company does not expect its business to “return to the pre-Covid days as our international borders are all closed”.
“Our operating hours have been reduced and strict safe distancing measures have been imposed,” he said. “We are not able to recall all our employees to work due to these reasons.”
During this period, Mustafa has taken “serious efforts” to reduce its spending so as to tide through the coronavirus outbreak, said Mustaq.
However, these efforts have not been sufficient and that is why the company has to discontinue distributing the sustenance allowance to reduce its payroll costs, he said.
Mustaq said Mustafa is working with the Singapore Manual and Mercantile Workers Union (SMMWU), the Employment and Employability Institute (e2i) and the National Trades Union Congress’ (NTUC) Job Security Council on the job vacancies available for employees who may be interested.
For workers who have found jobs, Mustafa will accept resignation letters without a notice period and provide one month’s salary as a token of appreciation for their contribution to the company.
Mustafa said workers who are seeking new job opportunities have asked the firm to waive the notice period.
“We regret having to resort to these decisions but hope that business will come back to normal as soon as possible,” said Mustaq.
David Yeo, SMMWU’s secretary-general, said the union has been working closely with Mustafa’s management to avoid retrenching employees and redeploy excess manpower in light of the Covid-19 pandemic and its impact on tourist and shopper footfall.
SMMWU, together with NTUC’s Hospitality and Consumer Business Cluster and Job Security Council, as well as e2i, are coordinating with Mustafa to place workers on temporary deployment to other hiring companies.
Yeo added that the Job Security Council and e2i will provide job matching support where the workers will have access to job interview opportunities with hiring employers in the food and beverage and retail sectors.
Workers will also receive career coaching assistance to prepare them for the interviews, he said. — TODAY
