Utusan Melayu Bhd group staff face a gloomy Ramadan as their salaries for April have been delayed to a yet to be determined date, according to sources.
Malaysiakini understands that the last payout staff received was an advance for month-end pay, capped at RM1,000, on April 26.
Utusan's non-executive staff are paid a bi-weekly salary, while executives are paid monthly.
The Umno-linked company runs two Bahasa Malaysia papers, Utusan Malaysia and Kosmo.
"The company understands that the delay in payment disrupts daily life for all staff, especially in preparing for fasting and the upcoming Hari Raya (Aidilfitri)," read a May 10 memo from Utusan executive chairperson Abdul Aziz Sheikh Fadzir sighted by Malaysiakini.
"However, the company is still faced with a critical cash flow problem which resulted in the inability to pay April salaries on schedule."
No date was given as to when April salaries would be paid. The memo also said salaries for May would also be delayed until April wages are settled.
Besides salary delays, Utusan is also struggling to pay those who accepted voluntary separation scheme (VSS) deals.
A separate memo on May 10 said VSS payments would be delayed to a date which will be determined later, as the company has failed to secure sufficient funding.
Malaysiakini has contacted Aziz for comment.
Umno was previously a major shareholder in Utusan. However, the party relinquished direct control after selling off a large stake to a company owned by Aziz in February.
The former ruling party is now left with just an 18.17 percent share in the media group.
In recent years, its Utusan Malaysia has suffered from declining circulation and had to depend heavily on advertisements from GLCs for revenue.
That lifeline came to an end after BN and Umno were defeated in the May 9 general election last year.
Under Section 19(1) of the Employment Act 1955, employers must pay employees "not later than the seventh day after the last day of any wage period."
The act defines a wage period as a duration of no more than a month.
However, under the same legislation, employers may ask the director-general of the Labour Department to "extend the time of payment by such number of days" that they see fit. - Mkini
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