Win-win move for CIMB, staff: Nazir

By Rupinder SinghPublished: 2009/03/31

CIMB Group (1023), the country's second largest lender, says its no-pay leave offer to its 36,000 employees should not be construed as an intention to cut its staff strength.

Rather, it is the group's effort to reduce cost amid the global economic downturn, group chief executive Datuk Seri Nazir Razak said yesterday.

"How can that possibly be called a layoff? We are not instructing anyone to do anything. We are just giving them an option to apply if they wish to take an extended break. Don't interpret it any other way," he said.

He was commenting on an exclusive report by Business Times that CIMB had issued a memorandum last Wednesday to all its employees to inform them of the no-pay leave option from April 1 of between one and six months.

Nazir said the "Staff Rejuvenation Programme" is a win-win scheme for both staff and company.
"It is a very positive move."

The offer is open to all its employees in CIMB Bank as well as its units in Thailand, Indonesia and Singapore.

"Anyone can apply, but senior managers will evaluate if they can do without the employee concerned. It is not a right to take it," Nazir said.

He added that response from employees has been "very, very good" to date.

Nazir also said that there was no target on the number accepting the offer, but was confident that the move would result in cost-savings.

"In the slower economic environment, we are looking at ways to temporarily reduce our costs," he said.

CIMB's latest initiative comes after employees from the equity section, including CIMB-GK Securities, took salary cuts ranging from 10 to 20 per cent earlier in the year.

"I would highly recommend it (no-pay leave) to other companies actually," he said.