MTUC deeply regret that only the workers and the unions are made scapegoats for the mess that
the national airline is in.
After years of losses running into hundreds of millions of ringgit, the airline was struck with the
twin tragedies on MH370 and MH17. It is unlikely that MAS can continue or even survive it is
current form.
MTUC recognise that something drastic has to be done. Tough choices has to be made, sacrifices
has to be made by all, including employees.
However we must not forget that, during all these tribulations, MAS employees have been working
long hours without any bonus for the past so many years. Some even work for up to 13 days
without an off day
We regret that the new Malaysian Airline Bhd Act (ACT) specifically target the employees to make
the most sacrifice. Yet it does not address issues of lopsided contracts and mismanagement head
on. We have also head of $100 cost of Nasik lemak and million dollar paintings in MAS corporate
boardrooms
The Act will take away hard earned retirement and termination benefits. It will also bring the end
of existing trade unions and associations representing the employees of MAS. Worse, it will tear up
the existing collective agreement that was agreed upon between the unions and MAS.
This goes against long standing legal principles and established employment laws. The benefits of
the CA - especially of the non-executive staff, are nothing excessive and are industry norm.
The Act provided that the new entity (MAB) will NOT be responsible for any monies due to
employees, including termination benefits of at least 6,000 who will lose their jobs.
Khazanah has spent hundreds of millions of Ringgit to buy out other shareholders to take MAS
private at 27 sen a share, higher than the last trading prices. Why are these shareholders not
required to make sacrifice?
All 20,000 employees of MAS will naturally be terminated when the present MAS cease to exist.
It is expected that the new Malaysian Airlines Berhad, will employ most of these, (except the
6000) MAS employees, However the term and conditions will be entirely at the discretion of MAB.
MAB will also pick and choose which employees from MAS that it wants and it is likely that union
leaders who stand up for rights, may all not be chosen.
Those employees who are terminated will also most likely not be able to recover
retrenchment/termination benefits provided for in law as MAS’s asset will be transferred to new
MAB.
This is where it is most discriminatory and unfair as the Act do allow for liabilities due to other
creditors including those lopsided contracts be transferred to the new MAB. It is unacceptable to
deny lower ranked employees their basic and minimal rights.
These creditors are further protected, as the ACT require MAB to appoint an independent advisor
to review any re-negotiation of contracts. The Independent Advisor may take into consideration
the interests of the (Lopsided) creditors.
By targeting specifically the employees and trade unions, the Government is barking up the wrong
tree. Given the already stifling laws on trade unions and Industrial relations, blaming unions and
employees for the malaise just show how incompetent the management and board of MAS had
been.
Until the issue of mismanagement is addressed head on, any restructuring is unlikely to succeed.
It may be good to remember in the 70s, the Government deregistered the Union in MAS and even
arrested union leaders Under ISA because of perceived Union’s problems.
30 years on, we are back to square one- the lesson is never learnt.
(This article is contributed by Andrew Lo, the secretary of MTUC, Sarawak Division).
Source :[ Sarawak Tribune ]