Malindo Air retrenchment exercise: All you need to know
Siti Farhana Sheikh Yahya
November 3, 2020 15:40 MYT
November 3, 2020 15:40 MYT
The airline had also reduced its fleet size to five B737 aircraft and six ATRs turboprop. - file pic
MALINDO Airways is the latest local airline carrier to partake in a massive retrenchment exercise as airline industries worldwide explore measures to survive during the COVID-19 pandemic.
What’s going on?
- Malindo Air said that it will be trimming its workforce from 3,200 to 1,000 staff with all affected employees expected to complete their employment by November 30.
- The airline had also reduced its fleet size to five B737 aircraft and six ATRs turboprop.
- Earlier, on October 9, low-cost airlines AirAsia Bhd and AirAsia X Bhd had also laid off 10 per cent of their 24,000 employees as part of its cost-cutting measures
Malindo Air staff has taken to Twitter to bid farewell with the hashtag "sign off" and share the memories they had with the airline.
What is the government doing?
- Minister of Human Resources Saravanan Murugun said the Labor Department had discussed with the management of Malindo Air, the Department of Industrial Relations (JPP), and the Social Security Organization (Socso) to discuss issues on compliance with labor laws and welfare of the workers.
- As of 2 November 2020, JPP has received a total of 31 cases of representation of work rehabilitation under section 20 of Act 177 involving former Malindo Air employees.
- 24 cases were successfully resolved through peace talks while the remaining seven cases are still in negotiation process.
- Employees who feel that their termination of service is being done unfairly and without reasonable grounds have the right to file a representation of work rehabilitation under Section 20 of the Industrial Relations Act 1967.
- Malindo Air workers who were laid off could also seek Employment Allowance (EMP) assistance for up to six months under the Employment Insurance System (SIP).
- Payment of allowances will be made for between 30% and 80% of their last drawn salary under a RM4,000 salary limit.
- Saravanan also encouraged those affected to register with the MYFutureJobs Portal to help them generate temporary income and stay afloat while looking for new permanent jobs.