Malaysia Airlines’ restructuring plan, which includes axing 6,000 jobs - around a third of the workforce - has caused worries among staffers, particularly cabin crew.
Details of the its right-sizing workforce initiative have not been laid out, but what is unveiled by Khazanah Nasional on Friday is that there will be options for re-skilling, redeployment and a voluntary separation scheme (VSS) as part of its RM6 billion recovery plan for MAS.
Under the plan, the company will also offer employment to some 3,500 MAS workers in other companies.
“As much as I want the airline to survive and accept that somebody has to go, we have to be fair to the staff,” a flight steward with MAS for 20 years told Astro AWANI.
“The rumour is that we might be offered a voluntary separation scheme (VSS) of one and half month's salary for each year of service. That is not sufficient for the cabin crew if the VSS is calculated based on our basic salary.
"For the crew, two thirds of our take home salary comes from allowances. If the VSS is calculated based on basic salary, I don’t think we can survive even for a year.”
MAS employees are very concerned but are mostly opting to wait out until more details of the company’s restructuring plans are revealed, before weighing in on their options, he added.
“The fact is, someone has to go. But we need to be given enough time for adjustments and compensated with a fair and sufficient amount.”
When asked if seeking employment at a different airline is an option, the 40-year-old flight steward said his age could be an impediment.
“I have been with MAS for a very long time. But if you talk about experience, a cabin crew that has worked between 15 and 25 years have almost the same experience. They (airlines) might as well take the younger ones.
Another flight steward with MAS for 15 years is opposed to the VSS scheme.
“If possible, I do not want to the company to offer the VSS scheme. In the event if the employees refuse to take it, we might be forced into retrenchment. Plus, one and half month's pay multiplied by years of service under the VSS - if that is what is being offered - is not enough.
“Honestly, we are all under pressure that we might lose our jobs,” he said.
Meanwhile, National Union of Flight Attendants (Nufam) president Ismail Nasaruddin said the union is waiting for further details on the restructuring process.
“We are observing the details that Khazanah has given us for now.
6,000 is the targeted figure, but not necessarily all 6,000 people will leave. Not all employees will take up the VSS offer. So, our concern is what happens if the figure is not met, adding that positions of employees to be laid off and divisions that will be involved are still a question mark.
Under a 12-point restructuring plan announced by Khazanah's Managing Director, Tan Sri Azman Mokhtar on Friday, the current MAS entity would come under 'Oldco' or old company while the new restructured entity would come under 'Newco' (new company) effective July 1, 2015.
“What is crucial is that when you have a Newco, there will be fresh contracts. What is stipulated under the new contract and the terms and conditions will be very important. That is also our main concern,” said Ismail.
He added that apart from the options that have been unveiled, the company might implement salary cut and long breaks for employees as a cost saving measure.
Cynthia Ng
Sat Aug 30 2014
Khazanah Nasional Managing Director Tan Sri Azman Mokhtar revealed its RM6 billion recovery plan for MAS on Friday. - Astro AWANI/Shahir Omar
Hyundai to invest RM2.16 bil in Malaysia through strategic partnership with INOKOM
This investment includes efforts to upgrade INOKOM's existing assembly capacity to meet Hyundai's automotive needs.
‘C4Cinta’ sets record as highest-grossing Malaysian Tamil film
'C4Cinta', directed by young filmmaker Karthik Shamalan, has set a new benchmark in Malaysian Tamil cinema.
Man charged with mother's murder, storing body in freezer
The court denied bail and scheduled case mention on Feb 7 for the submission of forensic, autopsy, and chemist reports.
Abolition of examination in schools to reduce pressure on pupils - Fadhlina
The classroom assessment approach offers a much more interesting learning ecosystem, says Fadhlina Sidek.
Google, Meta urge Australia to delay bill on social media ban for children
Google and Meta says the government should wait for the results of an age-verification trial before going ahead.
Judge tosses Trump 2020 election case after prosecutors' request
It represents a big legal victory for Donald Trump, who won the Nov. 5 US election and is set to return to office on Jan. 20.
DHL plane crash in Lithuania leaves authorities searching for answers
Rescue services said the plane hit the ground, split into pieces and slid over 100 metres (110 yards).
National squad to hold friendly matches for 2025 Indoor Hockey World Cup
The warm-up matches will involve matches against better ranked teams in the world, namely Austria (first) and Belgium (third).
G7 seeks unity on ICC arrest warrant for Netanyahu
The United States, part of the G7, has rejected the ICC decision, with President Joe Biden describing it as outrageous.
Francissca Peter remembers Tan Sri Ahmad Nawab: A tribute to a musical legend
A legend who has influenced our music for decades, was one of the highlights of my career, says Francissca Peter.
TikTok decision coming soon as Jan. 19 divestment deadline looms
Judges are reviewing TikTok's challenge to a law requiring ByteDance to sell its US assets by Jan. 19 or face a ban.
Lebanese sources: Biden, Macron set to announce Israel-Hezbollah truce
In Washington, White House national security spokesperson John Kirby said, "We're close" but "nothing is done until everything is done".
PM meets chaebol tycoon to attract more FDI to Malaysia
Chaebols are prominent figures from South Korea's family-owned conglomerates.
Govt won't allow non-citizen vehicles to enjoy RON95 subsidy - Economy Ministry
The implementation of the RON95 subsidy in 2025 is expected to provide savings of RM3.6 billion to government expenditure.
Ringgit opens lower as greenback gains ground
Dr Mohd Afzanizam says the market responded positively to news of hedge fund manager Scott Bessent heading the US Treasury Department.
Management of low-cost housing, gov't quarters, focus at Dewan Rakyat today
Also among the highlights, UNICEF report on 12.3pct of teenagers in Klang Valley's PPR face mental health issues and suicidal tendencies.
UN Resolution 1701, cornerstone of any Israel-Hezbollah truce
Here are the resolution's main terms, and a note about subsequent violations and tensions.
Record aid worker deaths in 2024 in 'era of impunity', UN says
So far this year there have been 281 aid worker victims, according to the Aid Worker Security database.
Why India's toxic farm fire counting method is disputed
Here's how India counts farm fires - a major contributor to severe pollution in the north - and why its method is being questioned.
Divisions on curbing plastic waste persist as UN treaty talks begin
South Korea is hosting the fifth and ostensibly final UN Intergovernmental Negotiating Committee (INC-5) meeting this week.