Layoff has to be last resort, MAS told
KUALA LUMPUR: There is no necessity for Malaysia Airlines Berhad (MAB) to let its employees go as part of cost-cutting measures to face the onslaught of the Covid-19 outbreak.
Human Resources Minister Datuk M. Saravanan said any move to axe employees should be a last resort.
He said the Human Resources Ministry met Malaysia Airlines officials on March 11 after being informed that measures had been put in place by the national carrier.
MAS chief executive officer Captain Izham Ismail had told employees that the move was necessary to weather weaker air travel demand amid the coronavirus pandemic.
“MAB has informed (the Human Resources Ministry) that it will freeze the intake of new employees and promotion of existing personnel,” Saravanan said.
He added that the ministry was informed that employees could take up to three months of unpaid leave or five days of unpaid leave per month, up to three months.
Saravanan urged Malaysia Airlines to adhere to labour laws, collective agreement and the Code of Conduct for Industrial Harmony in its actions.
He said MAB should continue engaging with employees to inform them of the development involving Covid-19.
“The Human Resources Ministry will continue to monitor and advise employers on any decision that involves workers’ welfare due to Covid-19. This is to ensure that industrial harmony at the workplace is healthy and conducive without affecting workers’ welfare and company productivity.”
The voluntary unpaid leave for 13,000 MAS employees is effective from this month.
MAS said the scheme was also offered to staff members of its parent company, Malaysia Aviation Group (MAG), and subsidiaries MAB Kargo, MAB Engineering, Firefly and MASwings.
On March 9, MAG announced a 10 per cent reduction in senior management’s salaries, including allowances, effective next month.
MAS has cancelled more than 2,000 flights until next month due to travel restrictions imposed by countries in its aviation network.
Global airlines, including Emirates, Cathay Pacific, Singapore Airlines and Malindo Air, are undertaking cost-cutting measures to preserve cash flow.