KUALA LUMPUR: Payments and benefits to both employees joining Malaysia Airlines Bhd (NewCo) and leaving MAS will total up to RM1.5 billion, says Khazanah Nasional Bhd.
In its third quarterly update released today, Khazanah said over 14,000 MAS employees were offered employment at the new company.
“A large majority were offered full -time employment while the rest were offered contract employment of various durations.
Employees who are offered and accept employment at the new Malaysia Airlines will receive sign-on and retention payments.
All MAS employees received termination letters on June 1, 2015.
“Employees exiting MAS by August 31, 2015 will receive a termination package that includes payment based on a formula similar to that under existing Collective Agreements at MAS, and free training and placement services at the Corporate Development Centre (CDC), which has identified over 12,000 job opportunities available for exiting MAS staff.
The package includes medical benefits, and an additional “safety net” payment to vulnerable groups of exiting employees (physically-challenged employees, single parents, and married couples where both spouses are exiting).
“Route rationalisation is also underway with the suspension of selected non-profitable routes,” it said.