KUALA LUMPUR: There is no necessity for Malaysia Airlines Berhad (MAB, or MAS) to let its employees go as part of cost-cutting measures to face the onslaught of Covid-19.
Human Resources Minister Datuk M. Saravanan said any move to axe employees will only be carried out as a last resort.
He said his ministry met with MAS on March 11 after being informed that cost-cutting measures were being put in place by the national carrier.
MAS chief executive officer Captain Izham Ismail explained to employees that the move is necessary to weather weaker air travel demand amid the coronavirus pandemic.
“MAB has informed (the Human Resources Ministry) that for the time being, they will freeze intake of new employees and promotion of existing personnel,” Sarvanan said in a statement, today.
He added that the ministry was also informed that MAS employees can opt to take up to three months of unpaid leave or five days of unpaid leave per month, for up to three months.
Saravanan also urged MAS to adhere to existing labour laws, the Collective Agreement as well as the Code of Conduct for Industrial Harmony.
He added that MAS should also continue engaging directly with its personnel to inform them of the latest developments involving Covid-19.
“The Human Resources Ministry will continue to monitor and advise employers on any action which involves workers’ welfare resulting from action involving Covid-19.
“This is to ensure that industrial harmony at the workplace is healthy and conducive without affecting workers’ welfare and the company,” he said.
The voluntary unpaid leave for all 13,000 MAS employees is effective from this month.
Malaysia Airlines said the scheme was also offered to staff of its parent, Malaysia Aviation Group (MAG), and subsidiaries including MAB Kargo, MAB Engineering, Firefly and MASwings.
On March 9, MAG announced a 10 per cent reduction of its senior management’s salary, including their allowances, effective April.
To date, the national carrier has cancelled more than 2,000 flights up to April due to travel restrictions imposed by countries within its network.
Global airlines have been forced to undertake cost-cutting measures to preserve cash flow. This included Emirates, Cathay Pacific, Singapore Airlines and Malindo Air.