KUALA LUMPUR, May 27 — Malaysia Airlines (MAS) staff who will not be offered employment under its new company Malaysia Airlines Berhad (MAB) will be given an ex-gratia payment of a month’s salary for every service year, a report said.
MAS chief executive officer Christoph Mueller, who sent a memo yesterday to the airline staff with the details of the severance package, was quoted in English daily The Star saying it was “in line with the Prime Minister Datuk Seri Najib Razak’s commitment that MAS restructuring reflect fairness, compassion and transparency”.
For those who have served in the carrier for more than 10 years, the package offers a payment of 1.5 months of their basic salary for every service year, which is in accordance with the Collective Agreement (CA) previously signed.
However, the memo said senior management employees and contract workers would not be subjected to the terms.
The airlines is slated to lay off between 6,000 to 8,000 of its staff over the next year as part of its RM6 billion turnaround plan to shrink operation size with focus on regional flights.
The struggling flag carrier has a reported existing workforce of some 20,000 employees.
MAS’ entire operations will be shifted to MAB and around two-thirds of the staff would be rehired.
There was much uproar among MAS employees after it was reported earlier that they would only be receiving half of what was agreed on in the CA.
