Idris Jala should clarify whether MAS is giving half-million ringgit  “golden handshakes” to a select few  under the RM850 million MSS scheme although they have less than 24 months services left while about half of the 4,300 MAS staff who opted for MSS  had been rejected

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Media Statement
by Lim Kit Siang  
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(Parliament, Saturday) A rebellion is brewing among the Malaysian Airlines (MAS) staff at the unfairness and injustices in its  RM850 million mutual separation scheme (MSS), which is meant to downsize its 23,000-strong workforce to affordability levels comparable to profitable peers such as Singapore Airlines (14,000) and Cathay Pacific Airlines (15,000) and designed to save about RM340 million per year in labour costs.

MAS’ MSS offer attracted 4,238 applications representing 19% of its 23,000 employees. The original MAS  plan was to axe 6,500 employees based on competencies and departments.

The unhappiness among the MAS staff stem from the lack of accountability, transparency and fairness in the MSS – that only some 50% of those who opted for the MSS  had been accepted and the “golden handshakes” to a select few  under the RM850 million MSS scheme although they have less than 24 months services left.

MAS  managing director Idris Jala should give the Malaysian public as well as the MAS employees answers to the following questions:

(a)   The total number of MAS employees who had  opted for MSS, the number of approvals and rejections.

(b)   Is it true that MAS has fixed a ceiling of  RM700,000 for MAS payout for an employee.

(c)   The number of employees whose MSS payments are in the following region: (a) between RM100,000 – RM200,000 between RM200,000 – RM300,000; (b) between RM300,000 – RM400,000; (c) between RM400,000 – RM500,000; (d) between RM500,000 – RM600,000; and (e) above RM600,000.

(d)   The number of employees approved for MSS who have (i) less than 12 months’ services left; (ii) less than 24 months services’ left; and the respective total MSS payouts for these two categories.

(e)   What is the total cost of the MSS payouts for those who have successfully opted for MSS.

(f)     The total cost of MSS payouts if approval had been given to  all the employees whose option had been rejected.

(g)   The principles and criteria for the MSS payout

(h)   Is it true that one principle for the MSS payout is based on the employee’s current salary multiplied by the number of years of service in the national airline?

As MAS is  80% owned by the government and the Malaysian taxpayers had to repeatedly fund billion-ringgit bailouts of the national airline in the past 12 years since the scandal of the  Tajudin Ramli “privatization” of the government stake in MAS, the Malaysian public are entitled, without interfering in management decisions, to ensure that there is good corporate governance in MAS.

Furthermore, MAS employees are also entitled to accountability, transparency and fairness in the implementation of the RM850 million  MSS which is  being funded from the public coffers.

(05/08/2006)