KUALA LUMPUR: The Malaysian Airlines System Employees’ Union Peninsular Malaysia (Maseu), has joined several smaller unions in pushing Khazanah Nasional Bhd to abort a move to cut 6,000 jobs as set out in the latter’s RM6 billion recovery plan for the loss-making airline after it was hit by twin air disasters last year. Maseu is the national airline’s biggest and most powerful workers union. 

Yesterday, six trade unions led by International Transport Federation Malaysia Council secretary-general Tan Sri Zainal Rampak sought Prime Minister Datuk Seri Najib Razak’s intervention to stop Khazanah from going ahead with its plan to lay off 6,000 people, almost a third of the airline’s 20,000 strong staff.

The other unions comprise the Malaysian Trade Union Congress, UNI-Malaysia Labour Centre, Asean Services Employees Trade Union Council Malaysia, Gabungan Kesatuan Sekerja Dalam Syarikat GLC & Penswastaan and the Public Services International Malaysia.

The unions, which represent about 12,000 to 13,000 MAS employees across various sections from cabin crew to engineering, also called for the resignation of the airline and Khazanah’s top brass, citing “mismanagement” and “failure to turn around the airline on numerous occasions”.

Zainal said the six unions have brought up issues affecting MAS employees to the International Transport Workers Federation (ITF) in London and the International Labour Organisation (ILO) in Geneva. 

Maseu is also doing its part to pressure Khazanah to call off its plan, its secretary-general Ab Malek Arif said.

“We are not keeping quiet. Maseu has taken the issues affecting MAS employees to the international bodies like ITF and ILO. We have also written to Najib three weeks ago seeking an intervention,” Ab Malek told The Edge Financial Daily by phone yesterday.

“We want Khazanah to come back to us and resolve the issues in an amicable manner, failing which we will have to resort to other actions,” he said.

Ab Malek, however, stopped short of disclosing whether Maseu would stage a nationwide protest that could affect the country’s airline industry. He recalled a protest by the Airlines Employees’ Union Peninsular Malaysia (AEU, which represented most MAS employees and those working at foreign airlines that operated to Peninsular Malaysia) back in 1978 that led to planes being stranded in foreign countries, including Europe, when the protest went international.

A check on the ITF website dated March 6, 2015, reveals that it had on Feb 18 this year written to the prime minister to urge him to intervene over plans to close MAS and create a new airline with only some of the workers and no unions.

“Maseu [had] told the ITF that the non-transparent process envisaged in the new Malaysian Airline System Bhd (Administration) Act 2014 regarding the transfer of employees to the new airline would result in dramatic job losses, discrimination, loss of income and conditions, and de-unionisation,” said the ITF.

“It is crucial that governments and investors recognise that the core asset of an airline is the skill, expertise and goodwill of employees. These are not an asset to be traded like a commodity, and nor should their security and working conditions be undermined. Any change in the status of MAS should be negotiated with its workers and their unions,” it added.

In his letter of Feb 18, ITF general secretary Steve Cotton reminded Najib of Malaysia’s workers’ rights obligations under ILO conventions, and urged him “to start a process of sincere dialogue and engagement with the Maseu based on respect for fundamental trade union rights”.

Meanwhile, Ab Malek expressed disappointment with Khazanah for not engaging with Maseu over its decision to terminate up to 6,000 of its employees despite the union being a general body that represents non-executive employees, since its establishment as an in-house union in 1979 after the AEU was deregistered.

“Khazanah is stubborn and only wants to talk to us on the restructuring progress, but never involves the unions in its decision-making,” he said.

Earlier, at the trade union press conference yesterday, Zainal said the 6,000 MAS employees whose employment would soon be terminated under MAS’ restructuring should not be victimised in the current situation. He called on the prime minister to appoint a special committee to look into the issues and resolve the problems.

“The International Transport Federation Malaysia Council and the five trade unions will be submitting a memorandum to Najib that seeks the resignation of the top brass of Khazanah and MAS officials,” he said.

In a separate press conference yesterday, the National Union of Flight Attendants (Nufam), which represents 3,500 cabin crew working for MAS, said it is still considering staging a picket if the plan to cut some 6,000 jobs is not scrapped.

The Edge Financial Daily on March 14 reported that Nufam had sent out a notice of intention to the government to stage a picket during the week of the Langkawi International Maritime and Aerospace Exhibition (Lima), which was held between March 17 and 21. The plan was not carried through. 

Last week, MAS board of directors announced an accelerated leadership transition, which sees former Aer Lingus plc chief executive officer (CEO) Christoph R Mueller assuming the post of MAS managing director and group CEO effective May 1. Mueller’s contract as CEO with Aer Lingus is to end on May 1.

In its statement on March 20, MAS said the accelerated leadership transition will enable Mueller to be in a position to lead the overall MAS restructuring effort as it enters “one of its most critical phases”.

This article first appeared in The Edge Financial Daily, on March 24, 2015.