(June 8): Malaysia Airlines staff will get termination packages according to the collective agreements and not a half-month's salary and an ex gratia payment as claimed by the airline's union, the national carrier said in a statement this evening.

Rebutting The Edge Financial Daily's report today quoting Malaysia Airlines System Employees Union (Maseu) secretary-general Abdul Malek Ariff, MAS said it was wrong and misleading to say that MAS workers leaving the airline were "short-changed".

"Maseu and MAS employees covered by the CAs (collective agreements) have been clearly informed, (that) the termination package provides for a total payment that is the same as that stipulated in the CAs.

"This total payment comprises a Base Payment given to all MAS employees, and an Ex-Gratia Payment which is provided for voluntarily by MAS and its shareholders to exiting MAS employees," the airline said.

It added that additional considerations have been given to the welfare of exiting employees, such as medical benefits for an additional year and payment for unutilised leave.

An additional 30% termination payment will also be given to physically-challenged employees, single parents and married couples where both spouses are leaving the airline.

According to the CA, all employees who have served up to 10 years are entitled to a severance package of one month’s basic pay per year of service while those who have served more than 10 years will receive 1.5 months.

Abdul Malek had been reported as saying that the ex gratia and base payments were combined, meaning staff would receive less than 1 month or 1.5 months respectively in base pay – in breach of airline sole shareholder Khazanah Nasional Berhad's promise to honour CAs.

Denying these claims, MAS said the termination package had been put together carefully after consultation to ensure that the airline's restructuring was transparent and fair.

In a statement on June 2, Khazanah said RM1.5 billion had been set aside for payments and benefits for 14,000 staff who had been offered jobs in the NewCo, Malaysia Airlines Berhad, and 6,000 who were let go.

Termination letters were issued to all 20,000 MAS employees.

The last day of employment at the old company is August 31. MAS will also waive all bonds for those still bonded by the airline. – The Malaysian Insider