Thursday 28 Mar 2024
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KUALA LUMPUR (Mar 7): No amount of money can compensate for the loss of a loved one but the families of Malaysia Airlines (MAS) crew members on missing flight MH370 say they cannot help but feel the sting following the financial assistance rendered after the plane's disappearance last year.

They had been getting help from MAS after the plane vanished from radar on March 8 last year, in the form of their spouses' salaries and allowances, said a next-of-kin of a crew member, who declined to be named.

MAS had also given each family US$5,000 in a one-off gesture after the incident. Twelve of the 239 people on board the plane were crew members.

But salaries and allowances of the 12 crew members stopped after the Malaysian Department of Civil Aviation's announcement on January 29 that the plane was lost in an accident and all on board presumed dead, the family member said.

And other staff benefits, including medical coverage for families, also ceased from March 1.

The family member who spoke to The Malaysian Insider said they were informed of this by MAS officials a week after the January 29 announcement.

Some families of crew members are left in the lurch financially, particularly those whose missing loved ones were the breadwinner, as there will be no more assistance other than the "gratuity" to be paid to them under MAS's collective agreement with the crew members' union, said National Union of Flight Attendants (Nufam) president Ismail Nasaruddin.

The next-of-kin of airline crew members are not entitled to any payout in the event of death under the Montreal Convention on rules for international air transportation.

Ismail said MAS paid out a gratuity of US$50,000 to every crew member on MH370 but there are no further financial assistance as the airline does not provide insurance coverage for crew members in the event of an accident.

MAS only provides medical insurance and coverage for death by natural causes, Ismail told The Malaysian Insider.

"The insurance coverage provided does not protect crew members when they fly, they only get coverage for medical expenses and natural death because the cost and risk is too high," he said.

"Clearly, the amount is not enough to service commitments like a house mortgage, children's education and car instalment. What is left after paying for all that? The next-of-kin will have to bear the debts alone," Ismail added.

Nufam, which represents more than 3,000 cabin crew members, had tried to negotiate with the airline management for their welfare after MH370 disappeared, Ismail said.

It was apparent that MAS was ill-prepared to deal with emergencies, he added, noting that the airline did not have a "crisis fund".

"As an airline that is nearly 50 years old, you're telling us MAS does not have a crisis fund for emergencies?

"You ought to be ready to face any situation, but they have never had a crisis fund."

Ismail said Nufam, over the years, had tried to resolve other grouses with the airline management, such as the tight work schedules for cabin crew and low wages for overtime work.

"The crew members have complained to the union that they are being made to work for long hours without adequate pay, to the extent that they only get 12 hours on the ground after landing and before working on the next flight again.

"With pay of only US$9 per hour as overtime work on flights, is this enough for their livelihood as well as to compensate them for their sacrifice?" Ismail asked, noting that cabin crew did not receive pensions.

He said despite this being a long-standing issue, the airline management has not responded on the matter. Ismail said crew members were hoping for the best under the government's restructuring plan for MAS to bring it back to profitability by the end of 2017, under an ambitious plan to turn around the bleeding national carrier.

By July this year, MAS is to transition to a new company (NewCo) under a new management. The airline was delisted from Bursa Malaysia last December to facilitate the restructuring.

MAS is also to renegotiate some 4,000 supply contracts and began with caterers Brahim's Airline Catering recently, in a deal that is expected to save the airline some 25% in monthly expenditure.

But the fate of crew members and other unionised workers remained in the dark, and Ismail said Nufam members were worried about the loss of jobs.

It had been reported that MAS intends to axe about 6,000 jobs under the restructuring plan.

Past experience of MAS management changes has also left Nufam with a bitter taste.

"Till today, we are still in the dark about MAS's future. The management has changed four times and each time was worse. Every year, they announce losses. So people are beginning to question," Ismail said.

Business for MAS took a dive since the disappearance of MH370 in March last year, and was also affected last July when another flight, MH17, was shot down while flying over a war-torn area in eastern Ukraine, killing all 298 people on board.

The airline has been hit by cancelled bookings, low passenger take-up and high overheads. Passengers of MH370, however, can receive compensation from the airline up to US$175,00 under the Montreal Convention.

"It is tough when you lose your main breadwinner, when his disappearance has stalled the payment for the car and the house and when you have nothing or no one who you can count on in this time of need," said Nizam Mustafa whose sister Suhaili was on the plane.

He said MAS gave the families of passengers on board US$5,000 right after March 8 but this was separate from another US$50,000 the airline offered as initial payment of full compensation under international convention.

The US$50,000 will be offset against any amount subsequently paid by the airline to families as full compensation.

"It is not much but enough to give the families some kind of cushion to sustain and make payments under the victims' names, which was long overdue since the plane disappeared.

"But to get that amount was not easy, there were so many forms to fill and procedures to follow, but it was something for the family.

"For those with small children and other responsibilities, this helped a lot," said Nizam.

 

 

 

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