Some 20,000 MAS staff will either get termination or re-employment letters in the coming days, reports The Star today as the national airline streamlines its entire workforce to start afresh as a smaller, regional airline.
Those re-employed will be offered jobs with new conditions though this number will only be 6,000 -8,000 people.
It was reported earlier that 6,000 staff would be axed but sources told The Star that in effect it is 6,000 roles that could be cut and some of those roles could be done by more than one staff.
The sources added that the final number of staff asked to go could be over 8,000, but in stages over a year.
The only person spared would be chief executive Christoph Mueller ( photo ), who was hired to lead the new airline but was then roped in to manage the transition.
The Star also noted that no government-linked company in Malaysia has ever sacked nearly everyone and “this could well be the most number of people ever sacked in one day in Malaysia”.
Letters out on Wednesday
Executive chairperson of the consulting and audit firm PricewaterhouseCoopers Sdn Bhd Mohammad Faiz Azmi would be appointed as administrator and he will sign all the termination letters which will be sent out this Wednesday.
The job terminations are aimed at easing the migration of MAS into a new company, MAS Bhd, which will begin operations on Sept 1.
The appointment of the administrator also marks the beginning of the eventual end for MAS as an entity as Faiz’s job will be to clean up MAS for closure and transfer all the assets and liabilities to MAS Bhd.
“The 6,000 will be terminated at the same time, but some will be released in phases to manage the transition.
“Some will be offered short-term contracts in MAS Bhd,’’ said a source.
Those axed will be paid compensation, but the amount may not be as much as under the collective agreement (CA).
Those re-hired by MAS Bhd will get some money in the form of a sign-on bonus but the formula is not known.
'Don’t throw us away like rubbish'
Meanwhile, mStar reported a senior cabin crew member named Raj as telling the company not to “throw us away like rubbish”.
The 42-year-old father of two said he had worked with MAS for 18 years and they wanted to know whether their contributions thus far were appreciated or otherwise.
“Many of us still don’t know whether we will be terminated or otherwise and we are worried for our future. Don’t throw us away like rubbish,” he said.
The latest move by MAS is part of a last-ditch effort to salvage MAS, saddled with debts for several years now, even before the twin tragedies of MH370 and MH17 ( photo ).
MAS had suffered losses for the last three years and the twin tragedies made the company’s revival even more difficult.
Related stories
Axe MAS fat cats first, says union
