The Railwaymen's Union of Malaya will proceed to picket against a move by Keretapi Tanah Melayu Berhad (KTMB) to allow its Electric Train Services (ETS) to be managed by a subsidiary company, ET Sdn Bhd (ET).

Union president Abdul Razak Md Hassan said the union would continue its 500-strong protest outside the KTMB headquarters in Jalan Hishamuddin in Kuala Lumpur tomorrow.

He said a nationwide protest would be held at KTMB's 10 branches on July 21, following KTMB president Aminuddin Adnan's failure to meet with them to discuss the matter.

"I had invited him (Aminuddin) to openly debate on the issue, but he did not entertain my invitation," said Abdul Razak when contacted today.

He said, besides protesting the subsidiary company's management of the ETS, the union also demanded that Aminuddin step down as president.

"He did not cooperate with the employees. He should have met the union to discuss the picket but he did not," said Abdul Razak.

Abdul Razak said the 3,600 member-strong union was against the formation of the subsidiary and its control on the ETS as it would cause reduction of staff health benefits, loss of allowances, reduced annual leave and increased rental on staff quarters.

"We believe ET's formation is a pre-restructuring move whereby in future, departments under KTMB will be made as subsidiary companies or joint ventures or outsourced, or may also be fully privatised," he said.

Previously, Aminuddin had told Bernama that ET's establishment was part of the transformation plan to ensure KTMB's competitiveness, as well as create a more conducive working environment and culture.

He had said the separate formation of ET would also ensure strengthening of the subsidiary's finances, facilitate loans and the construction of new infrastructure which could indirectly help to revive KTMB.

- Bernama