Disgruntled railway workers are planning to stage a picket on Oct 30 - a day before the retirement of Prime Minister Dr Mahathir Mohamad - to protest the government's second attempt at privatising Keretapi Tanah Melayu Bhd (KTMB).

Railwaymen's Union of Malaya (RUM) president Abdul Razak Hassan said today that members nationwide intend to stage a 30-minute picket starting at 5.30pm.

The union claimed that to privatise the ailing railway corporation would be further detrimental to their welfare.

The initial privatisation attempt, which involved a four-member consortium Marak Unggul Sdn Bhd, was considered a failure after the government re-assumed control in January 2002.

The consortium took over KTMB's daily operations in 1997 as part of a major financial and structural reform of one of the region's oldest railway services.

RUM alleged that the exercise had eroded staff benefits such as housing loans and, as of this year, bonus payments.

'Miserable failure'

Abdul Razak dismissed concerns that the picket will affect the KTM Komuter services in Klang Valley, Seremban and Rawang since train drivers, station masters, traffic control assistants and mechanical workers are union members.

"We will not disrupt any of the services on that day," he said, adding that only off-duty workers will take part in the picket.

"But there is no denying the miserable failure of the government in privatising KTMB. It should know better than to repeat the same mistake," he stressed when contacted.

Abdul Razak said the union exco decided on the industrial action after the government failed to deliver on its privatisation pledge of improved performance and better benefits for staff compared to the civil service.

"But the civil servants are having a better deal than us. When the consortium took over, all staff loans, including housing loans, were frozen and it remains so until today," he added.

The RUM exco met yesterday to pass a set of resolutions on their demands and a working paper stating that rail services can never be a commercially profitable venture.

Abdul Razak said several MPs have also stressed the same point in Parliament and added that it was a public transportation service therefore it was "the government's duty and ultimate responsibility to provide financial or other assistance to KTMB".

He said the union wanted the government to retain control of KTMB, especially after the past failure.

"We have information saying that the tender for the multi-billion ringgit double-track package includes the privatisation of KTMB.

"But we also learnt that the two companies will only be managing KTMB for a limited period only, after which the corporation would revert back to the government," he added.

The union leader wanted to discuss this likelihood before "it was too late" and complained that the union was vexed over the back and forth transfer of the company between the public and private sectors since privatisation was initiated slightly more than a decade ago.

Exorbitant fees

RUM also raised the issue of paying an international firm exorbitant consultancy fees and the disposal of KTMB's assets, particularly land.

"At the end of the day, the KTMB staff get nothing out of it. In fact, the sale of its land to developers have led to extra cost because there are no more railway quarters for staff.

"They have to rent elsewhere, and although the rental is subsidised by KTMB, it was still an unnecessary financial burden," he added.

RUM, an affiliate of the Malaysian Trades Union Congress, has 3,500 members.

Copies of the resolution and working paper were sent to Mahathir and premier-in-waiting Abdullah Ahmad Badawi to their offices in Putrajaya this morning.

RUM also sent copies of the documents to all MPs and secretaries-general of all major political parties by registered post.

According to an online Business Times report on Oct 16 which quoted sources telling Reuters , that the cabinet had approved a RM14.5 billion contract secured by MMC and Gamuda for two stretches of double-tracks in Malaysia.

Both the companies were expected to handle both the construction and the privatisation jobs under a 30-year concession before handing it to the government.

MMC is the flagship of tycoon Syed Mokhtar Albukhary, who has won a string of government projects including the Bakun dam while Gamuda is the country's biggest construction company by market value.