INTERVIEW Several provisions in the Malaysian Airline System Bhd (Administration) Act 2015, which affect the workers rights in the new company (NewCo) can be challenged, opines the national carrier's former chief executive officer and managing director, Abdul Aziz Abdul Rahman.

Abdul Aziz said the restructuring exercise had resulted in single mothers and couples losing their long-held jobs as they were among the 6,000 sacked by MAS as a result of the restructuring exercise in the formation of NewCo to replace MAS.

“Some have lost their income and sole breadwinners of families have lost their jobs. I know  that those taken in by the NewCo had to agree to a lower pay.

It is understood that some MAS staff had not received salary increments or bonuses for several years.

This, Abdul Aziz warned, could be dangerous in the airline industry as it may create disgruntled staff who would not want to give their 100 percent commitment due to lower pay issues.

Abdul Aziz, 82, a former Sessions Court judge, was roped in by the government into MAS in 1971 following the separation of the Malaysia-Singapore Airlines.

He said he tried to ensure that whatever Malaysian staff would get would be at par with Singapore.

“What the Singapore Airlines staff got, the Malaysia Airlines employees got the same. This is something that I put into place. This is to ensure that our staff would be happy, despite the separation,” he said.

Malaysia-Singapore Airlines was originally formed in 1966 but split into two airlines for the respective countries in 1972. Abdul Aziz was with MAS until 1991. He was appointed company secretary in 1971 and rose in the national air carrier to become its CEO and MD.

Point of controversy

On provisions in the Malaysian Airline System Bhd (Administration) Act 2015, which came in force in March 2015 and bars staff from challenging the terms offered by NewCo, Abdul Aziz felt this could be challenged.

Such laws, he said, may be unconstitutional.

“Even the rulers can be brought to a special court set up by the government. Hence, why not the new law barring staff from taking action against NewCo,” he asked.

The Malaysian Airline System Bhd (Administration) Act 2015 became a point of controversy following the restructuring of MAS earlier this year, which involved the closing down of the company and its assets transferred to NewCo.

The new entity now runs MAS with a workforce that is one-third smaller (12,000 staff now) and a downsized operations agenda with emphasis on regional routes.

The point of contention among the 12,000 former MAS staff who were offered employment by NewCo is the fact that their terms of employment cannot be challenged in a court of law.

This seems to be reinforced  by Section 27 of the Malaysian Airline System Bhd (Administration) Act, which states that NewCo may impose any terms, work rules, code of conduct and regulations in relation to the former MAS employees and that these may not be challenged in a court of law.

Accordingly, Section 26 (2) of the Act states: 'The Malaysia Airlines Berhad, the appointer and the Administrator, shall not be named as a party in any claim or application made or joined as a party in any proceeding commenced or continued by or on behalf of any employees or former employees of the Administered Companies pursuant to the Industrial Relations Act 1967 [Act 177], Employment Act 1955 [Act 265], Sabah Labour Ordinance 1950 [Sabah Cap. 67], Sarawak Labour Ordinance 1952 [Sarawak Cap. 76] or the Trade Unions Act 1959 [Act 262] Work rules, code of conduct and Regulations 27. The Malaysia Airlines Berhad may, it thinks fit, impose any work rules, code of conduct and regulations in relation to its employees in accordance with all applicable laws.'

Not a commodity

The International Transport Workers Federation (ITF) had also voiced its concern over the new law.

ITF secretary-general Steve Cotton expressed his strong concern when he wrote that the new law would have strong consequences for trade unions representing MAS workers, including the Malaysia Airline System Employees Union (Maseu).

“Unions will lose their certification as bargaining partners and workers would therefore be deprived of the right to be represented by their unions to bargain collectively and protect their hard won gains over the last 34 years.

“It is crucial that governments and investors recognise that the core asset of an airline is the skills, expertise and goodwill of employees. These are not an asset to be traded like a commodity, and nor should their security and working conditions be undermined.

“Any change in the status of MAS should be negotiated with its workers and their unions,” Cotton said

Abdul Aziz said he got to know that several lawyers may help take up the cause for the workers.

“If I am approached, I will be glad to assist,” added Abdul Aziz, who is still practising as a lawyer.

Tomorrow: Abdul Aziz on how he felt leading a soaring MAS, and its descent after that.