The RM850 million mutual separation scheme (MSS) offered by national carrier Malaysia Airlines (MAS) was lower than what their workers union (Maseu) had bargained for.

Nonetheless, the offer was still more lucrative than what had been agreed upon in the company's collective agreement, said Maseu president Alias Aziz today.

For example, successful MSS applicants would be subjected to a better payout compared to those who face retrenchment exercises, he explained when contacted.

The New Straits Times today estimated that successful applicants would be receiving on average RM100,000. Other perks are said to include one-off medical benefits, buy back of all unutilised leave, free air tickets valid till year end, and also one-year hospitalisation coverage starting Aug 1.

The company, which has been hit by financial turbulence, is trying to regain its balance by shedding between 3,000 to 5,000 of its present 23,000 strong workforce through the one-time-only MSS offer.

Company's right

Amid fears of retrenchment, company managing director Idris Jala assured that the move was "strictly voluntary" and the company would not shed staff after the exercise period.

Alias said the union was consulted on numerous occasions by the MAS management, where the union had repeatedly asked for the MSS to amount to RM1.2 billion.

"Then again, this is the right of the company and it has been approved by the government. Now, we will leave it to the individual to decide (on whether to take the offer)," he said.

On whether any division of the company would be greatly impacted by the scheme, Alias believed that the company would prudently vet through the applications to ensure smooth operations.

Letters detailing the scheme have been distributed to all levels of the company. The exercise is expected to be completed by the end of July.