MAS Admin Bill - even all existing Unions in MAS are at risk?

Whilst National Union of Flight Attendants Malaysia (Nufam) have been vocal on the new MAS Bill, that puts all existing MAS employees in limbo - and even possibly result in the end of all MAS In-House Unions and Associations. When this becomes law, MAS would have no more assets or work - so all employees would be terminated - nay, retrenched. But will there be any money in MAS to even pay all these about 20,000 employees their retrenchment/termination benefits. 

The proposed new law is already clear that Malaysian Airlines Berhad (MAB) will have the sole discretion as to who it employs. So, maybe some of the current MAS employees will be re-employed and some not. Will those re-employed even enjoy the same wages and benefits - well, no guarantees and it all will depend very much on the new employer?

What happens to the wrongful dismissal cases in court against MAS? Well, you would not be able to get reinstated if MAS is no more. Compensation - well, if MAS has no money, how will they be able to pay compensation? Wind-up MAS - well, would that not be a futile exercise when all the assets are gone. 

UNIONS - well, if it is an in-house Union, well we can say 'good bye' to them. A National Union would survive, but alas they too will have to go through the entire process of claiming recognition all over again, would they not? 

 

A quick look at Clause 28 may give the impression that we are talking about MASEU and all the now existing Unions representing MAS employees ...BUT alas it is not so we are talking only about trade unions and associations 'duly recognized by the Malaysians Airlines Berhad', that new entity...

 

Negotiation  with  trade  unions  and  associations
28.  (1)  All  matters  to  be  discussed  or  negotiated  between  the Malaysia Airlines  Berhad  and—
(a) any trade union duly recognized by the Malaysia Airlines Berhad  in  accordance  with  the  Industrial  Relations Act  1967  and  the Trade  Unions Act  1959;  and
(b) any  association  recognized  by  the  Malaysia  Airlines Berhad,

shall  be  by  way  of  meetings....

So, it is most odd that the Unions and Associations of MAS Employees, safe for NUFAM, seems to be too quite. Are they just not aware or is it for some other reason,

The Malaysian government is moving at lightning pace with this Bill. It was passed at the Dewan Rakyat, one day after it was tabled for first reading. It is listed on the agenda for Day 1 of the sitting of the Senate which starts Monday, 1/12/2014... So before people realize the implications, it may have already become law...

There seems to have been concern about 'business contracts' - but little or no concern about the employees and their trade unions. The Hansard for 27/11/2014 is also still not out and we cannot even see what came out in the debate before the Bill was passed.

See also:- 

All MAS employees set to lose their jobs when the MAS Admin Bill becomes law, and a new entity MAB takes over the national carrier?

 

Union cries foul on new MAS Bill

Lin KayKay

 | November 28, 2014

The National Union of Flight Attendants Malaysia (Nufam) wants to study MAS Bill before it’s further debated in Parliament.

KUALA LUMPUR: The National Union of Flight Attendants Malaysia (Nufam) has, in an initial reaction, described new legislation dealing with Malaysia Airlines (MAS) as lopsided and promotes discriminatory practices against airline crew and is at odds with current industry practices.

Nufam demanded that Khazanah Nasional Berhad, the national sovereign fund which has nearly 70 per cent stake in MAS, to provide the union a copy of the draft Act before it is debated further in Parliament.

“The draft law steers employees and its Unions off the normal legal process in filing any industrial disputes against the carrier,” the union said in a statement. “The proposed law aims to block the workers and their unions from taking legal action against MAS should their rights be compromised.”

“There are also several clauses to provide protection and also to overthrow the current legal process which has been recognised by law under the Trade Union Act and Industrial Relations Act.”

It added that the proposed act also contains clauses to fend off any claims third-parties may make in the future against the airline.

Details of the ‘Employee Consultative Panel’ (ECP) promised by Khazanah to ‘address employee-related concerns’ and the “Corporate Reskilling Center” which will be set up to address the ‘reskilling of appropriate MAS staff who do not migrate to “NewCo”, a new company, have not been disclosed.

Nufam aside, the Malaysia Airlines System Employees Union (Maseu), Malaysia Airlines Employees Union Peninsular Malaysia, and the Malaysia Airlines Pilot Association also represent MAS workers.

The passing of the Malaysian Airline System Berhad (Administration) Bill 2014 or “MAS Bill” in parliament on Thursday is meant to help MAS restructure in order to put it on the road to profitability once again.

The Bill gives wide ranging powers to the Administrator of the new entity or “NewCo” that will replace Malaysian Airline System Berhad or MAS.

The MAS Bill gives wide powers to the Administrator to transfer property and liabilities belonging to MAS.

The MAS Bill also allows “NewCo” to be freed of any obligation to continue to hire existing MAS employees based on the same contractual terms.

The new Bill exempts “NewCo” from being named as a party in any claim registered by current or former employees of MAS and its subsidiaries.

Point 8 of Khazanah’s 12 point plan estimates a net reduction of 6,000 employees from the approximately 20,000 employees currently being employed by MAS. - FMT News, 28/11/2014, Union cries foul on new MAS Bill

Airline crew union cries foul against proposed MAS Act

LUMPUR, Nov 27 — The government’s proposal for new legislation dealing with the national carrier is lopsided and promotes discriminatory against airline crew that is at odds with current industry practices, its union said today.

Responding to the MAS Act tabled in Parliament yesterday, the National Union of Flight Attendants Malaysia (Nufam) said the proposed law aims to block the workers and their unions from taking legal action against Malaysia Airlines (MAS) should their rights be compromised.

“It is seen to steer employees and its Unions off the normal legal process in filing any industrial disputes against the carrier. There are also several clauses to provide protection and also to overthrow the current legal process which has been recognised by law under the Trade Union Act and Industrial Relations Act,” the union said in a statement.

It added that the proposed act also contains clauses to fend off any claims third-parties may make in the future against the airline, which was twice hit by two major aviation disasters this year that plunged it further into the red.

The MAS Act proposes that a new entity called Malaysia Airlines Berhad be set up to replace Malaysian Airline System Berhad.

Its draft also suggests special laws for the administration of the airlines and all subsidiaries in addition to stricter rules regulating airline unions.

Nufam demanded state wealth fund Khazanah Nasional Berhad, which has nearly 70 per cent stake in MAS, to provide the union a copy of the draft Act before it is debated further in Parliament.

The union warned that if Parliament endorses the proposed law, it would be against current industrial trade practices.

While tabling the Act, Minister in the Prime Minister’s Department Datuk Abdul Wahid Omar told Parliament yesterday that all matters to be discussed and negotiated between Malaysia Airlines Berhad and unions will be by way of meetings.

The proposed bill also stated that resourcing and allocation of resources, assessment of employees, leave entitlement, working hours and scheduling of work, including flight time limitation and flight duty periods will be determined by the new entity.

Apart from Nufam, other unions representing MAS workers are the Malaysia Airlines System Employees Union (Maseu), Malaysia Airlines Employees Union Peninsular Malaysia, and the Malaysia Airlines Pilot Association.

The proposal follows Khazanah’s plans to straighten out the ailing carrier by trimming the labour force of some 20,000 workers to just 14,000, according to the plan rolled out on August 29 this year.

The national carrier was delisted in August after sovereign wealth fund Khazanah Nasional Bhd offered to buy out its minority share for a total of RM1.38 billion to restructure MAS, which suffered two disasters this year.

The total takeover is to cost state-owned firm Khazanah Nasional Berhad, the majority-shareholder in the airline, RM6 billion.

The sovereign wealth fund later unveiled a 12-point turnaround plan for the national carrier, titled “Rebuilding A National Icon — The MAS Recovery Plan”, which includes transferring all MAS assets to a new entity tentatively known as “MAS Baru” or “new MAS”.

Flight MH17 was shot down in Ukraine in July, four months after flight MH370, en route to Beijing from Kuala Lumpur vanished mid-air in March. The latter has yet to be found.

However, even before the mysterious disappearance, the carrier had racked up RM4.13 billion in losses over three years. - Malay Mail, 27/11/2014, Airline crew union cries foul against proposed MAS Act

All MAS employees set to lose their jobs when the MAS Admin Bill becomes law, and a new entity MAB takes over the national carrier?

Malaysian Airline System Berhad (Administration) Bill 2014 was tabled and 1st reading was on 26/11/2014, the 2nd reading was on 27/11/2014 and apparently it has been speedily passed by the Dewan Rakyat on 27/11/2014. 

All employees of MAS will be in a precarious state - it seems that they will all lose their jobs for the Bill clearly states that it will be a new entity that takes over  - Malaysian Airlines Berhad(MAB). Now, will MAB hire the existing employees of MAS? Maybe...maybe not - it all depends on MAB

Clause 25 of the Bill states that ‘The  Malaysia  Airlines  Berhad  may,  in  its  sole  discretion, offer employment to any person who immediately before the date of that offer is in the employment or service of the Administered Companies on such terms and conditions as the Malaysia Airlines Berhad  may  determine.’

What happens to the rights of MAS employees? Well, it certainly looks like they will lose all their rights and benefits - It is clear in the Bill that the new entitity MAB will not be liable ... 

Clause 26 states clearly that Malaysian Airlines Berhad is not a successor company and ‘…shall not…  be liable for any obligation relating to any retirement plan or other post-employment benefit plans in respect of the employees  or  former  employees…’  The new entity cannot also be made 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].

What about MAS? Well, effectively after this exercise, MAS would be an assetless entity - no money and no assets. They will not even be able to pay the retrenchment benefits to all their employees. They may also not be able to pay their lawyers, court costs or any compensation. They definitely will not be able to 'reinstate any worker' - for there will be nothing left in MAS - no more assets, no more money and certainly no more jobs. 

So what happen to all the employees in MAS - well, they will all lose their jobs, and worse still have no assurance at all that they will be 're-employed' by MAB. 

Normally if an employer is forced to reduce its employees, the legal principle is LIFO(Last In First Out) - but alas, here it looks like it will all be ignored.

So why are the Unions, Union leaders and employees of MAS so 'silent' - well, maybe they have given up....or they are trying to be 'good' HOPING that MAB will re-employ them. FEAR maybe the reason for their lack of protest with regard this injustice that will come to play once the Act is passed - and the Minister puts it in force. The Bill was tabled in the Dewan Rakyat, and the following day it was passed. The same is likely to happen in the Senate. The King also cannot stop it becoming an Act since once a certain number of days have passed, it will be deemed that the King has consented.

So, will Malaysians stay quite and allow this Act that will rain injustice on not just the workers but also all their Unions, noting that most of these Unions are really MAS in-house Unions. Hence, after MAB takes over, new Unions will have to be registered, and recognition once again sought by MAB, ....  

Parliament passes MAS bill

BY JENNIFER GOMEZ

Published: 27 November 2014

Malaysia Airlines has been reeling from two major air disasters this year, forcing a major overhaul led by state fund Khazanah Nasional. – Reuters file pic, November 27, 2014.The Dewan Rakyat today passed the Malaysian Airline System (MAS) Bhd (Administration) Bill 2014, which provides for the troubled carrier to be operated by a new entity.

The bill provides for Malaysia Airlines Berhad (MAB) as the airline's new administrator and operator, as well as its wholly owned and partially owned subsidiary companies.

During the debate on the bill, Tony Pua (DAP-Petaling Jaya Utara) said that an act alone could not save the ailing airline as its failure was caused by bad management.

He said directly negotiated contracts as opposed to open tender, and cronyism, were also the reasons why MAS had failed. "But we still see direct negotiations and the New Economic Policy is being promoted as  helping the Malays when it is actually being misused to help cronies.

"If we don't correct all these, we will continue to see bailouts like this being brought to Parliament, this will not be the last," he said.

Pua blamed MAS's lopsided contracts with companies such as Brahim's Airline Catering Sdn Bhd for the carrier's downfall, citing as example the RM60 cost of nasi lemak, which he said was excessive.

"How to be profitable like that?

"I fly on Air Asia and only have to pay RM12.50 for their delicious nasi lemak, this is also expensive but at least Air Asia is profitable," Pua added.

Datuk Raja Kamarul Bahrin Shah Raja Ahmad (PAS-Kuala Terengganu) said contracts like Brahim's which was a 25-year deal should be reviewed as promised by the government.

He said Youth and Sports Minister Khairy Jamaludin was an interested party as Brahim's chairman, Datuk Ibrahim Ahmad Badawi, was his wife's uncle.

Raja Kamarul questioned the need for the amendment this morning, saying it was unfair and sneaky.

"Khairy, a minister, is an interested party. Did he have a part in this last-minute change and is he going to vote (on the bill)," he asked.

Hanipa Maidin (PAS-Sepang) wanted to know if the fate of the employees will be protected, saying this needed to be looked into as the problems faced by the carrier were not contributed by the staff.

Instead, he said those who created the problems, such as former MAS chairman Tan Sri Tajudin Ramli, were protected by the government.

Wong Chen (PKR-Kelana Jaya), in questioning the amendment, said it guaranteed existing suppliers that their contracts with the airline would be continued at the same rate.

He said the original clause had mentioned that this would be at the discretion of the administrator, adding that the amendment effectively took away the discretionary powers of the administrator.

Minister in the Prime Minister's Deparment, Datuk Seri Abdul Wahid Omar, when winding up the debate, explained that the discretion remained with MAS's new administrator despite the amendment.

He said while the administrator was allowed to renegotiate contracts and to appoint new suppliers, there must be continued supply of goods and services with existing suppliers so that the airline's business was not disrupted.

The act shall apply for a period of five years, or until MAB is listed on the stock exchange, whichever is earlier.

The bill is part of plans by sovereign state fund Khazanah Nasional to restructure MAS, which has been in the red following two major disasters this year.

Flight MH370 to Beijing is still missing with 239 on board after nearly nine months, while flight MH17 enroute from Amsterdam to Kuala Lumpur was shot down over war-torn eastern Ukraine in July, killing all 298 people on board. – November 27, 2014.

 

- See more at:

http://www.themalaysianinsider.com/malaysia/article/parliament-passes-mas-bill#sthash.nXxfzq2v.dpuf

Bill to administer MAS tabled

BY JENNIFER GOMEZ

Published: 26 November 2014

 The Malaysian Airline System Bhd (Administration) Bill 2014 will introduce special laws for the administration of the airline. – The Malaysian Insider pic, November 26, 2014.  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The  Malaysian Airline System Bhd (Administration) Bill 2014 which facilitates an administrator to manage the beleaguered airline was tabled for first reading at the Dewan Rakyat today.

The proposed act provides for special laws for the administration of the airlines, its wholly owned subsidiaries and partially owned units.

This will be established under a new entity which will replace MAS as the national carrier.

The bill was tabled by Minister in the Prime Minister's Department Datuk Seri Abdul Wahid Omar. Under the bill, the national carrier, which will be registered as  Malaysia Airlines Berhad (MAB) under the Companies Act 1965, will not be the successor employer of MAS.

The bill also provides for the administrator to renegotiate the terms and conditions of any contracts or agreements of the administered companies with the counter-parties.

The provisions also include that when the administrator assumes control of the companies, it will not be liable for any obligation relating to any retirement plan or other post-employment benefit plans of the employees or former employees that existed prior to the assumption of control.

The administrator will also not be liable for any sum which is calculated by reference to a period of time prior to MAB becoming the employer of the person in question.

MAB, the appointer and the administrator, cannot be made a party in any claim or proceeding which commenced or continued by any employee or former employee pursuant to the Industrial Relations Act 1967, Employment Act (1955), Sabah Labour Ordinance 1959, Sarawak Labour Ordinance 1952 or the Trade Unions Act 1959.

The bill also states that matters relating to productivity or effective utilisation of workforce, including on leave entitlement, working hours, scheduling of work including flight time limitations and flight duty periods will be determined by MAB in compliance with applicable laws and international standards.

The administrator also cannot be sued or prosecuted in any court or tribunal for any loss or damage caused by its exercise of power under the new act, unless it was due to wilful misconduct or gross negligence.

The act shall apply for a period of five years, or until MAB is listed on the stock exchange, whichever is earlier.

Sovereign state fund Khazanah Nasional had announced that it would undertake a comprehensive review and restructuring of MAS.

Khazanah will offer 27 sen for each MAS share it does not own, amounting to nearly RM1.4 billion to take the troubled airline private. It said the offer was the first stage of the restructuring scheme, which came as MAS struggled in the wake of two major aviation disasters this year.

Flight MH370 from Kuala Lumpur to Beijing is still missing with 239 people on board, while on July 17, flight MH17 from Amsterdam was shot down over Ukrainian air space, killing all 298 people on board. – November 26, 2014.

 

- See more at: 

http://www.themalaysianinsider.com/malaysia/article/bill-to-administer-mas-tabled#sthash.0Q4h2QHe.dpuf

DAP wants Khazanah to be transparent in MAS overhaul

Published: 28 November 2014

 

 

Serdang MP Ong Kian Ming wants Khazanah to be transparent in the restricting process of Malaysia Airlines as the recently passed Malaysian Airline System Berhad (Administration) Bill 2014 gave its new entity a wide scope of power. – The Malaysian Insider pic, November 28, 2014. 

 

A DAP lawmaker wants the major shareholder of Malaysia Airlines (MAS) to be transparent in the financial restructuring of the loss-making airline that was hit by two separate jet disasters this year.

Serdang MP Ong Kian Ming said this was to ensure that Khazanah Nasional Bhd protected the welfare and rights of the employees.

He said transparency was need to keep authority in check as the passing of the Malaysian Airline System Berhad (Administration) Bill 2014 in Parliament yesterday gave wide-ranging powers to the new entity replacing MAS.

"Since both the Prime Minister (Datuk Seri Najib Razak) as well as the managing director of Khazanah (Tan Sri Azman Mokhtar) have come out to say that the expected capital injection of RM6 billion into 'NewCo' does not constitute a bailout, the terms of this financial restructuring has to be made public."  Among others, the bill is aimed at making provisions for the administration of the Malaysian Airline System Berhad and its wholly-owned and partly-owned subsidiaries.

It is also aimed at making provisions for the setting up of a new entity known as Malaysia Airlines Berhad that will replace MAS as the national carrier.

The Dewan Rakyat yesterday passed the MAS Bill, which provides for the troubled carrier to be operated by a new entity.

The bill provides for Malaysia Airlines Berhad (MAB) as the airline's new administrator and operator, as well as its wholly owned and partially owned subsidiary companies.

Going into details, Ong wants Putrajaya to come clean on the fate of the RM12.1 billion payments to three companies; Assets Global Network Sdn Bhd (RM961 million), Penerbangan Malaysia Berhad (RM5.8 billion) and Turus Pesawat Sdn Bhd (RM5.3 billion), that were set up to buy assets (planes and buildings) and then lease them back to MAS.

"Any changes to the payment terms of the 'NewCo' to these three companies will impact government finances and hence must be disclosed for the sake of transparency and to ensure that the promises of the PM and Khazanah's MD are adhered to," he said.

Apart from transparency, Ong also outlined two more principles that should be followed during the restructuring exercise.

They are ensuring fair and transparent renegotiation of existing supply contracts and protection of the welfare and rights of MAS employees.

Some Pakatan MPs yesterday expressed concern over one of the sections in the bill, Section 14, which will be used to preserve some of the existing supply contracts to MAS that are deemed by some to be overpriced.

This, Ong said, was because Section 14, which was amended yesterday, is supposed to ensure that there are no disruptions to the services provided by MAS and its subsidiary companies.

"To assuage such fears, any renegotiation of major supply contracts by the 'NewCo' must (also) be publicly disclosed," he said.

Ong pointed out that Khazanah must ensure fairness in the treatment of employees who will be employed by the "NewCo" and also those who will be let go as a result of the recovery plan.

This was following Khazanah's announcement in August that under its RM6 billion recovery plan for MAS, some 6,000 of the airline's 20,000 members of staff would be laid off.

It said that some of those exiting staff could opt for a voluntary separation scheme (VSS), while others could be absorbed into other companies under the Khazanah stable after undergoing a reskilling programme.

At the same time, Ong lauded Azman's promise to provide an update on the restructuring every three months, saying that it was a move in the right direction and must be commended.

"We ask that the MD respond to the issues raised here in the next MAS update which will take place by the end of this week," he added.

"A MAS which is healthy and profitable is important to our country because it will be able to pay taxes and contribute to the government’s budget.

"It will (also be) less of a financial liability to Khazanah and will provide steady and secure employment to its employees," he said.

The bill is part of plans by sovereign state fund Khazanah Nasional to restructure MAS, which has been in the red following two major disasters this year.

Flight MH370 to Beijing is still missing with 239 on board after nearly nine months, while Flight MH17 enroute from Amsterdam to Kuala Lumpur was shot down over war-torn eastern Ukraine in July, killing all 298 people on board. – November 28, 2014.

 

- See more at: http://www.themalaysianinsider.com/malaysia/article/dap-wants-khazanah-to-be-transparent-in-mas-overhaul#sthash.59oBOhC4.dpuf