KUALA LUMPUR, Nov 27 – Dewan Rakyat today approved a Bill Malaysian Airline System Berhad (Administration) in 2014 to ensure the survival of the national carrier’s services. Bill, among others, seeks to provide for the administration of Malaysian Airline System Berhad (MAS), a wholly owned subsidiary and partial ownership.
It will also provide for the establishment of a new entity known as Malaysia Airlines Berhad which will replace the MAS as the national airline. Minister in the Prime Minister’s Department, Datuk Seri Abdul Wahid Omar presented the bill to third reading before being approved after obtaining the approval of a majority of Council members.
Bill has 37 clauses and six divisions, which he debated the 10 members of Parliament involving five of the Barisan Nasional (BN) and five from the opposition since 11.30am before it was declared passed around 4.45 pm by the Speaker Tan Sri Pandikar Amin Mulia. Among the main features of the bill is enabled (MAS) operate at a reasonable cost from the cost of supplies, services, staff, including rules and terms of employment for new employees.
“It (the Bill) also allows the new company to operate at a high standard,” said Abdul Wahid said, adding that Khazanah Nasional Bhd (Khazanah), the investment arm of the government, MAS is committed to helping employees who do not want to move to a new management company. He said, Khazanah will re-establish a training center MAS staff who chose not to emigrate for career guidance, counseling and entrepreneurship.
According to him, the redeployment of staff will also be established for employees who want to migrate in groups Treasures and government-linked companies (GLCs). “On the selection of employees who will join the new company, they will undergo a selection process in terms of skills and work culture (previously selected),” he said.
He said about 14,000 workers will be placed in the new company compared to the existing 20,000 employees currently. Previously, Khazanah will reportedly set up a special center to provide placement assistance to approximately 6,000 MAS will be dismissed due to the restructuring process. The central focus is always supportive of including professional support, emotionally and financially to help them to move on to the next stage of his career.
Abdul Wahid said, efforts related repair workers and suppliers will be based on principles of fairness and transparency. This, he said, including strengthening the leadership of the new MAS is expected to be operational in July 2015 involving a member of the board of directors, middle and upper management to ensure that the new company leadership can bring benefits to the MAS.
He also said the company’s new administrator is allowed to renegotiate with all existing suppliers about the new price offered. However, he said if the company does not agree, then the company can get from other suppliers. “Khazanah will see the relevant contract and not all contracts are covered, eg catering contract,” he explained.
In the meantime, Wahid said, when the MAS suffered a loss of RM5 million per day, while a total of RM748 million loss recorded for the first six months of this year. “This is due to the operational structure and the number of public employees and to enable the new company will be viable, it is important for companies to be given the opportunity to select employees on terms that can increase productivity,” he explained.