Media Statement- 4 August
2015
Repeal MAS Law That Suspends Or Deny Existing Worker And Trade Union
Rights And Access To Justice – Laws that deny worker rights to assist
businesses should never be enacted
We, the undersigned 64 civil
society organizations, trade unions and concerned groups, are disturbed by the Malaysian government’s
unjust use of an Act of Parliament to suspend and/or deny existing worker
rights in law, including also access to justice mechanisms, for the benefit of
a private business and employer, being the Malaysian Airlines System Berhad(MAS
Bhd), now wholly owned private company by Malaysia’s sovereign wealth fund, Khazanah Nasional Berhad, a company.
Malaysia tabled and passed speedily the Malaysian Airline System Berhad (Administration) Act 2015 [Act
765], which came into force on 20/2/2015. This Act is most unjust to workers
and trade unions of employees of the airline.
The Act, in section 11, states that
“…on the appointment of the Administrator, a moratorium shall
take effect during which… (e) no
proceedings and no execution or other legal process in any court or tribunal
may be commenced or continued with, and no distress may be levied, against the
Administered Companies or their property except with the prior written consent
of the Administrator;” – whereby the Administered company includes MAS Bhd, its wholly
owned subsidiaries and some partially owned subsidiaries. The Administrator
was appointed on or about 25/5/2015, and the period of administration could
last for a maximum period of 2 years commencing from
the date of the appointment of the Administrator.
What is disturbing is that when administration and moratorium ends, all
monies, assets and business of MAS Bhd would most
likely be transferred to a new legal entity Malaysian Airline Berhad(MAB). MAS
Bhd would most likely be left an empty shell.
Worker Claiming
Rights Cases Against MAS Bhd – Stopped and May Not Proceed
There are currently many cases
initiated and filed, now pending before access to justice mechanisms, including
tribunals and courts between workers and MAS Bhd, the employer, claiming wrongful dismissal and/or other
worker rights, or between trade unions and MAS Bhd. The effect of the
moratorium is that all these actions and cases will stop, and not proceed
further until administration of MAS Bhd ends.
At the end, when
moratorium is lifted, MAS Bhd would most likely be an empty shell – with no
work and no money.
Hence, it will be workers and trade unions that will suffer. Workers and Trade
Unions do not just lose their right to justice, but also will have to shoulder additional
loses, including all the monies utilized for lawyer and court fees, time and others. For many workers, it may also
mean loss of wages for the days they could not work because they had to attend at
relevant departments, tribunal or court in their pursuit for justice. Hence,
not only will workers and trade unions be denied justice, but will suffer even more
injustice by reason of this anti-worker legislation.
Right To Join
Parties To Satisfy Worker Claims Against MAS Bhd Denied
Normally, when the employer has lost the ability to provide
remedies, damages or compensation to satisfy the claims of the worker, to ensure
justice, the worker can proceed with an application to join third parties to
the suit, possibly the owners (Khazanah Nasional) or others.
This MAS Act now unjustly
prevents this ability to join parties, in amongst others, in section 25(2), which states that “ 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].’
In fact, section 25(1) says clearly,
amongst others, that ‘…the Administered Companies, the Administrator, appointer or the Malaysia
Airlines Berhad shall not—(a) be regarded as the
successor, assignee or transferee or a successor employer to the Administered
Companies; (b) be liable for any obligation
relating to any retirement plan or other post-employment benefit plans in
respect of the employees or former employees of the Administered Companies or
any predecessor of the Administered Companies that exists prior to the
assumption of control or appointment; or (c)
be liable for any sum which is calculated by reference to a period of
time prior to the Malaysia Airlines Berhad becoming the employer of the person
in question…’
Same Owner of both MAS
Bhd and new Malaysian Airline Berhad(MAB)
Considering that the it is Khazanah Nasional that is the sole
owner of MAS Bhd, and also the new company MAB, clearly
all that is happening is really nothing other than the ‘same person changing
shirts’ – and justice would demand that
the new entity MAB or the owner, Khazanah, should be justly taking over the obligation and
responsibility of MAS Bhd especially for cases involving worker and trade union
rights.
The new MAB and MAS
Bhd, both owned by Khazanah, really is nothing other that the same owner
forming a new company to escape responsibility and liability to workers, is also supported by the
following:-
a. Christoph
Mueller, the new chief executive of MAS Bhd was appointed on 1/5/2015, would later assume the same position with MAB. Same CEO for MAS Bhd,
and new MAB?
b.
When the employees of MAS Bhd received their
termination letters in early June 2015, those that were offered employment by the
new MAB, were offered a different termination package from those not
offered employment in MAB. Those offered employment in MAB, which
was to take effect from 1/9/2015, were asked to continue coming in to work in
MAS Bhd, while the others, about 6,000, were asked to stop coming in to work
with the assurance they will continue to receive normal salary but could not
commence employment with another employer before 31/8/2015 unless they first
get approval of MAS Bhd’s Human Resource Department. For many airline
employees, other than basic wages, income from allowances and such if they are
working makes up sometimes 50% or more of their monthly take home income.
Rightly, all employees of MAS Bhd, irrespective of whether they will be later
employed in MAB, should have received the same benefits and ex-gratia on
termination by MAS Bhd.
In the name of justice, MAB or Khazanah or the Malaysian
government should really take over the obligation of any or all claims of
employees and trade unions against MAS Bhd.
Avoiding Just Principles of Lay-Off and Termination
When an employer wants to reduce
staff, they would justly retrench the number of workers they no longer need –
and there are just requirements that
need to be complied in any retrenchment exercise like the ‘Last In First
Out’(LIFO) principle. Here, this is avoided by MAS Bhd simply terminating all
employees on 31/8/2015. Justly, the about 6,000 who were no longer required to
come into work since June, should have been laid off then and there and paid
all their entitlements.
Union Busting?
With the termination of all
employees of Malaysia Airlines Systems Bhd (MAS Bhd), it would also mean the
demise of about 7 in-house trade unions.
The only national trade union, the
National Union of Flight Attendants Malaysia, managed to show support of 62.73% of the
qualified employees, and obtain the Minister’s order that made it a recognized union in MAS Bhd. Rather than
accept this, MAS Bhd went for judicial review challenging the Minister’s
decision. NUFAM alleges that only 2 out 10 executive committee members of
the Union, who are employees in MAS Bhd have been offered employment in the new
MAB.
As such, this ‘restructuring
exercise of the airline’ and this new law can also be considered a means of union
busting.
Loss of Regular Employment Until Retirement
Many workers who are regular
employees until retirement in MAS Bhd, who have been offered employment in the
new MAB find that they will now become precarious employees on short-term
contracts, some even on 3 or 6 months employment contracts. There is no law in
Malaysia that stipulates that short-term contract employees will continue as
employees if the work they were hired to do still exist. Short-term and other
precarious forms of employment also would likely deter union formation or
involvement, deter workers from claiming rights and facilitate easier
exploitation of workers.
Ignoring Worker and Families Financial Security and
Wellbeing
Workers in Malaysia have families
and dependents, and also many now have monthly loan-repayment obligations, and
justly they should be provided secure regular employment until retirement,
whereby they still could be terminated for misconducts, or laid off where the
employers has to reduce jobs.
Whilst Malaysia says that it is
concerned about the airline business, it has demonstrated a serious lack of
concern for the welfare and wellbeing of workers.
We therefore urge:-
That the said Malaysian
Airline System Berhad(Administration) Act 2015 be
repealed, and the effect this Act has had on workers and trade unions be
reversed. No law should be enacted to suspend/deny worker rights for selected
employers;
That all pending cases with regard to labour matters, be it with workers
or unions, shall be justly resolved or settled forthwith by MAS Bhd, and its
owners Khazanah Nasional;
That for all worker and trade union cases against MAS Bhd, MAB and Khazanah Nasional shall agree to be
joined in as parties and assume obligations of MAS Bhd to workers;
That if the Malaysian Airlines is desirous of reducing the number of
employees, it be done by letting go employees in compliance with the Last In
First Out(LIFO) principle and other established just legal principles;
That if the Malaysian Airlines is to be taken over by another entity,
like the Malaysian Airlines Berhad(MAB), workers should be employed by MAB as
secure regular employees and not by means of precarious forms of employment
like short-term contracts;
That Malaysia considers the rights, welfare and wellbeing of workers and
their families are just as important, if not more, than the wellbeing and
profits of government-owned or linked businesses.
Charles Hector
Syed
Shahir bin Syed Mohamud
Mohd Roszeli bin Majid
Pranom Somwong
For and on behalf the 64 organisations, trade unions and
groups listed below
ALIRAN
Airlines Workers' Union Sarawak
Alternative ASEAN Network on Burma (Altsean-Burma)
Asia Monitor Resource Centre(AMRC), Hong Kong
Centro
de Reflexión y Acción Laboral, CEREAL (Labour Studies and Action Centre),
México
Center for Orang Asli Concerns (COAC), Malaysia
Clean Clothes Campaign
Club Employees Union Peninsular Malaysia
Committee for Asian Women
CWI Malaysia (Committee For Workers’ International, Malaysia)
Daeduck Employees Union-Ind., CEPZ, Rosario, Cavite, Philippines
Eagle Ridge Golf Course and Residential Estate Employees
Union, Cavite, Philippines
Electronic Industry Employees Union (EIEU) Southern
Region, Peninsular Malaysia
Electronic Industry Employees Union(EIEU) Northern
Region, Peninsular Malaysia
Garment and Allied Workers Union, Haryana, India
Globalization Monitor
Hye Sung Workers Union, CEPZ, Rosario, Cavite, Philippines
Institut PEREMPUAN (Indonesia)
Jaringan Kampung Orang Asli Semenanjung Malaysia(JKOASM)
Kesatuan Pekerja-Pekerja Perodua
Kesatuan Pekerja-Pekerja Mitsui Copper Foil(MCFEU)
Kesatuan
Pekerja-Pekerja MHS Aviation Berhad(MHSEU)
Kesatuan Eksekutif AIROD
Kesatuan Pekerja-pekerja Perodua
Engine Manufacturing Sdn. Bhd
Kesatuan Pekerja-Pekerja Perusahaan Otomobil Nasional Sdn
Bhd (KPP Proton)
Knights
For Peace, International
MADPET (Malaysians Against
Death Penalty and Torture)
Network of Action for Migrants
in Malaysia(NAMM)
Nagkakaisang Manggagawa ng Keyrin(trade union), CEPZ,
Rosario, Cavite, Philippines
North South Initiative
Malaysian
Humanist and Rationalist Movement ("myHARAM")
Malaysian Trade Union Congress(MTUC)
Metal Industry Employees'
Union(MIEU), Malaysia
MAP Foundation, Chiangmai, Thailand
Masyarakat Akar Rumput (MAKAR Indonesia)
Migrante International
Myanmar Ethnic Rohingya Human Rights Organization
Malaysia (MERHROM)
National Union of Transport
Equipment & Allied Industries Workers (NUTEAIW)
National Union of Flight Attendants Malaysia (NUFAM)
National Union of Hotel, Bar and Restaurant Workers
(NUHBRW)
National Union of Journalist (NUJ) Cawangan Utusan Melayu
National Union of Tobacco Industry Workers(NUTIW)
National Union Employees in Companies Manufacturing
Rubber Products(NUECMRP)
Non-Metallic Mineral Products Manufacturing Employees
Union (NMMPMEU)
NUBE (National Union of Banking Employees)
Paper Products Manufacturing Employees’ Union of Malaysia
(PPMEU)
Parti Rakyat Malaysia (PRM)
Peoples Service Organization (PSO)
Perak Women for Women Society (PWW)
PERMAS (Persatuan Masyarakat Selangor & Wilayah
Persekutuan)
Persatuan Sahabat Wanita Selangor
Persatuan Kesedaran Komuniti Selangor
Persatuan Komuniti Prihatin Selangor dan Kuala Lumpur
PINAY (Filipino
Women's Organization in Quebec), Canada
Pusat KOMAS
Railwaymen's
Union of Malaysia (RUM)
Sahabat Rakyat (人民之友)
School of Acting Justly, Loving Tenderly and Treading
humbly (SALT)
Solidarity of Cavite Workers, Cavite, Philippines
Tenaga National Berhad Junior Officers Union (TNBJOU)
Tenaganita
Workers Assistance Center, Inc (WAC),
WH4C (Workers Hub For Change)
Yayasan LINTAS NUSA Batam – Indonesia
Kesatuan Pekerja-Pekerja AIROD Sdn Bhd
PROHAM - Society for the Promotion of Human Rights, Malaysia
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