PETALING JAYA – The Malaysian Trades Union Congress (MTUC) has slammed beleaguered budget carrier MYAirline for its failure to settle outstanding salaries to employees who have been working from home since last year.
MTUC secretary-general Kamarul Baharin Mansor said that employees were assured the overdue amounts, dating back to October 2023, would be paid by January 31 of this year as per an agreement made at a meeting held at the Subang Labour Department.
“The company should settle the salary arrears in line with the department’s mutually agreed terms and conditions,” he said in a statement.
“The company deceived its workers by promising that the salary arrears will be settled. Its reason for waiting for new investors to take over the company is unreasonable, as salary payments are basic matters in employment.
Expressing doubt about MYAirline’s ability to attract new investors, especially after five months of shutdown and news of the Middle Eastern investors’ withdrawal, Kamarul highlighted the increasing distress faced by employees, particularly during preparations for the new school year and Ramadan.
Kamarul urged the Human Resources Ministry to revamp financial welfare regulations for employees when a company ceases operations due to bankruptcy, including salary payment methods, termination benefits and other entitlements.
He stressed the importance of consistent communication with employees regarding the status of their salary claims, citing the concerning trend of companies failing to pay salaries after ceasing operations.
“A new mechanism to ensure employees receive all their payments (is needed), especially their salaries when a company is going through problems,” he said.
“The incident of workers being persecuted to the point where wages are not paid is very sad, especially for companies that have been operating for a long time and made profit from the workers’ contributions.”
Highlighting the lack of existing legislation favouring employees, Kamarul called for amendments to hold companies more accountable for their employees’ wellbeing.
MYAirline suspended operations abruptly on October 12, citing financial troubles after losing an investor.
The company’s air service licence has been suspended by regulators, and the Human Resources Ministry has urged affected staff to file outstanding salary claims promptly.
On October 31 last year, a group of MYAirline employees lodged a police report in Sepang against the company over their unpaid salaries.
In November, 24 MyAirline employees filed claims totaling RM200,000 in unpaid salaries. Despite negotiations with potential investors, the recent withdrawal of the Middle Eastern investor has added to the company’s woes. – March 9, 2024