Union urges govt to monitor Batik Air’s cost-cutting measures

 The National Union of Flight Attendants Malaysia says it opposes the carrier’s move to offer voluntary unpaid leave to employees following a reduction in flight frequencies.

Batik Air Malaysia said last week it remains financially sound but is taking proactive steps to ensure its long-term sustainability.

PETALING JAYA:

 The National Union of Flight Attendants Malaysia (Nufam) has called on the government to look into Batik Air Malaysia’s decision to reduce flight schedules and offer voluntary unpaid leave to its staff.

The union said it strongly opposes the airline’s move to offer voluntary unpaid leave to its 3,500 employees following a 35% reduction in flight frequencies in April amid rising jet fuel prices linked to the Middle East conflict.

It urged transport minister Loke Siew Fook and human resources minister R Ramanan to “closely monitor” the situation, warning against what it described as arbitrary reductions in workers’ income during periods of fuel price volatility.

“The government must not allow airlines or companies to arbitrarily reduce workers’ income whenever fuel costs rise. This is a temporary challenge, not a permanent condition,” it said in a statement.

Nufam noted that although the unpaid leave is labelled “voluntary”, it was concerned about possible implicit pressure on staff to take unpaid leave in the name of “saving” the company.

“Any form of coercion or discrimination against those who choose not to apply for unpaid leave is unacceptable,” it said.

The union also questioned the airline’s risk management strategy, particularly its reported lack of fuel hedging contracts to cushion against volatile global oil prices.

The failure to take such precautionary measures should not result in disruptions to employees’ livelihoods through unpaid leave, it said.

It stressed that employee welfare must not be treated as a last resort, adding that the airline should explore other cost-saving measures that do not affect basic salaries or the staff’s financial stability.

Global average jet fuel prices stood at US$195 per barrel last week, according to International Air Transport Association data.

Based on the data, the global average jet fuel price was around US$95.95 per barrel for the week ending Feb 20, with prices spiking significantly following attacks on Iran by the US and Israel on Feb 28. - FMT