The Human Resources Ministry is very concerned about the fate of aviation industry workers in the country and will do its best to assist the group of 2,647 Malindo Air employees, most of whom were retrenched.
"The aviation sector is one of the most affected sectors to date due to constraints on the movement of passengers as well as tourists from within and abroad due to the transmission of the Covid-19 pandemic.
"Recovery of this sector is expected to take a long time, possibly until 2023 and this has forced employers in the aviation industry to lay off workers to avoid incurring continued losses," said minister M Saravanan in a statement today.
Malindo Air has implemented job cuts involving 2,647 people since Nov 1. They include 439 employees who were given one year's unpaid leave, 347 under the Voluntary Separation Scheme (VSS) and 1,861 employees who were retrenched and given minimum compensation as required under the Employment Act 1955.
"The ministry and its departments and agencies - Industrial Relations Department, Manpower Department and Socso - had a discussion with the management of Malindo Air yesterday to ensure the rights of affected workers are protected and they are given appropriate assistance," said Saravanan.
He said apart from the compensation provided by the employer, the ministry would also ensure all employees of the airline receive a loss benefit through the Employment Insurance System (SIP).
"At the same time, Socso will assist them in finding jobs through the portal MYFutureJobs," Saravanan said, adding that Malindo Air staff are also eligible to participate in training programmes (reskilling, upskilling) provided by Sosco or the Human Resource Development Fund (HRDF) where training fees are fully borne by the government.
Employees involved with retrenchment are advised to immediately apply for SIP benefits via online here or present at any Socso office nearby, he said.
In yesterday's discussion, the management of Malindo Air stated that they received assistance from the Employment Retention Programme (ERP) for two months, namely for April and May 2020.
"The ERP payment for April has benefited 2,112 Malindo Air employees involving payment of RM1.26 million while ERP payments for the month of May was delivered to 2,478 employees, totalling RM1.48.
"All employees of the company receiving ERP were not laid off in that month," clarified Saravanan.
Socso records also showed that Malindo Air has received the Wage Subsidy Programme (PSU) payments amount to RM240,000 for the month of July and August 2020 for 200 employees.
The 439 Malindo Air employees who received the unpaid can also claim the EIS, read the statement. - Mkini
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