Monday, July 27, 2015

31st August - MAS Bhd gains 'Independence' from obligations to ensure justice to workers?Trade Unions?

31st August may be INDEPENDENCE DAY not just for Malaysia but also Malaysian Airlines Systems Berhad(MAS Bhd) - the day they escape liability to do justice to their workers and relevant Trade Unions.

It is alleged that the business and assets of Malaysian Airlines System Berhad(MAS Bhd) to Malaysian Airlines Berhad(MAB) may effectively happen at the end of August 2015. The letters of termination sent to almost all employees, some 20,000, states that their last day of work will be the end of August. The new entity, Malaysian Airlines Berhad(MAB) in their offer of employment to some 16,000 ex-MAS Bhd employees, states that the date they start employment in MAB is 1/9/2015. As such, it more likely than not that all business, assets and monies of the Malaysian airlines will no more be with MAS Bhd - but will already be transferred to MAB when the MAB workers start working. If not, maybe our Prime Minister will clarify matters ....

Many workers of MAS Bhd have cases against their employer, MAS Bhd, claiming for reinstatement in wrongful dismissal cases. There would also be other cases of workers claiming for one right or another possibly also in the Labour Department & Courts (now called 'Human Resource'), and also in the the Industrial Relations Departments(IRD), waiting for Minister's Referral, in the Industrial Courts, and maybe also in the High Courts, Court of Appeal and Federal Court. Now, these workers in their struggle to claim rights in law have used the available access to justice mechanisms ...And they would have expended a lot of monies, time and effort pursuing justice... 

Likewise there are also cases between MAS Bhd and Trade Unions in tribunals and courts... Again, here trade unions would have expended much effort, time and monies..

NOW - all these workers and trade unions will be visited with further injustice...

WHY? Since, the appointment of the Administrator on 25/5/2015 > a moratorium came into effect - All cases and proceedings came to a standstill - and they will move again after the end of the Administration period...

BUT when that happens, more likely than not, MAS Bhd will be nothing but an 'empty shell' with no business, work, assets or even monies...

So, even if the workers can still proceed with their proceedings and cases --- the end result is that MAS Bhd may have lost the capacity to satisfy the claims, etc... hence may a workers/trade unions will not only have lost their REMEDY to Justice and Human Rights, but also becomes a further victim - lost also is the monies, effort and time expended to claim justice and rights.

Most likely, if MAS Bhd ends up a 'empty shell' - they would also not be able to continue to retain their lawyers - and lawyers will discharge themselves. And all cases will just come to a standstill with no way of proceeding further... [Why? a company needs a lawyer to act for them in legal proceedings...???]

What about the other workers yet to file their claims against their employer, MAS Bhd,? Well - too bad,no justice for you...

Now, if MAS Bhd had gone for winding-up - well section 292, places workers as a priority even before income tax...?


(1) Subject to this Act, in a winding up there shall be paid in priority to all other unsecured debts—
(a) firstly, the costs and expenses of the winding up including the taxed costs of a petitioner payable under section 220, the remuneration of the liquidator and the costs of any audit carried out pursuant to section 281;
(b) secondly, all wages or salary (whether or not earned wholly or in part by way of commission) including any amount payable by way of allowance or reimbursement under any contract of employment or award or agreement regulating conditions of employment, of any employee not exceeding one thousand five hundred ringgit or such other amount as may be prescribed from time to time whether for time or piecework in respect of services rendered by him to the company within a period of four months before the commencement of the winding up;
(c) thirdly, all amounts due in respect of worker's compensation under any written law relating to worker's compensation accrued before the commencement of the winding up;
(d) fourthly, all remuneration payable to any employee in respect of vacation leave, or in the case of his death to any other person in his right, accrued in respect of any period before the commencement of the winding up;
(e) fifthly, all amounts due in respect of contributions payable during the twelve months next before the commencement of the winding up by the company as the employer of any person under any written law relating to employees superannuation or provident funds or under any scheme of superannuation or retirement benefit which is an approved scheme under the federal law relating to income tax; and
(f) sixthly, the amount of all federal tax assessed under any written law before the date of the commencement of the winding up or assessed at any time before the time fixed for the proving of debts has expired.
(2) The debts in each class specified in subsection (1) shall rank in the order therein specified but as between debts of the same class shall rank equally between themselves, and shall be paid in full, unless the property of the company is insufficient to meet them, in which case they shall abate in equal proportions between themselves.
(3) Where any payment has been made to any employee of the company on account of wages, salary or vacation leave out of money advanced by a person for that purpose, the person by whom the money was advanced shall, in a winding up, have a right of priority in respect of the money so advanced and paid, up to the amount by which the sum in respect of which the employee would have been entitled to priority in the winding up has been diminished by reason of the payment, and shall have the same right of priority in respect of that amount as the employee would have had if the payment had not been made....
The Malaysian Airlines is now owned by MAS Bhd, and in the future may be owned by the new MAB - but they are are both wholly owned by Malaysia's sovereign wealth fund, Khazanah Nasional - thus the government of Malaysia. Prime Minister Najib is also the Chairman of Khazanah..

Hence, our Prime Minister Najib and the BN Government have the power to ensure that justice is done to all workers...

* Immediately resolve all pending proceedings and cases > I would suggest payment of all payments incurred in terms of monies, and a amount to compensate the effort and  time wasted in the pursuit of justice..

* Further and additionally, for workers claiming reinstatement, assume that they are successful and pay them the back wages from date of termination until now, plus also a further compensation of 1 months wages for every year of service.

* Further for other worker claims, being monetary claims for matters like overtime, etc - pay them all that they are claiming for...

* Further for trade union cases, I would suggest payment of all payments incurred in terms of monies, and a amount to compensate the effort and  time wasted in the pursuit of justice..

ALL THIS SHOULD BE DONE AND SETTLED BEFORE THE MONIES, ASSETS AND BUSINESSES OF MAS BHD IS TRANSFERRED OFF TO THE NEW ENTITY - Malaysian Airlines Berhad(MAB)

Now, naturally there may be other claims and cases filed by MAS Bhd employees, and maybe even trade unions - for this maybe a significant sum, say RM1 billion is left with MAS to address such claims.

Alternatively, Khazanah Nasional or the new entity MAB, should be willing to step in and assume all or any liability of MAS Bhd to workers and trade unions...This means the Malaysian Airline System Berhad (Administration) Act 2015 [Act  765], which came into force on 20/2/2015, need to be repealed or amended to allow this. Now, this law ensures that MAB is not to be responsible ...


Section 25(2), 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].

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…’
 
It is most shameful and disappointing that Malaysia enacted a law that suspends and even denies workers existing worker rights in law... this MISTAKE must be rectified now, before it is too late - preferably before asset, business and monies are all transferred to the new company, Malaysian Airlines Berhad(MAB)...

TRADE UNIONS representing MAS Bhd employee could assist by immediately calculating and submitting the amount that they should be paid to PM Najib and the government > and all this be settled soonest...

* The above just my personal opinion - of how justice to workers and unions will not be denied. There is much unresolved matters especially with regard to pending worker/trade unions claims for justice... and possible future claims after 'moratorium' is lifted...

Alternate views and comments are welcome...

Related Posts:-

Why is MAS which may cease all operations on 31/8/2015 appointing new Chief Operations Officer? Media Fumble?

MAS Termination - DISCRIMINATORY? Just retrench those MAS do not need - wrong to keep them as employees until 31st August?

MAS's Independent Administrator finally appointed - not to prepare proposal but to 'sign termination letters'?

Najib to be blamed for MAS's failure,loss of employment of thousands, union busting,..?

 

 

 


 


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