Case Study Of Malaysia Airlines Berhad Essay


Discuss about the Case study of Malaysia Airlines Berhad.



7,000 officials have to be curtailed, or they have to quit their jobs during the schedule set up by Malaysian Airlines (MAS). The MAS has been declared as economically ruined and for this particular reason MAS is bound to cut off 40% of its worker from their jobs. No other ways were left to MAS except doing this. The workers who were left joined a new association manned as MAS Berhad. It was a first time in 1994 when the company tried to retain their position, and till now from that year the company has been trying to hold their association in a very safe place. But this is the strongest extensive reconstructing experiment which MAS has ever attempted.

As a result of this incident the working people who are no more a part of MAS has been spending their lives as fruitless and can not sleep gently anymore. But nothing has been left to MAS except excluding the officials. The MAS discharge implement was happened according to Collective Agreement (CA) between the administration and the united power by presenting the people in the course of a policy which was named as Employee Consultative Panel (ECP). MAS’s combination is organized by the eight groups, and its leader is Malaysian Airline System Employee’s Union Peninsular Malaysia (MASEU). The further groups are –

  1. Malaysia Airlines Pilots’ Association (MAPA)
  2. Malaysian Airline System Managerial Staff Association (MASMA)
  3. Malaysia Airline System Executive Staff Association (MESA)
  4. Sabah Executive Staff Association of Malaysian Airline System (SEAMAS)
  5. Sarawak Executive Staff Committee (SESC)
  6. Airlines Workers Union Sarawak (AWUS)
  7. Air Transport Workers’ Union Sabah (ATWUS)

The duration reimbursement is completed based on Collective Agreement that primarily accepted between Khazanah, MAS executive and the groups which were also a part of the assembly. The enclose measured as one of the finest offers which were reasonable and acceptable to all rank of unemployed workers devoid of any unfairness as given away as following-

MAS Reduction Tender

• One Month Salary for Every Completed Years of Service (up to 10 years)

• Two Months Salary for Every Completed Years of Service

(those above ten years)

• Single parents, married couples’ teams, and those who are disabled will get an extra 30%

• All ruined depart till end August 2015 will be paid for

• Medical Benefit will be provided until they get another job or up to one year

• Lump sum payment by end of August

For the members who are deeply engaged into MAS Bhd.

• A Sign on Bonus

• A retention payment for those still in employment after 18 months

Figure 1 MAS Reduction Tender

If you are a worker then will you gain profit by the plan?

According to the workers, the proposal allows incredibly striking dismiss the proposal as has been mentioned in Figure 1. It is obvious that the workers have not the right to chose much more, so they are bound to accept the offerings to decline. The administrative authority has determined to make the workers bound to quit their jobs from the organization (Wan Ab Rahaman & Yaacob, 2014).

The fact whether the workers are getting profitable or ruined all around by the new proposal of the company completely depends on the union of the workers. But the aged workers who have gained much experience in the company after working for a long time consider the company’s proposal much more attractive (Soucie, n.d.). As it has been enlisted in the termination offer, those people who are working more than ten years in the organization will be enabled for the extra salary of two months in the each finished annum. An experienced worker, who is of the age of 60, will be given 10,000 as their complete wages after completing 25 years in the organization and as well as will get 50,000 as his whole completion package (Tiwari & Kainth, 2014). The quantity of capital may be helpful for that member of staff to begin a micro dealing or to spend in reciprocal finances or divides which will provide you a little major sum of comeback apart from their money in Employee Provident Fund (EPF). Also, they are not the real victim of the suspend session.

However, the picture may be dissimilar for youthful managerial or legman with working near about six years being a lay-off. The result will be different when we are going to contrast them with the experienced one. A youthful working guy will get 4,000 as his/her wage per month, and his/ her extinction package will be 18,000 after working 6 years in the company, the sum seems quite very low, but the interesting fact is, that particular worker may get an appointment to work in any other airline organization because of his/ her gaining experience.

So the managing system of the organization has chosen to provide an extra 30% for preferred recruits with individual wants such as solo blood relation, married couple economized and to the workers who are disabled. In the end, we may know whether a worker feels profitable by the company's provided economic offer when we can get the knowledge of the worker's financial condition, his/ her termination wage, their livelihood and also how old they are.

Instead of the financial support, the MAS pension offer also allows other good-looking profit for the workers. The prominent advantage is that unmitigated health checks up help to retired workers up to two years from their date of retirements. The utmost phase will be two years and people fruitfully can be tied up with other organizations within the two years phase is not permitted for the assistance).

The Corporate Development Centre is being organized by KhazanahNasional Bhd. To sustain and establish instruction lessons for 7000 lay-offs are working people; the organization will afford guidance classes for developing their technique, and also to create vacancies for those who want to join the company according to merit basis. The CDC also has tied up with significant management organizations together with the Credit Counseling and Debt Management Agency (AKPK) and My Angkasa Amanah Bhd, to give recommendation and conference on economic development, credit administration and funds to the lay-off workers. This may guarantee the acknowledged cash will be applied and spend sensibly before the staffs discover a fitting occupation (Tiwari & Kainth, 2014).

Do you agree on the change when a company's administration becomes changed or has been taken over?

Reason of Reconstruction:

The MAS authority never asks the workers whether they are getting affected by the vast change in the administrative system in the company or not. The company never respects their decision and for this reason, the workers are not able to express their views. But instead of doing this, the organization should ask the good or bad effect to the workers. Don’t you feel it is obvious to take care of the working people in the company?

The cause behind the takeover is the economic and the gained respect in the business world. Even after the back to back failures of MH370 and MH17, Malaysia Airlines was previously in its great position, despite preceding reformation strategies and a huge sum in monetary supports from the administration. The company has been getting affected in its business from 2008 and the sum of the whole failures till 2013 is $ 1.5 billion. The authority appointed Christoph Mueller, it is up to date CEO, from Irish shipper Aer Lingus. Mueller boosted the company by using his excellent skilled at Aer Lingus and give a tough contest to its opponents (Azimah Sumardi & Othman, 2011). This is what the MAS were exactly asking for a long time to be recovered from its terrible phase.

Effect to the Company:

The reorganization was inevitable, since that was the heart and soul for MAS, for the workers to be sustained, the economic condition of the organization. Two-thirds of the 22,000 MAS employees would be appointed again by Malaysia Airlines Berhad (MAB). The dismiss compulsory as the airlines required minor team as an element of the fresh body, which aims at local air travel. The resolution of modification in administration brings profit in the business as helps to support obtainable possessions inside the association ("Can Malaysia Airlines survive?", 2015). The transformation only desires to be prepared to present scheme and information managing tactics. It is not necessary, or a have to bring a change in all recently accessible property. It assists to incorporate Malaysia Airlines’ presented assets into its prospect dream in order to the nearly all of what it have or haven’t. The Malaysia Airlines will be healthily equipped to bring into line its present funds with the original gear and policy being useful with a successful revolutionize running diagram (Elder, 2015). The alteration in administration facilitates to include expenses linked with the adjustment. It also permits the association to decrease the cost of the evolution though improved executive on the company' economic funds(Hankins, 2016). Insufficiency and expensive schemes that never equal to the imperative purpose can be dropping with the accurate citizens who get concerned. On the other side, Malaysia Airlines should wait for some rank of struggles to any modifications; it does not matter how little or how much advantage it may undertake (Fern & Setapa, 2015). The main technique to manage this difficulties is whole, truthful, and appropriate statement with your labor, apparent contact of the worth of the amendment, and endurance with your group as they are facing an unavoidable modification segment.

Maintainable Commitment Unions

Employees who want settlement

Other Staffs

Workers who like modifications

Extremely Busy
















Effect to the Workers:

Apart from that, from the perception of staff, the penalty can be deemed to have equally constructive and unconstructive collisions. With no hesitation, we can say that it would not at all be a thing that the workers wish for when there is an alteration in the organization, mainly for those 7,000 staffs that were concluded ("Can Malaysia Airlines survive?", 2015).

Many corporations glance at payments and profit as the former places to slash finance when seeming to create modifications that entail price-saving. When this occurs, it is foreseeable that some workers in Malaysia Airlines would lose their allegiance, go away from the company to look for service in another place, despite the proposal. The recruits that stay put, whether they continue their work willingly or for the reason that they could not get a job in a different place, are habitually indignant. Enthusiasm reduces, intriguing post-recital alongside with it. People lose their business devotion and might even turn out to be irritated enough to harm the company (Elder, 2015) decisively.

Additionally, distinctive alteration in administration will effect in economic pressure on the staff. It pessimistically brunt a section of the workers’ income cuts, failure of profit, reduction in job arrangement, employment loss or transfer to a different town, state or countryside. Every part of these can be severe changes to recruits, mainly those who are sustaining their families (Benetti & Dalmaso, 2014). The finest technique to control these changes while maintaining the confidence up of the enduring or impervious staff is through speaking with all of the human resources each step of the mode and taking care of the influenced employees with equality and empathy (Bachmann, 2016).

If you are the industrialized relation manager, how do you can progress and synchronize the circumstances?

If we talk about Yoder 1970, we can see that industrialized relationships are the progression of organization commerce with individual or more parties with a vision to consult and then run communally negotiating a contract or labor agreement.

As a business executive, the optional mode to progress and synchronize the circumstances is:

Based on the condition, there are somewhat figures of staff union occupied in protecting the legal right of 7,000 MAS employees being terminated problem. On the other hand, a few of the union had different outlooks about the issue (Iakoba, 2016). For instance, NUFAM is uttering that MAS did not take care of the situation moderately whereas MASEU is telling us the conflicting things and the workers were pleased with the recompense. Thus, the suggested answers for divergence decision as a business supervisor is by pacification and via negotiation technique.

  1. Reconciliation Procedure:

Reconciliation is an active process of disagreement declaration in which constructive interaction is erected. Pretorius (1993) recommends that pacification is a prepared arbitration procedure (Hankins, 2016). As the supervisor, I have to perform an effort to ascertain a constructive and settling association among the unions. The purpose is to accurate awareness, diminish uncertainties and develop contact to lead the groups addicted to trouble-free discussions and negotiation. The unions have the chance to decide their own end upshots. I would occupy myself in a dynamic division in trying to resolve the quarrel, frequently by telling choices for elucidations or courses to a result (Tiwari & Kainth, 2014).

It is recommended that the workforce union ought to set apart their distinctions and resolve the essential requirements of the concerned employees. They might be focussed on what they would like to suggest to MAS by paying attention to the staff’s opinion about what they think and what they want from MAS. Then the proposition could be simply conceded to MAS higher board. A benefit of this technique of variance decision is that if it is doing well, it must allow all unions implicated to find out how to deal with their relations (Ong & Tan, 2010). This is useful where the reunion is complimentary which devour a lesser amount of time than going away to court. Other than that there is no public disclosure to the individual groups, and it is deliberate. As a result, it may expand and scrutinize alternatives for a pledge for the matters.

  1. Appeasement/Meditation Procedure:

If the company can’t find any answer, then directors have to shift to moderator’s way. Mediators/moderators are frequently applied when there are more than one unions are occupied in an elevated point argument (Tiwari & Kainth, 2014). Moore (2004) assured that groups who can’t settle mutually well might fetch a negotiator to make easy the intercession procedure. Negotiation is described as the involvement in a measured conciliation or disagreement of an adequate third union who has restricted or no reliable management authority but who helps the implicated groups in willingly triumph a communally proper conclusion of problems in the difference of opinion. The technical administrator should hire a qualified exterior negotiator. The arbitrator/mediator’s function is to facilitate the unions to consult an approved way out. The moderator is impartial, formulates no suggestions and gives no guidance (Belzer, Noory, & Wayne, 2015). His/her job is to help out the parties caught up in the divergence chart their line of attack throughout the crisis and discover a jointly arranged resolution.

This could help out to resolve difference amid workers group (NUFAM) and MAS as NUFAM continue declaring that MAS are not performing an excellent work in overseeing the circumstances while MAS settled that they are executing their greatest to supervise the economizing matter according to exact process and regulations (Smith & Marks, 2014). All the way through the peacekeepers, together MAS and NUFAM could converse and bargain to an established clarification. Once there is a way out, the position can be guarded. To move towards with resolutions, these are what the groups have to do mutually:

Discover general parts of contract, does not matter how little:

  • Have the same opinion about the crisis (Immervoll, Peichl, & Tatsiramos, 2011).
  • Be in agreement on the course of action to pursue.
  • Be of the same opinion on most terrible worries.
  • Have the same view on some minute alteration to provide an occurrence of accomplishment (The youth employment crisis, 2012).

Come across with answers to persuade desires:

  • Difficulty-resolve via producing numerous substitutes.
  • Settle on which activities would be taken (Jansen & Uexku??ll, 2010).
  • Make certain that implicated unions procure into manners.

As a result, right through these progressions, it permits both groups to draw closer with a contract and evade degeneration of the state. The state of affairs will get better and capable to be controlled in a correspond atmosphere (Elder, 2010).


Group retrenchments, a topic becoming more and more significant as the financial downturn grows deeper, are administrated by ‘Section 189A’ of the “Labour Relations Act”. Companies are sturdily warned to examine the ‘Section 189A’ formula, and in exacting ‘Section 189A (1),' which is a bit more intricate than its comparatively uncomplicated ‘Section 189’ corresponding part. The Industrialized Court in Superior Micro Devices strategy told that, it is an ingrained and conventional exercise of business commandment that in completing reduction of expenditure, an owner of a company must fulfil the manufacturing rule of “Last in First out” except there are resonance and suitable explanations for leaving (Rosnan & Mahmod, 2012). In every investigation of the Industrialized Court cases on the cutback, it will become evident that the accusation would perpetually be that the boss had not pursued the LIFO method in picking workers for reduction of expenditure. The reality is that the LIFO theory might be left from presents ascends to criticisms of exploitation of the process by the manager, and their consequent excuse, in several cases, through the business court may perhaps grant growth to inquiries of justice of its honors. During the action, workers were most unpleasantly changed by the cutback problems, whether the member of staff gained from the economizing effect, it is based on the monetary condition of the employee, the cessation parcel he/she got, age issue and standard of living of that individual worker. The distinctive transformation would affect in economic anxiety on the workforce itself. The freeway out for variance decree as a business executive is through pacification and negotiation method. It knows how to increase and study preferences for declaration for the subjects.

In the same way, it is essential that employee unions’ wants to build up a comprehensible point to workers and with the administration. The parties have to participate in a fundamental and helpful part in recovering the eminence of living of the employees. They must show better awareness in such wellbeing agendas for their associates. By corresponding with each one of the workers in each step and caring for the physically challenged employees with equality and kindness. The authorized needs and structure principal must to obtain note and get an official suggestion to make sure that their dangers are reduced.


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