KUALA LUMPUR, Nov 4 ― The government today assured more than 2,000 former staff of Malindo Airlines who lost their jobs at the company that they will receive due compensation and retraining.

Human Resource Minister Datuk Seri M. Saravanan today said all retrenched employees of the budget airline or had been put on unpaid leave or compelled to accept its Voluntary Separation Scheme (VSS) earlier this month that they will receive their rightful compensation as well as unemployment benefits through the Employment Insurance System (EIS).

He said his ministry and the agencies under its purview ― the Department of Industrial Relations (JPP), the Department of Manpower (JTK) and the Social Security Organisation (Socso) ― have discussed the issue with Malindo’s management yesterday, and will ensure the affected people are protected and given appropriate assistance.

"At the same time, Socso will assist them in finding jobs through the MYFutureJobs portal.

"Malindo Airways employees are also eligible to participate in training programs (reskilling, upskilling) provided by Socso or Pembangunan Sumber Manusia Berhad (PSMB), where training fees are fully borne by the government.

"Employees involved in retrenchment are advised to immediately apply for EIS benefits online through eis.perkeso.gov.my or attend at any nearby Socso office,” he said in a statement.

Saravanan added that in the discussion yesterday, the management of Malindo Airways stated that they received assistance from the Employment Retention Program (ERP) for two months, in April and May 2020 with ERP payments for April have benefited 2,112 Malindo Airways employees involving payments of RM1.26 million and ERP payments for May were delivered to 2,478 employees involving a payment of RM1.48 million.

"Socso records also show that Malindo Airways has received payment of the Wage Subsidy Programme (PSU) amounting to RM240,000.00 for July and August 2020 for 200 employees.

"Meanwhile, for the 439 Malindo Airways employees who received notice of unpaid leave (for a period of 1 year), they can assume that their service contract has been terminated and subsequently submit a job loss claim under EIS, so that they get assistance for temporary survival got a new job,” he said.

Financial news site The Edge reported Malindo Air chief executive Capt Mushafiz Mustafa Bakri said the company earned an average monthly revenue of RM200 million had paid out RM40 million a month to 5,000 staff prior to the Covid-19 pandemic.

However, Mushafiz claimed Covid-19 had grounded almost its entire fleet and cut its revenue to just 7.5 per cent of what it earned pre-pandemic.

The airline said its finances were untenable without massively downsizing its staff and fleet to half by way of explaining its decision to transfer out 20 aircraft as well as retrenching 2,647 staff and offering VSS for 349 others and long-term unpaid leave for 439 of its pilots and cabin crew.