By Emmanuel Samarathisa
EMPLOYEES of Malindo Airways Sdn Bhd have been ordered to take a 50% cut from their basic salary as well as reduce their number of working days due to a tough business environment caused by the Covid-19 virus, according to a memo sighted by FocusM.
“With a heavy heart, with not much of any further concrete options, we are now left with no choice but to ask of each one of you to take a pay cut of your basic pay of up to 50% for the next several months till normalcy returns.
“You would accordingly only be required to work on a reduced number of days of up to 15 days a month, depending on the actual level of the cut,” read the memo, which was signed by Malindo Airways CEO Captain Mushafiz Mustafa Bakri and sent to staff yesterday (March 6).
“We in the airline business are severely impacted due to this. Demand for air travel has almost collapsed; this is the experience with every major or regional carrier. People are putting off air travel be it for leisure or business, not just out of the fear of contracting the virus but also due to the tight travel conditions & restrictions being imposed by various national aviation & health authorities,” the memo said.
Malindo Airways, which is owned by Indonesian discount carrier Lion Air Group, is the first Malaysia-based airline to issue a salary cut across the board.
Its local rivals, AirAsia X Bhd and Malaysia Airlines Bhd, have so far either lowered fares to boost demand or cut flights.
But the industry has taken a beating due to the travel slowdown in general amid the coronavirus pandemic.
This has prompted the government under then prime minister Tun Dr Mahathir Mohamad to implement an RM20 bil economic stimulus package to deal with spending slowdown, among others.
Mushafiz said that Malindo Airways’ staff will be contacted by their heads of department and superior “over the next few days” of the unpaid leave so that the company can continue operating normally.
“We are sincerely sympathetic that these severe steps being implemented will impose a huge financial burden on you & your families. All, I can say at this stage is that as we see green shoots in the business horizon, we will definitely review this position,” he said. – March 7, 2020
