MAS to cut staff after union talks

MAS to cut staff after union talks

KUALA LUMPUR: Malaysia Airlines may be allowed to cut its workforce but only after holding discussions with its employees' union, Bernama news agency reported on Monday.

The government would allow the airline's new management to make the ultimate decision, finance ministry parliamentary secretary Hilmi Yahya was quoted as saying by Bernama.

New chief executive Idris Jala is due to take over next month after troubled times at the airline.

Hilmi's remarks follow a report that Malaysia Airlines planned to slash the pay of its top managers from next month as part of cost-cutting measures following disappointing quarterly results.

Malaysia Airlines chairman Munir Majid declined to comment, saying an announcement, if any, "would be made at an appropriate time".

However, in an internal memo that was leaked to the media last week, Munir said the financial performance of the carrier -- which has some 22,000 employees -- was precarious and had become a cause for concern.

The airline recently announced one of its worst ever quarterly losses at 280.66 million ringgit (US$74 million) for the three months to June, after a profit of 26.58 million ringgit a year earlier. -- AFP