Malaysian Airline System Union Picketing On Collaboration 20111003 OSK
PP10551/09/2012 (030567)
03 Oct 2011
MALAYSIA EQUITY
Investment Research
Daily
The Research Team
+60 (3) 9207 7688 research2@my.oskgroup.com Corporate News Flash
Malaysian Airline System
Union Picketing on Collaboration
THE BUZZ
SELL
Fair Value
Previous
Price
TRANSPORT
RM1.15
RM1.35
RM1.33
Malaysia’s airline workers have given their bosses two months to cancel the share swap deal or face protests in December. All eight workers’ unionized groups want MAS to buy back the shares that have been sold to AirAsia while returning those bought from the budget carrier. Besides Maseu (MAS Employees Union), the other affected groups are the MAS Pilots’ Association; MAS Executive Staff Association; the Sabah Executive
Union of MAS; the MAS Managers’ Association; the Airline Working Union of Sabah; the
Airline Working Union of Sarawak; and the Sarawak Executive Staff Committee. The groups will also urge the International Transport Workers’ Federation (ITF) to boycott both airlines if the deal goes through allowing a new airline to emerge from their partnership. It has been rumored that 80 per cent of MAS staff could be moved to the new Sapphire airline as a result of the MAS-AirAsia deal. (Source: The Malaysian
Insider)
OUR TAKE
Reaching a stalemate. To recap, the proposed picket was initially planned last month, coincidently timed with discussions on a new collective agreement (a union agreement that governs salary and incentive packages of MAS unionized workforce) with MAS’ management after the last collective agreement expired back in end August. This also follows a rumor that 80% of MAS' unionized workforce will be transferred to Sapphire whereby these workers will no longer be represented by a union. Sapphire is rumoured to be the new renamed entity of community airline Firefly which will be overhauled into a regional full service carrier though recent news has emerged that this proposed setup will be scrapped.
Possible job cuts ahead? While it is understood that
03 Oct 2011
MALAYSIA EQUITY
Investment Research
Daily
The Research Team
+60 (3) 9207 7688 research2@my.oskgroup.com Corporate News Flash
Malaysian Airline System
Union Picketing on Collaboration
THE BUZZ
SELL
Fair Value
Previous
Price
TRANSPORT
RM1.15
RM1.35
RM1.33
Malaysia’s airline workers have given their bosses two months to cancel the share swap deal or face protests in December. All eight workers’ unionized groups want MAS to buy back the shares that have been sold to AirAsia while returning those bought from the budget carrier. Besides Maseu (MAS Employees Union), the other affected groups are the MAS Pilots’ Association; MAS Executive Staff Association; the Sabah Executive
Union of MAS; the MAS Managers’ Association; the Airline Working Union of Sabah; the
Airline Working Union of Sarawak; and the Sarawak Executive Staff Committee. The groups will also urge the International Transport Workers’ Federation (ITF) to boycott both airlines if the deal goes through allowing a new airline to emerge from their partnership. It has been rumored that 80 per cent of MAS staff could be moved to the new Sapphire airline as a result of the MAS-AirAsia deal. (Source: The Malaysian
Insider)
OUR TAKE
Reaching a stalemate. To recap, the proposed picket was initially planned last month, coincidently timed with discussions on a new collective agreement (a union agreement that governs salary and incentive packages of MAS unionized workforce) with MAS’ management after the last collective agreement expired back in end August. This also follows a rumor that 80% of MAS' unionized workforce will be transferred to Sapphire whereby these workers will no longer be represented by a union. Sapphire is rumoured to be the new renamed entity of community airline Firefly which will be overhauled into a regional full service carrier though recent news has emerged that this proposed setup will be scrapped.
Possible job cuts ahead? While it is understood that