By Karen Arukesamy, The Sun

PETALING JAYA (Aug 5, 2008) : Faced with tough operating conditions brought on by skyrocketing fuel prices, Malaysia Airlines (MAS) today unveiled a voluntary flexi employment scheme in a bid to manage cost.

A company statement said employees are given two programmes to choose from — the Voluntary Leave Programme (VLP) and the Part-Time 50% Programme (50% PT Programme). This, the statement said, allows employees to explore new work and business opportunities outside the airline.

“This is a win-win situation at a time when airlines around the world are retrenching employees to cope with the skyrocketing fuel price,” said MAS executive director / chief financial officer Tengku Azmil Zahruddin.

He said although the airline wants to reduce manpower in the short term to manage the impact of fuel hike, it also wishes to retain skilled employees.

“Our top priority is to ensure business continuity and there would be absolutely no compromise on safety and quality of our services and offerings.”

Azmil said eligible employees can apply for these two programmes but the final decision lies with the company.

The programmes are open to Malaysian-based permanent staff who are not on shift duties, except the technical crew. The closing date is Oct 1.

Under the VLP programme, there are two options:

> The employee takes a monthly allowance of 20% of their last-drawn basic salary or RM500, whichever is higher. They also enjoy the existing medical and dental benefits.

> The employee enjoys his annual privilege travel, concessional travel and medical benefits, but there is no monthly allowance.

“Employees can take leave and return as a full-time employees in either six or 12 months,” Azmil said.

Under the 50% PT Programme, open only to Malaysian-based permanent staff who are not on shift duties, the employee can work part-time with their work schedule halved. Their basic salary will also be halved.

Employees can opt to work alternate weeks, either in the morning or afternoon sessions, or alternate between two and three days a week,

This is the second time MAS has had to make an effort to reduce its staff cost.

On May 22, 2006, it announced a Mutual Separation Scheme which fast tracked its intention to right size its workforce a year ahead of the schedule outlined in its Business Turnaround Plan. The MSS was a voluntary exercise which involved 2,622 employees, which was slightly below target.

The high fuel prices have badly hit airlines around the world. Some have retrenched staff, while others are taking other measures to keep afloat. In the case of MAS, its business turnaround plan and new marketing plans had successfully brought it back into the black.