1,086 ex-Malindo staff apply for EIS

by SHAHEERA AZNAM SHAH / pic by ARIF KARTONO

A TOTAL of 1,086 former Malindo Airways Sdn Bhd staff who had been retrenched have applied for the Social Security Organisation’s (Socso) Employment Insurance System (EIS) as of November 15, 2020.

Human Resources Minister Datuk Seri M Saravanan told Dewan Rakyat today that 794 of the staff have received the retrenchment benefits totalling RM928,000 while the remaining applications are still being processed by the agency.

In its latest bid to remain afloat as the travel industry has been severely impacted by the Covid-19 pandemic, the airline was reportedly planning to cut 2,200 of its workforce to 1,000.

In June, Malindo reportedly offered a voluntary separation scheme (VSS) to all permanent and contract staff whose service contracts expire on December 31 at all levels, functions and locations.

Malindo also offered its employees a one-year voluntary long-term unpaid (LTU) leave, effective August 1, 2020, until July 31, 2021, according to a news report.

Under the LTU scheme, participating employees will not receive monthly salaries and allowances and are required to inform the airline if they plan to pursue other jobs on the side.