Mafaa Letter To Sgmhr 10 Jan 09

Reg No: 953

PRIVATE & CONFIDENTIAL Our Ref : MAFSEC 2582 / SGMHR 09 Date

: 10 Feb 2009

To

: Effendi Abdul Rahman MAS Group Senior General Manager

From

: Executive Council & Flight Attendant Members MAFAA

Subject : PMS & Other Matters Dear Effendi, As mentioned in our email earlier, we have mentioned to you of our members displeasure over the “locked retirement age” which should be made as an option. Your recent email did not reflect so of any option. 1. Our Female Crew members are still inquiring of this extension to be made as an option as not every crew member will want to extend themselves after the allowable retirement age. 2. Increase Basic Salary If the retirement age is increased to another 3 years, then it’s only fair that the basic salary be given a same match. Currently Male IFS’s basic salary reaches a ceiling by the time he is within the age of 45. With the current extension of 3 more years, he will now need to give an additional of his working life to the company without having further adjustments made to his basic salary. Basic salary increment should be given to those who have served the company long as an additional to support their next 10 years with the company.

MAFAA SECRETARIAT OFFICE rd

Suite 3-03, 33 Flr,Menara Keck Seng, 205 Jalan Bukit Bintang, 55100 Kuala Lumpur.  603.2116.5803  603. 2116.5999  www.mafaa.org.my

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3. PMS linked to annual increment. What more if issue 2 is being introduced, then how will one feel if he is not given an increment next year due to his underperformance rating in the company. We know today that PMS for crewmembers are being linked towards their time and contribution via MH Juara, Welkins etc but what will happen if one’s ratings is being drop due to his / her lack contribution to the company and that their annual increment is seen affected by this rating? How do we rate the crew’s performance and match it to his annual increment? Such proposal did not gel well as increment of one's basic salary has always been based on the company's performance and provision to the staff ie. A minimum increment of 5% to 10%. Without any annual increment in future, the employees will be left with nothing to look forward to other than their bonuses, which today may be made scarce due to economic downturn and based on company’s yearly performance. The PMS should be left alone having just links to staff's benefit schemes. If their annual increment is affected by this PMS linked, naturally their annual earnings will be reduced by a quarter of their salary. They will be naturally demoralized. Currently graded staff's annual increment is way too low to “chew” on and what more if the PMS linked were to be introduced, what annual income will there be for the employees / crewmembers? We seek not to add more burden and hardship to your "World's Best Cabin Crew members". As Cabin Crew’s income is already affected by the uncertainties of their monthly rosters and cancellation of flight operations, do not place KPI / PMS now to their annual increment when things are already severe and bad. When we won the Best Cabin Crew award, was there any degree of performance of who did their part and who did not? Its actually the company who has earned the title, not the crewmembers. But we guessed everyone chipped in to give their equal best to the airline. Today, we have not won any of these awards because people’s feelings are affected by the way things were planned and did not work out well for these employees.

MAFAA SECRETARIAT OFFICE rd

Suite 3-03, 33 Flr,Menara Keck Seng, 205 Jalan Bukit Bintang, 55100 Kuala Lumpur.  603.2116.5803  603. 2116.5999  www.mafaa.org.my

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Looking and judging of their income lately, many have complaint and grieved over how things are appearing to be unmanageable within the office. There are no proper announcements stating of the conditions that may be faced by crewmembers and the plans to reduce the number of flights per week. No announcement is made to clarify the many cancellations of duty rosters. As employees, many of us rely on this annual increment to support our way of living. Bank Loans will be even harder to apply if the increment do not match to the bank's basic requirement. Banks normally gauge Cabin Crew’s basic salary, which is very low to even apply for a personal loan. Loans are also often rejected due to such low basic salary. If PMS ratings were to be measured through annual increment, then many employees will be earning a vast difference in their income. One will earn less than the other but in terms of workload, that will be equally shared. The annual increment should come naturally as an annual company’s "bonus" to the staff instead since bonus is hard to come by now days. Proper work ethics must be made first as best practices at our workplace as there are still too many “internal and work politics” being practiced by some individuals within the department. Lastly, putting force measures on KPI / PMS to be included in the CA is not a very wise thing to do for the employees. Some employees may not want to sacrifice their career, in exchange for professional work ethics. For example, some senior staff / employees may be reluctant to demonstrate their true ability, as it may increase their workload. There may also be a tendency to allocate more work to competent staff, and this extra workload may discourage employees from revealing their latent abilities. Employees that are overburdened with extra workload are likely to feel demoralized, and this could affect their performance. Furthermore, because of extreme competition, and politics at the workplace, competent workers may be reluctant to groom coworkers though we ourselves have emphasized on knowledge sharing. The management must therefore design attractive remuneration schemes i.e. productivity and other benefits to determine pay increment and bonuses to stimulate workers to strive harder.

MAFAA SECRETARIAT OFFICE rd

Suite 3-03, 33 Flr,Menara Keck Seng, 205 Jalan Bukit Bintang, 55100 Kuala Lumpur.  603.2116.5803  603. 2116.5999  www.mafaa.org.my

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Besides employees’ performance, companies may need to take a company’s achievement into consideration. Employees are more likely to be committed and willing to put in greater effort to enhance productivity if they get to share the profits of the organization. Research reveals that many individuals prefer bonuses, cash rewards or other family value benefits tied to their working performances. Other factors such as the standard of living and inflation rate in Malaysia must also be taken into consideration. We seek you to review these measures and perhaps find more ways to motivate the employees and not to discourage them further to perform.

Thank you.

Ismail Nasaruddin AW Maxwell Secretary General MAFAA CC ::

MAFAA Exco Members MAFAA Members

MAFAA SECRETARIAT OFFICE rd

Suite 3-03, 33 Flr,Menara Keck Seng, 205 Jalan Bukit Bintang, 55100 Kuala Lumpur.  603.2116.5803  603. 2116.5999  www.mafaa.org.my

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