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AirAsia X Bhd, the low cost brother of AirAsia Bhd in Malaysia is struggling to be facing payment to staff salaries, including their fixed and variable allowances.
In light of financial problems, group CEO Tony Fernandes said the troubled airline would “take on a more prominent role” in the management of AirAsia X in a bid to bring the airline back to health.
Staff were informed via an in-company circular that payment of their wages and allowances would be paid on a staggered basis for the month of October. Management of AirAsia X described the payment issue as a “temporary set back”.
In Singapore, amendments to the Companies Act have increased protection to workers if employers go out of business following financial difficulty. Increases have been made to the cap limit on salaries and wages.
Unions also have traditionally negotiated for fair payments to retrenched workers.
[plinker]
