RETRENCHED contract staff of local airlines have been denied Employment Insurance System (SIP) protection as it does not cover this category of workers, said the National Union of Flight Attendants Malaysia (Nufam).

In a statement today, it said 500 former employees, all from the low-income group, have slipped through the cracks.

They were released from their contracts after the movement-control order was imposed in March, it said.

“The government must pay attention to this issue, because many of them are young people who are just starting their careers.

“Most of the complaints received are on SIP non-payment, and that they are not receiving any protection from Socso,” said Nufam, referring to the Social Security Organisation, which runs the scheme.

“They are from the B40 group.”

Nufam said Putrajaya should quickly review the SIP as contract staff, too, need protection.

“They contributed to the scheme just like other workers, but when they lost their jobs, Socso rejected their application for insurance.

“There is no justice for this group of workers. By right, the SIP must protect all workers.”

The union added that local airlines have not offered aid or compensation to the affected group.

“These workers signed two-year contracts with the airlines. They need immediate assistance, especially with the end of the loan moratorium on September 30.

“We urge Socso to look into the SIP for contract workers, and ensure they are given fair treatment.”

In June, Nufam revealed the plight of airline employees amid the Covid-19 pandemic.

“There are airlines that deduct workers’ wages by providing unpaid leave to cover their losses.

“In fact, there are also companies that have cut wages by up to 100%, including for the top management.”

Some of the laid-off staff lodged a complaint with Nufam today after finding out that they are not covered under the SIP. – September 2, 2020.