There is some additional comment regarding the benchmarking of SIA and MAS. Whenever people make comparison of staff productivity of SIA vs. MAS, they use the figure of 14,000 plus staff for SIA and 19,000 plus staff for MAS.
This is completely wrong! The 14000 plus staff of SIA is at COMPANY level, while the 19,000 plus staff of MAS is at GROUP level. According to the SIA 2013/2014 Annual Report the SIA GROUP workforce is 23,716 people. Those people should use this number instead of the 14000 plus number.
According to page 6 of the MAS 2013 Annual Report, the workforce at COMPANY level is 16,246 people. This is the number that Khazanah should use to benchmark MAS against SIA, although it still not like for like because of the presence of Engineering an Airport Ops Staff in the MAS number.
Using the MAS Company level workforce to benchmark, would show that MAS staff productivity in terms of Employee per aircraft is worse off by 8% rather than 25% as stated in the Khazanah report. If there are staff to be retrenched, it would involve around 2,000 people not 6000 as claimed by Khazanah.
Totally agreed with the writer. Even now there are thousands of contract staff, expatriates and deadwoods esp. the top management. They should go first.
ReplyDeleteAs much as the blame is on Khazanah, there is only 10 -20 of them, where are MAS 20000 voices and the check and balance aka popularly known but never really practise Corporate Governance?
ReplyDeleteThe 14,000 for SIA (Company level) and 19000 for MAS (Group level) have been used by many so called analysts, consultants and industry experts when comparing MAS staff productivity with SIA. The latest being in a letter to the editor in Tuesday 9 September edition of the NST. It is amazing that so many smart people were making a school-boy mistake of not comparing like with like. MAS has been getting a bad press these few years pertaining to its staff productivity. Hopefully, this latest posting will clear the misconception and the diagnosis of MAS' ills can be made rationally and objectively instead of just attributing it overstaffing.
ReplyDeleteThe issue is simple:
ReplyDeleteFor the past 15 years Khazanah held 65% of MAS shares. They failed.
Now they hold 100% of MAS shares. They will fail 100%.
Put Azman Mokhtar as the CEO of MAS. Let the fella walk the talk so that we can all see who has been at fault all this while.
All major Malaysian business icons and giants on the international scene - MISC, MAS, Guthries, and now Petronas - have all bitten the dust.
ReplyDeleteThats what happens when those with their grubby hands on the levers are greedy, unprincipled and cannot see beyond their selfish noses.
But was it a real joy or what to work in PETRONAS. Many said it was like going to heaven without having to die.All major Malaysian business icons and giants on the international scene - MISC, MAS, Guthries, and now Petronas - have all bitten the dust.
Thats what happens when those with their grubby hands on the levers are greedy, unprincipled and cannot see beyond their selfish noses.
But was it a real joy or what to work in PETRONAS. Many said it was like going to heaven without having to die.