Mihin Lanka wants clear skies

• About 270 employees demand job security or higher compensation than offered by Govt.  

By Chamodi Gunawardana

Mihin Lanka employees yesterday called for greater engagement from labour authorities on the fate of over 300 employees and insisted the Government has to provide clear details on whether they would be absorbed under SriLankan Airlines or given compensation to leave the organisation. 

Earlier this month SriLankan Airlines announced a merger with Mihin Air, which included partial absorption of their staff from the end of October. All routes flown previously by Mihin Air will now be flown by SriLankan and the two aircraft under the Budget carrier would also be absorbed into the SriLankan fleet. 

However, during a meeting with reporters in the first week of October, SriLankan Chairman Ajith Dias noted the national carrier would absorb as “many people as possible” from Mihin Air but insisted the fate of the rest would be up to the international partner the Government handed the airline over to. Finance Minister Ravi Karunanayake this week said four companies had been shortlisted and negotiations would begin with them over the next few weeks. 

Private equity firm TPG and fund company BlackRock Inc. were among half a dozen firms which have shown preliminary interest in a 49% stake in the loss-making SriLankan Airlines, Reuters reported earlier this month.    

Caught in a tenuous situation, Mihin Lanka’s Trade Union representatives on Friday urged the Government to pay “reasonable compensation” even if the Government could not secure their jobs. They claimed that the compensation amounts offered were too small and too selective and failed to cover the majority of the staff. 

Mihin Lanka Trade Union Secretary Primali Kumaranayake said that 90% of employees out of 302 are facing uncertainty following the decision of the Government to effectively disband the operations of Mihin Lanka from 29 October. 

“SriLankan has only recruited 10% of employees including technical crew, cabin crew and security units, but rest of the employees are at a risk. We cannot join another airline because Sri Lanka has only two companies,” she said.

Kumaranayake added recruited staff had been downgraded from their previous positions and they would get lower salaries at SriLankan compared to the salary range they were paid at Mihin Lanka.

“SriLankan has recruited them by treating them as fresh applicants by ignoring the work experience they earned at Mihin Lanka. It was very unfair,” she charged. 

Commenting over the compensation packages which the Labour Department has promised to pay for Mihin Air employees, Kumaranayake said the amount is too little and would force employees to seek other employment quickly, which they may not be able to find.

According to them, the Labour Department has agreed to pay a compensation of two months’ salary for people who have worked five years at the airline. 

“Our salary range is between Rs.15,000 to Rs.40,000 and when we calculate the compensation we would be able to get by an employee who had worked for Mihin Air since 2007 is very low,” she said.

Meanwhile, Convener of the Trade Union Shahika Shahid noted that out of 302 employees, 67 are working as permanent staff while the remaining 235 are contract employees.

Shahid also said if Mihin Lanka terminates its operations, the local passengers who are looking for a budget airline service would not have any option to travel to religious destinations such as Varanasi and Tirupati. However, SriLankan management has assured they would attempt to keep ticket prices lower than the average prices. 

Explaining the recent performance of the Mihin Lanka, Accountant Executive Tharindu Ranagala said that Mihin Lanka was operating under a breakeven scenario and could make profits in March 2017.

“At the start we were running at a loss, but we put our fullest effort to lower the loss and we are in a breakeven position this year. We believe that we could make profits if the Government permitted us to operate separately from SriLankan Airlines,” he said.

The Mihin Lanka Trade Union has also lodged a complaint at the Labour Department stating the Government’s move to merge the airlines is in violation of the labour rights of Mihin Lanka employees.