The Railwaymen's Union of Malaya (RUM), which had initially planned to hold a picket this evening, has called off the protest following the government's agreement to grant workers a month's bonus.

RUM president Abdul Razak Md Hassan said the 'stand down' decision was made yesterday, after the union was assured of the remuneration by Keretapi Tanah Melayu Bhd (KTMB) managing director Mohd Salleh Abdullah.

The half-hour action would have affected the evening rush-hour KTM Komuter services in the Klang Valley, Seremban and Rawang if it had gone through.

However, Abdul Razak said the picket has only been called off temporarily pending resolution of three other grouses.

"Although the picket has been postponed at this time, the main issues still have to be resolved," he told a press conference this morning.

He said the union has set a deadline for resolution of the issues but declined to state the date for now.

The three issues are:

  • the prospective transfer of KTMB to the joint-management of Gamuda and Malaysian Mining Corporation (MMC);

  • the proposed privatisation of the railway corporation; and

  • the freeze of loan benefits to workers following the previous botched privatisation exercise.

    • Abdul Razak said the prospective privatisation and management transfer plans for KTMB are unwelcome developments for railway workers.

    "During the last privatisation exercise, we found our staff being marginalised. Some were categorised as surplus staff, while some were not allowed to become members of the union. We don't want this to happen again," he said.

    Failed reforms

    The national railway company, one of the oldest in the region, was corporatised in 1992.

    The government privatised the company in 1997 to four-member consortium Marak Unggul Sdn Bhd in a bid to upgrade rail services. However, the attempt failed and the government re-assumed control in January 2002.

    More recently, news has surfaced about another privatisation attempt, this time involving Gamuda and MMC, the same companies which have reportedly secured a RM14.5 billion contract to lay two stretches of double-track rails in Peninsular Malaysia.

    Abdul Razak said RUM does not have a problem with the contract being awarded to the two companies, but would question the transfer of management of the KTMB to them.

    "This matter has not been discussed with the union, so we have no clear information. There are a lot of consultants from the two companies in KTMB now and this worries us. From what we understand, the matter is in the final stages of decision-making," he said.

    He also said the union is suspicious of the companies' motives in taking over management of rail services.

    "In KTMB's history, we have never made any losses but as far as we know, no railway company in the world has been able to make profits either. So why do these company want to take over KTMB?" he said.

    He further questioned the plan for Gamuda and MMC to return the rail assets to the government upon expiry of the 30-year concession.

    "KTMB was last restructured only four months ago by our strategic business unit. This should be given more time to take effect. We suggest that the privatisation policy be re-evaluated," he said.

    Benefits frozen

    In addition, Abdul Razak urged the government to reinstate the loan benefits for housing, car, bicycle or computer purchase enjoyed by KTMB employees prior to the 1997 takeover by Marak Unggul.

    "We were told before the corporatisation exercise that we would be better off but to this date, there is only a small difference between our salary scale and that of civil servants. They enjoy all sorts of loans, while ours remain frozen," he said.

    RUM, an affiliate of the Malaysian Trades Union Congress, has 3,500 members.

    Copies of RUM's resolution have been sent to both outgoing Prime Minister Dr Mahathir Mohamad and incoming premier Abdullah Ahmad Badawi at their offices in Putrajaya.

    The union said it has not received any response to date over the three complaints it listed in its resolution.