Railwaymen’s union objects to KTM subsidiary for ETS

What say you on the issue below?

PETALING JAYA: The Railway­men’s Union of Malaysia has objected to plans to set up a subsidiary company for KTM Bhd’s (KTMB) Electric Train Set (ETS).

Union president Abdul Razak Md Hassan said this was an “unwise move” that would not only affect KTMB’s core business but also liquidate its revenue, as it would be channelled to the subsidiary.

“We strongly object to the KTMB management’s decision to create an ETS subsidiary. It is also not practical as there are only five ETS sets.

“There is no need for a subsidiary. The KTMB management can set up a new department or a new strategy business unit by just appointing a managing director to oversee the ETS unit.

“This will not only save administration costs but also increase KTMB’s revenue,” he said in a statement yesterday.

Abdul Razak also listed 14 reasons and claims why the move should be shot down, including the fact that the government allocation was to KTMB and not to any subsidiary.

The union, Abdul Razak said, was appealing to Prime Minister Datuk Seri Najib Tun Razak to step in and help resolve the issue, adding that an objection letter was sent to the KTMB president, Najib and Members of Parliament.