Thu 30 Jul 2020 – 16:27
SINGAPORE Airlines (SIA) has implemented multiple cost-cutting measures, including higher wage reductions for leaders, a 10% wage reduction for other employees and early retirement for pilots and ground staff, The Business Times He understands.
Given the first quarter operating loss for the flag carrier and its SilkAir regional service arm, the full amount of the variable monthly component of salaries will be cut with effect from August 1, in accordance with the group’s collective agreements with its unions.
This equates to 10% of the base salary for all staff below the manager level, said chief executive officer (CEO) Goh Choon Phong in a note to staff this week.
In the meantime, as of August 1, all higher and upper grade staff will receive an increase in basic wage cuts.
Executives and senior managers will see a 12% reduction from the previous 10%. The vice presidents (vice presidents) and vice presidents of the division will see a 15 percent cut, up from 12 percent. Senior vice presidents will experience a 25 percent reduction, compared to the previous 20 percent, while executive vice presidents will experience a 30 percent reduction, up from 25 percent.
The CEO salary will be reduced by 35%, compared to 30%.
The company will also offer a special Covid-19 early retirement scheme for all ground crew and pilots next week.
This scheme will be available to people aged 50 and over, with at least 15 years of service and up to the divisional VP level.
Early retirement applications will be subject to approval based on organizational and operational requirements. Human resources will provide more details “in the near future”, wrote Goh.
More staffing measures are on the way, given the slower growth trajectory and depressed market conditions. Goh said that the SIA will involve the unions in this matter and announce the measures once consolidated.
He reiterated that the air force group must be prepared for “a long and hard winter induced by Covid-19”.