Singapore Airlines and the Air Line Pilots
Association of Singapore (ALPA-S) have signed an agreement under
which all pilots in the airline will take one day of leave without
pay each month and a cut of 65% off one day’s pay, pro-rated from
monthly basic salary.
The agreement was signed on 18 June 2009 and
will take effect from 1 July 2009.
The airline has surplus
pilot resources because of the cutback in flights following the
sharp fall in demand for air travel.
In the year ending March
2010, SIA will decommission 16 aircraft, fewer flights will be
operated and capacity produced will be lower by 11% from
the preceding year.
The terms of the agreement with ALPA-S were determined by the surplus in pilot resources arising from the
reduced flight schedules. It supersedes an interim agreement that
provided for pilots to take one day of compulsory no-pay leave
every month, starting May 2009.
The agreement augments a series
of measures taken by SIA to mitigate the burden of cost of excess
staff resources resulting from the global business downturn.
Beginning in April 2009, SIA’s senior management staff went on a
shorter work month scheme. Other managers followed suit in May.
Under agreements reached with the two other staff unions in the
airline, the Singapore Airlines Staff Union (SIASU) and the
Air-Transport Executive Staff Union (AESU), all ground personnel,
cabin crew and administrative officers also joined the
month scheme in May.
In addition, nearly 2,000 employees have
signed up for the airline’s voluntary no-pay leave scheme, under
which staff could apply for leave without pay for durations of up
to two years.
From July 2009, all management staff
at SIA will
take a cut in salary. The CEO will lead with a 20% cut,
with progressively lower rates down the ranks, to a minimum of
SIA’s Board of Directors has also volunteered a cut of 20% in fees for directors.
Altogether, these measures will
save an estimated $21 million in costs for the current financial
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