Singapore Airlines cuts pay for all staff by at least 10%
Singapore Airlines (SIA) has announced a pay cut for all staff by at least 10% in its latest cost-cutting measure to bolster the impact of the COVID-19 pandemic on the company.
The SIA group announced a net loss of S$1.12 billion for the first quarter ended June 30, as the ongoing pandemic has brought a halt to international air travel.
In a memo to the staff, chief executive officer Goh Choon Phong announced the basic salary reduction of 10% for all staff below the level of manager while managers and senior managers will take a 12% pay cut, up from 10% previously.
Vice-presidents and divisional vice-presidents will have a 15% cut, up from 12% while senior vice-presidents will see a 25% decrease, up from 20%, and executive vice-presidents will get a 30% cut, up from 25%.
Meanwhile, Goh, whose salary will be slashed by 35%, up from 30%, said that the company is planning additional further cost-cutting staff measures, given the slower growth trajectory and depressed market conditions.
One of the other measures includes offering a special early retirement scheme to all ground staff and pilots next week. This will be available to those aged 50 and above, with at least 15 years of service, and up to the level of divisional vice-president.
“The number of (coronavirus) infections continues to rise globally, with some regions battling a second or third wave. Borders are likely to open only very slowly in the absence of a vaccine or an effective treatment,” he said.
“We will be engaging our staff unions on this and will announce the measures when they have been firmed up.
“Our immediate priority is to do everything we can to survive this crisis and be ready for the long trudge ahead of us,” he added.