SIA ends monthly variable component wage cuts for all Singapore-based staff

SINGAPORE: Singapore Airlines (SIA) has ended the monthly variable component (MVC) wage cuts of its Singapore-based staff, which were cut last year as the company's revenue plunged due to COVID-19.

On Friday (Aug 13), an SIA spokesperson told CNA that the airline has ceased the MVC cuts from Aug 1.

However, the additional pay cuts for pilots will remain, as per an agreement with the Airline Pilots' Association - Singapore (ALPA-S) union in September last year to mitigate further job losses for pilots.

Senior management will also continue to take additional pay cuts to their basic salary - remaining at 15 per cent for senior vice presidents, 20 per cent for executive vice presidents, and 25 per cent for the chief executive officer.

Board members will continue to take a 30 per cent cut in fees in solidarity with the management, said the spokesperson.

STAFF NUMBERS 20% LOWER THAN BEFORE PANDEMIC

SIA's measures to cut expenditure in response to the COVID-19 pandemic continue to remain in place, including "renegotiating contracts with suppliers, deferring non-critical projects and tight controls on discretionary expenditure".

Staff numbers were 20 per cent lower than pre-COVID-19 levels as a result of various measures taken, said the spokesperson.

These included a hiring freeze, no-pay leave, deeper salary cuts, MVC cuts, voluntary release schemes, and a retrenchment exercise in September last year. 

About 4,300 positions were cut across SIA's three airlines - 2,400 employees affected by job cuts and another 1,900 positions eliminated by measures such as a recruitment freeze and early retirement schemes.

"Since the retrenchment exercise, we have experienced higher attrition amongst our ground staff and cabin crew. Our staff have also continued to suffer a reduction in their salary for over one and a half years." said the spokesperson. 

"A loss of critical resources and ability will impede our ability to recover, and hinder our efforts to ensure that the SIA Group and Singapore’s aviation sector emerge stronger."

The spokesperson added that SIA must be able to retain its current talent and continue to have the ability to attract and recruit new talent as it recovers.

"We will continue to maintain a tight lid on costs, while being nimble and agile to grab all revenue and growth opportunities in the market. Our current transformation programme will also be key to our future success," the spokesperson said.

"We will also continue to make the necessary investments, both in our people and the business, to ensure that we are in a position to emerge stronger and fitter as international travel recovers."

In March, SIA Group reported a 90.2 per cent year-on-year decline in overall passenger carriage.