Singapore Airlines ceases wage cuts for staff

Pilots and higher-ranking officials, however, will still see salary cuts

Singapore Airlines ceases wage cuts for staff

Singapore Airlines (SIA) has resumed providing the monthly variable component (MVC) of the salaries of its SIA employees this month, according to its spokesperson.

The MVC cuts ceased from August 1, said the spokesperson, exactly one year after it was cut for employees below the level of manager, Channel NewsAsia reported.

The cut was equivalent to a 10% deduction in the employees' salaries, which was implemented to help the airline remain afloat amid the impact of COVID-19 to the aviation industry.

Despite this development, however, the SIA said its pilots will still have additional pay cuts, stemming from a deal with the Airline Pilots' Association - Singapore union in September.

Salary cuts for higher-ranking employees of the airlines will also remain in place, according to the spokesperson.

Senior vice presidents will still see a 15% cut in their pay, 20% for executive vice presidents, and 25% for chief executive officer Goh Choon Phong.

The spokesperson also told CNA that the board members will see a 30% cut in fees in solidarity with the management.

The cuts were implemented last year following SIA's S$1.12-billion net loss in the first quarter, a result of travel restrictions across Singapore and the world due to the outbreak of COVID-19.

The airlines also offered a COVID-19 Special Early Retirement Scheme to employees who are eligible, as well as implemented a hiring freeze, no-pay leave, and a retrenchment exercise in September last year.

"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.

The measures cut around 4,300 positions in SIA's three airlines, with 2,400 laid off due to job cuts and another 1,900 from the other measures.

According to the spokesperson, the 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."

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