Bigger salary cuts for SIA's management, compulsory no-pay leave to be rolled out for staff

Nisha Ramchandani

Published Mon, Mar 23, 2020 · 10:03 AM

With the airline industry flying into heavy turbulence, Singapore Airlines (SIA) is initiating deeper pay cuts for its management team, while introducing compulsory no pay leave (CNPL) on certain days each month for pilots, executives and associates.

According to an internal message to staff seen by The Business Times, chief executive Goh Choon Phong will now be taking a salary cut of 30 per cent from April 1, up from 15 per cent previously. Executive vice-presidents and senior vice-presidents will take cuts of 25 per cent and 20 per cent respectively. Meanwhile, SIA's board members are now taking a 30 per cent cut in fees in solidarity with senior management.

And from May 1, salary cuts for divisional vice-presidents (DVPs) and VPs will go up to 12 per cent, while an earlier pay cut of five per cent for senior managers and managers is being brought forward by a month to April 1, before increasing to 10 per cent from May 1.

"We have also reached agreements with our unions for a set of cost-cutting measures," Mr Goh told staff in the internal memo seen by BT. "These include voluntary no-pay leave for all staff up to DVPs, varying days of compulsory no-pay leave each month for pilots, executives and associates, as well as furlough for staff on re-employment contracts." All in, about 10,000 staff will be affected by this.

The airline industry has been hit hard as countries around the world tighten their borders to arrest the spread of the Covid-19 pandemic. In Singapore, the authorities will close the border to tourists and transit traffic from 11.59pm on Monday.

Mr Goh also said the group had to brace for "even greater sacrifices going forward", given the uncertainty over how long Covid-19 would ground planes. However, he added: "With the time and resources available to use, we must find impactful ways to restructure our work and increase productivity." SIA's transformation office will be taking the lead to seek solutions to strengthen the group's competitive edge.