Singtel freezes all wages except for operational and support staff

SINGTEL has decided to roll out a wage freeze across the organisation. The move affects all but operational and support staff, said group chief executive Chua Sock Koong in a memo to employees on Monday.

She added that the group needed to strengthen its financial resilience and eliminate more costs during the period.

"Times like these require us to tighten our belts, both as a company and as workers, to ensure the long-term competitiveness of our business," Ms Chua said.

As the group moves into the new financial year, Ms Chua said, the company needs to brace itself for more uncertainty.

"The business and structural challenges we are already facing will be further aggravated by weak sentiment and economies made more sluggish by the virus threat," she added.

As a show of solidarity and support, the telco will be matching dollar-for-dollar staff donations to the Singtel Touching Lives Fund, as well as direct contributions to the Community Chest's Courage Fund and other beneficiaries.

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The move will see Singtel's management committee and Ms Chua contributing at least half a month's pay. The top management has also been strongly urged to make voluntary contributions of a quarter month's pay, the employee memo added.

Ms Chua further shared that the condition of the Singtel staff diagnosed with Covid-19 has stabilised, and the group is doing all it can to support his family. The staff member was diagnosed with the novel coronavirus on the night of March 5, Singtel announced on March 6.

The chief noted that it has been a worrying start to the year, with the Covid-19 threat emerging as the telco announced its third-quarter results. The virus has since disrupted not just lives but also livelihoods, in many cases.

Risks to businesses have also been significant enough to warrant interest rate cuts by central banks and budget measures from governments to help manage economic fallout. In Singapore, the Prime Minister has not ruled out the possibility of a recession, she added.

Singtel shares were trading 4.1 per cent or S$0.12 lower at S$2.83 on Monday as at 4.28pm.