Singtel, SATS, SingPost, ST Engineering lift salary freezes, restore pay as economy recovers

SEVERAL large Temasek-linked employers have unwound salary freezes or cuts that were implemented last year as Singapore battled the spread of Covid-19 and companies attempted to rein in costs without letting workers go.

This comes as market sentiment has improved and companies are reporting increased profits.

In response to queries from The Business Times, a SATS S58 spokesperson said the company had on April 1 this year unwound pay cuts it had implemented on Feb 19, 2020. The company added that it would continue to manage costs prudently by "balancing profitability with the long-term sustainability of the business".

The airport and food services provider had last year cut the pay of its management team by 10 per cent. Employees aged 55 and above were given the option of early retirement. Further cuts were announced in March 2020.

Singpost, S08 too, has restored wages for all management and staff since April 1 this year, said the company's spokesperson Robin Goh.

The company had earlier frozen pay and promotion increments for those at assistant vice-president level and above, and cut pay for those at senior vice-president and above.

Singtel Z74 said it has lifted a company-wide wage freeze since June this year in response to the improving business and operating environment.

Said Aileen Tan, chief people and sustainability officer of Singtel group: "As we continue to navigate this pandemic, we are also cautiously optimistic about the future and we will be reviewing our business operations and strategies to keep an eye on costs, stay relevant and support the growth of our business."

ST Engineering said that it had also restored the salaries of all staff who took pay cuts of between 2 and 20 per cent since July this year. The company also granted annual salary increments that were aligned to their respective business areas' outlook.

Security provider Certis also confirmed that it had lifted its pay cuts for their senior leadership team in April this year amid signs of economic recovery. The company had implemented the measures in March last year as a show of solidarity with its customers and stakeholders.

Singtel, SingPost, ST Engineering and SATS join Singapore Airlines C6L and Changi Airport Group (CAG) in signalling a return to the pre-pandemic labour situation. The national carrier announced on Aug 13 it had reinstated the monthly variable component to the basic salary of all its Singapore-based staff since Aug 1. Similarly, CAG said that it will restore wages for those in middle management and below next month.

Maybank Kim Eng economist Chua Hak Bin said that the lifting of salary freezes and pay cuts could be happening in other companies as the labour market improves, especially in fast growing sectors such as finance and tech.

"Job turnover may be picking up at this stage of the economic recovery, as more firms hire and capitalise on the reopening," he said, adding that local talent in highly-skilled segments remains scarce and may command a premium.

Randstad Singapore managing director Jaya Dass also agreed that the cost of hiring new talent has risen after last year's "slightly muted" hiring market.

"Firms that do not lift their cost-cutting measures promptly enough could also risk sending the message that they've not yet overcome the financial challenges brought about by the pandemic, which would deter candidates from applying," she said.

On Tuesday, Singtel shares closed at S2.38, down 0.8 per cent or S$0.02, while SingPost shares closed flat at S$0.665.

SATS was up 0.5 per cent or two Singapore cents at S$4.02, while SIA shares closed down 0.98 per cent or S$0.05 at S$5.03. Shares of ST Engineering closed down 2 per cent or 8 cents at S$3.95.

READ MORE: Singapore Airlines ends MVC salary cuts for Singapore-based staff from Aug 1