♥ Friday, July 31
SINGAPORE: An estimated 12,000 non—management staff at Singapore Airlines (SIA) will take a pay cut of 10 per cent for three months starting from August 1.
This comes after the carrier posted a S$271 million loss at the company level in the first quarter.
As a group, SIA posted a net loss of S$307.1 million for the three months ended June 30 compared to a net profit of S$358.6 million a year earlier.
This comes after the carrier posted a S$271 million loss at the company level in the first quarter.
As a group, SIA posted a net loss of S$307.1 million for the three months ended June 30 compared to a net profit of S$358.6 million a year earlier.
But at company level, the loss for the carrier alone was S$271 million.
Under current union agreements, a pay cut is automatically triggered if the airline posts a net loss at a company level in any given quarter.
It applies across the board, but Channel NewsAsia understands, the bulk of those affected comprise cabin crew, pilots and ground staff employed in Singapore.
The quantum is determined by the amount of losses.
The pay cuts start at 2.5 per cent for losses at the company level of S$50 million, and go up to as much as 10 per cent for losses of S$200 million or more.
The pay cut is part of union—represented staff’s monthly variable component of 10 per cent.
An SIA spokesman told Channel NewsAsia that the pay cut may continue beyond November even if the carrier posts a profit in the second quarter.
This is because the losses are calculated accumulatively throughout the financial year.
— CNA/vm
Published by: Raymond Lim
4/9 '10 loves x3 11:24 AM
