Singapore Airlines to cut salaries by at least 10%, offers early retirement for eligible staff
SINGAPORE: Singapore Airlines (SIA) is taking more steps to manage costs, announcing further pay cuts for management staff and a salary reduction of 10 per cent for other employees.
The airline will cut of the full quantum of the monthly variable component of salaries from Aug 1.
"This amounts to 10 per cent of the basic salary for all staff below the level of manager, said SIA on Thursday (Jul 30).
Managers and senior managers will have their basic salaries reduced by 12 per cent, up from 10 per cent, while vice-presidents and divisional vice-presidents will see a 15 per cent cut, up from 12 per cent.
Senior vice-presidents will get a 25 per cent cut, up from 20 per cent, and executive vice-presidents will get 30 per cent cut, up from 25 per cent.
CEO Goh Choon Phong's salary will be cut by 35 per cent, up from 30 per cent.
This comes as SIA posted a S$1.12 billion net loss in the first quarter, after drastically cutting capacity due to travel restrictions amid the COVID-19 pandemic.
Apart from cutting salaries, the airline will also offer a COVID-19 Special Early Retirement Scheme to eligible employees.
According to an email to SIA staff members seen by CNA, the scheme will be available to those aged 50 and above and with at least 15 years of service, up to the level of divisional vice-president.
“Given the slower growth trajectory and depressed market conditions, we must brace for additional staff measures," said Mr Goh in the email.
“We will be engaging our staff unions on this and will announce the measures when they have been firmed up," he added.
“Our immediate priority is to do everything we can to survive this crisis and be ready for the long trudge ahead of us."
READ: Singapore Airlines reports S$1.12 billion net loss in Q1 as COVID-19 hits demand
The aviation industry is among the hardest hit by the COVID-19 pandemic, as demand for travel plunged due to travel restrictions.
Airbus had announced last month 15,000 job cuts worldwide - 11 per cent of its total workforce - in response to the pandemic, which it said had triggered the "gravest crisis" the industry has ever seen.
Rolls-Royce also said it will cut 9,000 jobs worldwide, warning in May that it will take several years for air travel to recover.
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