SIA announces pay cuts for management to reduce manpower costs amid COVID-19 outbreak

SIA announces pay cuts for management to reduce manpower costs amid COVID-19 outbreak

SIA planes
File photo of a Singapore Airlines plane.

SINGAPORE: With COVID-19 having a "significant impact" on air travel, Singapore Airlines has announced a pay cut for management and a voluntary no-pay leave scheme for staff below senior management level on Friday (Feb 28).

The actions will help reduce the company's manpower costs amid the challenges of the ongoing COVID-19 outbreak, an SIA spokesperson said in response to CNA's queries.

From Mar 1, senior management figures will take a 10 to 15 per cent reduction in their salary, including SIA CEO Goh Choon Phong, who will take a 15 per cent cut.

Divisional vice presidents (DVPs) and vice presidents will take a pay cut of seven per cent from April 1, while senior managers and managers will take a cut of five per cent from May 1.

Board members will also take a 15 per cent cut in their board fees from March to "show solidarity with the management and all staff".

SIA will also offer a voluntary no-pay leave scheme for all staff up to Divisional Vice President (DVP) level. 

"Those who opt for this can be assured that the jobs will be there upon their return," the spokesperson said.

READ: COVID-19: Tenants at Changi Airport to receive 50% rental rebate for 6 months

READ: CapitaLand freezes pay for managerial staff, senior management to take wage cut

In a memo addressed to staff seen by CNA, Mr Goh said that Changi Airport reported an over 25 per cent drop in passenger movements for the first half of February, while traffic between Singapore and China dropped by more than 85 per cent year-on-year. 

SIA has "moved decisively" to deal with the virus threat by taking steps to cut capacity, as well as reducing capital expenditure and operating costs, he noted. 

"Over the last three years, our Transformation Programme has strengthened our revenue generating capabilities and driven operational efficiencies," said the spokesperson, adding that SIA will tackle COVID-19 from "a position of strength".

Editor's note: An earlier version of this article said that CAG will offer a voluntary no-pay leave scheme. That is incorrect. It is SIA which is offering the scheme. We apologise for the error.

BOOKMARK THIS: Our comprehensive coverage of novel coronavirus and its developments

Download our app or subscribe to our Telegram channel for the latest updates on the coronavirus outbreak: https://cna.asia/telegram

Source: CNA/nh

Bookmark