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Sun, Sep 06, 2009
The Straits Times
One in 4 SIA crew opts for no-pay leave

By Karamjit Kaur, Aviation Correspondent

IN ITS efforts to weather the economic storm, Singapore Airlines has had some success trimming excess manpower while continuing to ground planes and cut routes. One in four of its cabin crew - about 1,800 out of 7,400 - have opted for voluntary no-pay leave.

In March, SIA offered staff the option to go on the scheme - for anything from one week to two years. Many who took it up have asked for periods of up to a month, SIA spokesman Nicholas Ionides said.

Another 160 employees - including ground staff and pilots - have also decided to take no-pay leave, he told The Straits Times. A member of the airline's cabin crew, who spoke on condition of anonymity, said she decided to take a month off, 'just to hang out with friends and chill out'.

But one proposition which has yet to take off is the early retirement scheme that SIA offered to those aged 50 and above and who have been with the airline for at least 15 years.

Since applications opened last month, only 38 out of an estimated 1,000 staff eligible have requested to take up the scheme. The Straits Times understands that many are not keen to take up the offer because the total remuneration is capped at between 22 and 25 months' salary.

Mr Alan Tan, president of the SIA Staff Union, which represents cabin crew and other rank-and-file staff, said that while it is a voluntary scheme, the cap needs to be increased 'if the intention is to get as many older employees to retire'.

For someone in his early 50s with at least 10 working years left, for example, two years' pay in return for retirement may not be an attractive proposition, Mr Tan said.

However, SIA's cap is within the industry norm.

Apart from the two schemes, SIA, which has seen a plunge in business amid the economic downturn, has also started other initiatives, such as a shorter working month and pay cuts of up to 20per cent. These measures will save the airline an estimated $60million in the current financial year, which ends next March. SIA also plans to take 16 aircraft out of the skies this financial year.

The airline reported a $307million loss for the April to June quarter - the second time it has suffered a loss since the company went public in 1984.

Latest traffic data, however, shows that the economic storm may be abating.

Earlier this week, Airports Council International (ACI) - the global trade association of the airport community, with members operating in more than 1,600 airports - said that July's traffic figures showed signs of stabilisation.

This article was first published in The Straits Times.

 

 
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