After SIA pilots take deeper pay cuts, public wants management to do the same

Singapore — In response to news that Singapore Airlines (SIA) pilots had agreed to deeper pay cuts amid the Covid-19 pandemic to save jobs, members of the public are wondering if top management could lead by example and do the same.

The pilots have agreed to take up to 50 per cent deduction of their salaries in exchange for job security. The pay cut was on top of a 10 per cent reduction in the monthly variable component (MVC) of their wages, according to straitstimes.com.

Beginning Oct 1, re-employed captains and first officers will receive salaries less by 60 per cent and 50 per cent respectively. The computation includes the 10 per cent MVC cut. This was the agreement reached between SIA and the Air Line Pilots Association – Singapore (Alpa-S).

Meanwhile, other captains and first officers are to receive pay cuts of up to 28.5 per cent and 18.5 per cent, respectively and depending on their current pay.

“We are pleased to announce that a memorandum of agreement (MOA) was signed with Alpa-S effective Oct 1, 2020, to Mar 31, 2022, on additional pay cuts to avoid further job losses,” according to an internal circular shared with ST.

The agreement was made to mitigate further job losses for pilots, confirmed an SIA representative. “The SIA Group is focused on navigating and overcoming the challenges ahead of us in this extremely uncertain operating climate.”

It has been reported that about 50 of the 2,600 SIA pilots have been retrenched, most of whom were foreigners. Singapore’s flag carrier is operating at about 8 per cent of passenger capacity in comparison with pre-pandemic levels. It is expecting to operate under 50 per cent at the end of the year.

In response to the pay cuts of its pilots, members of the public wondered if SIA management could lead by example and also accept further deductions to save more jobs.

On July 30, businesstimes.com.sg reported that effective Aug 1, managers and senior managers would see a 12 per cent reduction in salary, up from 10 per cent previously. Vice-presidents (VPs) and divisional VPs were to receive a 15 per cent cut, up from 12 per cent. Senior VPs, executive VPs and the CEO, Mr Goh Choon Phong, would take 25, 30 and 35 per cent deductions, respectively. This was an increase of 5 per cent from previous pay cuts. /TISG