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COVID-19: SIA cuts pay for management staff; offers voluntary no-pay leave plan
SINGAPORE — Singapore Airlines joins the growing list of Singapore companies in cutting pay for senior staff amid the coronavirus outbreak.
Chief Executive Officer Goh Choon Phong will lead the way with a 15 per cent cut from 1 March, a spokesperson from SIA said in an email reply to Yahoo Finance Singapore on Friday (28 February).
Divisional vice-presidents and vice-presidents will take a 7 per cent cut from 1 April, while senior managers and managers will take a reduction of 5 per cent from 1 May, the spokesperson said. The SIA board of directors have also taken a 15 per cent cut of their fees “to show solidarity with all management and staff”.
A voluntary no-pay leave scheme has also been offered to all staff up to the divisional vice-president level, the spokesperson added. Those who opt for this can be assured that the jobs will be there upon their return.
“The Covid-19 outbreak has had a significant impact on air travel. Over the last few weeks, the Group has moved decisively to deal with this rapid decline on air travel by taking aggressive steps to cut capacity, as well as reduce capital expenditure and operating costs,” the spokesperson said.
The national carrier had cut nearly 10 per cent of its capacity, and on 25 February announced it will freeze hiring for all ground positions.
Singapore Airlines earlier this month said it would cut capacity across its network in the three months to May, including to destinations like Frankfurt, Jakarta, London, Los Angeles, Mumbai, Paris, Seoul, Sydney and Tokyo.
Singapore Airlines, which is majority-owned by Temasek Holdings, join other Temasek portfolio companies including SMRT, SATS and CapitaLand, in implementing cost-cutting measures.
State investor Temasek on Tuesday said it will freeze all salaries and promotion increases, and partially cut annual bonuses for the senior management team this year. It has also asked senior management to voluntarily reduce their base salaries by up to 5 per cent.
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