In view of the massive flight cuts by airline customers and the increasingly difficult business environment, SIA Engineering Company Limited (SIAEC) is stepping up its measures to mitigate the severe impact.
The Management of SIAEC will take deeper pay cuts than previously announced. The pay cuts for the Chief Executive Officer and Executive Vice President have increased to 25% and 20% respectively, with effect from 1 April 2020. Senior Vice Presidents’ pay cut of 8% has been brought forward from 15 April 2020 to 1 April 2020 and will increase to 15% from 1 May 2020. Vice Presidents’ pay cut of 7% has been brought forward from 15 April 2020 to 1 April 2020 and will increase to 12% from 1 May 2020.
Senior Managers and Managers’ pay cut of 5% has been brought forward from 15 May 2020 to 1 April 2020 and will increase to 10% from 1 May 2020.
In addition to the voluntary no-pay leave scheme offered to all staff, the Company has been working closely with its unions on other measures, including varying days of compulsory no-pay leave, furlough for staff on re-employment contracts and deferment of salary increments and promotions.
The SIAEC Board has also volunteered a deeper reduction of 25% in fees accruing with effect from 1 April 2020 in solidarity with Management and Staff.
These moves come after the demand for air travel saw an unprecedented collapse due to strict border entry restrictions implemented to contain the spread of Covid-19 worldwide, SIAEC said.