[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Thursday, 3 July, 2003, 16:01 GMT 17:01 UK
Singapore Airlines staff accept pay cut
Scene from website
There may be more lay offs, says the company

Singapore Airlines (SIA) staff have agreed to pay cuts of 11% after the company confirmed record losses due to the Severe Acute Respiratory Syndrome (Sars) crisis.

The cuts come after the airline's 1,600-member pilot union accepted a 16.5% pay cut and 24 days of compulsory unpaid leave per year.

"We have reached a sound agreement which will help SIA reduce staff costs and increase its competitiveness in a rapidly changing industry," said Loh Meng See, the airline's senior vice-president for human resources.

Backed by the Singapore government, SIA is traditionally one of the world's most profitable airlines, but in April and May the company lost $3m a day as air passenger numbers in Asia halved.

Last month, 414 staff were laid off - SIA's largest-ever round of job cuts.

Restoring cuts

Wages of general staff earning a basic salary of more than $853 a month will be cut by 7.5% while those earning less than that amount will take a 5% cut. Administrative staff face wage reductions of 11%.

As in the deal made with the pilots, the airline will restore the pay cuts by up to 115% once its troubles are over, depending on profit levels.

Long serving crew members have been offered early retirement.

However, according to Abacus, Asia's largest air ticketing and reservation company, passenger volumes are on their way to returning to normal.

Abacus chief executive Don Birch said on Thursday he expected the return of pre-Sars travel levels in July as the virus is contained and cheap ticket deals attract travellers.


SEE ALSO:
Singapore pilots agree wage cut
30 Jun 03  |  Business
Job cuts begin at Singapore Air
19 Jun 03  |  Business
Singapore Air in unpaid leave call
30 Apr 03  |  Business
Sars strikes down Asia tourism
15 May 03  |  Business


RELATED INTERNET LINKS:
The BBC is not responsible for the content of external internet sites


PRODUCTS AND SERVICES

News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East | South Asia
UK | Business | Entertainment | Science/Nature | Technology | Health
Have Your Say | In Pictures | Week at a Glance | Country Profiles | In Depth | Programmes
Americas Africa Europe Middle East South Asia Asia Pacific