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SINGAPORE, September 10 – Singapore Airlines Group (SIA) announced today that it will lay off some 2,400 workers at SIA, SilkAir and Scoot in Singapore and abroad.
This represents almost 9 percent of its employees. According to its latest annual report, the SIA Group has 27,600 employees.
Goh Choon Phong, SIA’s chief executive, said in a message to all staff on Thursday that, in fact, the company needs to cut about 4,300 jobs. But thanks to the measures it has put in place since March, the group has been able to reduce the number of involuntary reductions in jobs in this reduction exercise.
The group has put in place a strict hiring freeze since March this year: vacancies that were opened due to resignations and retirements were not filled.
The group had also offered a Special Early Retirement Plan, the most generous in SIA history, for ground personnel and pilots and a Voluntary Release Plan for cabin crew, to support those who had already considered leaving. their jobs for personal reasons.
“Together, these measures have enabled the group to eliminate some 1,900 positions and have helped mitigate the impact on staff,” Goh said in his message.
Goh added that the next few weeks will be “some of the most difficult” in the history of the SIA Group, as thousands of employees will have to leave.
“Having to let go of our valuable and dedicated people is the most difficult and painful decision I have had to make in my 30 years with SIA,” he wrote.
“For our affected colleagues, please know that this is not a reflection of your individual strengths and capabilities. It is the result of an unprecedented travel paralysis caused by a global pandemic. “
He added: “Please also be assured that we will conduct the process in a fair and respectful manner, and we will do everything possible to ensure that you receive all necessary support during this very difficult time.”
The company has started talks with Singapore-based unions and will work closely with them to finalize arrangements for affected employees, Goh said.
In a separate statement, Cham Hui Fong, Under Secretary General of the National Trade Union Congress (NTUC), said that for the past six months, Singapore Airlines Staff Union (SIASU) and Scoot Staff Union (STSU) have worked closely with management. . on various measures to mitigate downsizing as much as possible.
“Unfortunately, these efforts were insufficient to completely prevent it and overcome the severity and prolonged impact of the Covid-19 pandemic. SIASU and STSU worked with management to ensure that the downsizing exercise was fair, referencing the NTUC Fair downsizing Framework and other tripartite notices. “
Turbulent times for the airline group
Goh said the decision to lay off the employees was based on the expectation that the road to the company’s recovery will be “long and full of uncertainty.”
No one could have predicted the devastating impact of Covid-19 on the airline industry earlier this year, he said, adding that it is not yet clear which airlines will survive this crisis.
SIA Group’s priorities were to ensure its survival and save as many jobs as possible, Goh said, noting that it was one of the first airlines in the world to ensure liquidity to meet its cash flow requirements.
It also reduced capital and operating expenses since the onset of Covid-19 by deferring non-critical projects, worked with suppliers and partners to cut costs, reschedule payments, and adjust aircraft delivery flows, and implemented human resource measures such as salary cuts. and non-paid leave regimes.
However, the future remains “extremely challenging” for the group, he said, with the pandemic still unchecked and strict border restrictions in all countries.
“Today, the SIA Group operates only 8 percent of our capacity compared to pre-Covid levels, and we expect to be less than 50 percent by the end of the financial year. Meanwhile, the forecast for air travel has worsened, with industry groups projecting that passenger traffic will not return to pre-Covid levels until 2024. ”
In a Facebook post on Thursday night, NTUC General Secretary Ng Chee Meng said that he has met with union leaders from the aerospace and aviation sectors on several occasions in recent months.
During these meetings, he said they discussed steps taken by management and unions to help workers during this downtime and mitigate layoffs.
“While the results may not always be as desired, I appreciate these unwavering efforts,” he wrote. – TODAY
