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SINGAPORE: The COVID-19 crisis continues to hit the aviation sector, with ground handling company dnata being the latest to lay off employees.
The affected staff members were informed of their downsizing on Friday (August 28).
In response to CNA inquiries, dnata told CNA it had to take steps to “properly size” its business due to the “unprecedented disruption” caused by the COVID-19 pandemic.
“The situation remains very fluid and unpredictable demand, schedule and capacity changes become the norm,” said a dnata spokesperson.
“Given this operating environment, and like so many other organizations in Singapore that have been affected, we have had to take steps to properly size our business and make sure it is fit for purpose,” he added.
“We have conducted extensive workforce assessments and made very difficult, but necessary, decisions to let some of our staff go.”
Dnata declined to say how many people were fired or what compensation was given to those affected.
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In Singapore, dnata, a subsidiary of the Emirates Group, provides a variety of services including cargo handling, catering and security at Changi Airport.
According to its website, it employs more than 1,800 workers here.
In laying off its workers, dnata said it worked closely with the union and government agencies to ensure compliance with the tripartite warning on layoffs and to “provide all possible support to affected employees.”
Dnata will have “a stronger Singapore core” than before, he said.
“Before the financial year, 63 percent of dnata Singapore’s workforce were Singaporean. After the downsizing, 73 percent will be Singaporean,” he added.
WORKERS AFFECTED TO GET HELP FINDING NEW JOB OPPORTUNITIES
The company said it has engaged the dnata Singapore Personnel Union (DSSU) and e2i (Employment and Employability Institute) to share “selected job vacancies” and upcoming job fairs, as well as to facilitate individual career training sessions for affected employees.
“The NTUC e2i will engage with affected workers to share suitable job opportunities and provide access to resources such as career consultations and employability workshops if needed,” said e2i CEO Gilbert Tan.
Mr. Tan, who is also deputy general manager of NTUC, added that e2i strives to be “a step forward in protecting workers’ livelihoods” when compared to the works put together by the NTUC Workforce Safety Council.
“For this to work, we urge companies to come forward, work with us so that workers can find work before any downsizing if unavoidable,” he added.
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Having taken various steps to manage costs since the pandemic began, the dnata took the staff reductions as a last resort, having notified DSSU of its plans in advance, the union noted.
He added that the majority of those affected are work permit holders, a third of whom are still in their home countries due to travel restrictions.
“Dnata Singapore has worked with DSSU to extend fair compensation terms and employment-related assistance to affected employees,” said a union spokesperson.
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“This is a difficult time for all of us, especially those who work in aviation and its supporting industries,” said DSSU President Sheikh Muhammed.
“While efforts have been made to protect jobs and livelihoods, we understand that the company faces extremely challenging times and has no choice but to size itself,” he added.
“We stand in solidarity with our co-workers and will do everything we can to help them through this difficult time.”
Commercial aviation has been severely affected by the coronavirus and Emirates, the parent company of dnata, based in Dubai, announced in June that it was laying off an unspecified number of personnel, including cabin crew and pilots.
Earlier this month, aerospace company Pratt & Whitney announced that it was cutting approximately 20 percent of its workforce in Singapore, while national carrier Singapore Airlines offered cabin crew the option of early release or retirement as part of a series of cost reduction measures.
