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Thousands of workers laid off by the Singapore Airlines Group (SIA) will not find themselves alone as they seek new employment.
Transport Minister Ong Ye Kung said yesterday that the government will work with the National Trade Union Congress (NTUC) and industry partners to help place workers in new jobs. It will also help them transition to other industries or enroll them in suitable internships and apprenticeships.
“More importantly, we will continue to push to restore air travel in a safe manner, so that SIA aircraft are back in the sky and revive our air hub,” Ong said in a Facebook post following the SIA’s announcement that It will have to cut its total workforce by 4,300 positions.
After accounting for hiring freezes, early retirement and natural defection, around 2,400 Singapore-based and overseas SIA Group employees will lose their jobs, the vast majority of whom will be foreigners.
Mr. Ong noted that the Government has supported the aviation sector with measures such as the Employment Support Plan, which offsets the cost of wages for employers, while SIA has also raised significant capital with the support of Temasek. .
“They have delayed this reduction in the workforce for as long as they could, but with air travel decimated by Covid-19, this has sadly become inevitable,” he said.
SIA Chief Executive Officer Goh Choon Phong said yesterday in an internal memo to staff that the company will carry out the job cuts process in a fair and respectful manner, and will do its best to provide staff with necessary support.
The head of the Labor Party, Ng Chee Meng, said the news of the job cuts was not a surprise in the current climate. But “we can’t help but feel a deep sense of loss and sadness,” he said.
Ng added: “I know it is difficult for everyone involved. But let’s cheer up, keep the faith and keep supporting each other. Little by little, we will come out stronger together.”
Meanwhile, the undersecretary general of the National Congress of Trade Unions, Cham Hui Fong, said the union will continue to work with SIA Group on training opportunities for its remaining workforce, as well as help those whose income has been affected.
This would help them get through this difficult period and be well positioned when the market recovers, he said.
Alan Tan, chairman of the Singapore Airlines Staff Union, told The Straits Times that the union and SIA had tried to help the carrier retain its crew, but the impact of the pandemic was too severe.
“We expected this; it’s a question of when, not if,” he said.
“I have been with SIA for 38 years and this is the worst crisis I have ever experienced.”
Tan said the union will help affected staff find other jobs and help foreign staff in areas such as taking them home.
When asked if more job cuts could occur, he said it would depend on how the pandemic plays out and whether countries re-lock themselves.
CIMB’s private banking economist Song Seng Wun said the downsizing of airlines was inevitable given that many governments around the world are still reluctant to open their borders.
He said job cuts could help SIA last for the next six to nine months.
“Visibility for the aviation sector remains somewhat cloudy and airlines are not sure how much capacity can be restored in the coming months,” Song said.
“SIA is not alone. Airlines everywhere have been supported by government action and will have to face reality when supportive measures decline.”
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