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SINGAPORE – Laid off Singapore Airlines (SIA) staff will receive one month’s pay for each year of service, capped at 25 months, The Straits Times learned. This provided they have been in service for two years or more.
Each affected employee will also be paid in lieu of the notice period in their employment contract. It can be up to three months of salary.
The benefits are in accordance with the group’s collective agreements with its unions.
On Thursday (September 10), SIA announced that it would cut around 20 percent or 4,300 positions, amid the Covid-19 pandemic that has paralyzed the air travel sector.
Roughly 2,400 employees will be laid off, while the remaining 1,900 roles will be accounted for through natural defection, hiring freezes and voluntary departure plans.
When asked about the benefits of downsizing, the SIA spokesperson said: “Discussions have started with our Singapore-based unions. SIA is working closely with them to finalize arrangements for those affected in order to minimize the stress and anxiety of our people. “
In the case of affected foreign personnel, arrangements will be made and sufficient time will be allowed for those currently abroad to return to Singapore to resolve their matters here.
He said: “Our colleagues who are still in Singapore will also have enough time to resolve their personal matters before returning to their home countries.”
Scoot, the group’s budget arm, began handing out pink receipts to laid off staff on Friday (Sept. 11), with details about compensation packages.
His spokesman said: “Scoot will notify our affected employees and provide further information on the arrangements progressively beginning today over the next few days.”
The affected employees will receive compensation under the terms that have been negotiated and agreed with the union in the collective agreement, he said.
Among other things, the affected personnel will continue to be covered for hospitalization and surgery costs until March 31, 2021 and, when necessary, support for repatriation will be provided.
She said: “We are committed to ensuring that adequate support and resources are provided to them, and we have arranged for professional advisers and a repatriation and relocation consultant to be present at the exercise.
“Scoot also arranged transportation home for affected staff by taxi or private rental vehicle services after the exercise, and plans to publish an alumni talent directory to connect outgoing employees with potential employers.”
As for the national parent airline, the exercise will begin on Monday.
Affected personnel have started to receive emails informing them of the assigned dates for the briefings, which will be held physically at the SIA Training Center or by phone if the staff is currently abroad.
The Straits Times also understands that the Airline Pilots Association – Singapore has requested a meeting with the Ministry of Manpower next week, although it is unclear what will be discussed.
The National Trade Union Congress (NTUC) said it could not respond to inquiries about the number of affected union members and the downsizing packages its unions are seeking, citing sensitivities.
A spokesperson would only say that those affected include members of the Scoot Staff Union and the Singapore Airlines Staff Union, both affiliated with NTUC.
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