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SINGAPORE: Singapore Airlines Group (SIA) announced on Thursday (September 10) that it will cut around 4,300 positions on its three airlines as the aviation industry continues to be affected by the impact of COVID-19.
However, the number of affected employees may be reduced to about 2,400, “mitigated” by measures such as the hiring freeze implemented in March, the early retirement plan for ground personnel and pilots, as well as a voluntary release plan. for the cabin crew, he said. .
Together, these measures have allowed the Group to eliminate some 1,900 positions, ”said SIA.
“As a result, potential job cuts across the Group may be reduced to around 2,400 in Singapore and at all SIA stations overseas,” he added.
“Discussions have started with our Singapore-based unions. The Group will work closely with them to finalize the arrangements as soon as possible for those affected and try to minimize stress and anxiety for our people.”
READ: Singapore Airlines to reduce flight capacity by 50%, expects further capacity cuts
In a press release, SIA Group said the decision was made in light of the “long road to recovery of the global airline industry due to the debilitating impact of the COVID-19 pandemic,” adding that there is an “urgent need. “of your airlines to adapt to an uncertain future.
SIA had announced in March that it would reduce flight capacity by 50%.
It expects to continue operating at less than 50 percent of capacity at the end of this financial year compared to pre-pandemic levels, noting that industry groups have predicted that passenger traffic will not return to previous levels until around 2024.
“Relative to most of the world’s major airlines, the SIA Group is in an even more vulnerable position, as it does not have a domestic market that is the first to see a recovery,” he said Thursday.
“To remain viable in this uncertain landscape, the Group’s airlines will operate a smaller fleet for a reduced network compared to their pre-COVID operations in the coming years.”
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In his message to employees, SIA CEO Goh Choon Phong said that no one could have predicted the “devastating impact” of COVID-19 on the global aviation industry.
“From the beginning, the SIA Group’s priorities were to ensure our survival and save as many jobs as possible,” he said, adding that the company had “significantly reduced” expenses by postponing non-critical projects and by working with suppliers to reduce costs, reschedule payments and adjust aircraft delivery flows.
“Given the expectation that the road to recovery will be long and full of uncertainty, it has reached the point where we have to make the painfully difficult decision to implement involuntary downsizing measures,” he said.
Mr. Goh added that having to lay off valuable and dedicated employees is the “most difficult and harrowing decision” he has had to make in his 30 years with the company.
“The next few weeks will be some of the toughest in the history of the SIA Group, with some of our friends and colleagues leaving the company,” Goh said in his message.
“We will conduct this process in a fair and respectful manner, and we will do everything possible to ensure that you receive all the necessary support during this very difficult time,” he added.
THE GOVERNMENT WILL DO ALL IT CAN TO SUPPORT AFFECTED WORKERS
In a Facebook post on Thursday night, Transport Minister Ong Ye Kung said the government will do everything possible to support workers affected by SIA’s job cuts.
“What we have feared all these months has happened,” Ong said.
“SIA will reduce its global workforce. Some 2,400 Singapore-based and overseas employees will be affected, the vast majority foreign.
Taking into account the hiring freezes and early retirements, SIA will reduce the total workforce by 4,300, “he said.
“We know how seriously SIA is affected by COVID-19,” said the minister, highlighting the support measures that the Government has implemented in recent months and how the aviation sector has “received the strongest support.”
“SIA has also raised significant capital with the support of its majority shareholder. They have delayed this downsizing of the workforce as much as they can, but with air travel decimated by COVID-19, this has sadly become inevitable,” Ong said.
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“The government will do everything possible to support the affected workers,” Ong added. “We will work with NTUC and industry partners to replace workers in jobs, help them transition to other industries, or enroll them in appropriate internship and internship programs.
“I’m sure their skills are badly needed elsewhere as well. Most importantly, we will continue to push to re-establish air travel safely, so that SIA jets are back in the sky and reviving our air hub.”
NTUC WILL WORK WITH THE SIA GROUP ON TRAINING OPPORTUNITIES
In a press release on Thursday, the National Congress of Trade Unions (NTUC) said that two unions, the Singapore Airlines Personnel Union (SIASU) and the Scoot Personnel Union (STSU), had worked with management for the past six months on 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,” NTUC said.
He noted that both staff unions had ensured that the downsizing exercise was fair, referencing NTUC’s Fair downsizing Framework and other tripartite notices.
NTUC said it will continue to work with SIA Group on training opportunities for its remaining workforce, as well as offering assistance to those whose income has been affected.
“NTUC stands in solidarity with affected workers during this difficult time and is ready to help in any way we can,” the union movement said.
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