I think SIA will give an effective pay rise in the form of variable bonus at the end of the year. I expect about equivalent of upto 12% increase over current levels as long as they make XXX profit. Presumably basic salary will not be allowed to creep up too much... cant have the boys earning too much money when on leave can we. Of course the damage has been done, trust is lost and as we all know therse more to life than hanging out for that bonus every year. If SIA pay too much, then the rest of government will want more leading to inflation, Singapore costs rise. LKY wants Singapore to be cheap, however to maintain this will promise everything in the form of xtras if money is made above a certain threashold.
Its the carrot and the donkey. But who are the donkeys??