Now that our beloved Senior Vice President (Human Resources) has recently been bypassed in negotiation and therefore working for food stamps and preferential places in soup queues has disappeared as an SIA preferred pilot remuneration option, progress of sorts has been possible between the Airline and Alpa-s to the extent that a “points of agreement” document has been formulated between the parties as the basis for a full Collective Agreement, to be effective for a three year period from 8 September 2004.
Whilst I guess that all of us pilots will be happy that “good cop”, SIA CEO has stepped in and prevailed against “bad cop” SVP (HR) – where have we seen this scenario before? –a question is begged and observations require to be made.
Question 1. Now that the pilot basic monthly salary max:min range is proposed to be 1.65 and hence within newly formulated government guidelines, will the Company’s senior B744 captains (proposed salary range $10.000 - $16,500), currently earning well in excess of the new top figure of $16,500, imminently be taking a significant pay cut to reduce to this new top level?
Observation 1. The Company arrogates to itself the “flexibility” to pay up to $30,000 as a one-off lump sum “joining bonus” to direct entry (ex-pat) captains and as a consequence, to “do away” with the expatriation allowance for new captains. The sums are as follows:
Expatriation Allowance (married) $ 1,025 per month = $12,300 per annum = $61,500 per 5 year contract
Gain to SIA/Loss to new captain, post new arrangement = $31,500
This is certainly a “Golden Hello” Singapore style! No doubt to be trumpeted on the back pages of up-coming editions of Flight International as a means of enticing available innocents to sign on and help plug the gaps in the now seriously undermanned ranks of the B744F and B777 fleets. Potential joiners note the simple sum and those imminent signers calculate the loss you will incur!
Observation 2. It is proposed “to introduce an agreed basis for review of the house rental assistance and child education assistance, so as to enable the Company to adjust quantum according to market movement”. I would expect from long and extremely weary experience that the former is proposed to be reduced as the housing market is soft at the moment - never to be raised again when the market firms and that the latter will remain exactly where it is, despite constant school fee increases over the past few years.
Recruitment Warning. Allowances can go down but never up.
Observation 3. It is not overtly stated but the proposal “to introduce an end-of-contract gratuity scheme for pilots on ex-patriot terms at the rate of $10,000 per year of service” is in respect of existing pilot beneficiaries of the Singapore Provident Fund (SPF) which was peremptorily and (opinion has it) illegally suspended last year by our resident genius, PAP luminary, the SVP (HR), as a panic post SARS cost saving move (despite it being an integral and fundamental element of most ex-pat pilot’s contracts for that time being). The Company formerly contributed to the SPF an additional remuneration sum, equaling 10% of the individual pilot’s monthly salary. The sums are:
Ten percent of average SPF pilot salary (approx $12,000) = $1,200 per month = $14,400 per annum = $72,000 per 5 year contract
Proposed new payment of $10,000 per annum = $50,000 per 5 year contract
Gain to SIA/Loss to SPF captain, post new arrangement = $22,000
Once again, another “Singapore Style” solution!
Happy flying guys!
Last edited by highcirrus; 10th Sep 2004 at 09:03.