Pilots reject SIA's no-pay leave measure

[aviator_38]

Hi all,

A friend sent this in the mail this evening.

He says that the Pilot Union is getting more vocal these days. It seems too that the airline is hiring more ex-Airforce personnel into its management ranks , and cultural differences will accentuate some of the perspectives.


Cheers




http://straitstimes.asia1.com.sg/storyprintfriendly/0,1887,190240,00.html?

MAY 21, 2003

Pilots reject SIA's no-pay leave measure

Pilots told to take 10-12 days' unpaid leave every two months; union wants SIA to axe overseas-based pilots first, and votes against move and any wage reductions

By Goh Chin Lian
Straits Times

SINGAPORE Airlines (SIA) wants its pilots to take 10 to 12 days' no-pay leave every two months to cut costs, says the pilots' union. But the union wants the airline to first axe its overseas-based pilots who are 'seconded' to the SIA.

Yesterday, the Air Line Pilots Association-Singapore (Alpa-S) held an extraordinary general meeting and resolved not to accept the measure or any wage-cutting move - until SIA first sheds these 120 or so pilots.

Said Alpa-S spokesman Frank John: 'In our opinion, this group of pilots are not SIA pilots. Any seconded staff must be on a short-term basis. If there's no need for them, they should be the first to go.' Alpa-S represents about 1,600 of SIA's 1,800 pilots.


SIA is facing its worst financial crisis, buffeted by the global economic slowdown, the war in Iraq and the Sars outbreak.

For the current April to June quarter, it's had to slash passenger capacity by nearly a third.

Yesterday, more than 90 per cent of the nearly 300 pilots at the meeting held at The Pines club at Stevens Road, voted in favour of the resolution, said Capt John.

When contacted late last night, SIA could not immediately comment on the Alpa-S resolution.

On April 30, SIA had told its 6,600-plus cabin crew to take seven days' unpaid leave every two months, from May 1 until next March. This, it estimates, will save the company about $14 million.

Capt John said that on May 2, SIA's senior vice-president for flight operations Major-General (NS) Raymund Ng told Alpa-S that the company wants all captains to take 12 days' compulsory no-pay leave every two months; and first officers, 10 days every two months.

This would mean more than 40 per cent income cuts for captains, and 'marginally less' for first officers, he said.

An SIA captain earns $12,000 a month on average, with flight allowances making up 20 to 25 per cent of that.

Alpa-S members decided that they will not accept compulsory no-pay leave or any wage-reduction measures until SIA's management addresses the issue of surplus pilots by 'de-seconding' the overseas-based pilots, most of whom are based in London.

Their employer is SIA Mauritius, a subsidiary set up on the Indian Ocean island, which then 'seconds' the pilots to the airline. SIA stands to save on taxes and other costs by hiring them this way and basing them overseas.

One senior SIA pilot interviewed pointed out that SilkAir, SIA's regional carrier, announced last month that it would release eight expatriate pilots before their contracts are up.

SIA has not laid off any staff.

A pilot in his 40s, who has been with the airline for 26 years, is all for removing the 'seconded' pilots. 'We don't welcome no-pay leave and the idea of making everyone bear the burden, when there are other alternatives,' he said.

This evening, the airline is due to release its results for the financial year ended March 2003.

[Thermal Image]

The short answer is, so what?

At any time without explanation, the company can exercise it's right (just as the pilot similarly can) to terminate the employment contract with three months notice or salary in lieu.

So long as there are SIA (Expat, Mauritius / or other) pilots who cost less, work more and don't politick / grumble, they are at least three notches up on the food chain.

And when the company decides to just go ahead with their plans, the Association can only make a lot of noise and nothing else. The last round they just went ahead and did as they pleased when it came to the issue of business class seats set aside for crew during their rest period. Agreement? What agreement?

They are unlikely to axe all the expats anyway. They have long been seen as a counterbalance to the locals, who can be counted on to just do the job regardless of the politics. As such they are of strategic importance and it would be stupid of the management to throw them out lock, stock and barrel.

The Association is naive to think that expats should go first. After all, there a significant number of locals who cost more, at the top of the pay scale, are just regular line captains with no further value-add, and who come to work as grumpy old men.

Today (21 May) is also the release of the National Wage Council report on, amongst other things, how seniority-based wage systems have little relevance in Singapore. This is another warning for these grumpy old locals.

[422]

To all who missed bad acting should , watch Botak Cheong

try and validate his actions infront of the press.

Cutting wages by 40% would be his crowning glory before

he leaves....

Of course he uses his good old bashing bag the pilots..

Only the pilots dare to oppose his stupid ideas..

hope ALPAS survive this one.... weak council will mean

many "local" casualties..

:uhoh:

[thegypsy]

Thermal Image I see that you have stopped calling them 'old farts' thus avoiding upsetting those such as OZZY AIRBOuRNE who seems to have a very 'short fuse'

It is of course quite right that the seconded pilots should be stood down, but as you say what will actually happen is another matter. This is a golden opportunity for the 'armchair generals to exert their authority over Alpha-S once and for all.

It cannot be right that ex-pats who are seconded from SIA Mauritius, mostly ex BA on huge pensions tax free to boot in most cases because they all claim to live outside the UK are kept on whilst locals and others who have long loyal service to SIA have a huge cut in salary by taking forced leave every 2 months.

With the Pound around $2.8 to the SGD the actual cost savings of these London based Pilots are not as beneficial as it once was in pure economic terms but of course they are a balance against the locals.

You are not quite correct about a total giveaway over the 'Business Class' seat issue as the company had to back down to a certain degree and lose face to an extent which put egg on the face of one the armchair generals as Captains still got their seat.

[G.Khan]

Also one should bear in mind that whilst there is a short term saving to SQ by placing pilots offshore the Singapore economy overall suffers as they lose a rental and all the monies that this family might otherwise have spent in Singapore plus considerable tax. If one were to extraplolate the correct figures, (and not the ones that SQ Airline House fell for), that correctly depict the 'value' or other wise of overseas based pilots then it would not be difficult to see the ecomonic argument for closing overseas bases.

If SQ was a company that also concerned itself with pilot morale they would take notice of the fact that the rosters for the Singapore pilots have gone totally to pot and are now causing considerable dissatisfaction amongst all the Singapore based pilots who see their quality of life much reduced in order to satisfy the O'seas based pilots rigid roster.

The economical advantages to Singapore (The Republic), of overseas based pilots cannot outweigh the economical advantage to Singapore of having all it's pilots based in Singapore sharing a common roster and spending their available monies in Singapore. Other advantages would be that SQ would have a more content workforce who could concentrate on their job more easily and not have to concern themselves with periphera issues that should not have been allowed to occur in the first place.

[thegypsy]

G.Khan You are of course quite correct in that SIA have never given a damn about 'Pilot morale' as it does not show up clearly in the balance sheet.

How a National Airline can treat it's own people in the way it does beggars belief. One of it's so called Core values is 'Concern for Staff'!!!!

The economic loss to 'Singapore Incorporated' of having all these crews based overseas is also totally lost on SIA. Perhaps someone in SIA has shares in the Oriental Hotel.!!??

[G.Khan]

Hi the gypsy at last, common ground!

Hope you are able to tough this one out, it really is not on for SQ to retain someone who has completed their flying career and in receipt of a GBP80,000pa pension, plus a lump sum of cash and at the same time lay-off someone whose sole income is dependant on staying employed in Singapore by the national airline.

[highcirrus]

thegypsy & G. Khan

You have both hit the nail absolutely on the head - please keep up the good work. Why should dilletante ex-BA pilots continue to skim the tax free cream, when others are merely in SQ to earn a living?

[CDRW]

While all that I see here on the last few posts I agree with, it really is not as simple as that - "Lets lob the ex BA boys cos they have a really fat pension and should be at home with the missus -their time is done". What about, say the Ozzy lads who are in the airline to just make ends meet or, the LA based crew. I would also like to see what CX is doing to their crew - I cannot see them taking a 25-35% ( and that is the optomistic guess) paycut, unyet from what I see they seem to be hurting more than SQ? Rough waters ahead.

[Thermal Image]

>>Thermal Image I see that you have stopped calling them 'old farts' thus avoiding upsetting those such as OZZY AIRBOuRNE who seems to have a very 'short fuse'

thegypsy, hello again. Yes I was wondering who'd be the first to refer to them this way this time. I exercised some restraint in case one hadn't read my previous posts on my use of this description. Careful now, OZZY might think 'short fuse' refers not to his patience, given his somewhat odd powers of comprehension...

>>It is of course quite right that the seconded pilots should be stood down, but as you say what will actually happen is another matter. This is a golden opportunity for the 'armchair generals to exert their authority over Alpha-S once and for all.

Actually from a strictly cashflow viewpoint, the basis of why they are asking all to go on no-pay leave every so often, so long as the "seconded" pilots cost less than the locals, then the argument that the expats should ALL go first is very weak indeed. Not every expat is more costly than the most senior local.

>>It cannot be right that ex-pats who are seconded from SIA Mauritius, mostly ex BA on huge pensions tax free to boot in most cases because they all claim to live outside the UK are kept on whilst locals and others who have long loyal service to SIA have a huge cut in salary by taking forced leave every 2 months.

Well I don't begrudge such expats from continuing on at SIA. In fact it should be none of our business what sort of financial health they are in. If they are willing to work to certain conditions at a certain price then that is all that should matter. Why should anyone bother about their financial backgrounds?

>>With the Pound around $2.8 to the SGD the actual cost savings of these London based Pilots are not as beneficial as it once was in pure economic terms but of course they are a balance against the locals.

Well that was a bet the management made when they priced their deal. Just too bad for them that the currency moved against them. Who knows, they may even have bought derivatives to protect themselves against this event.

>>You are not quite correct about a total giveaway over the 'Business Class' seat issue as the company had to back down to a certain degree and lose face to an extent which put egg on the face of one the armchair generals as Captains still got their seat.

Maybe I didn't express myself well enough. What I meant to say was that even though they knew of this requirement in the CA they just went ahead anyway to try to implement the instruction. Later it was modified, yes, but whether it was good negotiating strategy or genuine gentlemanly decency is anyone's guess.

[thegypsy]

CDRW CX crews will will do as they are told from now on mark my words. They have not recovered from the bloody nose they got over the 49ers.

G.Khan Yes as you say common ground indeed!!:O

Thermal Image I can see where you are coming from regarding the Business class seat issue. The CA said Business Class seat or something similar!! SIA then said three Y class seats for two people on the front row with slightly more leg room was similar!!!

From a cost point a lot of ex-pats still in Singapore with 3 children at higher education and high up on the increment scale cost more than most locals.You would think when times are hard they would look after their 'own' first of all, but this is probably the way the two armchair generals can get their own back over the CA debacle a year or so back and the Business Class seat issue. It probably cost the leading General the future CEO position which went to someone else in the end as he was shown up as not in control of his troops!!

[twitchy]

Hi Guys........

latest on Channel News Asia 200 hrs news.........

SIA top management takes 27.5% paycut.........
SIA top management takes 27.5% paycut.........
Middle management takes 22.5% paycut........
240 of these guys will save SGD 12 million to the airline......do we understand that these 240 guys cost the airline 60 million a year and mind it this only the basic pay......no body knows the other benefits.........to justify their existance they have to give the employees pay cut. What a great job done.

Now let us see the percentage of paycut to the employees down the line.......

It could be 20% for the Commanders and equivalent.......
It could be 15% for the F/Os and equivalent....................
It could be 12.5% for the cabin crews and equivalent.......vow what a saving.....Generals must be drooling over this new opportunity to suck the blood of the employees.

Don't forget the cabin crews have already taken the No Pay Leave
Lets see how ALPAS can avoid the Mandatory NO PAY LEAVE. So what if ALPAS has refused to take No Pay Leave, it doesn't matter to the big bosses in SIA. The ALPAS guys will be asked to shut up and made to agree to take the No Pay Leave, its only a matter of time may be another 2 weeks maximum...........

What had happened to last Collective agreement, Crew Rest Seats etc......it is still fresh in the memory of every singaporean including the Cabbies in Singapore. If one wants he can discuss during the next time you get in to one.

Finally, it looks that with all this life is gonna be tough for the Guys (Tech Crews) in SQ. Just imagine if these guys have to do 40 Hrs a month with 6 days a month No Pay Leave and remaining days salary paid with another 20% paycut......God only bless them. Real Cheap Labour my friends...... Long Live ALPAS and SIA

OOPS........ sorry Guys it was 2200Hrs news on Channel News Asia