SIA pilots stand its grounds....MOM to help !

[aviator_38]

Hello,

In the mail this evening came this report...with a tongue in cheek comment: " Looks like another matter for MOM to rule on.The situation here is comparable to our kids quarrelling,with one running to mom for a resolution ! Hope that DAD does'nt get called in too ! :>P "


Have a pleasant evening


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http://straitstimes.asia1.com.sg/topstories/story/0,4386,192929,00.html?

5 June 2003

Pilots' dispute: SIA asks ministry to help

Management turns to mediation a day after wage-cut talks stall; pilots' union hopes third party can offer 'new insights'

By Rebecca Lee

SINGAPORE Airlines (SIA) yesterday asked the Ministry of Manpower (MOM) to step in and mediate in its dispute with pilots over proposed wage cuts.


" THE TALKS: Sticking points
SIA wants the pilots to take a permanent wage cut of between 15 per cent and 22.5 per cent, and between 10 and 12 days of unpaid leave every two months, as part of cost-cutting measures following the Sars outbreak. Alpa-S, which represents 1,600 pilots, has counter-proposed that the pilots take one week of unpaid leave every month. It also said it would not accept a permanent wage cut and wants the company to separate the immediate task of stemming losses from the longer-term issue of wage restructuring. "


The request signals that talks have broken down and places negotiations one step away from arbitration.

SIA said the Air Line Pilots Association Singapore (Alpa-S), had been told of the request, which comes a day after talks with the union stalled.

'The company hopes that the issues can be resolved quickly through conciliation,' the airline said.

Alpa-S spokesman P. James told The Straits Times that the union was agreeable to having the MOM sit in on talks, which have been scheduled for Friday afternoon.

'We are fine with it and hopefully with a third party looking at the issues, we may see some new insights,' Captain James said.

This will be the second time in 10 months that the MOM has stepped in to resolve a dispute between SIA and its pilots who, in August last year, were planning to take industrial action when asked to take meal and rest breaks in economy-class seats instead of business class.

This time, SIA wants the pilots to take a permanent wage cut of between 15 per cent and 22.5 per cent, and 10 to 12 days of unpaid leave every two months, as part of cost-cutting measures following the Sars outbreak.

Alpa-S, which represents 1,600 pilots, counter-proposed at Tuesday's talks that the pilots take one week of unpaid leave every month.

That, it said, would achieve SIA's desired 25 per cent cost reduction straight away.

The union also said it would not accept a permanent wage cut and wants the company to separate the immediate task of stemming losses from the longer-term issue of wage restructuring.

SIA, which lost $204 million in April and is expected to make a
first-quarter loss, also said yesterday that negotiations with the other four staff unions in the group 'on wage cuts and other cost-saving measures are progressing'.

It wants non-management staff to take a 15 per cent permanent wage cut.

The group's managerial staff took pay cuts of between 22.5 per cent 27.5 per cent from this month.

[CDRW]

Its really more like this:

Kids arguing with big brother - no resolution.
Goes to Mom - no resolution.
Goes to Dad.
He beats his chest, froths at the mouth, implies all hell will be let loose.
Resolution obtained!

The point is, its all the same family.

[twitchy]

Huh.....

MOM to intervene in the dispute. It is stupidity to think that a branch of Leepublic of Singapore private limited is going to listen to the plight of the employees i.e. Pilots. The MOM is gonna favour the SIA, management of SIA knows very well that is why even on a drop of hat SIA runs to the MOM for mediation. This is another way of legalising their misdeeds. So boys get ready for the legalised shafting.

Bullying is viewed very seriously in Singapore, if its by the employees, however legalised bullying is authorised and practiced here openly.

22.5% permanent Pay cut further to add to taste 20% days in a month No Pay Leave, WOW... SARS.... what an opprtunity for an airline to make money. How can SIA miss it. The wheel chair generals are enjoying like Dracula, how can they allow the hunt go unhunted.

[Moonraker2003]

SARS ----- Singapore Airlines Retrenchment Scheme

[Colosseo]

No, No, No!!!

It's actually an ARS with an Ass in front.;)

[millerscourt]

SARS Singapore Airlines Reduced Salary. with MOM being used as the Governments tool to legalise this theft.

[twitchy]

Moonraker2003........and millerscourt .....

You guys are absolutely right as far as what the SARS stands for these days in Singapore.

However, I would like to disagree with the Millerscourt's remark that its a theft with the consent of the MOM.

No No No, My friend it is a very well organised "DAY LIGHT ROBBERY" wherein the government of the republic is Chief Dacoit and its members the major beneficiaries of the loot.

see its very simple, these people in high places in the island have huge investments in the form SIA shares, so to avoid huge personal losses they have no one to rob except the pilots, other employees are just asked for donations which they have to agree unwillingly

Cheers!!!!!!!!!!!!!!

[twitchy]

BREAKING NEWS.............

SIA and its Pilots' dispute goes the expected way, I mean it goes to the Industrial Arbitration Court. It is known to everyone that how notorious Singapore courts are? They are famous for fining people, its to be seen that how muxh fine in terms of pay cut will be imposed on the errant pilots of SIA

I think now SIA is not talking about the No Pay Leave, its only talking about the permanent pay cut of 22.5% for ever. Yes, if pilots agree to this pay cut and the airline makes SGD 700 millions in profit than the SIA will give its pilots a one time ex-gratia payment, please note even after this kind of profit the pay cut is not going to be restored. What a shameless people who run this company....Can you imagine.

The decision of the court will be binding on the pilots......poor fellows. A good old saying "If the rape can't be avoided might as well enjoy it" So guys get ready to get raped by the SIA..

CHEERS !!!!!!!!

[aviator_38]

" Dad Help! MOM's not helping!" ( ':P')

Hi Folks,

Here's the latest newsreport on the matter.Friend says : " Looks like Dad is finally getting to rule on the matter.The result seems to observers-see the news report- to be a foregone conclusion...". Hmmmm!


Have a pleasant evening


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http://straitstimes.asia1.com.sg/storyprintfriendly/0,1887,193825,00.html?

JUNE 10, 2003
Now arbitration court to rule on SIA pay-cut row
Ministry's help not enough to get airline and pilots to settle dispute; both sides agree to give industrial court final say

By Rebecca Lee
TRANSPORT REPORTER

The wage dispute between Singapore Airlines (SIA) and its pilots will go before the Industrial Arbitration Court, whose decision will be final and legally binding..

The parties are going for arbitration after four meetings over two weeks, and despite efforts by the Manpower Ministry to help at meetings held yesterday and on June 6.

'Despite efforts by the ministry to reach a negotiated settlement... no agreement could be reached as there was too wide a gap in the positions between the two parties,' the ministry said yesterday.

It advised them 'to resolve their differences through the process of arbitration', and SIA has agreed, citing the urgent need to resolve the matter.

At the heart of the disagreement is the quantum of the wage cut and the lump-sum payment offered to the pilots to make up for it, the ministry said.

'Given the severe business conditions affecting the company and the need to restructure wages to remain cost competitive, SIA felt strongly that it needed to urgently implement cost-cutting measures,' it added.

The airline lost $204 million in April as the Sars outbreak put people off travelling, and is expecting to make a first-quarter loss.

To stay viable and competitive, SIA wants, among other things, to reduce the basic wage of its captains by 22.5 per cent and the first officers, 15 per cent.

In response to the pilots' proposal that the cut be restored when business picks up, SIA offered a one-off payment if profits reach at least $700 million this financial year, ending March 31, 2004.

The Air Line Pilots' Association Singapore (Alpa-S), which represents 1,600 of SIA's 1,800 pilots, said the pay cut was too severe when coupled with the proposed implementation of between 10 and 12 days of no-pay leave every two months.

It wants a captain's basic pay cut by 12 per cent with six days of no-pay leave and first officers to get 7 per cent less with five days of no-pay leave.

On the one-off payment, it wants the profit level lowered to $350 million, the ministry said.

Alpa-S honorary secretary S. Sutharsanan told The Straits Times that SIA also could not assure pilots there would be no retrenchments.

It might still have to lay off 2 to 5 per cent of the pilots, he said. 'If after all these measures, the company cannot save jobs for our pilots, then there is no point,' he added.

SIA spokesman Rick Clements said with the move to the arbitration court, there was 'nothing more to add'.

The court is likely to use the recent National Wages Council recommendation as the basis for its decision. The council has, among other things, urged companies facing stiff competition and reduced profits to restructure their wages immediately, by moving away from fixed and seniority-based wages to one based on productivity and profit-sharing bonuses.

The airline industry is likely to fall in this category as airlines worldwide, facing losses, have shed some 100,000 jobs.

British Airways has shed 10,000 jobs and is looking at dropping another 3,000. Germany's Lufthansa has cut the work of its ground staff by 1.5 hours a week, to save up to US$20 million (S$34.7 million) a year.

Meanwhile, in Singapore, stock market analysts such as UOB Kay Hian's Peggy Mak welcomed the latest SIA development. 'With the Government's involvement, the wage cuts will likely be implemented,' she said.

SIA's shares yesterday closed 20 cents higher, at $10.70, with almost 1.8 million shares changing hands.

[highcirrus]

Strait Lies, 10.06.03

“The court (Industrial Arbitration Court, Singapore) is likely to use the recent National Wages Council recommendation as the basis for its decision (when it inevitably finds against Alpa-s in the current tussle with SIA over pay cuts). The council has, amongst other things, urged companies facing stiff competition and reduced profits to restructure their wages immediately, by moving away from fixed and seniority-based wages (structures) to one(s) based on productivity and profit-sharing bonuses.”

Unless I’ve missed some fundamental point here, I understood that before the current SARS shock horror, the airline was certainly holding its own in the international league table of comparative profitability (surely always the world’s most profitable airline – over S$1 bn profit this fiscal year, as usual?). I am similarly unaware of any fundamental change in the salary cost base of the major international competitors to SIA (I don’t count such drops in the ocean as Lufthansa’s much quoted 1.5 hour per week work reduction for ground staff or the fiddling around the edges by BA in its staff reduction programme – that airline still has the same number of pilots, engineers, pax services people).

I also understand that just about every other airline which could conceivably be considered as providing competition to SIA has also taken financial hits of varying magnitudes, during the East Asian SARS epidemic, without resorting to threats of wage cuts on their staff, merely shrugging them off as part of the spectrum of business risk and funding them from reserves. – Why is SIA supposed to be so different? – Surely it can’t have suffered more of a “SARS loss” than Cathay, China Southern, China Airlines, Eva, etc?

So why suddenly the big rush to restructure the long term salary cost base on the basis of unrevealed financial information and ahead of the up-coming CA negotiations in November 2003? And please, no one say because of the “desperate” current situation.

Colleagues of jaundiced and cynical outlook, at counterpoint, incidentally to my own sunny, happy and trusting disposition since coming to Singapore, tell me that the manoeuvres by SIA, MoM and IAG are inspired by the inner circle of government here and are designed to claw back the salary gains, heroically achieved a couple of years ago by Alpa-s, hence insulating the major shareholder of SIA – Taemasek Holdings (prop Singapore Government) – from any major financial pain. I do not believe such a baseless calumny. Surely the Government has the best interest of its people at heart?

Finally, and again I may have missed a major and similarly fundamental point, but last time I checked, my remuneration from SIA was based on “productivity and profit-sharing bonuses.” as part of an overall package that also includes an element of “fixed and seniority-based” payment. Specifically, hourly flying pay and meal allowances of a seventy hour month (x 10 months) provides circa 19% of total salary (productivity) whilst a “normal” bonus (3 x monthly basic salary) provides approximately 14%. A seniority increment provides a further 5%, whilst my fixed monthly salary (including 13th month) accounts for 62% of total remuneration. Hence a third of my total remuneration is currently based on the NWC ideology, envisioned in place on the sunlit elysian uplands of pay, ideally and perhaps exclusively, by “productivity and profit-sharing bonuses.” What, therefore, does the NWC consider to be a reasonable proportion of remuneration so to be paid and what is the percentage of salaries so paid by other major companies in Singapore? Details have been a little fuzzy of late.

[G.Khan]

Are SIA proposing that all pilots, (including the OSB ones), take this pay cut or just the Singapore based ones? Can't see why the BA retirees would bother coming to work for so much less.

[wotwazat]

highcirrus

Excellent post. You are bang on. The existing SIA pilots wage package satisfies the requirements of the proposed "wage reform" policy already with the possible exception of some very long service Captains getting more than 1.5 times new Captains basic. Perhaps the Straits Times might be encouraged to point out those areas in which the present CA fails to satisfy the new policy.

Is it true that if a new pay rate is in place before 1st July the bonus for last year can be paid based on the new rate? Answers please from all those small print readers out there.

Could this have something to do with SIA's enthusiasm for an early settlement in their favour?

When the arbitration has been finalised does that mean that the requirement to reach a new Collective agreement by 14 December is simply ignored?

Sounds like SIA needs a new set of "Core Values". Suggestions on a postcard to the Straits Times!

[twitchy]

wotwazat

This is absolutely true that if SIA can force its pilots take the pay cut before 30th June then the bonus on 7th July will be paid on the reduced salary. Bonus here is always paid on the 30th June salary.

As far as the collective agreement is concerned, with permanently reduced pay the CA will have nothing much to offer in November, may be SIA will agree to some new formulas to decide the bonus in future, again here in Lee's land this will again favour the Tamasek Holdings...........

Permanent Pay cuts, No Pay Leave and retrenchment of about 40 to 80 pilots on the cards, future looks bleak here my friend.

[millerscourt]

Twitchy In a few years time SIA will be back in Flight International on a weekly basis as before looking for 'Commanders' and Pilots will be back being owed 3 Years leave as before!!

[twitchy]

Hey Guys latest is.....................

SARS = Singapore's Asshole Retrenchment Scheme

MILLERSCOURT,

I agree with you about SIA rserving inside back page of FLIGHT Internation in the months to come. I only hope in future there should be no mad rush to join SIA. The situation post 911 has spoilt the minds of this airline and SIA feels that on 1 advertisement in the media there will be thousands of asshole applying for the job here. Lets hope its not true in future.

MILLERSCOURT,

I agree with you about SIA rserving inside back page of FLIGHT Internation in the months to come. I only hope in future there should be no mad rush to join SIA. The situation post 911 has spoilt the minds of this airline and SIA feels that on 1 advertisement in the media there will be thousands of assholes applying for the job here. Lets hope its not true in future.

MILLERSCOURT,

I agree with you about SIA rserving inside back page of FLIGHT Internation in the months to come. I only hope in future there should be no mad rush to join SIA. The situation post 911 has spoilt the minds of this airline and SIA feels that on 1 advertisement in the media there will be thousands of assholes applying for the job here. Lets hope its not true in future.

[cpt744]

twitchy

This time round was told that the bonus will be based on previous pay. As mentioned by the horrific near-hairless disgusting lying botak prick to his managers... At least that's what been told by one of them. And the same person assured RIOTs in ALH and STC if this is not the case. The same group of people have been crossing their fingers in hoping that we win this battle of wage reform.. Sign.. Guess that's all the help we gonna get from other groups huh.. silent prayers....

Last but not least, I must admit that I won't believe any of it till I see the actual figure on the 5thJuly..
Fly safe and rgds,
Cpt744

[millerscourt]

These savage paycuts that will be forced through using the MOM are only to save a maximum of $200 Million pa along with other economies,whereas in the last financial year SIA wrote off $300 Million through the just retired CEO,s wrecklessness for which HE should have been fired.
Also in Virgin Atlantic 49% owned by SIA who have not made an overall profit since this shareholding are in negotiation with their Pilots for a Payrise!!

If SIA were to cull the 'Seconded' Pilots as there are too many Pilots in SIA then the rest would not have their flying hours reduced to 'subsistence' Levels. These Pilots can always be taken on again if they are needed as there is always a steady number of ex BA 55 year olds available all the time who will do this job regardless of the Salary being offered, as they all claim to live offshore and don't pay tax, not only on their SIA salaries but also on their Pensions.

[cpt744]

Right now SIA management knew it too well that almost everything is to the company's advantage in terms of pilots supply. You should speak to HR department and they will tell you tonnes of applications from all over the world for various bases ARE pouring in persistently. Whatever figures we can come out with will not change anything else and they WILL try their best to cut the pay while they still have the chance. This way they'll gain at least 5-10years in turning back the wage bill clock and for the next CA negotiations they may/will just offer a small percentage of annual increments as token to buy time till next crisis hits(Or shall I say next opportunity arises???).
I have heard it too often... Quote "when things get better you just watch and see how many locals, expats, Overseas Based....will resign.." Unquote.
It has not happened before and I won't bet on it to happen in the near future. Can't think of too many other viable choices of airlines to work for as an expat, except for Emirates and SIA. Any other suggestions?? Guess not..

[twitchy]

Hi folks...

This morning Strait Times comes out with story about SIA retrenchments......




http://straitstimes.asia1.com.sg/topstories/story/0,4386,195403,00.html?

Round 1: SIA to lay off 500 ground staff today
By Rebecca Lee and Sue-Ann Chia

SINGAPORE Airlines (SIA) begins its widely expected retrenchment exercise today by axing ground staff first and about 500 employees will be told to go, The Straits Times learnt yesterday.

Although the 6,600 cabin crew and 1,800 pilots will also be affected by the airline's first major retrenchment in 20 years, a final decision on how many in their ranks will be laid off has not been reached, said sources.

Advertisement

The complications in re-arranging the roster of cabin crew and pilots could partly explain the longer time needed.

The cabin crew have also already taken seven days' no-pay leave every two months and this is likely to be increased to nine days next month.

Of the 500 ground crew likely to be given pink slips today, sources said 150 will be from the airline, 200 from listed SIA unit Singapore Airport Terminal Services (Sats), 100 from SIA Engineering and another 50 from its other subsidiaries.

The number of workers affected today is the first round of layoffs that earlier reports said could range from 1,200 to 2,500 jobs that the management was considering making redundant.

However, the final tally will likely fall closer to the lower end of the range that sources had earlier indicated will be affected.

The numbers will include employees who have opted for a special early-retirement package that the company has extended to selected employees with more than 25 years of service and workers whose contracts are not being renewed.

SIA may also shrink or shut some of its stations abroad.

Of the 30,000 staff within the SIA group, about 5,000 are employed overseas.

Sources had indicated earlier that the range of job cuts will be 5 to 10 per cent for ground staff and 2 to 5 per cent for operating crew across the group.

The layoffs come at a time when the airline has taken a severe hit from Sars, losing some $204 million in April alone with passenger numbers plunging 60 per cent last month.

When contacted yesterday, an SIA spokesman said: 'We have not at this time advised staff on any retrenchments. Staff would be the first to know.'

But SIA employees interviewed seemed to think otherwise.

Said an engineer: 'The grapevine says retrenchments will take place tomorrow morning, half an hour after work starts. Must pack and go immediately.

'What I want to know is why we are always the last to know.'

A union leader, who declined to be named, said that they were preparing for the layoffs.

'This is so that we will not be caught off-guard,' the leader explained.

A 'buddy' system, in which an employee is assigned to help some of those laid off, is also in place.

The largest SIA union, SIA Staff Union, which represents about 9,000 rank-and-file employees, is said to be also making similar preparations and has consulted job placement experts.

Said an airline executive: 'Everyone's feeling sombre and depressed.'

[highcirrus]

Strait Lies, 19 June 2003

FAIR TREATMENT A MUST

“If civil servants think they are not being treated fairly, we will have a problem.”
- DPM Lee, on not cutting salaries for the sake of cutting

PAYING FOR QUALITY

“The present benchmarks are still the right targets to aim for …. If we want people of that quality (civil servants), then we must aim for that kind of wage.”
- DPM Lee, on how good employees are worth their salaries

Not sure whether the DPM was speaking to his constituents on Mars, to which planet he obviously and regularly commutes and where consistency of approach is presumably not required, or whether he was speaking to the Singapore population at large, unaware of the irony of his words.

[cpt744]

Highcirrus..
You beat me to it... Too bad little god can't comprehend the serious situation in compromising SQ frontline crew morale.. Disgusting as usual... For those of you who wish to read the entire article of "I publish whatever my boss wants" newspaper here's the link:

http://straitstimes.asia1.com.sg/topstories/story/0,4386,195405,00.html?

Now the next move.. Isn't SIA 56percent owned by Temasek Holding aka Singapore Government??? Let's just be civil servants then, in bad times little or no cut, good times double digit percentile pay increase.

[wssL]

Hey!!! It costs money to get people good enough to think up such imaginative schemes to shaft the general population u know.... u think it's easy? :bored:

I couldn't believe it when I read the front page today!!! :yuk: :yuk: :yuk:

This is a sad day for SIA/singaporeans in general. Now more than ever, I hang my head in shame and disgust.
:(

[Rockhound]

Below is a letter I submitted to the Straitened Times by e-mail on June 18. I sent a copy by snail mail to Mr Chew Choon Seng, CEO of SIA. Predictably(?), I received a rejection slip from the ST this morning, expressing regret that due to the large volume of mail they receive, they can only publish a small fraction of the letters.

I'm curious to know if anyone who wrote to the ST taking Ms Lee to task for peddling misinformation on SQ pilots' salaries got any satisfaction in the form of a retraction or correction.
Rockhound

The Editor
The Straits Times
Singapore

Dear Sir,
I am an enthusiastic air traveller and maintain a keen interest in civil aviation, an interest which has steadily grown and developed since boyhood, although I am not connected in any way with the airline industry. I have had the good fortune to fly with Singapore Airlines, one of the world’s premier airlines, on a number of occasions. It is with mounting concern that I read of the current labour dispute between SIA and its pilots, specifically the draconian pay cuts the company is demanding, the misinformation being disseminated in the pages of your newspaper, and the decision to have the issue settled by an arbitratror.
For an SIA Captain, the reduction in pay, in the form of cuts in basic pay and compulsory unpaid leave, demanded by the company, approaches, and may even exceed 40%. Not even in my own country of Canada, has the national (but privatised) airline Air Canada, so financially strapped it is operating under bankruptcy protection, tried to exact such a price from its employees in order to reduce labour costs. The cut could result in a Boeing 777 Captain, newly promoted from Senior First Officer on the Boeing 747, earning less than he did in his previous position - clearly ludicrous.
The assertion by your writer, Rebecca Lee, in the Insight column of May 31, that SIA pilots are among the most highly paid in the industry is simply false. In reality, their basic pay falls significantly below that of their counterparts in major airlines such as Cathay Pacific and Qantas in Asia, British Airways and Virgin Atlantic in Europe, and all the large international carriers in USA. It is precisely to redress that imbalance that SIA have traditionally awarded their pilots a substantial annual bonus, when, in SIA’s eyes, profits permitted.
Although SIA pilots are well paid relative to the general public, their remuneration must be considered in the light of their skill and expertise, honed by years of training and thousands of flying hours in every kind of weather, on which, in the course of just one flight, the safety of hundreds of passengers and a $100 million-plus aircraft depend. In the case of the SQ 006 tragedy at Taipei in October, 2000, one error - taking a wrong turn off the taxiway - on a dark, rainy, windswept night at an inadequately-lit and -signed airport, led to a takeoff from a closed runway and the loss of 83 lives and the wrecking of the flying careers of two fine pilots. And SIA, in an apparent desperate attempt to avoid reporting a loss for the current financial year, wants to permanently slash their pilots’ pay by more than a third?
On a practical level, how can this swingeing pay cut do anything other than seriously lower crew morale and adversely affect the flight deck environment, with all the attendant implications for safety in the air and on the ground? I can readily imagine the retrenchment a 40% reduction in my pay would precipitate. I have been to Singapore four times and am well aware that the cost-of-living is higher there than in Canada.
As I understand it, there were just four meetings over the space of two weeks between SIA and its pilots’ union, Alpa-S, before an impasse was reached, with neither side shifting from its position, and the dispute turned over for a final and legally binding decision by the Industrial Arbitration Court, whose record of impartiality does not exactly shine. Is this a fair and equitable resolution of the dispute?
In her May 31 article, Ms Lee wrote of SIA’s fear that, were they to cut their non-unionised, overseas-based pilots first (as demanded by Alpa-S), they might find themselves boycotted by travellers unhappy with their unfair labour practices. I submit that, with the savage pay cut they are attempting to impose on their pilots, Singapore Airlines may find that the chickens have already come home to roost.

Yours, etc.

[highcirrus]

Rockhound

Exceptionally well put sir! I for one am highly appreciative of your effort in setting pen to paper and bothering to take the Strait Lies to task.

As you say, it’s predictable that you should receive a rejection slip, but wholly understandable, as that fine medium of a free press has the much more pertinent subjects of HDB contracting, eulogies to the newly opened NE line and fallen trees not being under National Parks care, to air in its letters page, rather than the catastrophic depredation of the national carrier about to be undertaken.

Perhaps the pages of the International Herald Tribune may have a little more space available? Fortuitously, most of the Lies content originates in that medium anyway, so your letter may, eventually, filter to the august pages a day or so later!

Please keep up the good work.

[B Swan]

Rockhound

You are right.... BAD REPORTING SHOULD BE EXPOSED !!!

The Straits Times will not publish you previous letter. They are too chicken to publish any thing that expose their inadequacies.

Try condense your letter a little and write to other smaller papers ( which is gaining readership ) like Today at [email protected].

Keep knocking at the door.

[John Barnes]

The Today news paper printed the article word for word and I hope that it will be noticed by the public.Thanks for this excellent posting!!!!

[Rockhound]

Glad to hear it and that there is room for more than one side of a story in the Singapore media. The letter published in Today was of necessity a slightly reworded version of that sent to the ST.
Thanks for the appreciative comments and the suggestion from several quarters to try TODAY (thnx, B Swan, for providing an e-mail address).
Last but not least, thanks, John Barnes, for confirming my suspicions that you do NOT live in Belgium.
Rockhound:ok:

[wotwazat]

Rockhound.

Well done Rockhound, excellent post and ditto for the letter. Great to see some truth in the Singapore press.

The SIA reaction to the SARS situation and the attempt to use it to drive down salaries will be seen by many to be a massive over-reaction that reflects very badly on the wisdom and skill of the management team. Let us hope that the arbitration court is able to see this for what it is and undo some of the damage by making a reasonable decision. There will no doubt be a lot of face saving involved in that decision but the very least that we should hope for is that whatever the outcome, it should be temporary with a return to the agreed Collective Agreement procedures for the future to take effect this December.

The SIA board in the training centre is showing daily loads that are already back to two thirds + of normal loads. As the travel backlog kicks in through the summer and on towards Christmas and Chinese New Year SIA needs motivated staff to help them make the most of it.

Whatever the eventual outcome most SIA staff will not forget the way the senior management exposed their true colours. They will be very lucky if they ever get the same level of commitment from the staff again!

[millerscourt]

Straits Times today. SIA which is in the middle of a Wage re-structuring and retrenchment exercise will ask Shareholders to erase the limits on the number of share options it can issue to Senior Executives!!!

One has to ask why??? Is it because they will all get a big Pat on the Back for screwing all the staff permanently thus making a big profit for the Shareholders (Govt mainly) and thus will be rewarded with extra shares.

[highcirrus]

Strait Lies, 27 June 2003

Move to do away with limits will help it to retain and attract quality executives, carrier explains in note to shareholders.

“Singapore Airlines (SIA), which is in the midst of a wage-restructuring and retrenchment exercise, will ask shareholders to erase limits on the number of share options it can issue to senior executives. The move, it said, will boost its efforts to retain management talent.”

“…(share option schemes) are an integral and important component of a compensation plan to attract and retain quality executives in an increasingly competitive environment.”

Well it’s interesting to note that the present devastation of employees lives and the proposed daylight robbery from the SIA salary budget is now called “an exercise”.

So OK, I admit my profound ignorance to date. Maybe someone can assist me here?

I had previously been unaware of the existence of any higher level SIA personnel who could in any way be remotely described as “quality executives”. I am aware, however, of a number of “by numbers” bureaucratic, time-serving nonentities who masquerade as independent and visionary thinkers but who, in reality, are merely ciphers of a rapacious majority shareholder, in turn masquerading as operating in a “free market”, subject to and helpless within the vagaries of its “forces” but having the resources of and unilateral recourse to, its own MOM and IAC, to smooth out the exigencies of these “forces”, when they become too inconvenient.

I am similarly unaware of any “quality executives” within the flight operations division. I am, however, aware of a couple of re-tread generals who arrived with much fanfare, hailed as the panacea to the woes of an organization that produced SQ006 plus a number of near squeaks and who continue to preside over a coercive and fear ridden organization which shows no real prospect of any meaningful reform.

I am also aware that the “buggins turn” principle of the long serving company worthy eventually taking the top slot prevails, but I’ve so far been unable to discern any markedly apparent or galvanizing leadership, inspiration, or for want of a better word, “pizzaz”, emanating from this form of evolution.

And finally I have no recollection of any of the present higher echelon being restless to move on from SIA and being in receipt of continuous and persistent courtship to progress to pastures greener (not to be confused with the retirement sinecures offered to obedient club members)

So now you have it. I’ve revealed my ignorance but I know that you will all be able to tell me that this new move to “erase limits on the number of share options” is quickly going to change everything and that instead of keeping a newly promoted, thirty odd year timeserving drone CEO, we will quickly be able to replace him with fresh dynamism attracted from the world market by a compensation plan designed to draw the very best talent, regardless of nationality, race and background to the airline and that he/she will be free, with the aid of the proposed newly attractive compensation plan, to recruit his/her own co-directors and managers from the same world-wide market, again regardless of nationality etc.

I know that this is going to happen – I read it in the newspaper! But if, by chance, this elysian vision does not prevail, what could possible be the reason for the change proposed?

[B Swan]

RockHound Congraulations !!! You did it !!!

I thank you too for writing an excellent article in the first place.

The door is only just very slightly ajar. Let there be more of this 'eye-openers' be published from world-wide. May all Aviators everywhere be heard.

Well done again.

[G.Khan]

Well, in view of the dire Straits that SIA now finds itself it should be no problem for them to identify the high flying types they feel are so necessary to maintain their momentum, rather than the pilots they are so desperate to shaft? I really would like to see most of this thread published in 'Today', (I appreciate that the Straits Lies will never publish it!), so, how do we achieve that? I can certainly cut and copy and send and I have nothing to fear from the machine, unless they choose to give me a hard time the next time I come on holiday to spend lots of money!

It is hard to believe they can be so hard nosed as to think that life will carry on regardless, it is also hard to believe that they can think that the end result can be achieved without the full support of all those involved unless, of course, they are assuming that intimidation is the way to go?

Let's see the posts of High Cirrus, Wotwazat, MillersCourt and B Swan in the Singaporean press, together with all those others that can expose what a bunch of nonsense SIA are trying to pull and the depths they are prepared to sink to in order to achieve their misbegotten aims.

[wotwazat]

No doubt the arbitration court will be recommending that the pilots in SIA should be given share options (at a dollar a share as per senior execs) to compensate for their loss of pay in the current "exercise".

These guys are incredible. Best thing to do is cease operations altogether, think of the money they'd save!

[411A]

Sad to see SQ head down the tubes this way.
Was there in the late seventies, very early eighties (B707), and the management style then was totally different....where is JYM Pillay when they need him....?:{ :E

[John Barnes]

Again very good article from Rockhound, who must be the best informed passenger SIA ever had onboard. But check the map Rockhound and see if Liege is still in Belgium!!!

[highcirrus]

Strait Lies, 28 June 2003 – Page 1, Home Section

Business picking up for travel agents

“They are gearing up for year-end holiday season; WHO’s decision to take China and Hong Kong off list of Sars-hit areas is helping recovery”

A return to pre-sars levels by next year?

“It’s picking up very nicely now. The momentum in June is strong across all markets…. By early next year, I think we’ll be back to levels we had pre-Sars. We’re seeing steady growth now and we’re stepping up our marketing.”
-Senior Minister of State for Trade and Industry Tharman Shanmugaratnam

Surely the Lies and the minister are off-message here? Should it not be “Catastrophy continues. Future of Singapore Airlines and the Republic in grave doubt”?

Am I the only one labouring under the delusion that the airline is manfully coping, day to day teetering on the verge of imminent bankruptcy, whilst others know, in actuality, that vast cash reserves are taking the immediate strain of contemporary events and that traffic is on the up and up, with the woes of the past couple of months now seen in context as mere blips on a wider screen of a past thirty years of exclusively profitable SIA business activity?

If I am not so deluded and others are wrong, I think the minister should be urgently informed that he is sketching entirely the wrong backdrop to Monday’s upcoming confrontation in the Industrial Arbitration Court (IAC) between Alpa-s and SIA, as reported on page 2 of the same Lies section, where the latter party will be seeking of the former party, on the main basis of recent losses sustained, an unprecedented and permanent 22.5% salary reduction for captains and a 15% reduction for first officers, coupled with the implementation of a 10 to 12 days no-pay leave scheme, to be rostered every two months, both of which proposals would effectively gross the salary reductions to approximately 48% for captains and 40% for first officers.

Obviously, as SIA is on the point of going down in the next few hours, the above proposals are entirely reasonable and, indeed, so much so that they should to be transmitted post-haste to the senior managements of Cathay Pacific, Eva, China et al, who’s hide-bound, introverted senior personnel have yet to see the light cast by these finer points of a pioneering, imaginative and innovative abrogation of the stuffy old tenets of traditional business principle and move to implement a similarly far-sighted programme.

Of which, I have just been rereading the “Boys’ Own Book of Free Market Capitalism” who’s content in former days, SIA and the government strictly adhered to, but, in today’s vibrant times, have now wisely consigned to the bin of history.

In Chapter five of my copy, it clearly states that shareholders shall wholly and exclusively take all the risks of an enterprise (such as boring old losses) and equally exclusively enjoy the full rewards of such enterprise (exciting profits).

Now, I have not recently noticed in either myself or my colleagues, a wholesale reduction in efficiency, productivity or availability to fly the roster and I’ve certainly heard nothing from SIA to suggest that this might be the case. Further, as far as I am aware, none of the airline’s pilots, engineers or ground staff has yet been implicated as being directly responsible for either the recent Gulf War 2 or the SARS epidemic, although it is prudent to presume that investigations into the matter continue. I think it reasonable, therefore, to assume that SIA’s colourful and vividly couched proposed salary reduction programme is not based on sanctioning either of these two speculative omissions or commissions but is based on an entirely different premise.

I can only conclude, hence, that for the first time in the history of free market capitalism, the shareholders will not now be alone in shouldering the tribulations of risk (loss) but, in an enthralling departure from stifling convention, will now be sharing it with a new breed of, albeit reluctant, risk takers - the employees. For how else can it be seen, when, for the first time in its history, the airline’s shareholders stand to make a loss but are now bravely offering to share it with their employees? Who said Singapore had lost a coherent vision of the future? Events of next week will demonstrate otherwise.

NB. Readers are asked not to confuse their annual so called “profit sharing” augmentations of salary with profits enjoyed by the shareholders. The former is a contracted, capped, incentive based part of the salary whilst the latter is the unfettered free market reward for calculated risk taking – a principle, incidentally, usually discouraged within the airline pilot profession.

Addendum

I have just had a conversation with a colleague, re: the above posting and he has suggested that my message may have been couched in rather too oblique a manner.

He has further suggested that I should clearly spell the message out and, on reread and reflection, I agree. So here goes:

The recently sustained losses by SIA are absolutely nothing to do with the employees and it is wrong and immoral for Alpa-s and other unions to be implicated as having some responsibility in the matter.

We have no business being in the IAC and we certainly should not be dragooned into any salary reductions whatsoever – as I have made clear, contemporary losses are matters entirely for the shareholders of a company that continues to sit on huge assets and reserves and which is rapidly becoming highly profitable again – not a company on the verge of bankruptcy that requires the kind of employee sacrifice, presented as being vital, to keep it going.

Is that clear enough?

[wotwazat]

highcirrus

On the button highcirrus. You're post is excellent and an accurate summing up of the situation. Long overdue for something in this vein to appear in all of the local press and I hope the representatives of ALPA-S are equally eloquent at the hearing next week.

If there is an ounce of justice present in the arbitration court the judge will throw out SIA's proposals on the basis of the points raised by yourself and others and the fact that the pilots and cabin crew have already contributed to major savings by virtue of reduced flying hour related income.

The present pilots salary scheme was the eventual outcome of negotiations started nearly five years ago and is that far out of date. A reduction from that level is preposterous!

If there is a genuine concern to come into line with the government target of not more than 1.5 times basic salary for senior employees doing the same job as juniors then the place for that is within the next round of collective agreement talks.

The judge should bang a few heads together and send everyone back to the office to grow up and get on with making up the losses, and on into profit, on the basis of professional airline management as opposed to bleeding the staff.

Relations between staff and company have been severely damaged. Trust has been destroyed. This nonsense should be stopped before any further damage is done.

[highcirrus]

wotwazat

Thank you for your kind words.

Your own words – “Relations between staff and company have been severely damaged. Trust has been destroyed”, remind me, when considering the attitude of both SIA Management and the Singapore Government, of Oscar Wilde’s own words – “A man who knows the price of everything and the value of nothing.” – Lady Windermere’s Fan (1892) Act 3.

[Anotherpost75]

Erudit stuff and obviously from ex-pats. Do you Singaporeans not have any opinion, or has it all been bred out of you?

Come on boys, nail your colours to the mast or everyone will think you're complete complaisant ars*holes.

[B Swan]

Anotherpost75

I am amaze with such a post. Especially from a person who would not even provide infomation on where you are from ?!!

What an ars*hole ( just to quote your word )

sigh....

[Long'un]

Very good posts - perhaps so good that someone (?) would like to divert the thread with a bit of name-calling?

[422]

Like the old dude said.

SINGAPORE will be: First class service and products at
3rd world prices...

So fellas, no need to name call here..

Ang Moh wil always out class the locals, that is the word
of the lord.

Nice try : but looks like the overbearing support for 'white' has
prevailed again..

SQ will earn another 1billion , and manage to get away with

wage cut and retrenchment.:ok:

[Anotherpost75]

Perhaps not the wisest move, posting on Pprune after a couple of drinks and a heated discussion. However, even a little reflection would have produced the same message but without the expletive.

Readers will note that the thread is not currently snowed under with local Singaporean input, refuting my imputation of supine complaisance. Further, against a background of quickly rising traffic and renewed world-wide air transport optimism, a local spokesperson for Alpa-s is quoted on another Far East thread as saying the following:

"Our members are in favour of this (pay reduction of 16.5% for captains, 11% for first officers). It's a done deal. We have an in principal agreement with SIA," said Captain Perinpanayagam James, vice-president of industrial relations for the union.” He said the agreement was reached late on Friday (27 June 2003).

Well he sounds pretty pleased with himself but this doesn’t sound like a deal to me – I’d say it’s more like the abject capitulation of inbred, supine complaisance.

Moving on; B Swan, why are you amazed by my post? Has the mild expletive offended your delicate sensibilities or do you fundamentally disagree that the Singaporean locals are as I describe? You may be interested to know that even Lee Kwan Yew thinks they are as I say (though he hasn’t consulted me on the matter) and also thinks they need – dare I say it – read no further if you may be shocked – a kick up the a*se to shake them out of their institutional mind sets and propel them towards a more proactive, assertive and “out of the box” stance.

Finally, may I also ask you to explain what on earth has a notional origin registered on Pprune got to do with the accuracy or otherwise of an individual post? I think Rockhound neatly dispelled any such notion with his observation that John Barnes was unlikely to be making his apposite postings from Belgium.

[b777900]

Appalling Greed by SIA.

Haul in the profits 12 months a year for last ??? years, as soon as this profit dwindles temporirily, Sackings, forced unpaid leave / days off.

Havnt they put any money aside for times like this.

Dam Gestpo Management.

[highcirrus]

Now that Alpa-s has capitulated at the eleventh hour, in the usual manner and declined to challenge the government imposed SIA pay cuts, by presenting a vigorous counter case in the IAC, no pay leave and 16.5/11% pay cuts can be quickly implemented and presumably Alpa-s spokesman Captain Perinpanayagam James can prepare himself for a “coincidental” move into senior flight ops management in the next couple of months.

What is the case, however, of the overseas based pilots in London? Will they similarly accept a gross abrogation of their (different) contract without such as a whimper, or will they see SIA in court?

I would suspect the latter, as their case would be uncontrovertibly winnable, pleaded in either English or European Courts, before judges unfettered by thoughts of government renewed three year judicial contracts.

When SIA quietly back down on this matter and London based remuneration remains untouched, what then of the SIA CEO’s protestation that “all our pilots will be treated in the same manner” (ie badly)?

[millerscourt]

high cirrus All Overseas based Pilots have been sent individual letters to sign agreeing to cuts. The obvious conclusion can be drawn should any not sign.!!!

I doubt if any will take any action even those ex BA on big fat pensions!! As few are paying any tax on either their Pensions or their SIA salaries a lot of them are rather glad to work less each month and they will hardly notice the paycut.

As you say what a capitulation by AlphaS but it is par for the course and not totally unexpected.

I doubt if SIA ever expected us to take a 25% Paycut and they probably cannot believe it to see that a 16.5% paycut has been accepted without any real formula in place for it to be ever restored in full!!

The Generals and the new CEO will be getting a huge Bonus for this coup d'etat and I just bet the Champagne is flowing on the 4th Floor and AH!!

[highcirrus]

Re: Posting of 27 June 2003

Bit behind the times as usual eh, SIA senior management, guiding the destiny of the national carrier and purportedly at the forefront of day-to-day trends and developments?

What do you say now in respect of your statements, in light of Microsoft now eschewing share options in favour of ordinary share allocation to directors and employees and, according to IHT, WSJ etc, leading the field in US business ethics and shareholder concern:

“Singapore Airlines (SIA), which is in the midst of a wage-restructuring and retrenchment exercise, will ask shareholders to erase limits on the number of share options it can issue to senior executives. The move, it said, will boost its efforts to retain management talent.”

“…(share option schemes) are an integral and important component of a compensation plan to attract and retain quality executives in an increasingly competitive environment.”

Obviously nothing to do with snouts in the trough!

[Anotherpost75]

Yep, I’ll bet LKY downwards cannot but marvel at how useless, weak and pathetic Alpa-s surely is. The champagne must be flowing and the chortles unrestrained at the oligarchy’s own chutzpah in levering 16.5% and 11% permanent pay reductions out of their captains and first officers and, to add insult to injury, including a compulsory no-paid leave scheme, of unspecified duration, which will no doubt be “adjusted” to achieve the required annual profit profile.

You guys must be crazy!

And would anyone now care to seriously challenge my earlier assertion of “supine complaisance”?

[BlueEagle]

Just off the 'phone to a friend who is still in Singapore, with SIA and he says the deal is, 2 days per month unpaid leave, only if required and a profit of S$300m will get some of the pay back and a profit of S$500m will get all of their pay back but I forgot to ask if this was a one off arrangement or if the company could play the same game next year.