SQ pilots under political pressure (merged)
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Just to keep everyone on speed....
StraightJacket Times Front Page 18 Dec 2003
DEC 18, 2003
SM to pilots: Face up to new realities
Low-cost airlines and other uncertainties pose serious threats to SIA and its staff if they do not adapt quickly, he warns
By Paul Jacob
SENIOR Minister Lee Kuan Yew yesterday served up a reality check for Singapore Airlines and its employees - particularly its pilots - on the oncoming serious competition from low-cost carriers.
And even as he did so here, back in Singapore the Government showed its determination not to lose out in this new race, by announcing its interest in building a low-cost, low-charges terminal at Changi Airport to attract the budget carriers.
The aim: to retain Changi's hub status.
Transport Minister Yeo Cheow Tong revealed the plan at an airport event in Singapore, while SM Lee, at a press conference after a four-day visit here, drew lessons from the industry's upheavals elsewhere.
If the region's main carriers like Singapore Airlines do not heed the experience with low-cost carriers in America and Europe, they will face an uncertain future, he warned.
Already, there is a slew of new carriers emerging in the region - Valuair, Tiger Airways, Air Asia and Lion Air, among others.
So main carriers, like Singapore Airlines, face competition not just from one another but low-cost carriers as well.
But the Senior Minister wondered if the reality of the serious challenges ahead had sunk in.
Not for the first time, he cited the example of the impact that Sars and the Iraq war had on SIA, and the decision taken then to cut costs.
'So they agreed to cut costs, including the pilots after a lot of argy-bargy,' he recalled.
'And because we cut costs, profits rose $300-plus million in the third quarter. So they say 'Oh you cheated me', sacked the committee that negotiated the agreement, 'restore our wages'.
'Is that helpful? Does that show an understanding of the rough ride that's coming? Are we going back to what it was before or are we going into a new situation?
'I think it's necessary to spell out to everybody - and not just the pilots - that we are into a new situation.'
The comments marked the second time he was addressing the squall in the pilots' union, after a 55-per-cent-majority at a special meeting of the Air Line Pilots Association-Singapore ousted its leaders last month.
Yesterday, Mr Lee said that he believed the regime of regulated and restricted traffic rights will change because of the growing demand for low-cost travel - within 10 years or sooner.
In the United States and Europe, deregulation led to a sprouting of budget carriers, of which only two or three survive.
But they eat into the margins of the mainstream carriers, as the latter also have a large chunk of tourist class passengers.
In the US, he noted, airlines emerge, grow and then go under - some seeking Chapter 11 protection from creditors - and try to start again with a lower cost base.
Do Singaporeans want to see SIA go into the equivalent of Chapter 11, he asked, warning that it would be a painful process for everyone, as jobs would be at stake.
He noted that SIA, with assets of $11-billion, is hoping to make earnings of $600-million in its current financial year ending March 31 - about a 6 per cent return on equity.
But some union members think it is a huge gain.
'If in fact it is a magnificent profit, the price of SIA shares would have risen. It didn't rise. So I think it's necessary to educate the workers that if the company does not produce an adequate rate of return in the end, you lose jobs,' he said.
Yes, the low-cost carriers may have jobs, but he asked: 'If you are a pilot or worker in a low cost airline, do you think you'll get perks and salary as you get in the main airline?'
In Europe, pilots of some low-cost carriers help clean aircraft to save time and cost.
'You don't do that in SIA. You come in clean, nicely dressed,' he said.
Urging them to recognise the rough business conditions ahead, Mr Lee said: 'Think carefully.'
--------------------------------------------------------------------------------
Copyright @ 2003 Singapore Press Holdings. All rights reserved.
StraightJacket Times Front Page 18 Dec 2003
DEC 18, 2003
SM to pilots: Face up to new realities
Low-cost airlines and other uncertainties pose serious threats to SIA and its staff if they do not adapt quickly, he warns
By Paul Jacob
SENIOR Minister Lee Kuan Yew yesterday served up a reality check for Singapore Airlines and its employees - particularly its pilots - on the oncoming serious competition from low-cost carriers.
And even as he did so here, back in Singapore the Government showed its determination not to lose out in this new race, by announcing its interest in building a low-cost, low-charges terminal at Changi Airport to attract the budget carriers.
The aim: to retain Changi's hub status.
Transport Minister Yeo Cheow Tong revealed the plan at an airport event in Singapore, while SM Lee, at a press conference after a four-day visit here, drew lessons from the industry's upheavals elsewhere.
If the region's main carriers like Singapore Airlines do not heed the experience with low-cost carriers in America and Europe, they will face an uncertain future, he warned.
Already, there is a slew of new carriers emerging in the region - Valuair, Tiger Airways, Air Asia and Lion Air, among others.
So main carriers, like Singapore Airlines, face competition not just from one another but low-cost carriers as well.
But the Senior Minister wondered if the reality of the serious challenges ahead had sunk in.
Not for the first time, he cited the example of the impact that Sars and the Iraq war had on SIA, and the decision taken then to cut costs.
'So they agreed to cut costs, including the pilots after a lot of argy-bargy,' he recalled.
'And because we cut costs, profits rose $300-plus million in the third quarter. So they say 'Oh you cheated me', sacked the committee that negotiated the agreement, 'restore our wages'.
'Is that helpful? Does that show an understanding of the rough ride that's coming? Are we going back to what it was before or are we going into a new situation?
'I think it's necessary to spell out to everybody - and not just the pilots - that we are into a new situation.'
The comments marked the second time he was addressing the squall in the pilots' union, after a 55-per-cent-majority at a special meeting of the Air Line Pilots Association-Singapore ousted its leaders last month.
Yesterday, Mr Lee said that he believed the regime of regulated and restricted traffic rights will change because of the growing demand for low-cost travel - within 10 years or sooner.
In the United States and Europe, deregulation led to a sprouting of budget carriers, of which only two or three survive.
But they eat into the margins of the mainstream carriers, as the latter also have a large chunk of tourist class passengers.
In the US, he noted, airlines emerge, grow and then go under - some seeking Chapter 11 protection from creditors - and try to start again with a lower cost base.
Do Singaporeans want to see SIA go into the equivalent of Chapter 11, he asked, warning that it would be a painful process for everyone, as jobs would be at stake.
He noted that SIA, with assets of $11-billion, is hoping to make earnings of $600-million in its current financial year ending March 31 - about a 6 per cent return on equity.
But some union members think it is a huge gain.
'If in fact it is a magnificent profit, the price of SIA shares would have risen. It didn't rise. So I think it's necessary to educate the workers that if the company does not produce an adequate rate of return in the end, you lose jobs,' he said.
Yes, the low-cost carriers may have jobs, but he asked: 'If you are a pilot or worker in a low cost airline, do you think you'll get perks and salary as you get in the main airline?'
In Europe, pilots of some low-cost carriers help clean aircraft to save time and cost.
'You don't do that in SIA. You come in clean, nicely dressed,' he said.
Urging them to recognise the rough business conditions ahead, Mr Lee said: 'Think carefully.'
--------------------------------------------------------------------------------
Copyright @ 2003 Singapore Press Holdings. All rights reserved.
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Have I got this right?
So the plan is that SIA will pay staff as little as possible each month. The rest of the "package" will be held back by "the world's most profitable airline" just in case some unforseen event happens to reduce the profits. That way you don't have to steal it back from the staff because you haven't given it to them in the first place! Brilliant!!!!
Better still, if it looks like the profits are going to be too high (don't want to have to pay those lazy egotists too much bonus) they can exercise those stunning management skills by investing in say, Air New Zealand. Perhaps they should start a new trend with something called a LOW WAGE CARRIER! Pussy Airways perhaps?
If they really screw it up and have to pay a bonus they could put a maximum ceiling on it, pay some at the end of the year but hold some back for another six months just in case anybody gets "confrontational". Sound familiar?
This is all entirely reasonable. So much so that it could be done the other way round. Pay the staff 6 months bonus at the start of the year. If times are hard and profits not so good the staff will pay some of the bonus back at the end of the year..... and some more six months later. Government ministers could join in with abusive comments about the SIA management and we could bond all senior managers in the company to make sure that they can't leave.
SIA should not stop at running airlines. They have the mentality and HR skills to run a very good double glazing company, or even a used car dealership!
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How do they intend to hire pilots with such low rate?As it is SQ is not attracting enuf wonder what about TIGER and VALUE.Maybe they will wet lease.Also someone pointed out to me that SILKAIR have to cancel some of their flts due to shortage of crew.Anyone being hired by the low cost yet?Any adverts for such jobs?Any info on this greatly appreciated....thanks
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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??
Its the carrot and the donkey. But who are the donkeys??
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DEC 18, 2003
SM to pilots: Face up to new realities
'So they agreed to cut costs, including the pilots after a lot of argy-bargy,' he recalled.
'And because we cut costs, profits rose $300-plus million in the third quarter. So they say 'Oh you cheated me', sacked the committee that negotiated the agreement, 'restore our wages'.
- As usual we are treated to the familiar blistering rhetoric from SM Lee but, again, as usual, we are left a little short on specifics.
For “negotiated”, read, “threatened the committee with being dragooned to our Ministry of Manpower and then onwards to court for an imposed, even more detrimental settlement”.
And secondly, could the Senior Minister present us publicly with the sum saved, by salary cuts, during the third quarter, when “profits rose $300-plus” (actually $306 million)?
I think that he’ll find the sum not unadjacent to S$15m, which then begs the question of what other cost savings of S$291m produced the startling third quarter turn-around?
Perhaps SIA could come to the SM’s aid and produce an abbreviated third quarter P&L Statement to back him up? But then SIA has never been known as a transparent organization and the actuality may embarrassingly reveal that the vast part of the profit was simply due to the inevitable post-SARS up-swing, confidently forecast by the pilots and which continues to this day.
So could it therefore be adduced that what have been dressed up as SARS related, short term, emergency pay cuts, in light of the SM’s latest pronouncements, are actually long planned strategic realignments of remuneration packages and that the SARS flap was merely a convenient start point? I think we should be told.
Don’t hold your collective breath, however; generalized invective is the specialty round here, not cold hard facts.
SM to pilots: Face up to new realities
'So they agreed to cut costs, including the pilots after a lot of argy-bargy,' he recalled.
'And because we cut costs, profits rose $300-plus million in the third quarter. So they say 'Oh you cheated me', sacked the committee that negotiated the agreement, 'restore our wages'.
- As usual we are treated to the familiar blistering rhetoric from SM Lee but, again, as usual, we are left a little short on specifics.
For “negotiated”, read, “threatened the committee with being dragooned to our Ministry of Manpower and then onwards to court for an imposed, even more detrimental settlement”.
And secondly, could the Senior Minister present us publicly with the sum saved, by salary cuts, during the third quarter, when “profits rose $300-plus” (actually $306 million)?
I think that he’ll find the sum not unadjacent to S$15m, which then begs the question of what other cost savings of S$291m produced the startling third quarter turn-around?
Perhaps SIA could come to the SM’s aid and produce an abbreviated third quarter P&L Statement to back him up? But then SIA has never been known as a transparent organization and the actuality may embarrassingly reveal that the vast part of the profit was simply due to the inevitable post-SARS up-swing, confidently forecast by the pilots and which continues to this day.
So could it therefore be adduced that what have been dressed up as SARS related, short term, emergency pay cuts, in light of the SM’s latest pronouncements, are actually long planned strategic realignments of remuneration packages and that the SARS flap was merely a convenient start point? I think we should be told.
Don’t hold your collective breath, however; generalized invective is the specialty round here, not cold hard facts.
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The following from The UK Government in its lead up to publication of its White Paper on air transport
“Transport Secretary Alistair Darling said expansion had to cope with the number of passengers travelling through UK airports tripling over 30 years.”
Err… if this kind of growth can be expected in UK then it must be reflected around the world, thus leading to the supposition that, unless there is a huge professional pilot training programme shortly to be instigated throughout the globe, there is a major pilot shortage imminent.
Why then is SM Lee proposing to pay less for the pilots who staff his airline? Surely market forces will dictate that he has to pay more? But then he could be attempting the trick of many before him, who have believed that they could make water run uphill or command the tides to their will.
“Transport Secretary Alistair Darling said expansion had to cope with the number of passengers travelling through UK airports tripling over 30 years.”
Err… if this kind of growth can be expected in UK then it must be reflected around the world, thus leading to the supposition that, unless there is a huge professional pilot training programme shortly to be instigated throughout the globe, there is a major pilot shortage imminent.
Why then is SM Lee proposing to pay less for the pilots who staff his airline? Surely market forces will dictate that he has to pay more? But then he could be attempting the trick of many before him, who have believed that they could make water run uphill or command the tides to their will.
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As the Alpa-S ballot closes today and a new President and Exco are voted in, expect a fresh flurry of anti-pilot invective from SM Lee, (who’s son, BG Lee, has now been relegated to a bit-part in the unfolding pantomime) following the defeat of unknown, NTUC affiliate, Captain Syed Abdul Kader Alhadad.
The idea of the invective, as usual, is to make the employees take the risk in the SIA enterprise, leaving the shareholders (gov’t) in a “steady as she goes” profit situation.
Viz:
SARS Crisis (four months). Slash employees’ remuneration packages rather than raise short term loans or even consider a rights issue to repair the balance sheet. These finance measures are employed everywhere else in the world (maybe not North Korea) but have the side effect of reducing profits further, when the year end accounts are finally tallied. What better way round this unfortunate possibility than looting the employees pay budget, for a free bail-out?
Low Cost Carriers (home grown bogey running at indeterminable length). So SIA is at grave risk from the LCC’s, in particular “Tiger” (prop, gov’t) and “ValueAir” (completely at the mercy of gov’t)? Interesting to note that the SM is now talking of the probability of “quasi open skies” within the region in the next decade or so, following discussion of this core issue on Pprune in the last week or so (do we have ever more august readership?)! Even more interesting is that his solution to his manufactured bogey (forget ministerial mouthpieces now, this is strictly SM’s baby) is, guess what, more of the same (full marks for consistency)! What better way to meet the situation (which he simplifies and dramatizes out of all recognition) than reduce salaries to maintain profit profile and then if there are a few crumbs left, dish them out to the serfs as “performance related elements of the total remuneration package”? Neat hey? Risk taking employees, insulated shareholders.
The idea of the invective, as usual, is to make the employees take the risk in the SIA enterprise, leaving the shareholders (gov’t) in a “steady as she goes” profit situation.
Viz:
SARS Crisis (four months). Slash employees’ remuneration packages rather than raise short term loans or even consider a rights issue to repair the balance sheet. These finance measures are employed everywhere else in the world (maybe not North Korea) but have the side effect of reducing profits further, when the year end accounts are finally tallied. What better way round this unfortunate possibility than looting the employees pay budget, for a free bail-out?
Low Cost Carriers (home grown bogey running at indeterminable length). So SIA is at grave risk from the LCC’s, in particular “Tiger” (prop, gov’t) and “ValueAir” (completely at the mercy of gov’t)? Interesting to note that the SM is now talking of the probability of “quasi open skies” within the region in the next decade or so, following discussion of this core issue on Pprune in the last week or so (do we have ever more august readership?)! Even more interesting is that his solution to his manufactured bogey (forget ministerial mouthpieces now, this is strictly SM’s baby) is, guess what, more of the same (full marks for consistency)! What better way to meet the situation (which he simplifies and dramatizes out of all recognition) than reduce salaries to maintain profit profile and then if there are a few crumbs left, dish them out to the serfs as “performance related elements of the total remuneration package”? Neat hey? Risk taking employees, insulated shareholders.
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LABOUR CHIEF'S SOLUTION TO AVOID DELAY
Settle with all 5 SIA unions at one go
The management can negotiate common issues with all unions at the same time with a timeframe, says Lim Boon Heng
By Laurel Teo
http://straitstimes.asia1.com.sg/sin...26275,00.html?
NEGOTIATIONS for the separate collective agreements between Singapore Airlines (SIA) and the five unions representing its employees have often proved to be long and drawn-out affairs.
One way to avoid this, says labour chief Lim Boon Heng, is for SIA to settle issues common to all the unions at one go, within a specified timeframe.
Mr Lim, who is also on SIA's board of directors, spelt out the problems with the present system in an e-mail interview with The Straits Times.
His reply yesterday comes just days after the expiry of the pilots' collective agreement on Dec 14. Agreements with the other unions are also due for renegotiation in the next 12 months.
Mr Lim said that often, terms that the SIA management had struck earlier with one union might not be accepted by another union later.
'When management, for expediency's sake, concedes better terms with the second union, then members of the first union would think their leaders had been soft.
'Progressively, this made rational leaders unwilling to be the first to conclude negotiations,' he said.
He proposed that the management 'negotiate with all five unions at the same time on common issues, setting a timeframe for conclusion'.
If matters cannot be resolved in time, than all parties should seek help from a mediator, or go to the Industrial Arbitration Court.
Underscoring the importance of speedy settlement, he said: 'The uncertainty caused by issues left unresolved unsettles the employees, and causes a loss of morale.'
Earlier in the morning, SIA chief executive Chew Choon Seng said at a media briefing that the management hoped to 'conclude a new agreement in the shortest possible time'.
In previous cases, the process could take as long as two years, he said.
Ties between SIA and its unions, notably the Air Line Pilots' Association-Singapore (Alpa-S), have been rocky.
Alpa-S can trace its strained relationship with the management back to 1980, when pilots initiated a work-to-rule action after negotiations for a new collective agreement broke down. The month-long dispute disrupted 14 flights.
That controversy threatened to make a comeback last month when Alpa-S members threw out their leaders, reportedly for giving in too easily to the management on wage cuts and layoffs.
Their action drew flak from Mr Lim, Acting Manpower Minister Ng Eng Hen, Deputy Prime Minister Lee Hsien Loong, and most recently, Senior Minister Lee Kuan Yew.
Mr Lim, who is Minister in the Prime Minister's Office, explained why the Government took such serious issue with the Nov 17 ouster.
By throwing out their leaders, Alpa-S members not only caused other SIA employees to think the agreement was bad, but could also influence them to follow the pilots' example.
'When this happens, few sensible and responsible persons would put themselves up for elections as union leaders,' he said.
'The unions will be run by militants. That would spell the end of SIA.'
Mr Lim's position that negotiations with every union be held around the same time was supported by Mr William Wee, general secretary of SIA Engineering Company Engineers and Executives Union.
He said: 'It makes a lot of sense because staff also look forward to the conclusion of collective agreements. Otherwise, there's no certainty as to what lies ahead for the next three years.'
Settle with all 5 SIA unions at one go
The management can negotiate common issues with all unions at the same time with a timeframe, says Lim Boon Heng
By Laurel Teo
http://straitstimes.asia1.com.sg/sin...26275,00.html?
NEGOTIATIONS for the separate collective agreements between Singapore Airlines (SIA) and the five unions representing its employees have often proved to be long and drawn-out affairs.
One way to avoid this, says labour chief Lim Boon Heng, is for SIA to settle issues common to all the unions at one go, within a specified timeframe.
Mr Lim, who is also on SIA's board of directors, spelt out the problems with the present system in an e-mail interview with The Straits Times.
His reply yesterday comes just days after the expiry of the pilots' collective agreement on Dec 14. Agreements with the other unions are also due for renegotiation in the next 12 months.
Mr Lim said that often, terms that the SIA management had struck earlier with one union might not be accepted by another union later.
'When management, for expediency's sake, concedes better terms with the second union, then members of the first union would think their leaders had been soft.
'Progressively, this made rational leaders unwilling to be the first to conclude negotiations,' he said.
He proposed that the management 'negotiate with all five unions at the same time on common issues, setting a timeframe for conclusion'.
If matters cannot be resolved in time, than all parties should seek help from a mediator, or go to the Industrial Arbitration Court.
Underscoring the importance of speedy settlement, he said: 'The uncertainty caused by issues left unresolved unsettles the employees, and causes a loss of morale.'
Earlier in the morning, SIA chief executive Chew Choon Seng said at a media briefing that the management hoped to 'conclude a new agreement in the shortest possible time'.
In previous cases, the process could take as long as two years, he said.
Ties between SIA and its unions, notably the Air Line Pilots' Association-Singapore (Alpa-S), have been rocky.
Alpa-S can trace its strained relationship with the management back to 1980, when pilots initiated a work-to-rule action after negotiations for a new collective agreement broke down. The month-long dispute disrupted 14 flights.
That controversy threatened to make a comeback last month when Alpa-S members threw out their leaders, reportedly for giving in too easily to the management on wage cuts and layoffs.
Their action drew flak from Mr Lim, Acting Manpower Minister Ng Eng Hen, Deputy Prime Minister Lee Hsien Loong, and most recently, Senior Minister Lee Kuan Yew.
Mr Lim, who is Minister in the Prime Minister's Office, explained why the Government took such serious issue with the Nov 17 ouster.
By throwing out their leaders, Alpa-S members not only caused other SIA employees to think the agreement was bad, but could also influence them to follow the pilots' example.
'When this happens, few sensible and responsible persons would put themselves up for elections as union leaders,' he said.
'The unions will be run by militants. That would spell the end of SIA.'
Mr Lim's position that negotiations with every union be held around the same time was supported by Mr William Wee, general secretary of SIA Engineering Company Engineers and Executives Union.
He said: 'It makes a lot of sense because staff also look forward to the conclusion of collective agreements. Otherwise, there's no certainty as to what lies ahead for the next three years.'
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Straits Times, Sunday 21 Dec 2003
Shades of the past
http://straitstimes.asia1.com.sg/new...26438,00.html?
THE sharp rebuke Singapore Airlines (SIA) pilots received from Senior Minister Lee Kuan Yew three weeks ago is almost an uncanny replay of the warning he issued to them 23 years ago, to the very day.
On Dec 1, 1980, Mr Lee, then Prime Minister, sternly told SIA pilots that he did not want to do them in, but he 'won't allow anyone to do Singapore in'.
Those words have since been immortalised when on Dec 1 this year, Mr Lee warned SIA management and pilots that there would be 'broken heads' if tensions over wages continued to escalate.
But unlike the latest warning, which was made at a public forum, the first was given at a closed-door meeting in the Istana. Striding in at 5pm, Mr Lee was reportedly in a 'fighting' mood when he met 10 officials from Singapore Airlines Pilots Association (Siapa), predecessor of the current Air Line Pilots' Association-Singapore (Alpa-S).
In their 65-minute exchange, he told them bluntly that they ought to have their heads examined by a psychiatrist for trying to undermine Singapore's industrial relations, built on cooperation among workers, the trade unions and the Government.
Like today, the crux of the pilots' unhappiness was the issue of wages and SIA's unsatisfactory human resource management.
Recalling those months of discord, a pilot closely connected to Siapa tells The Sunday Times: 'Staff morale was very low. All that we wanted to do was to fight for better working conditions.'
Specifically, the 400-strong union, led by Captain Freddie Koh, wanted a 30 per cent rise in basic salaries, higher meal allowances, and other fringe benefits.
To back their claims, they produced a year-long study their union did of other airlines. An SIA Singaporean captain, it showed, made $5,700-$7,650 a month while a British Airways captain got up to $10,700.
When the management ignored Siapa's Oct 17 deadline for counter-proposals, the pilots retaliated with work-to-rule.
Some refused to fly when the flights exceeded 12 hours, leaving their planes stranded in transit. Siapa argued that this did not amount to industrial action as the collective agreement stipulated that pilots were not required to work over 12 hours a day.
Others reported sick when standby duties were activated.
In all, 14 flights were disrupted between Oct 23 and Nov 4.
This angered some passengers and one of them, Mr M.W. King, led a revolt on board a flight. In a letter to SIA's then managing director Lim Chin Beng, he described a 'full-scale revolt by first class and business passengers' who refused to leave the plane until they were told when they could continue their journey.
The backlash against the pilots' actions came fast and furious. Labour chief C.V. Devan Nair accused them of being disloyal to Singapore by trying to inflict maximum damage on SIA while soliciting the support of international unions dominated by Western pilots of rival airlines.
SIA then dismissed four cockpit crew for not finishing a Singapore-London flight after the plane landed in Zurich, Switzerland.
Mr Lee stepped in 10 days later. On Dec 1, he summoned the Siapa officials and threatened to ground SIA, sack all the pilots and build a new national carrier unless all flight operations returned to normal and the airline's image restored.
He also ticked off the SIA management for failing to counter-propose, which could have prevented the industrial action.
However, Mr Lee refused to let wage negotiations proceed 'under duress' and ordered a cooling-off period during which the pilots had to demonstrate their sincerity in resuming operations.
On Feb 26, 1981, Siapa was deregistered and, in the same month, 15 pilots appeared in court after admitting to illegal industrial action but were given an absolute discharge.
They had been adequately punished by the 'public chastisement', ruled district judge Chandra Mohan. 'I have also considered the facts that the defendants... are persons of excellent character and have made important contributions to the growth of SIA.'
Recalls the pilot source: 'It was a very rough time. We were apprehensive and scared that we'd lose our jobs, and of course, when the Government came into the picture, we knew we were up against the whole country.'
Despite the turbulence, he felt some good came out of it. 'A new package was negotiated, the company recognised that it couldn't take its employees for granted,' he added.
The new collective agreement drawn up raised salaries by 10 to 20 per cent.
Asked if there were parallels with the situation today, he says with a laugh: 'No way will industrial action happen again. The pilots today are not as rebellious.'
To the same question, SIA chief executive Chew Choon Seng says pilots today are 'professional in their approach'. 'No question of doing the company in or anything. They continue to be very flexible... and going beyond the call of duty - even right now. I give them full credit.'
Shades of the past
http://straitstimes.asia1.com.sg/new...26438,00.html?
THE sharp rebuke Singapore Airlines (SIA) pilots received from Senior Minister Lee Kuan Yew three weeks ago is almost an uncanny replay of the warning he issued to them 23 years ago, to the very day.
On Dec 1, 1980, Mr Lee, then Prime Minister, sternly told SIA pilots that he did not want to do them in, but he 'won't allow anyone to do Singapore in'.
Those words have since been immortalised when on Dec 1 this year, Mr Lee warned SIA management and pilots that there would be 'broken heads' if tensions over wages continued to escalate.
But unlike the latest warning, which was made at a public forum, the first was given at a closed-door meeting in the Istana. Striding in at 5pm, Mr Lee was reportedly in a 'fighting' mood when he met 10 officials from Singapore Airlines Pilots Association (Siapa), predecessor of the current Air Line Pilots' Association-Singapore (Alpa-S).
In their 65-minute exchange, he told them bluntly that they ought to have their heads examined by a psychiatrist for trying to undermine Singapore's industrial relations, built on cooperation among workers, the trade unions and the Government.
Like today, the crux of the pilots' unhappiness was the issue of wages and SIA's unsatisfactory human resource management.
Recalling those months of discord, a pilot closely connected to Siapa tells The Sunday Times: 'Staff morale was very low. All that we wanted to do was to fight for better working conditions.'
Specifically, the 400-strong union, led by Captain Freddie Koh, wanted a 30 per cent rise in basic salaries, higher meal allowances, and other fringe benefits.
To back their claims, they produced a year-long study their union did of other airlines. An SIA Singaporean captain, it showed, made $5,700-$7,650 a month while a British Airways captain got up to $10,700.
When the management ignored Siapa's Oct 17 deadline for counter-proposals, the pilots retaliated with work-to-rule.
Some refused to fly when the flights exceeded 12 hours, leaving their planes stranded in transit. Siapa argued that this did not amount to industrial action as the collective agreement stipulated that pilots were not required to work over 12 hours a day.
Others reported sick when standby duties were activated.
In all, 14 flights were disrupted between Oct 23 and Nov 4.
This angered some passengers and one of them, Mr M.W. King, led a revolt on board a flight. In a letter to SIA's then managing director Lim Chin Beng, he described a 'full-scale revolt by first class and business passengers' who refused to leave the plane until they were told when they could continue their journey.
The backlash against the pilots' actions came fast and furious. Labour chief C.V. Devan Nair accused them of being disloyal to Singapore by trying to inflict maximum damage on SIA while soliciting the support of international unions dominated by Western pilots of rival airlines.
SIA then dismissed four cockpit crew for not finishing a Singapore-London flight after the plane landed in Zurich, Switzerland.
Mr Lee stepped in 10 days later. On Dec 1, he summoned the Siapa officials and threatened to ground SIA, sack all the pilots and build a new national carrier unless all flight operations returned to normal and the airline's image restored.
He also ticked off the SIA management for failing to counter-propose, which could have prevented the industrial action.
However, Mr Lee refused to let wage negotiations proceed 'under duress' and ordered a cooling-off period during which the pilots had to demonstrate their sincerity in resuming operations.
On Feb 26, 1981, Siapa was deregistered and, in the same month, 15 pilots appeared in court after admitting to illegal industrial action but were given an absolute discharge.
They had been adequately punished by the 'public chastisement', ruled district judge Chandra Mohan. 'I have also considered the facts that the defendants... are persons of excellent character and have made important contributions to the growth of SIA.'
Recalls the pilot source: 'It was a very rough time. We were apprehensive and scared that we'd lose our jobs, and of course, when the Government came into the picture, we knew we were up against the whole country.'
Despite the turbulence, he felt some good came out of it. 'A new package was negotiated, the company recognised that it couldn't take its employees for granted,' he added.
The new collective agreement drawn up raised salaries by 10 to 20 per cent.
Asked if there were parallels with the situation today, he says with a laugh: 'No way will industrial action happen again. The pilots today are not as rebellious.'
To the same question, SIA chief executive Chew Choon Seng says pilots today are 'professional in their approach'. 'No question of doing the company in or anything. They continue to be very flexible... and going beyond the call of duty - even right now. I give them full credit.'
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Straits Times, 24 December 2003
Battle for the skies
A four-part series that looks at what is at stake in Singapore's flight to retain its air hub status
http://straitstimes.asia1.com.sg/sin...26846,00.html?
By Karamjit Kaur
THE THREAT: The phenomenon of budget airlines, which swept through Europe and the United States, has swooped into the region - and Singapore Airlines (SIA) is not taking any chances on this front.
The Western experience shows that demand for low-cost travel hastens the dismantling of regulated and restricted traffic rights. Senior Minister Lee Kuan Yew predicts the market is likely to be freed up in 10 years or sooner.
When that happens, budget carriers will sprout, as they did in the US and Europe, although only two or three survived there. But they eat into the margins of the mainstream carriers, who have a large chunk of tourist-class passengers.
Also, full-service carriers appear inept at running discount carriers, with those of British Airways and United Airways failing miserably.
THE GAME PLAN: SIA, faced with at least three budget airlines planning to take off in the region next year, will unleash Tiger Airways in the final quarter of next year.
But, unlike its 100 per cent stake in SilkAir, it holds only a minority share in the joint venture, which has the owners of Europe's second-largest discount carrier Ryanair as one of the stakeholders.
Changi Airport also appears keen to support the low-cost carriers, saying it is considering a no-frills terminal, which could be ready as early as in 2005.
Analysts have applauded the moves, pointing out that discount airlines are the biggest threat confronting SIA now.
Says Mr Vincent Ng, an analyst at Standard & Poor's Asian equity research agency: 'It's good that we are not thumbing our noses and taking the threat too lightly. Clearly, the priority now is how to benefit from it.'
Mr Chris Sanda, an associate director and aviation analyst at DBS Vickers brokerage agrees. 'The experience in the US and Europe shows that full-service carriers that ignored the threat from budget airlines regretted the mistake.'
In America, budget carriers have wrested more than 25 per cent of the market share from the mainstream airlines, and in Europe, about 6 per cent.
These discount carriers also make enviable profits. Ryanair and easyJet were the most profitable airlines in the world last year.
And America's Southwest Airlines continues to make profits, even as the Sept 11 attacks caused Swissair of Switzerland, Sabena of Belgium and Ansett of Australia to go belly up.
For SIA, the response is to counter especially the threat to its short-haul market - flights of three to four hours - because 'people can tolerate inconveniences for short periods', says Mr Peter Harbison, managing director of the Sydney-based Centre for Asia-Pacific Aviation.
In fact, travellers such as housewife Maurice Tay, 45, and businessman Andrew Teo, 41, say they will dump SIA if a budget carrier offers fares at half the airline's price.
For that size of savings, they would willingly give up such frills as free food and drinks and assigned seats.
Says Mrs Tay: 'If I can save up to 50 per cent, there is no way I would fly SIA or any other main carrier, especially if the flying time is less than four hours.'
Some analysts, however, feel a stiff competition is not imminent in the region. Despite the spurt of start-ups next year - when AirAsia Thailand and Jetstar of Australia and homegrown Valuair would take off - they argue that conditions in Asia, unlike those in Europe and the US, are not conducive for budget carriers to grow as if the sky's the limit.
The pace will be slow, mainly because of the absence of airports and infrastructure that fit their needs and the slow adoption of open skies agreement.
The economics of budget carriers demand that costs be kept at a minimum but in Asia, they are not going to be spoilt for choice of cheaper secondary airports.
Adds Mr Sanda: 'There are other barriers too, like the lack of proper customs and immigration facilities and telecommunication services.'
Bilateral services agreements also govern flights across borders and they often limit the number of flights allowed, the airlines and the type of aircraft used.
Says Mr Ng of Standard & Poor's: 'No fairy godmother is going to wave a magic wand and lift all the restrictions overnight. The freeing up of the skies in Asia will be a very measured process, subject to many rounds of bilateral negotiations. There will be hits and misses and at best, the results will be patchy.'
In the US, where the domestic market is huge, discount carriers can make money even without having to fly international routes, while in Europe, these carriers took off only after the formation of the European Union led to the lifting of border restrictions.
Still, airlines such as Qantas, Thai Airways, Cathay Pacific and United Airways have told The Straits Times that they will do or are thinking of doing what SIA did.
The jury is out on whether budget carriers are sure winners.
As former SIA chief executive Cheong Choong Kong warned earlier this year: 'Aviation history is littered with the carcasses' of those who bet that low-cost airlines could be killer propositions.
Battle for the skies
A four-part series that looks at what is at stake in Singapore's flight to retain its air hub status
http://straitstimes.asia1.com.sg/sin...26846,00.html?
By Karamjit Kaur
THE THREAT: The phenomenon of budget airlines, which swept through Europe and the United States, has swooped into the region - and Singapore Airlines (SIA) is not taking any chances on this front.
The Western experience shows that demand for low-cost travel hastens the dismantling of regulated and restricted traffic rights. Senior Minister Lee Kuan Yew predicts the market is likely to be freed up in 10 years or sooner.
When that happens, budget carriers will sprout, as they did in the US and Europe, although only two or three survived there. But they eat into the margins of the mainstream carriers, who have a large chunk of tourist-class passengers.
Also, full-service carriers appear inept at running discount carriers, with those of British Airways and United Airways failing miserably.
THE GAME PLAN: SIA, faced with at least three budget airlines planning to take off in the region next year, will unleash Tiger Airways in the final quarter of next year.
But, unlike its 100 per cent stake in SilkAir, it holds only a minority share in the joint venture, which has the owners of Europe's second-largest discount carrier Ryanair as one of the stakeholders.
Changi Airport also appears keen to support the low-cost carriers, saying it is considering a no-frills terminal, which could be ready as early as in 2005.
Analysts have applauded the moves, pointing out that discount airlines are the biggest threat confronting SIA now.
Says Mr Vincent Ng, an analyst at Standard & Poor's Asian equity research agency: 'It's good that we are not thumbing our noses and taking the threat too lightly. Clearly, the priority now is how to benefit from it.'
Mr Chris Sanda, an associate director and aviation analyst at DBS Vickers brokerage agrees. 'The experience in the US and Europe shows that full-service carriers that ignored the threat from budget airlines regretted the mistake.'
In America, budget carriers have wrested more than 25 per cent of the market share from the mainstream airlines, and in Europe, about 6 per cent.
These discount carriers also make enviable profits. Ryanair and easyJet were the most profitable airlines in the world last year.
And America's Southwest Airlines continues to make profits, even as the Sept 11 attacks caused Swissair of Switzerland, Sabena of Belgium and Ansett of Australia to go belly up.
For SIA, the response is to counter especially the threat to its short-haul market - flights of three to four hours - because 'people can tolerate inconveniences for short periods', says Mr Peter Harbison, managing director of the Sydney-based Centre for Asia-Pacific Aviation.
In fact, travellers such as housewife Maurice Tay, 45, and businessman Andrew Teo, 41, say they will dump SIA if a budget carrier offers fares at half the airline's price.
For that size of savings, they would willingly give up such frills as free food and drinks and assigned seats.
Says Mrs Tay: 'If I can save up to 50 per cent, there is no way I would fly SIA or any other main carrier, especially if the flying time is less than four hours.'
Some analysts, however, feel a stiff competition is not imminent in the region. Despite the spurt of start-ups next year - when AirAsia Thailand and Jetstar of Australia and homegrown Valuair would take off - they argue that conditions in Asia, unlike those in Europe and the US, are not conducive for budget carriers to grow as if the sky's the limit.
The pace will be slow, mainly because of the absence of airports and infrastructure that fit their needs and the slow adoption of open skies agreement.
The economics of budget carriers demand that costs be kept at a minimum but in Asia, they are not going to be spoilt for choice of cheaper secondary airports.
Adds Mr Sanda: 'There are other barriers too, like the lack of proper customs and immigration facilities and telecommunication services.'
Bilateral services agreements also govern flights across borders and they often limit the number of flights allowed, the airlines and the type of aircraft used.
Says Mr Ng of Standard & Poor's: 'No fairy godmother is going to wave a magic wand and lift all the restrictions overnight. The freeing up of the skies in Asia will be a very measured process, subject to many rounds of bilateral negotiations. There will be hits and misses and at best, the results will be patchy.'
In the US, where the domestic market is huge, discount carriers can make money even without having to fly international routes, while in Europe, these carriers took off only after the formation of the European Union led to the lifting of border restrictions.
Still, airlines such as Qantas, Thai Airways, Cathay Pacific and United Airways have told The Straits Times that they will do or are thinking of doing what SIA did.
The jury is out on whether budget carriers are sure winners.
As former SIA chief executive Cheong Choong Kong warned earlier this year: 'Aviation history is littered with the carcasses' of those who bet that low-cost airlines could be killer propositions.
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Despite all the hyperbole surrounding the Low Cost Carrier red herrings that the Senior Minister has set swimming in Singapore waters, the facts remain as stated in Karamjit Kaur’s piece of 24 December 2003:
“Some analysts, however, feel a stiff competition is not imminent in the region. Despite the spurt of start-ups next year - when AirAsia Thailand and Jetstar of Australia and homegrown Valuair would take off - they argue that conditions in Asia, unlike those in Europe and the US, are not conducive for budget carriers to grow as if the sky's the limit.
The pace will be slow, mainly because of the absence of airports and infrastructure that fit their needs and the slow adoption of open skies agreement.
The economics of budget carriers demand that costs be kept at a minimum but in Asia, they are not going to be spoilt for choice of cheaper secondary airports.
Adds Mr Sanda: 'There are other barriers too, like the lack of proper customs and immigration facilities and telecommunication services.'
Bilateral services agreements also govern flights across borders and they often limit the number of flights allowed, the airlines and the type of aircraft used.
Says Mr Ng of Standard & Poor's: 'No fairy godmother is going to wave a magic wand and lift all the restrictions overnight. The freeing up of the skies in Asia will be a very measured process, subject to many rounds of bilateral negotiations. There will be hits and misses and at best, the results will be patchy.'
In the US, where the domestic market is huge, discount carriers can make money even without having to fly international routes, while in Europe, these carriers took off only after the formation of the European Union led to the lifting of border restrictions.
Still, airlines such as Qantas, Thai Airways, Cathay Pacific and United Airways have told The Straits Times that they will do or are thinking of doing what SIA did.
The jury is out on whether budget carriers are sure winners.
As former SIA chief executive Cheong Choong Kong warned earlier this year: 'Aviation history is littered with the carcasses' of those who bet that low-cost airlines could be killer propositions'."
It is perhaps possible that the Senior Minister has adroitly adjusted the timing forward, for the introduction of the LCC “menace” to the Singaporean consciousness, as a bargaining lever to assist in his determined plan to make the SARS salary cuts at SIA permanent and, in his own words, allow that airline to remain highly profitable even in the worst of times (as I’ve said before, transferring risk from the shareholders to the employees by slashing basic salaries but raising “performance related elements” – about the only innovation ever to come out of Singapore!).
Readers should note that the much vaunted “Tiger” is only at “wet ink” MOU (Memorandum of Understanding) stage and word has it that a business plan is now being hastily cobbled together by a Ryanair minion to fit the “facts” on the ground. Readers should also note that “Tiger” is, for all practical purposes, SIA/Government owned, which situation flies firmly in the face of the received doctrine of success that “Full-service carriers appear inept at running discount carriers, with those of British Airways and United Airways failing miserably”.
Similarly, the putative LCC (or semi LCC) Valuair, relies entirely on the Singapore Government for nomination in the myriad bi-lateral agreements that control all air transport operations in the region (remember, no open skies at the present, or for a very long time, notwithstanding the Senior Minister’s view), hence its competitive potential is effectively zero.
Indonesian carrier, Lion Air, if its fares SIN-CKG are anything to go by, cannot be described as a low cost carrier – merely one nibbling round the edges of SIA’s dominance of the Singapore-Indonesian market.
Which really leaves AirAsia – now looking like a success for the future and leading those of a Machiavellian disposition to consider that the real game plan may be along the lines of a quietly cut deal by LKY with AirAsia/Malaysian Government (pace that between Thaksin and the Malaysians to form AirAsia Thailand) to form AirAsia Singapore. Leverage to force the deal with AirAsia (a favoured entity of Mahatier) is the competition ostensibly threatened from “Tiger” and Valuair. Sweeteners are oceans of cash from Temasek Holdings and unlimited access to Changi as a hub (thus neatly negating Senai as a hubbing force and providing a future revenue stream from an investment that looks like it will really work). Further advantage is that risk need not be taken by going ahead with “Tiger” and Valuair will be toast (who’d finance it with this situation to deal with?).
But the real, present day advantage of all this maneuvering is that the associated smoke and mirrors (a Singapore Government specialty) hides the fact that LCC’s present zero threat to SIA’s profitability but do provide a stick to beat the hides of Alpa-S and the naughty pilots, in the up-coming CA negotiations.
Merry Christmas everybody and good luck for the New Year – we’ll all need it!
“Some analysts, however, feel a stiff competition is not imminent in the region. Despite the spurt of start-ups next year - when AirAsia Thailand and Jetstar of Australia and homegrown Valuair would take off - they argue that conditions in Asia, unlike those in Europe and the US, are not conducive for budget carriers to grow as if the sky's the limit.
The pace will be slow, mainly because of the absence of airports and infrastructure that fit their needs and the slow adoption of open skies agreement.
The economics of budget carriers demand that costs be kept at a minimum but in Asia, they are not going to be spoilt for choice of cheaper secondary airports.
Adds Mr Sanda: 'There are other barriers too, like the lack of proper customs and immigration facilities and telecommunication services.'
Bilateral services agreements also govern flights across borders and they often limit the number of flights allowed, the airlines and the type of aircraft used.
Says Mr Ng of Standard & Poor's: 'No fairy godmother is going to wave a magic wand and lift all the restrictions overnight. The freeing up of the skies in Asia will be a very measured process, subject to many rounds of bilateral negotiations. There will be hits and misses and at best, the results will be patchy.'
In the US, where the domestic market is huge, discount carriers can make money even without having to fly international routes, while in Europe, these carriers took off only after the formation of the European Union led to the lifting of border restrictions.
Still, airlines such as Qantas, Thai Airways, Cathay Pacific and United Airways have told The Straits Times that they will do or are thinking of doing what SIA did.
The jury is out on whether budget carriers are sure winners.
As former SIA chief executive Cheong Choong Kong warned earlier this year: 'Aviation history is littered with the carcasses' of those who bet that low-cost airlines could be killer propositions'."
It is perhaps possible that the Senior Minister has adroitly adjusted the timing forward, for the introduction of the LCC “menace” to the Singaporean consciousness, as a bargaining lever to assist in his determined plan to make the SARS salary cuts at SIA permanent and, in his own words, allow that airline to remain highly profitable even in the worst of times (as I’ve said before, transferring risk from the shareholders to the employees by slashing basic salaries but raising “performance related elements” – about the only innovation ever to come out of Singapore!).
Readers should note that the much vaunted “Tiger” is only at “wet ink” MOU (Memorandum of Understanding) stage and word has it that a business plan is now being hastily cobbled together by a Ryanair minion to fit the “facts” on the ground. Readers should also note that “Tiger” is, for all practical purposes, SIA/Government owned, which situation flies firmly in the face of the received doctrine of success that “Full-service carriers appear inept at running discount carriers, with those of British Airways and United Airways failing miserably”.
Similarly, the putative LCC (or semi LCC) Valuair, relies entirely on the Singapore Government for nomination in the myriad bi-lateral agreements that control all air transport operations in the region (remember, no open skies at the present, or for a very long time, notwithstanding the Senior Minister’s view), hence its competitive potential is effectively zero.
Indonesian carrier, Lion Air, if its fares SIN-CKG are anything to go by, cannot be described as a low cost carrier – merely one nibbling round the edges of SIA’s dominance of the Singapore-Indonesian market.
Which really leaves AirAsia – now looking like a success for the future and leading those of a Machiavellian disposition to consider that the real game plan may be along the lines of a quietly cut deal by LKY with AirAsia/Malaysian Government (pace that between Thaksin and the Malaysians to form AirAsia Thailand) to form AirAsia Singapore. Leverage to force the deal with AirAsia (a favoured entity of Mahatier) is the competition ostensibly threatened from “Tiger” and Valuair. Sweeteners are oceans of cash from Temasek Holdings and unlimited access to Changi as a hub (thus neatly negating Senai as a hubbing force and providing a future revenue stream from an investment that looks like it will really work). Further advantage is that risk need not be taken by going ahead with “Tiger” and Valuair will be toast (who’d finance it with this situation to deal with?).
But the real, present day advantage of all this maneuvering is that the associated smoke and mirrors (a Singapore Government specialty) hides the fact that LCC’s present zero threat to SIA’s profitability but do provide a stick to beat the hides of Alpa-S and the naughty pilots, in the up-coming CA negotiations.
Merry Christmas everybody and good luck for the New Year – we’ll all need it!
Last edited by highcirrus; 25th Dec 2003 at 11:21.
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Economist – Double Issue, 20 Dec 2003 – 2 Jan 2004
Singapore
No More Mr Nasty Guy
A kinder, gentler BG
Singaporean politicians are a stern and technocratic lot. Lee Kuan Yew, the country’s founding father and first prime minister, was a famously severe and hectoring leader. Goh Chok Tong, his successor, is a much friendlier fellow. That prompted many Singaporeans to write him off as a mere seat warmer for Mr Lee’s son, Hsien Loong, though Mr Goh has already lasted 13 years. Now the younger Mr Lee – universally known as BG, since he used to be a brigadier general – is indeed set to ascend to the premiership, probably in 2005. But before he does so, Mr Goh recently said, he has to learn “to let his soft side show.”
Since then, the local media have dutifully bombarded Singaporeans with proof of Mr Lee’s softness. Alongside the usual photographs of ribbon-cutting ceremonies and formal receptions, the papers have printed snaps of Mr Lee eating dinner with his children, walking arm-in-arm with his wife, and practicing the clarinet as a child. The normally sober Straits Times devoted a two-page spread to Mr Lee’s private life, highlighting his thoughtfulness (despite his busy schedule, he still finds time to advise old friends), his heroism (he once helped rescue passengers trapped in a cable car) and his humility (he uses public transport). Having described how Mr Lee broke down in tears during an interview, the paper concluded, “here is a man of deep emotion, who’s not afraid to show his feelings.”
Some impassioned pundits have even argued that Mr Lee’s warmth and humanity are so obvious that they do not need advertising. In an article entitled “Mirage of Mr Lee Hsien Loong’s Image Problem”, one columnist pointed out that Mr Lee had once shaken a fishmonger’s hand, and, unlike his father, was fond of children. Another commentator dismissed all the fuss his colleagues were making about Mr Lee’s new, fashionable red shirts, saying, “It’s not just the shirt. It’s how you wear it.”
These are unfamiliar concerns for Singapore, whose leaders are more or less immune to the swings in public opinion that plague politicians elsewhere. The prime minister is chosen by parliament, not the electorate at large. Only one party ever manages to get more than one or two candidates elected: the ruling Peoples Action Party, which has strolled easily to victory in every election since independence. When the prime minister announces his retirement, the party elders choose a successor, and then reveal him to the voters, as they recently did with the younger Lee. Having been handed the prime ministership on a platter, it is touchingly public-spirited of him to show any concern for his image at all.
Singapore
No More Mr Nasty Guy
A kinder, gentler BG
Singaporean politicians are a stern and technocratic lot. Lee Kuan Yew, the country’s founding father and first prime minister, was a famously severe and hectoring leader. Goh Chok Tong, his successor, is a much friendlier fellow. That prompted many Singaporeans to write him off as a mere seat warmer for Mr Lee’s son, Hsien Loong, though Mr Goh has already lasted 13 years. Now the younger Mr Lee – universally known as BG, since he used to be a brigadier general – is indeed set to ascend to the premiership, probably in 2005. But before he does so, Mr Goh recently said, he has to learn “to let his soft side show.”
Since then, the local media have dutifully bombarded Singaporeans with proof of Mr Lee’s softness. Alongside the usual photographs of ribbon-cutting ceremonies and formal receptions, the papers have printed snaps of Mr Lee eating dinner with his children, walking arm-in-arm with his wife, and practicing the clarinet as a child. The normally sober Straits Times devoted a two-page spread to Mr Lee’s private life, highlighting his thoughtfulness (despite his busy schedule, he still finds time to advise old friends), his heroism (he once helped rescue passengers trapped in a cable car) and his humility (he uses public transport). Having described how Mr Lee broke down in tears during an interview, the paper concluded, “here is a man of deep emotion, who’s not afraid to show his feelings.”
Some impassioned pundits have even argued that Mr Lee’s warmth and humanity are so obvious that they do not need advertising. In an article entitled “Mirage of Mr Lee Hsien Loong’s Image Problem”, one columnist pointed out that Mr Lee had once shaken a fishmonger’s hand, and, unlike his father, was fond of children. Another commentator dismissed all the fuss his colleagues were making about Mr Lee’s new, fashionable red shirts, saying, “It’s not just the shirt. It’s how you wear it.”
These are unfamiliar concerns for Singapore, whose leaders are more or less immune to the swings in public opinion that plague politicians elsewhere. The prime minister is chosen by parliament, not the electorate at large. Only one party ever manages to get more than one or two candidates elected: the ruling Peoples Action Party, which has strolled easily to victory in every election since independence. When the prime minister announces his retirement, the party elders choose a successor, and then reveal him to the voters, as they recently did with the younger Lee. Having been handed the prime ministership on a platter, it is touchingly public-spirited of him to show any concern for his image at all.
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The SIA management charm offensive, directed at the pilots, has now moved into gear, to convince us that the Company is fuzzy, cuddly and pilot friendly and that we are not approaching the apocalypse – even as the management realization dawns of the visceral loathing with which the Company and the Government are held by the vast majority of both local and ex-pat SIA pilots.
The accelerating exodus from Singapore is beginning to frighten even that hardest bitten LKY ideologue, armchair general L.G. Bey, who’s famous ignorance of the air transport industry has been exemplified by his arrogant assertion that as SIA pilots now operate increasingly automated aircraft, they have less to do in flight and should therefore be paid less.
Little god will shortly have to explain to LKY why the airline has too few pilots, despite the attractive and exciting new concept of remuneration dreamt up by his master, and why, shortly, the airline will have to start parking expensive jets in the desert again.
He could always, of course, draw to the Senior Minister’s attention that maybe the ground breaking concept of low basic pay coupled with a high variable proportion of total remuneration is perhaps more attractive to the shareholders than the pilots and that a rethink might be prudent.
But as always, lackeys have faced the dangerous dilemma of pointing out reality to such similarly authoritarian but out-of-touch figures as Saddam Hussein, Slobodon Milosovitch and Kim Jong Il. Good luck little god!
The accelerating exodus from Singapore is beginning to frighten even that hardest bitten LKY ideologue, armchair general L.G. Bey, who’s famous ignorance of the air transport industry has been exemplified by his arrogant assertion that as SIA pilots now operate increasingly automated aircraft, they have less to do in flight and should therefore be paid less.
Little god will shortly have to explain to LKY why the airline has too few pilots, despite the attractive and exciting new concept of remuneration dreamt up by his master, and why, shortly, the airline will have to start parking expensive jets in the desert again.
He could always, of course, draw to the Senior Minister’s attention that maybe the ground breaking concept of low basic pay coupled with a high variable proportion of total remuneration is perhaps more attractive to the shareholders than the pilots and that a rethink might be prudent.
But as always, lackeys have faced the dangerous dilemma of pointing out reality to such similarly authoritarian but out-of-touch figures as Saddam Hussein, Slobodon Milosovitch and Kim Jong Il. Good luck little god!
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Just returned from that unhappy island, Singapore, where my SIA buddies tell me that things have never been worse. Three of them (all previously loyal, long servers) have serious applications in with CAL/Emirates and will leave regardless of what happens with the new Collective Agreement (CA) to be negotiated (if Lee Kwan Yew allows it, that is). Other acquaintances are seriously considering jumping the bond if they don’t get their “SARS confiscated” cash back and a good CA. They sound like they’re happy to see SIA in North American/European courts, where they can publicly air SIA/Government methodology and subject the “contract” to the withering scrutiny by the outside world that it has for so long needed.
The consistent message (of the ex-pats) seems to be that they signed commercially binding contracts that have constantly been dishonoured by SIA/Government and that trust in any Singapore institution has been transformed into disgust and loathing – they just want out, regardless – and they tell me that their feelings are just about universal within the airline.
Sounds like the great helmsman may be in for a squall or two!
The consistent message (of the ex-pats) seems to be that they signed commercially binding contracts that have constantly been dishonoured by SIA/Government and that trust in any Singapore institution has been transformed into disgust and loathing – they just want out, regardless – and they tell me that their feelings are just about universal within the airline.
Sounds like the great helmsman may be in for a squall or two!
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More warnings from The Mighty Leadership...
http://straitstimes.asia1.com.sg/sto...27847,00.html?
JAN 1, 2004
Economy grows by 0.8 per cent
The last quarter's 3.7% growth lifts the full-year figure for a difficult year. Harmony on labour front crucial, says PM
By Tan Tarn How
SINGAPORE'S economy grew by 0.8 per cent in 2003, within the 0.5 to 1 per cent range forecast by the Government.
Prime Minister Goh Chok Tong, who revealed the figure in his traditional New Year message to the nation yesterday, also said that the economy expanded by 3.7 per cent in the last quarter.
'The Singapore economy has started to turn around.'
Hence, he added, this year the economy should grow by 3 to 5 per cent as earlier estimated.
Looking back on 2003, he described it as 'a difficult year that will linger in our national memory' as terrorism, Sars and the Iraq war took a toll on the economy, and choked off hopes of an early recovery.
'Fortunately, the sky is brightening,' he said.
The United States, Japan and Europe are growing or starting to grow, and trade with China will increase.
The global electronics industry, an important driver of the economy, is expected to expand robustly this year. Mr Goh revealed that last year, Singapore drew in $7.5 billion of fixed asset investment commitments in manufacturing, and investments in the services sector worth $1.9 billion in annual total business spending.
These investments and other projects will create thousands of new jobs: 'They signal firm confidence in Singapore's future.'
The turnaround requires not just a favourable external environment, but also a positive domestic response, he said, adding: 'Here, we have shown group solidarity to advance our collective interests.'
More challenges and changes will arise, and Singaporeans must keep adapting.
Harmonious industrial relations in which the Government, employers and workers trust one another will be vital in meeting the challenges, he said. A strong tripartite relationship is Singapore's 'unique competitive edge, which we must do all to strengthen'.
On this issue, he singled out Singapore Airlines and the pilots' union, which is due to negotiate a new collective agreement.
'Take SIA. SIA is a metaphor for Singapore: its success, strengths, vulnerabilities and challenges mirror those of Singapore,' he said.
The carrier faced formidable challenges, from low-cost carriers to longer-range aircraft and new airports in the region.
Overcoming them will require all - from pilots to engineers, ground crew and management - to pull together. 'If pilots refuse to fly, the airline will be grounded,' he said, adding that if the crew, engineers and management also did not cooperate, SIA would flounder.
'No group of employees in Singapore should act without regard for the impact on others, or hold the company and fellow workers hostage to their narrow self-interests.
'This is especially so of skilled workers like pilots, who have benefited from heavy investments in training, and thus occupy well-paid positions in their company.'
Mr Goh concluded by saying that 2003 showed that in an unpredictable and volatile world, 'we have to stick together' to overcome uncertainties.
A younger generation of Singaporeans has shown its fighting spirit, he added. 'That is why I am upbeat about our future.'
Commenting on the growth numbers, IDEAglobal senior regional economist Nizam Idris said the growth forecast for this year is conservative, with many analysts expecting it to be at the upper end of the 3 to 5 per cent range or even exceed it.
http://straitstimes.asia1.com.sg/sto...27847,00.html?
JAN 1, 2004
Economy grows by 0.8 per cent
The last quarter's 3.7% growth lifts the full-year figure for a difficult year. Harmony on labour front crucial, says PM
By Tan Tarn How
SINGAPORE'S economy grew by 0.8 per cent in 2003, within the 0.5 to 1 per cent range forecast by the Government.
Prime Minister Goh Chok Tong, who revealed the figure in his traditional New Year message to the nation yesterday, also said that the economy expanded by 3.7 per cent in the last quarter.
'The Singapore economy has started to turn around.'
Hence, he added, this year the economy should grow by 3 to 5 per cent as earlier estimated.
Looking back on 2003, he described it as 'a difficult year that will linger in our national memory' as terrorism, Sars and the Iraq war took a toll on the economy, and choked off hopes of an early recovery.
'Fortunately, the sky is brightening,' he said.
The United States, Japan and Europe are growing or starting to grow, and trade with China will increase.
The global electronics industry, an important driver of the economy, is expected to expand robustly this year. Mr Goh revealed that last year, Singapore drew in $7.5 billion of fixed asset investment commitments in manufacturing, and investments in the services sector worth $1.9 billion in annual total business spending.
These investments and other projects will create thousands of new jobs: 'They signal firm confidence in Singapore's future.'
The turnaround requires not just a favourable external environment, but also a positive domestic response, he said, adding: 'Here, we have shown group solidarity to advance our collective interests.'
More challenges and changes will arise, and Singaporeans must keep adapting.
Harmonious industrial relations in which the Government, employers and workers trust one another will be vital in meeting the challenges, he said. A strong tripartite relationship is Singapore's 'unique competitive edge, which we must do all to strengthen'.
On this issue, he singled out Singapore Airlines and the pilots' union, which is due to negotiate a new collective agreement.
'Take SIA. SIA is a metaphor for Singapore: its success, strengths, vulnerabilities and challenges mirror those of Singapore,' he said.
The carrier faced formidable challenges, from low-cost carriers to longer-range aircraft and new airports in the region.
Overcoming them will require all - from pilots to engineers, ground crew and management - to pull together. 'If pilots refuse to fly, the airline will be grounded,' he said, adding that if the crew, engineers and management also did not cooperate, SIA would flounder.
'No group of employees in Singapore should act without regard for the impact on others, or hold the company and fellow workers hostage to their narrow self-interests.
'This is especially so of skilled workers like pilots, who have benefited from heavy investments in training, and thus occupy well-paid positions in their company.'
Mr Goh concluded by saying that 2003 showed that in an unpredictable and volatile world, 'we have to stick together' to overcome uncertainties.
A younger generation of Singaporeans has shown its fighting spirit, he added. 'That is why I am upbeat about our future.'
Commenting on the growth numbers, IDEAglobal senior regional economist Nizam Idris said the growth forecast for this year is conservative, with many analysts expecting it to be at the upper end of the 3 to 5 per cent range or even exceed it.
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Re: PM Goh, Straits Times 1 Jan 2004
“Harmonious industrial relations in which the Government, employers and workers trust one another will be vital in meeting the challenges, he said. A strong tripartite relationship is Singapore's 'unique competitive edge, which we must do all to strengthen'.”
- For which, read, “Employers and workers will do exactly as they are told by government and trust be damned, it’s fear that will ensure the ‘unique competitive edge’ (gospel according to Saint Harry).”
“A younger generation of Singaporeans has shown its fighting spirit, he added. 'That is why I am upbeat about our future'.”
- Which fighting spirit would this be? The handful of lads in the patrol boat, off Basra harbour, as reported in the same edition of the ST ( http://straitstimes.asia1.com.sg/sin...27904,00.html? )?
“Harmonious industrial relations in which the Government, employers and workers trust one another will be vital in meeting the challenges, he said. A strong tripartite relationship is Singapore's 'unique competitive edge, which we must do all to strengthen'.”
- For which, read, “Employers and workers will do exactly as they are told by government and trust be damned, it’s fear that will ensure the ‘unique competitive edge’ (gospel according to Saint Harry).”
“A younger generation of Singaporeans has shown its fighting spirit, he added. 'That is why I am upbeat about our future'.”
- Which fighting spirit would this be? The handful of lads in the patrol boat, off Basra harbour, as reported in the same edition of the ST ( http://straitstimes.asia1.com.sg/sin...27904,00.html? )?
Last edited by highcirrus; 1st Jan 2004 at 16:49.
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Geez...based on the last few postings ,it doesn't seem like SQ is creating a very user friendly place to work <bfg>.It sounds like it is going from bad to wrose. Maybe all of the people unhappy are posting things and are lined up. Is there an opposing viewpoint at SQ? Really?
It doesn't sound like SQ is a place where they hold Christmas parties and friendly employee gatherings. Never worked there,so sure isn't a rosy picture if one even believes HALF of what they read.
It doesn't sound like SQ is a place where they hold Christmas parties and friendly employee gatherings. Never worked there,so sure isn't a rosy picture if one even believes HALF of what they read.
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Straits Times, 3 Jan 2004
http://straitstimes.asia1.com.sg/sin...28160,00.html?
• UNIONS AND SIA
CHANGE may be in the air for Singapore Airlines' five unions, as there are hints that the unions may be reorganised, at least in the way wage negotiations are conducted.
Labour chief Lim Boon Heng said as much when he told The Straits Times recently that SIA should settle common issues with all five unions at one go, rather than one at a time.
This follows the controversy sparked by the ouster of the pilots' union's executive council last November, which drew flak from several ministers, including Senior Minister Lee Kuan Yew.
The Government's fear is that the pilots' union, through its actions, will exert pressure on the other unions to act in a confrontational way.
It is also tightening the law to remove union members' right to have the final say in any negotiations with the management.
The bottom line: It will not countenance a union making moves that will jeopardise the airline's future.
It remains to be seen if the SIA management and the new team of leaders in the pilots' union will heal their rifts.
http://straitstimes.asia1.com.sg/sin...28160,00.html?
• UNIONS AND SIA
CHANGE may be in the air for Singapore Airlines' five unions, as there are hints that the unions may be reorganised, at least in the way wage negotiations are conducted.
Labour chief Lim Boon Heng said as much when he told The Straits Times recently that SIA should settle common issues with all five unions at one go, rather than one at a time.
This follows the controversy sparked by the ouster of the pilots' union's executive council last November, which drew flak from several ministers, including Senior Minister Lee Kuan Yew.
The Government's fear is that the pilots' union, through its actions, will exert pressure on the other unions to act in a confrontational way.
It is also tightening the law to remove union members' right to have the final say in any negotiations with the management.
The bottom line: It will not countenance a union making moves that will jeopardise the airline's future.
It remains to be seen if the SIA management and the new team of leaders in the pilots' union will heal their rifts.
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Rumours go that the Silkair pilots got "suddenly" a substantial
increase in their flight allowances, as many left the company.
Is this true , or is it just a proposal by management ?
gb
increase in their flight allowances, as many left the company.
Is this true , or is it just a proposal by management ?
gb