SIA Bonding Cancelled?
Thread Starter
Join Date: May 2003
Location: Vietnam
Posts: 32
Likes: 0
Received 0 Likes
on
0 Posts
SIA Bonding Cancelled?
With reference to SIA's proposed cuts in pilots salaries and flying hours (and therefore further reduction in take home pay) am I the only person who is wondering about the implications for pilots training bonds?
When a pilot accepts a training bond he has to satisfy himself that he can expect to work for the employer for the period of the bond under the pay and conditions that are specified in his contract. He implicitly accepts that the rewards gained as a result of undergoing the training adequately compensate for the financial liability that he is undertaking. Included in the assessment of risk will be his potential to pay off the bond in the event that circumstances change and continuing with the employer becomes financially impossible.
It cannot be reasonable for an employer that bonds employees for a sum much higher than the industry average, and in many cases for a longer period, to seek to recover short term losses from the pockets of it's staff to the tune of 30% plus of take home pay! When the employer is self-proclaimedly one of the world's most profitable airlines with a history of large profits and never a loss, the short term attitude and extent of the proposed cuts amounts to bullying of those who do not have the option to go elsewhere.
The present agreement between the pilots and SIA states clearly that neither side can propose any alteration to the present agreement. (This no doubt suited the Company at the time as it meant pay was fixed for three years when profits were running high!)
The position is thus clear. The cost of the pilots to SIA is automatically reduced by virtue of the pay and allowances system as it stands, less flying = less pay. That is why it is designed that way. Any alterations are a matter for the negotiations for the next agreement which are due to start soon for implimentation in December. Last time the Company were happy for these to drag on for two years as the pilots were in need of an increase. Will they be happy for them to drag on this time when the Company is seeking a decrease?
In the mean time SIA will no doubt announce that all pilots are released from their training bonds and free to seek employment elsewhere. This will serve the double purpose of reducing over manning and reducing complaints from those who choose to stay. (don't hold your breath!)
Major companies around the world have to deal with the fluctuations in market conditions. Yes, these are exceptional conditions but SIA is an exceptional Company with excellent recovery potential (which is why is does not want to loose pilots).
It is time they took a broader view and stopped this short term, bottom line attack on the livelyhoods of their employees who are largely responsible for their success before and after SARS!
When a pilot accepts a training bond he has to satisfy himself that he can expect to work for the employer for the period of the bond under the pay and conditions that are specified in his contract. He implicitly accepts that the rewards gained as a result of undergoing the training adequately compensate for the financial liability that he is undertaking. Included in the assessment of risk will be his potential to pay off the bond in the event that circumstances change and continuing with the employer becomes financially impossible.
It cannot be reasonable for an employer that bonds employees for a sum much higher than the industry average, and in many cases for a longer period, to seek to recover short term losses from the pockets of it's staff to the tune of 30% plus of take home pay! When the employer is self-proclaimedly one of the world's most profitable airlines with a history of large profits and never a loss, the short term attitude and extent of the proposed cuts amounts to bullying of those who do not have the option to go elsewhere.
The present agreement between the pilots and SIA states clearly that neither side can propose any alteration to the present agreement. (This no doubt suited the Company at the time as it meant pay was fixed for three years when profits were running high!)
The position is thus clear. The cost of the pilots to SIA is automatically reduced by virtue of the pay and allowances system as it stands, less flying = less pay. That is why it is designed that way. Any alterations are a matter for the negotiations for the next agreement which are due to start soon for implimentation in December. Last time the Company were happy for these to drag on for two years as the pilots were in need of an increase. Will they be happy for them to drag on this time when the Company is seeking a decrease?
In the mean time SIA will no doubt announce that all pilots are released from their training bonds and free to seek employment elsewhere. This will serve the double purpose of reducing over manning and reducing complaints from those who choose to stay. (don't hold your breath!)
Major companies around the world have to deal with the fluctuations in market conditions. Yes, these are exceptional conditions but SIA is an exceptional Company with excellent recovery potential (which is why is does not want to loose pilots).
It is time they took a broader view and stopped this short term, bottom line attack on the livelyhoods of their employees who are largely responsible for their success before and after SARS!
Last edited by wotwazat; 27th May 2003 at 17:05.
Join Date: Aug 2000
Location: Belgium
Posts: 65
Likes: 0
Received 0 Likes
on
0 Posts
Although I agree in principle with your very well written article, I have to say that the present circumstances are far from normal and need some "abnormal" interference. I just came back from a ride along Changi Airport and saw the long line of parked 747's . It is a sobering view. So far SARS has not only created havoc in the Asian Aviation Industry, it also creates strong labour disputes in the cockpit, and the next victim could be the safety and CRM in the flightdeck itself!!
Thread Starter
Join Date: May 2003
Location: Vietnam
Posts: 32
Likes: 0
Received 0 Likes
on
0 Posts
Thanks JB
Yes, the situation cannot be ignored and there is a need for measures to address the problem. Unfortunately SIA would appear to want their cake and eat it too. As we witnessed following 911, concessions from staff in difficult times are one way. When staff agreed to a pay reduction of up to 7% to "reduce losses and avoid retrenchment" they did not expect it to be used to increase a very reasonable profit for that year! Many staff may feel it would be acceptable to make some concessions if they felt that those concessions would be made up in more profitable times. Previous history, and the fact that even now the Company is not interested in any deal that is short term or re-fundable colour their view somewhat.
Yes, the situation cannot be ignored and there is a need for measures to address the problem. Unfortunately SIA would appear to want their cake and eat it too. As we witnessed following 911, concessions from staff in difficult times are one way. When staff agreed to a pay reduction of up to 7% to "reduce losses and avoid retrenchment" they did not expect it to be used to increase a very reasonable profit for that year! Many staff may feel it would be acceptable to make some concessions if they felt that those concessions would be made up in more profitable times. Previous history, and the fact that even now the Company is not interested in any deal that is short term or re-fundable colour their view somewhat.
Wotwazat -very well written epistle and no, I doubt strongly if you are the only one concerned about the training bond. I would say there must be over 150+ or so, who have S$47 000 in a bond, thinking - "with a 25% paycut or more, even with a cut back in all luxuries I will not come out even" Thats just to break even - before sending one $ into a saving account - and god help those who have children at the international schools.
I would be very very surprised if they let anyone out of thier bond even if you prove that you are going bankrupt.
I would be very very surprised if they let anyone out of thier bond even if you prove that you are going bankrupt.
Join Date: Aug 2000
Location: Belgium
Posts: 65
Likes: 0
Received 0 Likes
on
0 Posts
It seems that the Pilot's bashing that has gone on for the last few weeks, and has increased in severity the last few days with the politicians getting involved, is having a positive effect on the standing of the pilots in this dispute. The tone in the local papers, which are nothing else than the governements mouthpiece, is changing somewhat and a more balanced view is put foreward. Perhaps some of the reporters start to realise that untill now it has been a one sighted presentation of facts and that the pilots have been shortchanged in explaining their side of the story. But there is an old saying that a builder friend of my always used " It has to get worse before it gets better". It is very obvious that it will get much worse here, and we even don't know if it will get better.
Join Date: Apr 2003
Location: Hamilton
Age: 50
Posts: 117
Likes: 0
Received 0 Likes
on
0 Posts
The Matrix
Not even the matrix will allow bonding to be cancelled,
Just because "bad" management.
They will evoke the bond and money will be paid to SQ.
Sorry fellas...
Think the answer lies the MATRIX Revolution
Just because "bad" management.
They will evoke the bond and money will be paid to SQ.
Sorry fellas...
Think the answer lies the MATRIX Revolution
Thread Starter
Join Date: May 2003
Location: Vietnam
Posts: 32
Likes: 0
Received 0 Likes
on
0 Posts
Pleased to hear that the bonding issue has been partially addressed. Details are "confidential" but those that need to will be aware of the revised arrangements. Some progress at least.
