SIA to "slash" wages
 

With yesterdays worse than expected "slump" in revenue by 88%, SIA are to follow through their managerial salary cuts to their troops on the front line, namely the pilots.The company blame the downturn, but dont forget that load factors have never recovered since plummeting after last years 747 tragedy.

As in the previous downturn, CPF(Retirement Savings) contributions by the company will be reduced to 5% of basic or maybe further.

For new inmates, be aware that part of your wage is of a flexible nature. The term "market adjustment allowance" is variable, and can go up or down depending on overall market conditions.My expectation is that the market adjustment allowance will be abolished, as well as a reduction by 50-80% of the company's contribution to workers provident funds.

But hey, wait a minute, greedy SIA still made US$80 million for the last six months, looks like Dr Cheong has finally had a hair job to boot, and an 88% loss? Isnt 88 a lucky number for the Chinese, meaning prosperity? Me smells a rat in the creative accounting division. Looks like the boys at ALPA-S will be giving away the last 2 years of negotiations soonish. Voluntary contributions by pilots to the companys bottom line?!

Sniffer - Most of what you say probably 100% correct but have to disagree about the load factors/accident etc. By the time it got to working out last years bonus to staff the load factors were better than the previous year. The accident happened in October and was followed by Christmas, New Year and Chinese New Year. There was a drop on the TPE-LAXvv route for a short while but even that route soon recovered.

As per normal, when it comes to deduction, the management is "quick-draw-McGraw".

They were never too happy to dish out the current pay package to start with, only yielding when it seems, at that time, those lovely new 777 will be sitting idle with no one to fly them.

Now, with the demise of AN, the pilot shortage has been solved and with the calculator punching guys and gals working overtime, it is time to fat-trim.

And guess what? The employees' pay is the winner in the category again.

What really gets me mad is that should SQ not get burnt as bad as expected, there is absolutely no guarantee that this deduction will be restored. We are essentially giving up something for nothing, for no reason.

The only reason that comes to mind is : so that the financial year will show a profit and the managers will pat themselves at the back and reward themselves with ultra "performance" bonus package, many months of salary bonuses and big lots of share options at very low prices.

Then the baldy and the crooked-eye will retire into the sunset and while leaving their succesor with a big powder-keg.