SIA implements shorter work month, wage freeze

Singapore - In an effort to weather the recession, Singapore Airlines (SIA) has announced a wage freeze and shorter work month for all management level employees.

Its senior management staff will be required to clear one day of leave each month starting 1 April with lower level managers to follow suit on 1 May.

A wage freeze will also be implemented for all 14,600 employees during the financial year from 1 April.

The national carrier has reached in-principle agreements with the Singapore Airlines Staff Union and the Airline Executive Staff Union for shorter work months.

SIA said these measures are necessary to address excess staffing capacity and reduced levels of activity arising from its capacity reduction of 11% over the next 12 months.

In February, SIA cargo volumes declined by 16.9% to just below 80 million kg, with SIA filling 56.7% of available freight space.

SIA spokesman Stephen Foreshaw said "[this] will certainly help meet the projected reduction in staffing levels required".

The airline is also currently in discussions with its pilots and cannot rule out further cost cutting measures if the economic downturn and travel slump worsens.

1 April was the deadline for employees to apply for unpaid leave of between one week and two years. The company has since approved 1,405 applications for voluntary no-pay leave.