SIA crew offered voluntary early retirement with benefits

Highlights  – SIA crew

·  The international air travel was massively hit by the coronavirus pandemic

·  The new scheme is adopted to further cut costs

·  Retirees will further benefit with pay-outs and other aids

In an effort to tackle the impact of the Covid-19 outbreak, National carrier Singapore Airlines (SIA) is offering its crew members a voluntary early retirement for ground staff and pilot. 

The new scheme was proposed considering the consequences of the pandemic wall as a “slower projected recovery trajectory in international air travel”.

The Airlines have suffered a record loss of $1.1 billion in Q1. The new scheme will hopefully mitigate the business impact of Covid -19.

Employees will be benefitted

The latest notice was sent out by the airlines to the employees on Wednesday. The terms and conditions under the new scheme were inclusively taken by the SIA and the Singapore Airlines Staff Union.

The notice said that the crew members who comprehend the new scheme will be awarded with varied benefits based on their employment status and contract with the company. 

The employees who are still serving their bonds as of 1st August will not have to pay any outstanding bond or in-loans to get approval of their application of early retirement.

The apprentices and trainees will receive one-month basic salary. The full-time crew members will be awarded with three months pay. 

The crew members with last year of service will receive pro-grated gratuity between S$4000 AND S$20,000 depending on their rank. They need not complete their contract.

Mitigating the losses

SIA had taken several measures to cope with the losses. It has asked more than 22% of its employees to take leave without pay to help deal with the crisis. It has also reduced the payments of the staff by 10 per cent, with senior vice presidents cut down by 30 per cent. 

This is the latest of the company’s strategy to alleviate the impoverishment.

A hard-hit industry

The coronavirus pandemic has caused a wreaking havoc across the global aviation industry. The impact is fluid and is evolving by the minute.

So far nearly 400,000 airline workers have lost their jobs due to Covid-19. Airlines all around the world are cutting down flights due to restrictions in travelling and the reduced demand.

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