Singapore Government Press Release
Media Relations Division, Ministry of Information, Communications and the Arts,
MITA Building, 140 Hill Street, 2nd Storey, Singapore 179369
Tel: 6837-9666

 

MINISTRY OF MANPOWER 

30 JUNE 2003

PRESS RELEASE

 

IN PRINCIPLE AGREEMENT MEDIATED BY MOM REACHED BETWEEN SINGAPORE AIRLINES LTD (SIA) AND THE AIR LINE PILOTS ASSOCIATION SINGAPORE (ALPA-S)

SIA and ALPA-S have signed an In-principle Agreement on terms related to wage cuts, no-pay leave and compensation payment, after further mediation by the Ministry of Manpower (MOM). The points of agreement reached on 27 June 2003 between SIA and ALPA-S is attached. SIA and ALPA-S today jointly applied for an adjournment of the hearing before the Industrial Arbitration Court (IAC).

The adjournment is to allow disputing parties to finalise details of the agreement. In addition, ALPA-S will also seek ratification for the agreement by the general union membership through an Extraordinary General Meeting. Such ratification is required under the existing constitution of ALPA-S for the agreement to be valid.

The Ministry of Manpower helped the two parties to finalise the points of agreement and to work out a negotiated settlement to implement cost-cutting measures even though earlier efforts to broker a deal had failed and SIA had referred the dispute to the IAC. In fixing the hearing date for 30 June 2003, the IAC had suggested to both parties to consider further conciliation efforts by MOM, for which both parties agreed.

--------------------------------------- 

IN-PRINCIPLE AGREEMENT BETWEEN SINGAPORE AIRLINES LIMITED AND AIR LINE PILOTS ASSOCIATION SINGAPORE (ALPA-S) ON WAGE REDUCTION MEASURES

1 This In-Principle Agreement on wage reduction measures is made on 27 June 2003 and it shall be effective until 31 March 2004.

2 Without prejudice to Clauses 37, 38, 39 and 62 of the Agreement between Singapore Airlines and Air Line Pilots Association Singapore dated 28 May 2001, the following points of agreement have been reached between Singapore Airlines Limited (Company) and Air Line Pilots Association Singapore (ALPA-S) on 27 June 2003 after mediation by MOM:-

(a) the Company shall implement a basic wage cut of 16.5% in respect of Captains, and 11% in respect of First Officers, to be effective from 1 July 2003 until 31 March 2004. For the purpose of this Agreement, "basic wage" means Basic Salary, and where applicable, NWC, bypass pay, National Service Allowance and Personal Allowance;

(b) the Company shall implement No-Pay Leave of up to 2 days per month for all pilots with effect from 1 July 2003 until 31 March 2004;

(c) the Company shall implement a make-up lump sum payment scheme based on the audited Group Profit After Tax, after minority interests (GPAT) for each financial year commencing from FY2003/04, to be applicable to all pilots employed by the Company on a personal-to-holder basis in accordance with the following formula:

Group Profit After Tax (GPAT)

Quantum of Make-Up Lump Sum Payment for each Financial Year

$200 million

25% of wage cuts

$300 million

50% of wage cuts

$400 million

75% of wage cuts

$500 million

100% of wage cuts

$600 million

115% of wage cuts

 

(d) with reference to point (c), where the GPAT falls between the levels shown in the formula therein, the make-up lump sum payment shall be pro-rated in accordance with the principles adopted in the Agreement on Service Increment and Profit Sharing Formula made on 30 January 2002 between Singapore Airlines Limited and ALPA-S;

(e) the Company and ALPA-S shall as soon as possible commence negotiations and use their best endeavours to reach agreement on a new Collective Agreement before the expiry of the current Collective Agreement on 14 December 2003. The Company and the Association shall have regard to the "NWC Guidelines 2003/04" on wage restructuring when negotiating the new Collective Agreement; and

(f) if the negotiations for the new Collective Agreement are not concluded and a new Collective Agreement does not come into effect on or before 31 March 2004, subject to both parties having used their best endeavours to reach agreement on the new Collective Agreement, the basic wage cuts stated in point (a) shall continue to be implemented until a new Collective Agreement is effective.

Dated this 27th day of June 2003

 

Signed for and on behalf of

SINGAPORE AIRLINES LTD

Signed for and on behalf of

AIR LINE PILOTS ASSOCIATION SINGAPORE

 

 

_____________________

Loh Meng See

Senior Vice President, Human Resources

 

 

_____________________

Capt Sutharsanan

Honorary Secretary

In the presence of:

  

_____________________

Ong Yen Her

Director, Labour Relations

Ministry of Manpower