<TABLE border=0 cellSpacing=0 cellPadding=0 width="100%"><TBODY><TR>SIA Engineering to cut wages of management
</TR><!-- headline one : end --><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Linette Lai
</TD></TR><!-- show image if available --><TR vAlign=bottom><TD width=330>
</TD><TD width=10>
</TD><TD vAlign=bottom>
Mr William Tan, chief executive of SIAEC, will be taking a 20 per cent pay cut from June 1 as part of cost-cutting measures.
</TD></TR></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->SIA Engineering (SIAEC), the aircraft maintenance arm of Singapore Airlines (SIA), announced yesterday that it is slashing the wages of management staff to reduce costs.
The wage cuts, which take effect from June 1, will affect 89 management staff. Chief executive William Tan will take a 20 per cent pay cut, while other senior management staff will receive pay cuts ranging from 10 per cent to 14 per cent.
This is despite SIAEC posting a fourth-quarter profit of $65.5 million two weeks ago, up 18.7 per cent from $55.2 million a year earlier.
According to SIAEC, the pay reduction will help the company save about $340,000 each quarter.
Negotiations are under way with the relevant unions on how to manage excess manpower levels.
The statement it released did not elaborate on whether this might involve job cuts or reduced working hours, for instance.
SIAEC's board of directors has agreed to waive 20 per cent of the fees payable for the financial year 2008-2009 in support of the wage cuts and other cost-saving measures that the company has put in place.
Earlier this month, the weak business environment resulted in SIA introducing a shorter work month scheme for all its staff due to its excess manpower.
Under the scheme, SIA staff - including pilots - have to take one day of compulsory leave a month.
SIA also has plans to cut capacity by 11 per cent and park 17 planes over the 12 months beginning April 1.
SIAEC is not the only company to have implemented wage cuts in the face of daunting economic conditions.
For instance, shipping giant Neptune Orient Lines' board of directors and CEO also received pay cuts to improve the firm's cost savings, with CEO Ron Widdows voluntarily agreeing to take a 20 per cent reduction in his salary. Contract electronics manufacturer Venture Corporation also implemented pay cuts of 10 per cent to 20 per cent for senior and middle management in February, while Singapore Press Holdings' staff saw wage cuts of 2 per cent to 10 per cent in March.
</TR><!-- headline one : end --><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Linette Lai
</TD></TR><!-- show image if available --><TR vAlign=bottom><TD width=330>
</TD><TD width=10>
Mr William Tan, chief executive of SIAEC, will be taking a 20 per cent pay cut from June 1 as part of cost-cutting measures.
</TD></TR></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->SIA Engineering (SIAEC), the aircraft maintenance arm of Singapore Airlines (SIA), announced yesterday that it is slashing the wages of management staff to reduce costs.
The wage cuts, which take effect from June 1, will affect 89 management staff. Chief executive William Tan will take a 20 per cent pay cut, while other senior management staff will receive pay cuts ranging from 10 per cent to 14 per cent.
This is despite SIAEC posting a fourth-quarter profit of $65.5 million two weeks ago, up 18.7 per cent from $55.2 million a year earlier.
According to SIAEC, the pay reduction will help the company save about $340,000 each quarter.
Negotiations are under way with the relevant unions on how to manage excess manpower levels.
The statement it released did not elaborate on whether this might involve job cuts or reduced working hours, for instance.
SIAEC's board of directors has agreed to waive 20 per cent of the fees payable for the financial year 2008-2009 in support of the wage cuts and other cost-saving measures that the company has put in place.
Earlier this month, the weak business environment resulted in SIA introducing a shorter work month scheme for all its staff due to its excess manpower.
Under the scheme, SIA staff - including pilots - have to take one day of compulsory leave a month.
SIA also has plans to cut capacity by 11 per cent and park 17 planes over the 12 months beginning April 1.
SIAEC is not the only company to have implemented wage cuts in the face of daunting economic conditions.
For instance, shipping giant Neptune Orient Lines' board of directors and CEO also received pay cuts to improve the firm's cost savings, with CEO Ron Widdows voluntarily agreeing to take a 20 per cent reduction in his salary. Contract electronics manufacturer Venture Corporation also implemented pay cuts of 10 per cent to 20 per cent for senior and middle management in February, while Singapore Press Holdings' staff saw wage cuts of 2 per cent to 10 per cent in March.
