SIA unions must follow NWC guidelines: SM Lee
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Tuesday April 6, 2:17 PM
SIA unions must follow NWC guidelines: SM Lee
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SINGAPORE: Senior Minister Lee Kuan Yew says the Government will recommend that unions in Singapore Airlines follow national guidelines on wages, if they fail to agree with management on their wage deals.
In a meeting with SIA unions and management at the Istana, SM Lee made it clear that the company is in for a rough ride if they do not work together.
SIA unions and management met the Senior Minister for about one and a half hours on Monday.
He also had tourism and airport officials explain what they're doing to boost traffic at the Changi airport.
And SM Lee made it clear he would rather sacrifice SIA than allow Changi to fail as an air hub.
So unions and management have to get their act together and work out their differences over wages and benefits, he said.
He also told them, in no uncertain terms, that the Government will stand by the guidelines set out by the National Wages Council and that the NWC proposals are in the national interest.
"I'm spelling out clearly that if you can't reach agreement on what has been agreed - tripartite and NWC - just send it to arbitration. The minister and prime minister will stand up and say these are NWC guidelines in the national interest. And whoever is the chairman of the arbitration board will have to take that into account," SM Lee said.
SIA and its unions are in the process of negotiating new collective agreements.
One of the major obstacles is the issue of a more flexible wage structure.
Under NWC guidelines, a higher proportion of wages should be made flexible so companies can respond more quickly during times of business downturns.
SIA also wants to narrow its salary maximum-minimum ratios and shift towards a co-payment of medical and dental expenses.
SM Lee pointed out the changes are needed to maintain SIA's competitive edge and long-term survival.
On the co-payment of medical and dental expenses, SM Lee said: "I am a government pensioner, so I am entitled to free medical services. But because I am a present minister, I pay like everybody else. I have to set the example."
SM Lee also touched on some of the challenges facing SIA, among them, the possibility of outsourcing some services.
To face the challenges, SM Lee urged the unionists not to take an ostrich view of things but the bigger picture.
One possibility being looked at is for the Singapore Airport Terminal Services (SATS) to become separate from SIA.
SM Lee said: "I know it is difficult for people like you who have worked in SIA and joined SATS as part of SIA to consider in six to 18 months that you are going to be floated off as a separate company. But that is inevitable, because, as you can see, major airlines worldwide are outsourcing."
SM Lee added that to reduce friction during talks, there must be trust between employer and employee and between union and management.
"Going forward we can succeed only if SIA management changes its style, takes you into confidence, like how we take our government unions into confidence. Each company will have to open its books and that trust can be established. Will you work to that trust?"
"Of course," came the reply.
"I think the pressure is not just on the unions. The pressure is on the management too. I think that has been made abundantly clear that we within the SIA family will have to work together on this, so that we can stand united and face up to the challenges that we have in the fast-changing, very competitive landscape," SIA CEO Chew Choon Seng told reporters, after the meeting.
"In terms of Collective Agreements, it takes two hands to clap. The company is very proactive in this regard and we are talking to one another. That is the first step. They understand our needs and we can move from there," said Mok Hin Choon, president of Airline Pilots' Union.
SM Lee would meet the unionist and management of SIA in six months' time to take stock of their progress in discussions. - CNA -
so, is the next guideline, all sg pilots must have at least 3 kids?
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SIA is going to hav a tough time when politics steps in...
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sgboy2004, the Good Boi
Croco Corner
Croco Movie -
If the pilot unite,this things will not happen! By the way,they r consider the elite and their skill and talent is sought everywhere.
What if they unite and protest and all stop working. What will happened? SM Lee sacked all the pilots in the protest and who will find all these replacements in a short time and who will fly the airplane? SIA went bankrupty immediately! SM Lee revoked all the pilot citizenships? Never mind,as i say pilot is the elite and they can go USA ,Australia....
If the pliot all unite and threaten to stop flying! SM Lee also lan lan!
The SIA will not come into this stage! Remember SIA just announce a $600 million profit and now they r talking abt wage cut and asking one SIA personnel to handle more tasks without a slice increase in their pay? This is called 'Exploit' and not abt the better future,saving more job and giving more competitive edge for SIA!
A lot of MNC r learining from SIA experience with gov support. Earn big bucks,announce the their profit so their share will rise! At the same time cut wages and give a lot excuse of future competitive and uncertainnities so that no need give bonus! -
Originally posted by zenden9:If the pilot unite,this things will not happen! By the way,they r consider the elite and their skill and talent is sought everywhere.
What if they unite and protest and all stop working. What will happened? SM Lee sacked all the pilots in the protest and who will find all these replacements in a short time and who will fly the airplane? SIA went bankrupty immediately! SM Lee revoked all the pilot citizenships? Never mind,as i say pilot is the elite and they can go USA ,Australia....
If the pliot all unite and threaten to stop flying! SM Lee also lan lan!
The SIA will not come into this stage! Remember SIA just announce a $600 million profit and now they r talking abt wage cut and asking one SIA personnel to handle more tasks without a slice increase in their pay? This is called 'Exploit' and not abt the better future,saving more job and giving more competitive edge for SIA!
A lot of MNC r learining from SIA experience with gov support. Earn big bucks,announce the their profit so their share will rise! At the same time cut wages and give a lot excuse of future competitive and uncertainnities so that no need give bonus!
There is more than meets the eye.
The fact that SM lee stepped into this SIA issue already means that he is fed up 100% on how the management is working.
I don't know about that quote regarding sacrificing SIA rather than CHangi. I hope the situation doesn't deteroriate till that step. It's sad.
$600 million profits? Dude, I don't even know if I should classify that amount as little or a lot, relatively.
Remember SARS? It was reported that SIA wouldn't last 9 months with the financial standing they are in.
9 months. And how many years have they been earning profits? -
Another thing to add.
The fact that SM lee wants them to go to arbitration immediately also shows that he's fed up 100% x2. -
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Originally posted by sgboy2004: Nay. There ain't no iron fist.
I would really want to know what SM Lee "wants to do". -
In the past exploit to get profit.Now present,exploit more to get more profit!Originally posted by Parka: Nay. There ain't no iron fist.
I would really want to know what SM Lee "wants to do". -
the problem is that companies do not have a habit of keeping profits. when times are good, all these money is spent on executive bonuses and shareholder dividends.Originally posted by Parka:$600 million profits? Dude, I don't even know if I should classify that amount as little or a lot, relatively.
Remember SARS? It was reported that SIA wouldn't last 9 months with the financial standing they are in.
9 months. And how many years have they been earning profits? -
R u sure? They don't keep some profit for future development and management?Originally posted by nismoS132:the problem is that companies do not have a habit of keeping profits. when times are good, all these money is spent on executive bonuses and shareholder dividends. -
Originally posted by zenden9:R u sure? They don't keep some profit for future development and management? They just keep enough for future developments and a little bit for rainy days.
That's all.
Surprised? -
I'm not suprised! It may not be the true fact. No proof to show they have a little reserve! The top level may be keeping some money for their own purpose like the SIA man who cheated $35 million for his mistress and mercedes
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Originally posted by zenden9:I'm not suprised! It may not be the true fact. No proof to show they have a little reserve! The top level may be keeping some money for their own purpose like the SIA man who cheated $35 million for his mistress and mercedes They can't keep money for themselves, dude. The company is an entity by itself. That keeping money for their own purpose is called misappropriation or embezzlement. And that's illegal.
Now, since SIA have been making hundreds or millions of profits every year for so many years, where do you think their profits go to? -
Ha Ha! The top management embezzle the money in the legal way.Originally posted by Parka: They can't keep money for themselves, dude. The company is an entity by itself. That keeping money for their own purpose is called misappropriation or embezzlement. And that's illegal.
Now, since SIA have been making hundreds or millions of profits every year for so many years, where do you think their profits go to?
The one who cheated $35 million is only a small fry. So the million of dollars go into the top management pocket!