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In Principle Agreement Between SIA and ALPA-S
Posted on Monday, June 30, 2003 - 05:38 PM

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 below:

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 ofSINGAPORE AIRLINES LTD

_____________________Loh Meng SeeSenior Vice President, Human Resources

Signed for and on behalf of AIR LINE PILOTS ASSOCIATION SINGAPORE

_____________________ Capt Sutharsanan
Honorary Secretary

In the presence of:

_____________________
Ong Yen Her Director, Labour Relations Ministry of Manpower

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