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
