Singapore Airlines 2005 Annual Report Download - page 24

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22 SIA Annual Report 04/05
Operating Review
OUR PEOPLE
Several measures in the people area
were implemented to help the
Company face an increasingly
competitive environment.
Agreements were reached with the
unions to restructure the wage system
in line with the recommendations of
the Tripartite Committee on Wage
Reform. These included paying a higher
proportion of wages as variable
components and narrowing the ratio
between the minimum and maximum
of salary ranges. In turn, staff were
rewarded with a lump-sum incentive
payment and profit sharing bonus
linked to the Company’s performance.
A medical co-payment scheme was
also agreed to and implemented from
January 2005.
A number of functions across the
Group were rationalised, which had an
impact on staff numbers. The Company
outsourced its IT infrastructure services
to IBM. As part of this outsourcing, IBM
offered all affected staff employment
on comparable terms. Notwithstanding,
some staff elected not to accept the
offer and left the Group.
As a consequence of technology
changes and outsourcing of some
processing functions in the Revenue
Accounting areas, a number of
positions were made redundant.
While these decisions were difficult
ones, they were made only after
careful consideration. Altogether 95
staff were released and another 101
accepted positions with IBM.
Amid these changes, staff
maintained their spirit of generosity
and volunteerism. In the wake of the
Indian Ocean tsunami tragedy, staff
individually and collectively contributed
time, effort and money to help the