The Airline Pilots Association of Singapore sacked its leaders in November for caving to wage cuts and layoffs imposed by the airline - the government owns 56 percent of the airline. The government is concerned that a dispute involving the pilots' union could spread to other labour unions while unemployment hovers at 17-year highs.
Singapore Prime Minister Goh Chok Tong warned pilots at flag carrier Singapore Airlines Ltd on Wednesday that the airline would be grounded if they went on strike.
The comment comes as state-controlled Singapore Airlines, traditionally one of the world's most profitable airlines, was preparing to negotiate a new wage structure with newly appointed leaders of a pilot union.
"If the pilots refuse to fly, the airline will be grounded," Prime Minister Goh Chok Tong said in his annual New Year message.
The government has repeatedly criticised the Airline Pilots Association of Singapore after the union sacked its leaders in November for caving to wage cuts and layoffs imposed by the airline following a SARS crisis that hammered revenue in spring.
The pilot union has elected new leadership and the government, which owns 56 percent of the airline, is amending its Trade Unions Act so union executives would not need approval from their members to negotiate and sign collective agreements.
"No group of employees in Singapore should act without regard for the impact on others, or hold the company and fellow workers hostage to their narrow self-interests," he added.
"This is especially so of skilled workers like pilots, who have benefited from heavy investments in training, and thus occupy well-paid positions in their company," Goh said.
The government is worried that low cost carriers and longer-range aircraft such as Airbus A340-500 planes could reduce the city-state's role as a key regional aviation centre and threaten Singapore Air's leading position in the region.
Officials have also been concerned that a dispute involving the pilots' union -- historically Singapore's most independent trade union -- could spread to other labour unions while unemployment hovers at 17-year highs.
The government hopes to avoid a repeat of 1980, when industrial action by pilots disrupted several flights in a month on high profile routes after a collapse in talks over higher salaries and benefits.
Singapore's leaders have said "confrontational industrial relations" are a threat in a country where the government, employers and unions traditionally have cooperated closely and where industrial action is rare.
After the SARS outbreak, the carrier cut wages, slashed capacity by a third, and axed nearly 600 staff, the largest lay-offs in its 56-year history.
It suffered an unprecedented June quarter net loss of S$312 million ($183 million) but posted a net profit of S$305.8 million in the three months to September, as numbers recovered and the savings from the cost-cutting took effect.
The profit was up 3.6 percent from the same quarter last year.
The airline's stock price ended the year up 9.8 percent at S$11.20 on Wednesday, underperforming the benchmark Straits Times Index , which rose 31.6 percent.
Air freight, airport terminal services and hotels generate revenue of S$8 billion, contributing some 5.5 percent to its gross domestic product in 1999.
Sources and Relevant Links:
Reuters Singapore PM warns pilots against labour action 31 December 2003
Think Centre S'pore: Govt to amend trade unions act in knee jerk reaction against the Pilots Union 01 December 2003
Think Centre Who is confrontational?
Think Centre Industrial peace must be achieved with justice!
