SATS, the chief ground-handling and in-flight catering service provider at Changi Airport, has implemented measures to cut cost and save jobs amid the "sharp reductions in passengers and flights across Asia" brought about by the Covid-19 outbreak.

Asked older employees to volunteer to retire

According to a memo (titled Save Costs in Order to Save Jobs) that was sent to all staff by the office of SATS's President and Chief Executive Officer (CEO) Alex Hungate, the company has implemented three different measures.

First, the SATS management team -- Vice Presidents and above -- will take a 10 per cent pay cut.

Second, the company is making arrangements for employees to go on voluntary unpaid leave.

"For those who have not been able to spend time with their family, or simply want to take a break from work, now is the time to do so. Your job will not be replaced and we will await your return."

The third job-saving measure (ironically) that the company has is to ask all employees aged 55 and above to consider early retirement.

The memo stated that the company will make provisions to trigger the Employee Assistance Payments at an earlier retirement age.

Our query to SATS about said Employee Assistance Payments went unanswered.

Steps to mitigate risks and impact on business and people

Instead, a spokesperson said that these are "proactive steps to mitigate the risks and impact of the situation on our business and our people".

The company is also "accelerating company-wide programmes to multi-skill and upskill our employees in order to enhance their domain knowledge and help them embrace change and redeployment, so that we can rebound with resilience once conditions improve".

Some of these measures are in line with the suggestions laid out in the Ministry of Manpower's Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment.

Other suggestions by MOM include implementing shorter work weeks, flexible working arrangements, and adjusting wage components.

Top image via SATS.