A strong Singapore dollar and protracted negotiations between Singapore Airlines (SIA) and its staff union have caused unhappiness among some cabin crew, who have to pay back a significant portion of their location meal allowances.
These allowances are pegged to currency exchange rates and hotel menu prices in different regions. They are adjusted every two years to take into account changes in menu prices and every six months for currency exchange rate movements.
According to SIA cabin crew TODAY spoke to, the allowances received for working on flights to European countries and the Americas were the hardest hit by the adjustment — by as much as 20 per cent. For example, the allowance for a five-day trip to London used to be about S$900 but has now decreased to about S$650.
SQ should never -ever- do anything to demotivate their cabin crew. No matter how bad the going gets, their salaries or allowances should never be cut. Simply because their cabin crew are their one true differentiating factor. If the crew become dissatisfied and lose the consistency they have, it's all going to go downhill for SQ.