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Captialism's ugly head ?


Aircraft maintenance firm in talks on possible layoffs
".....The company handed out four-month bonuses a few months ago, said some employees, who are baffled by the need for layoffs.

"They can give that much bonus, but how is it they are not able to retain us?" asked a technician, who has been with the company for more than 30 years...."
Eagle Services Asia had plans to axe more Singaporeans than foreigners before unions stepped in
  • Eagle Services Asia’s move to retrench workers came as a surprise to unions
  • They were in the midst of talks with the company, which had plans to retrench 144 workers
  • More than half of the 144 workers would have been Singaporeans
  • After negotiations, the company agreed to lower the overall percentage of Singapore workers to 44 per cent
  • Company said that it needed to cut manpower due to falling customer volume caused by the Covid-19 pandemic
SINGAPORE — For some workers at aircraft maintenance company Eagle Services Asia, there was no warning that they were going to be retrenched until they arrived at work, the general secretary of the SIA Engineering Company Engineers and Executives Union (SEEU) recounted.

Mr Ong Hwee Liang told reporters on Wednesday (July 29) evening during a video conference that several members of his union had informed him that they had been called up to a meeting room only to be told that they were being laid off on the day itself.

The move by the company was “unacceptable” to him and several other union leaders, Mr Ong said, as they were in the midst of negotiations with the company, which is a joint venture between the SIA Engineering Company and American aerospace manufacturer Pratt & Whitney.

Despite the unions’ best efforts to persuade Eagle Services Asia’s management against retrenching their workers, Mr Ong said that the company went ahead with the decision unilaterally.

“I was very disturbed by the way it was handled by the management,” he said at the video conference organised by the National Trades Union Congress (NTUC).

Mr Ong was speaking to members of the media several hours after a joint statement was released by NTUC, SEEU, the Air Transport Executive Staff Union and the Singapore Airlines Staff Union about the unfair retrenchment exercise carried out by Eagle Services Asia earlier this month.

A retrenched engineer, Mr Abdullah Masod, who was also part of the video conference, described the manner in which the retrenchments were carried out as “not right”.

Mr Abdullah, 56, who was also the company’s SEEU representative, said that the affected workers were told to quickly pack their things and leave, and were not even given a chance to say goodbye to their friends and colleagues.

“The workers were not happy they were being thrown out like animals.”

He added that the retrenchments were not specific to any particular department and it affected everyone from the “top to the bottom”.

In response to TODAY’s queries, a Pratt & Whitney spokesperson said that it had to reduce its headcount due to a decline in customer volume caused by the Covid-19 pandemic.  

The spokesperson said that this was after it had already implemented many cost-containment measures, such as a temporary salary reduction and a short work week, cancelling merit increases, putting in hiring freezes and making discretionary spending cuts.

Still, NTUC's deputy secretary-general Cham Hui Fong said that the unions did not expect the company to carry out the retrenchment exercise while negotiations were ongoing.

“I’ve handled so many retrenchments and I have never seen a retrenchment where in the midst of negotiation, you let go of people,” Ms Cham, who is also the executive secretary of SEEU, said.

The company explained that it had “security reasons” for the sudden manner in which it chose to retrench its workers, she added.

A spokesperson from the Ministry of Manpower said that Eagle Services Asia’s decision was not aligned with the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment, where employers consult their unions early to resolve disputes amicably.

Pratt & Whitney’s spokesperson did not reveal how many Eagle Services Asia employees have been retrenched so far, but Ms Cham said the unions found out that the company was planning to axe 144 workers, of which 56 per cent would have been Singaporeans.

This was a cause of consternation for them, because more Singaporeans would lose their jobs than foreigners.

She said that the unions sat down with Eagle Services Asia’s management to comb through the details of its plans, such as the profiles of the workers, the basis on which they were being let go and what skill sets the foreigners had that the Singaporeans lacked.  

If the unions were not satisfied with the company’s selection criteria, Ms Cham said that they would not let Eagle Services Asia carry out the retrenchments.

Eventually, the parties were able to come to terms.

While the ongoing retrenchment exercise may see more than 144 workers being retrenched, the unions were able to lower the overall percentage of Singaporeans who will lose their jobs to 44 per cent.

They had also secured a compensation package that includes one months’ salary for each year worked, capped at 25 months; three years of medical coverage; and a training grant of up to two-and-a-half months’ salary.

Presented with this outcome, some employees are still concerned.

One worker, who declined to be identified and who is not on the retrenchment list, told TODAY that he is worried about losing his job as he expects more retrenchments to come in the future.  

"This may only be the first wave (of retrenchments). There may be a second and third wave, like during the Sars (severe acute respiratory syndrome) outbreak," he said.
1st round package is fair and attractive for employee's up to 25 yrs services,

"They had also secured a compensation package that includes one months’ salary for each year worked, capped at 25 months; three years of medical coverage; and a training grant of up to two-and-a-half months’ salary."

25 months + 2.5 months training grant = 27.5 months salary in all.

good job by union!
In the absence of a material uptick in flight activities across the world in the near term, the pace and extent of recovery for the aerospace maintenance, repair and overhaul business is uncertain.

Given the difficult business environment and continued challenging outlook, the Senior Management of SIA Engineering Company has decided to take a further pay cut of 5% accruing with effect from 1 August 2020 to proactively manage costs. This is in addition to the pay cuts announced previously and on top of cost management measures implemented in previous months. The pay cuts affecting Senior Vice Presidents, the Executive Vice President and the Chief Executive Officer will increase from the current 15%-25% to 20%-30%.

Stay home and stay healthy, valuebuddies.
Worth only $1. 
SIA Engineering Company's acquisition of the remaining 35% issued and paid-up share capital of Heavy Maintenance Singapore Services Pte Ltd from Airbus Services Asia Pacific Pte Ltd.

The consideration paid by SIAEC to ASAP for the transfer of the Sale Shares pursuant to the Transaction is S$1.00 in cash, and was arrived at following arm’s length negotiations, taking into consideration HMSS’ financial position. In connection with the Transaction, SIAEC has also received S$7,387,777.00 in cash pursuant to the termination of the JVA. The Transaction will be accounted for as an equity transaction and the payment by ASAP to SIAEC upon termination of the JVA will be recognised directly in equity.

Based on the audited financial statements of HMSS for the financial year ended 31 March 2020:
(i) the book value attributable to the Sale Shares is approximately S$900,000.00; and
(ii) the net tangible assets value attributable to the Sale Shares is approximately S$100,000.00

Stay home and stay safe, everyone
SIA Engineering - Profit guidance for the unaudited consolidated financial results for the second quarter and the half year ended 30 September 2020 (“1H FY2020-21”). 

The COVID-19 pandemic continues to have an unprecedented adverse impact on the aviation industry and consequently on the MRO business; all segments of the Group were impacted during the first half of the financial year as low flight activities resulted in low work volume. 

The Group carries out periodic reviews to assess the recoverable amounts based on 
expected future cash flows of cash-generating units with indication of impairment. Due to significant decline in hangar revenue projections brought about by 
lower flight hours; 
large number of aircraft taken out of operations and parked; and the likelihood that some of the 
parked older generation aircraft will not return to operation, 
the Group will be recognising a non-cash impairment provision against its base maintenance unit’s assets and is working on finalising the quantum of impairment, which is expected to have a material impact on the Group’s financial results for 1H FY2020-21.

Stay home and stay safe, everyone.
SIA Engineering - results for the halfyear ended 30 September 2020 on Tuesday, 3 November 2020, after trading hours.

Stay home and stay safe, everyone.
SIA Engineering - 1H 2020 Result
Rev $223m (vs 512m)
Operating loss $27.2m (vs +37.3m)
Net Loss $19m (vs +87m)
without Government support schemes (JSS), net loss $114m
Dividend NIL

The adverse impact on the Group’s financial performance has been cushioned by the government’s wage support under the JSS, which has been extended by another seven months. The support for aerospace MRO operators is for 10 months at 75% of capped monthly wage and seven months at 50% of capped monthly wage. We have applied the guidance by the Institute of Singapore Chartered Accountants on the accounting recognition of the JSS government grants to accrue JSS grants from March 2020 to July 2021.

With changing rules and regulations on maintaining safe operations, the Company closely monitors and adapt to these requirements to ensure compliance and the safe and effective continuation of operations at the workplace.

Stay home and stay safe, everyone.

Southeast Asian leaders have discussed the creation of a regional “travel corridor” during regional summit meetings, in a bid to drag the region’s economy out of its pandemic-induced slump.......

Big Grin

Just sharing my current views about SIAEC in the short term. Although the company's share price has spiked (due to the vaccine and travel bubble), it is likely to show alot of weakness in the near term (2-3 years).​​​

First post in a few years, please bear with me. Big Grin Took a long hiatus.
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