SINGAPORE - Twenty-seven employees will be affected by a retrenchment exercise at Boeing Asia Pacific Aviation Services (Bapas), a joint venture between The Boeing Company and SIA Engineering Company.
The affected employees include engineers and professionals from different functions across Bapas.
They make up about 13 per cent of the 204-strong workforce at Bapas, which provides fleet management services for Boeing aircraft.
In a joint statement with the Singapore Industrial and Services Employee's Union (SISEU) on Thursday (Aug 27), Bapas said that the union was notified in advance of the retrenchment exercise.
The aviation sector is one of the hardest hit by the economic fallout from the Covid-19 pandemic.
The company said measures were taken at the start of the pandemic to manage costs and save jobs, but it is facing "significant financial challenges" because of the economic downturn and the unabating effect of the pandemic on the aviation industry.
It said retrenchment was taken as a last resort, after exhausting all other cost-saving options.
The company added that it has worked with SISEU to extend fair compensation terms and employment-related assistance to the affected employees.
SISEU and the National Trades Union Congress' Employment and Employability Institute are also working to provide job-matching and training support to the workers, the joint statement said.
In response to queries from The Straits Times, a spokesman for Bapas said prior to the retrenchment exercise, 79 per cent of its workforce were Singaporeans.
After the retrenchment exercise, 82 per cent will be made up of Singaporeans.
"If Bapas were to include the number of permanent residents, the percentages will change to 91 per cent and 93 per cent respectively," the spokesman added.