SIA Engineering expects to save S$1 million ($687,000) a month now that it has reached an agreement with staff unions to have employees take no pay leave.

Starting in July employees will take one to two days off a month as no-pay leave and low-paid employees will take between half and one day off a month, SIA Engineering says in a statement.

This comes after agreements were reached with the SIA Engineering Company Engineers and Executives Union, the Singapore Airlines Staff Union and Air Transport Executive Staff Union, says SIA Engineering.

The company will also be managing its surplus manpower by sending people for training programmes under the Singapore government funded skills programme, it says.

These measures, coupled with the 10-20% wage cuts for managers and executives announced last month, will save the company S$1 million a month, says SIA Engineering.

It adds, the measures are necessary because it has "to reduce costs in response to the current weak business environment."

Source: Air Transport Intelligence news