SINGAPORE Airlines (SIA) is set to adopt a shorter work month in the face of capacity reduction and declining demand for air travel.

All employees in the management grades will also be subject to a wage freeze in the coming financial year, announced the carrier on Wednesday in a statement.

In principle agreements for the reduced work month have been signed with two of the three in-house unions - the Singapore Airlines Staff Union, representing ground staff and cabin crew, and the Airline Executive Staff Union, representing staff in the administrative officer grades.

An implementation date of May 1 has been set, but this "is predicated on the scheme applying to all employees across the Company".

Discussions are still ongoing with the Airline Pilots Association.

Under the policy, each member of ground staff will be required to clear one day of leave each month.

"The day may be cleared as annual leave or no pay leave. For pilots and cabin crew, compulsory no pay leave will be required in line with their excess staffing levels," said SIA.

Senior management staff, those in grade of Vice President and above, will adopt the shorter work month first, starting April 1, while other managers will do so from May 1.

SIA said last week in an interview with The Business Times that it is not contemplating cutting headcount or pay yet.

"The formula for pay cuts has not been triggered yet as the company is still making profit," said Mr Stephen Forshaw, the airline's spokesman.