Grab Singapore announces 20% pay cut for senior management due to Covid-19

Grab has announced that its senior management have taken a pay of up to 20% while staff members will be asked to apply for no-pay leave as its business has been affected by Covid-19, according to a Straits Times report.

“As our revenues continue to fall, senior Grab leaders have taken a pay cut of up to 20% and Grab staff have also been encouraged to take no-pay leave voluntarily,” the company’s head of transport Andrew Chan said in a note to drivers on April 29.

Chan said the company had been hoping that Singapore’s tighter circuit breaker measures would be lifted next week and that “people can resume their daily lives”. However, Singapore Prime Minister Lee Hsien Loong announced on April 21 that the circuit breaker period has been extended to June 1.

Circuit breaker is the country’s equivalent to Malaysia’s movement control order (MCO), where people are encouraged to stay home as much as possible, not allowed to go out in groups or as a household and where F&B outlets selling desserts are required to close their outlets, based on guidelines published by the Singapore government.

“We may no longer be able to provide extra financial support if the circuit breaker is extended past June 1.”

Currently, Grab Singapore is helping driver-partners whose earnings have also been affected during the Covid-19 pandemic by reducing the commission rate imposed on them by at least 50%. Drivers who are renting cars from Grab will also not have to pay any commission until May 10, the Straits Times report stated.

The company has announced some terms and conditions for driver-partners who want to get the full waiver of commission fees, such as requiring them to complete at least 10 food or parcel deliveries every week. If they do not meet the criteria, the driver-partner will have to pay a 5% commission.

Drivers also get a weekly payout or Sg$45 (RM137) or Sg$85 (RM269). The measure will be extended until end of May.

“Extending the assistance was not an easy decision, Grab’s business has also been badly hit. It has taken us a few days to confirm this for you, as we needed to reroute some funding,” Chan said.

Straits Times stated that funds were diverted from schemes such as incentives for best-performing drivers and cancellation compensation.

Singapore announced 528 new cases of Covid-19 on April 30, bringing the total number of confirmed cases to 16,169 based on a recent report by Reuters.

[ad_2]

You might also like More from author

Comments are closed.