Singapore's Manpower Ministry released a set of guidelines on Wednesday, urging companies to manage their excess manpower and consider retrenchment only as a last resort in coping with the economic downturn.
The Manpower Ministry together with its tripartite partners, the Singapore National Employers Federation (SNEF) and the National Trades Union Congress (NTUC), formulated the non-mandatory guidelines, saying to help save jobs, companies should first consider cost-cutting measures, such as sending workers for training, redeploying workers to alternative areas of work, implementing shorter work week, temporary layoffs or other arrangements like part-time work.
The guidelines came just days after Singapore's labor chief LimSwee Say took the Singapore-based DBS Bank to task for failing to consult its staff union and for not exploring other cost-cutting measures before laying off 900 workers.
However, the tripartite partners said they understand that retrenchments may sometimes be inevitable. In such a situation, companies have been urged to discuss with their unions to ensure that the retrenchment exercise be carried out responsibly and smoothly.
Companies could also consider adjusting the various wage components with the consent of the unions or workers concerned, said the guidelines.
When salary needs to be adjusted downwards, senior management should take the lead by cutting their salaries earlier or accept similar or deeper cuts, said the guidelines.
Companies and their workers have also been urged to take advantage of the many skills upgrading programs to re-position their workforce so that they could emerge stronger when the economy recovers.
The city-state's economy fell into its first recession since 2002 in the third quarter. Prime Minister Lee Hsien Loong has announced that the government will bring forward its budget announcement, help small and medium-sized companies obtain financing and provide training for retrenched workers to cope with the global economic slowdown.
Source: Xinhua
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