SAVING JOBS MUST BE THE PRIORITY
Josephine Teo
Minister for Digital Development and Information at Ministry of Digital Development and Information
As the COVID-19 pandemic continues to evolve and affect businesses and livelihoods, it is important that employers take the right approach to manage excess manpower to cope with the current business downturn.
In 1Q 2020, more than 4,000 employees were placed on a short work-week or temporary layoff instead of being retrenched. This was a fivefold increase from the around 800 in the previous quarter, but still below the high of 26,530 registered during the 2009 Global Financial Crisis.
The Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment highlights cost-saving measures companies can consider implementing instead of resorting to retrenchment. It is encouraging that majority of employers have been reasonable and fair when implementing cost-saving measures during the COVID-19 period.
Tafep has also engaged about 700 employers whose cost-saving measures appeared to be excessive in the notification submitted to the Ministry of Manpower. About 300 agreed to review their measures, including to provide more wage support or require employees to clear fewer days of annual leave.
For example, Samkang Construction Pte Ltd had intended to ask employees to take turns going on sabbatical until they could resume normal operations. With TAFEP’s intervention, the company did not ask staff to go on sabbatical, and instead channelled the full Jobs Support Scheme (JSS) payouts to employees. The company worked out salary adjustments of between 25% and 40% with staff, taking into account the JSS and foreign worker levy rebates.
Employers should explore all other cost-saving measures before considering retrenchment, which is never easy and should be the last resort. For employers who have no choice but to do so, I urge you to treat your employees with empathy and act responsibly and sensitively.
In good times, workers fuel business success. In tough times, it is only right that employers continue to care for their workers. Employees will remember what their employers have done for them during the COVID-19 pandemic.
Better that they work together to save jobs, stave off retrenchments but help the business survive.
Read the media release at: go.gov.sg/sx8qac
Link to The Straits Times commentary: https://str.sg/JWJF
- Jo Teo
Civil Engineer
4 å¹´GOOD AFTERNOON EVERYBODY CONGRATULATIONS Madam ?? ALL THE BEST ????????my sweet heart ?? pap
#1 Job Search & Listing in Singapore, sgcareers.com.sg | We're Hiring
4 å¹´Great article! Valerie Chen
CEO Addicon Group MBA (National University of Singapore) BSc Finance (Seton Hall University, USA) Business Entrepreneur, Strategic Planning, Project Development Strategist, Professional Marketer, Strategic Negotiator.
4 年Hi Minister Teo, am Benjamin Koh, Ex-Chairman for BLAC. My company Addicon Logistics employs 33 staffs locally and so far have abide by MOM’s guidelines and treating all my people fairly without any changes to their employments. Tried many other ways to reduce overheads as far as possible while bearing additional costs for BCP, but still unable to stay afloat due to significant drop in revenues. Did submission for higher JSS already. Been talking to my landlord CWT but without any positive outcomes. Now already planning for headcount cuts as business costs is just too heavy to sustain. Rental & Manpower is my 2 heaviest operating costs. Any suggestions on how to further do to avoid retrenchments?
Chairman of Tiong Bahru Community Centre
4 å¹´Maybe can consider a 4 day work week?