MOM to release guidelines on management of excess staff
By Pearl Forss, Channel NewsAsia | Posted: 15 November 2008 1726 hrs

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SINGAPORE: The Manpower Ministry will soon release guidelines on how to manage excess manpower in light of expected increase in retrenchment in Singapore.

The guidelines will include what's called responsible retrenchment, where employers work with unions to explain the situation to workers before serving the termination letter.

The way DBS axed its 900 staff without consulting its union has drawn criticisms from labour chief Lim Swee Say.

He said retrenchment should be conducted in a socially responsible manner, a view which Acting Minister of Manpower Gan Kim Yong shares.

Hence, guidelines will be released in a few weeks on how to manage excess manpower.

For example, companies can inform the Manpower Ministry of job cuts.

Retrenched workers can be retrained or placed in new jobs through the Workforce Development Agency (WDA).

Companies can also leverage on the tripartite relationship, and seek the union's help in explaining measures like wage cuts or implementing shorter work week.

Mr Gan also said that more companies should implement a flexible wage system, adding that companies which have already done so in the last few years are now in a better position to weather the recession.

But recession this time may impact the middle class a lot more. And Mr Gan said that persuading this group of workers to go for retraining will not be easy.

Mr Lim, the NTUC Secretary General, notes that the willingness of the middle class to undergo professional conversion will make a difference between a sharp increase in unemployment rates or a slower climb.

Mr Lim points out that there is still a huge demand for workers in sectors like childcare or the service industry.

But will those in the finance industry, for example, be willing to take on a job in childcare?

Mr Lim hopes Singaporeans will be able "to turn crisis into opportunity" and grow sectors which previously could not realize their full potential due to a shortage of manpower over the last three years.

To help Singaporeans make their job switch, there will be more retraining programmes.

The Chinese Development Assistance Council (CDAC), a community self-help group, expects to retrain more than 6,000 people next year.

And to help children of retrenched workers stay in school, the CDAC is expanding its bursary programme to benefit 2,100 students this year, up from 1,600 last year.

It will also equip 7,500 needy students with books and transport vouchers, up from 4,800 students in 2007.

Mr Lim, who is also the CDAC chairman, said: "To enable the CDAC to fulfill these three priorities in the coming year - firstly, helping more needy families, needy students, needy workers; secondly, expanding our scope to include social mobility; lastly, to have a direct presence in the community - this will require the CDAC to further expand on our operating budget."

The CDAC's operating budget will be $21 million next year, up from $18 million this year. This is the second time in its 16-year history that it will be running a budget deficit. The first was in 1998.

- CNA/ir