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SINGAPORE: It may make more business sense to let go of foreign rank-and-file workers rather than Singaporean workers if retrenchment is unavoidable, said Labour chief Lim Swee Say at the Singapore Tripartism Forum on Thursday.
The secretary-general of the National Trades Union Congress (NTUC) said: "We're talking about rank-and-file workers who are, by and large, replaceable. Our message is – give priority to the local workers. Not only will you help us minimise unemployment in Singapore, but more importantly, it makes business sense for your company."
Mr Lim said if Singaporeans are laid off, companies may find it tough to re-employ them when the economy improves because they will be sought after by companies which must fulfil a quota of local talent first, before they can hire foreign ones.
At the same time, foreign workers are necessary for companies to keep costs down and to avoid a scenario whereby local firms choose to relocate overseas.
Acting Manpower Minister Gan Kim Yong related a conversation he had with a company head.
"If he were asked to employ only Singaporeans, his costs would have gone up and he would have had no choice but to shift the whole company out of Singapore to China," said Mr Gan.
A recent survey of employers showed that about 60 per cent of them were freezing headcount and a few planned to retrench workers.
Stephen Lee, president of the Singapore National Employers Federation (SNEF), said: "Many companies choose to do the easier one first – freeze hiring. And for those who have left by natural attrition, they don't replace. The next step is non-renewal of contracts and that will mostly affect foreign workers."
The labour movement stressed that retrenchment should be the last resort. And despite the current economic gloom, employers and employees should help one another and plan tactics carefully so that Singapore can rebound quickly, once the economic downturn is over.
- CNA/so
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