MOM To Release Guidelines On Management Of Excess Staff

Channel NewsAsia reported the following:

Labour chief Lim Swee Say has expressed his disappointment in the sudden decision by DBS Bank to cut 900 jobs.

In a statement, Mr Lim said that the bank had not consulted with the DBS Staff Union on other alternatives to cutting costs. As a result, the perception on the ground is that DBS Bank decided on retrenchment as a first resort.

He added that this has weakened the trust between the management and union, and that the reaction on the ground is critical and highly negative. Mr Lim said that "trust takes a long time to build, but a short time to destroy."

His message came in an eight-paragraph statement to the media, which urged companies not to use retrenchment as the first resort.

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.