Retrenchment guidelines ineffective unless there is compliance

I refer to the report “Retrenchment should be last resort, companies told” (May 25).

Suggestions that companies redeploy workers, have a shorter work week or introduce a flexible wage system “before turning to retrenchment” may be well-intentioned but do little to ease the problems of companies that are restructuring.

These cost-saving arrangements for excess manpower could even do more harm than good if the employees find themselves between a rock and a hard place, since they would probably receive pay cuts, when seeking employment elsewhere may be more practical.

The suggestions seem to benefit the employers more than the employees. And it is unclear whether the tripartite partners have identified more structural problems and the corresponding policies “amid a challenging business environment”.

The tripartite partners suggest that “affected workers should be sent for training” if a no-pay leave period is implemented.

Yet, it is not established whether the workers — under the SkillsFuture movement, for instance — would have to fork out money on their own or if the training would necessarily be useful.

It therefore falls on the tripartite partners to justify how their guidelines will benefit affected workers. Proposals such as career advice and the strengthening of placement agencies could feature.

The tripartite partners call for companies to help displaced workers, even though the former appear to have no incentives to do so. In the bigger picture, it should fall on the Government to go beyond platitudes and identify errant companies.

Calling on companies to treat retrenchment “as a last resort” or to do so “in a responsible and sensitive manner” will not be constructive unless there is compliance.

It would be helpful to find out from affected Singaporeans the assistance they were given, and if they were notified of their retrenchment within a reasonable time.

Other information should include the disbursement of retrenchment benefits stipulated in employment contracts and the time needed to secure another employment.

In the longer term, if the number of retrenchment exercises shows a consistent uptick, pointing to deeper economic problems, then broader measures must be identified and implemented.