Number of Retrenched Workers

Mr Gan Thiam Poh asked the Deputy Prime Minister and Minister for Manpower (a) what is the total number of workers who have been retrenched in the past six months; (b) of these, how many of them are Singaporeans; and (c) what is the breakdown of the types of jobs that these retrenched workers were holding.

Mr Tharman Shanmugaratnam: In the second and third quarters of 2011, 3,040 workers were retrenched. (Fourth quarter numbers are not yet available.) Of these, 2,090 or 69% were residents – which is close to the resident proportion of our workforce 4 . The number retrenched over the period was lower than the 2,480 residents retrenched over the same period in 2010; and significantly lower than in the period before the 2008-2009 recession. What this illustrates too is the fact that a certain number of retrenchments occur at all times, even when the economy is healthy as it was in 2010.

Of the 2,090 retrenched residents, 1,290 were PMETs.

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With the economy slowing down, retrenchments are likely to rise 5 . We are monitoring the situation and will work closely with our tripartite partners to encourage employers to consider other cost-cutting measures instead of retrenchments – such as training, shorter work weeks or temporary lay-offs where appropriate. Indeed, we are encouraged by feedback that companies are now more inclined to keep their employees in a downturn rather than to retrench them 6 . In turn, employees would also need to maintain a positive mindset towards upgrading, so as to give employers every incentive to retain them.

Where retrenchments are inevitable, companies should carry out such exercises responsibly, including providing retrenchment benefits to workers wherever possible to help them while they search for alternative employment.

Companies should also notify the Ministry of any impending retrenchments early so that we can work closely with WDA and e2i to provide employment assistance and training to affected workers and facilitate their transition to new employment.