JOBLESS SINGAPOREANS

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JOBLESS SINGAPOREANS

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(Assistance plans): **

23.

Dr Lim Wee Kiak asked the Acting Minister for Manpower with the expected rise in unemployment in the coming months (a) what plans does the Ministry have in place to help jobless Singaporeans; (b) what is the Ministry’s plan to stem the tide of retrenchment; and (c) how is the Ministry helping non-unionised workers to be properly compensated when they are retrenched.

Mr Gan Kim Yong: My Ministry is working closely with the Singapore National Employers' Federation (SNEF) and NTUC to help both companies and workers to better manage the economic downturn and at the same time invest in skills for the economic recovery. There are two key strategies. First, we will work with companies and unions to explore various measures to help reduce manpower costs, including sending surplus workers for skills upgrading. This will save jobs for workers and upgrade their skills for greater employability in the long run. Second, we will help retrenched workers find new jobs and, where necessary, through appropriate re-orientation and skills upgrading courses so that they can seek re-employment as soon as possible. For this purpose, we have set up a tripartite taskforce to coordinate and facilitate these efforts.

On the first strategy, the tripartite partners strongly encourage companies to manage their excess manpower and consider retrenchments only as a last resort. Companies can re-deploy their workers to other areas of work, send excess workers for skills training and upgrading to enhance the quality of its workforce or adopt alternative arrangements such as shorter work-week. They can also manage their wage costs through the use of the flexible wage system, or implement temporary lay-offs. However, we understand that even with these measures, retrenchments may sometimes be inevitable. In these

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situations, companies are encouraged to discuss with their unions if they are unionised, and with MOM to ensure that retrenchment could be carried out responsibly and smoothly. Non-unionised workers who are affected by retrenchment can also seek advice and assistance from MOM.

This approach to managing excess manpower is detailed in the revised Tripartite Guidelines on Managing Excess Manpower which my Ministry will release on 19th November 2008. We urge companies to apply these guidelines and take a longer term view to managing their manpower. Together, the tripartite partners will closely monitor the employment situation in affected sectors and will step up efforts to help companies and affected workers cope with the downturn.

On the second strategy, the tripartite partners will help retrenched workers find suitable jobs and, where necessary, help them to upgrade their skills to improve their chances of securing another job. There is a suite of training courses available for rank-and-file workers as well as Professionals, Managers, Executives and Technicians (PMETs). Our Career Centres at the Community Development Councils (CDCs) and NTUC's Employment and Employability Institute (e2i) are also ready to provide career counselling, training support and job placements for the unemployed. Retrenched workers and other job-seekers could be deployed to sectors which are still hiring and have strong growth prospects. For example, it is estimated that the retail industry will need at least several thousand retail workers once Ion Orchard, Orchard Central and the Integrated Resorts are open.

The Prime Minister has announced that we will be rolling out the new umbrella programme – the Skills Programme for Upgrading and Resilience (SPUR). This tripartite initiative will encompass many of the measures mentioned above, to help employers and workers manage the economic downturn and at the same time reposition our workforce to seize opportunities when the economy recovers. My Ministry will release more details on SPUR shortly.