ASSISTANCE TO RETRENCHED WORKERS

Mr S. Vasoo asked the Acting Minister for Labour (a) how many local workers have been retrenched since January 1985 up to the latest convenient date; (b) what are their prospects for re-employment; and (c) what steps are being taken to assist them, particularly the older workers, to secure alternative employment.

Mr Lee Yock Suan: Mr Deputy Speaker, Sir, about 7,000 local workers were retrenched during the first half of this year.

The prospects for re-employment of retrenched workers are still fairly good. Most of them can secure employment within a few months after their retrenchment if they are not too choosy. There are still sufficient jobs available although some applicants may have to accept jobs other than those they would like or are most suited for, In July 1985, for instance, the number of new job seekers registered with the Employment Service Department (ESD) was 1,894 while the Department received notification of 2,494 new job vacancies. Technically, we have more than full employment as we still have over 100,000 foreign workers in the labour force. The new hotels are nearing completion and will require workers to man them. Despite the economic slow down, new investments in manufacturing are still being committed.

The Employment Service Department of the Ministry is assisting those retrenched workers who require help to secure alternative jobs. Efforts are made to persuade employers to employ the older workers. The Department also counsels workers on their job expectations. During the first half of this year, ESD offered assistance to 2,991 retrenched workers. Only 733 or 25% responded to the offer. 265 of the 733 subsequently informed ESD that they had found their own employment. 543 jobs were offered to those who responded. It would appear that most retrenched workers are able to find re-employment without assistance from my Ministry.

Mr S. Vasoo (Bo Wen): Sir, would the Minister be kind enough to enlighten the House as to whether his Ministry has any contingency plans to assist workers in the event of chronic or long-term unemployment of workers?

Mr Lee Yock Suan: Mr Deputy Speaker, Sir, in the event of a severe world depression, the Government will look into the possibility of releasing some of the CPF savings to workers to help them tide over their unemployment difficulties. This is, I think, what the Prime Minister mentioned in his National Day Rally Speech - that should there be a prolonged period of unemployment and very severe unemployment, then we will have to look into this use of CPF savings for the workers.

Mr S. Vasoo: Sir, besides this release of CPF savings, are there any other measures which have been considered?

Mr Lee Yock Suan: Sir, at the moment it is still a hypothetical question because our situation is much better than that because most people still have jobs. But if there is a need, I am sure the Government will look into the various possibilities.