RETRENCHMENT BENEFITS

Mr Chiam See Tong asked the Acting Minister for Labour whether the Government will make provision for retrenchment benefits to be paid to Singapore workers who have been retrenched and to those who will be retrenched in 1986.

Mr Lee Yock Suan: The Government does not have to make provisions for retrenchment benefits to be paid to retrenched workers who are not government employees. In the private sector, retrenchment benefits are usually provided for in collective agreements between unions and employers. Over the years, various norms for retrenchment benefits have been established which are accepted by employers, unions and workers. These norms are recognised by the Industrial Arbitration Court. They provide for retrenchment benefits that are related to the length of service of the workers and the circumstances of the company carrying out the retrenchment.