Investigations into Complaints that Retrenchments Do Not Adequately Comply with Advisories to Retain Strong Singapore Core

34 Ms Sylvia Lim asked the Minister for Manpower with regard to retrenchments from April to September 2020 (a) how does the Ministry investigate complaints that the retrenchments did not adequately comply with advisories to retain a strong Singapore Core; (b) what levers does the Government have to intervene in cases where the employer is assessed to have not complied with advisories to maintain a strong Singapore Core; and (c) whether employees who are permanent residents are considered part of the Singapore Core in the Ministry's assessments of retrenchments.

Mrs Josephine Teo: Retrenchments are never easy. I know this, having been involved in supporting retrenched workers for well over a decade, since I was in NTUC. It brings great stress to the workers, including to their families. This is why the retrenchment option should be taken only as a last resort.

Employers too, may struggle on the question of who to stay and who to let go. Ultimately, they have to go back to why this drastic step needs to be taken, for the business and the people it supports to have the best chance of survival, or to restructure for continued longer-term viability. If after the retrenchment, the business still falters, the workers who didn’t get retrenched will also be hurt.

The principle must therefore be to anchor decisions to help the business stay viable while taking special care of the workers, those that have to be let go as well as those that stay. This is often a very delicate balance.

To make that assessment, the employer needs to sort out the business direction. In times of uncertainty, that in itself, is not an easy question to answer. Then, the employer needs to look at the abilities of the staff, their skills, and how those are relevant to the business, or to pivot to new activities. These must be the primary considerations.

Having made that assessment, if the employer has to choose from equally capable staff of different nationalities, our advice to the employer is to upkeep the Singaporean core. This is contained in the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment. By and large, businesses understand and support this approach.

Employment data shows that the population of work pass holders have shrunk proportionally more than the resident workforce. As a share of our resident workforce, citizens remain the vast majority at 84%.

Should a complaint be filed with MOM that an employer has not made adequate efforts, we will engage the employer to review their workforce profiles before and after retrenchment. We consider the citizen, permanent resident and non-local shares of its workforce, and the reasons for any changes. We will also seek to understand the criteria used for selection, whether these are objective and rational. For the individuals concerned, we consider if the criteria were applied properly.

Where there are unfair practices towards Singaporeans, the Government will take the necessary actions against the employers, such as withholding financial support or suspending the employers’ work pass privileges. Under the Employment Act, employees who are wrongfully dismissed due to discrimination can also be compensated or reinstated.

More importantly, we are providing stronger support to employers for their local employees. Through the Jobs Support Scheme, Jobs Growth Initiative and other programmes, employers of local employees get generous wage and training support. For their citizen employees, there is the Special Employment Credit and Workfare.

We make every effort to help affected Singaporeans get back to work. This is usually what they wish for most. It is also central to how we sustain support to Singaporeans and their families on an ongoing basis.