Wage Cut Notifications Received from March 2020 to July 2022
Ministry of ManpowerSpeakers
Summary
This question concerns Mr Leong Mun Wai’s request for a monthly breakdown of wage cut notifications from March 2020 to July 2022 and whether such measures should be re-implemented. Minister Dr Tan See Leng noted that notifications decreased from a peak of 1,937 in April 2020 to a monthly average of nine between January and July 2022. Consequently, Minister Dr Tan See Leng stated that there are no plans to reinstate the requirement as the economy has recovered and notification numbers remain consistently low. Employers are instead encouraged to follow the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment and consult with employees before implementing any wage adjustments. Minister Dr Tan See Leng highlighted that the Tripartite Alliance for Fair and Progressive Employment Practices and the Tripartite Alliance for Dispute Management remain available to provide assistance and resolve disputes.
Transcript
31 Mr Leong Mun Wai asked the Minister for Manpower (a) whether a monthly breakdown can be provided on the number of wage cut notifications received by the Ministry from March 2020 to July 2022; and (b) whether the Ministry will consider re-implementing the wage cut notification measures as a way of monitoring businesses that use wage cuts as a solution to overcome business challenges.
Dr Tan See Leng: In March 2020 with the onset of COVID-19, MOM introduced a temporary requirement for employers with 10 or more employees to notify MOM if they implement any cost-saving measures that affected employees' monthly salaries. This would encourage responsible implementation of such measures and allow MOM to monitor the scope and scale of the measures. This would also enable the tripartite partners to step in to provide the appropriate support to both employers and employees when needed.
As the economy progressively recovered, the number of cost-saving notifications received fell from a monthly peak of 1,937 in April 2020 to a monthly average of nine between January and July 2022.
Given the fall in the number of notifications received to a very low level and that it has been sustained at that level for several months as we emerged from the pandemic, the tripartite partners did not see a need to continue to impose the requirement on employers. We have no plans to reinstate the requirement at the moment.
Notwithstanding the above, the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment (TAMEM) remains in place to guide employers on the implementation of cost-saving measures to preserve jobs. Employers should consult their unions and employees to discuss and reach an agreement before implementing wage cuts. Employers who need clarification on TAMEM can approach the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) for advice. Employees who feel that cost-saving measures have not been implemented fairly can also approach the Tripartite Alliance for Dispute Management (TADM) for assistance.