Singaporeans are unlikely to be spared from the wave of global job losses. But Acting Manpower Minister Gan Kim Yong hopes the tripartite relationship in Singapore can help lessen its impact on workers here.
Job cuts in Singapore were unavoidable when consumer electronics giant Philips announced global manpower cuts last month, and Mr Gan said retrenchments are set to worsen.
"They'll be MNCs in Singapore which will have to take into account decisions by their headquarters. But that is where our tripartite relations are very important.
"Many of these MNCs work very closely with the unions and we want to convince them that the tripartite relationship in Singapore is very different from what they have back home," he said.
The acting manpower minister said the new Jobs Credit scheme, unveiled last week by Finance Minister Tharman Shanmugaratnam, will help local management persuade their head offices to reconsider any job cuts.
The Jobs Credit scheme is designed to help employers with their cash flow, while providing an incentive to retain workers.
But the question remains on how much of these benefits would, or should, be passed down to the employee? Mr Gan said it all depends on the individual company – for instance, companies that can afford it could offer moderate wage increases or a one-off bonus.
He also explained the decision to pay out the wage rebate quarterly.
"If we offer a monthly Jobs Credit, there is a risk that the company may retrench the worker (after) a month... whereas if you pay out on a quarterly basis, it means the company has to keep the worker for at least a quarter," Mr Gan said.
He was speaking on Wednesday after recording "Budget Forum 2009" which will be shown on Thursday January 29, at 10.30pm on MediaCorp's Channel 8.
- Channel News Asia
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