The expectation that retrenchments are likely to increase stems from the severe depth of the current recession, which is set to be longer than the ...
Mr Seah said: “We think that growth will only return back to positive levels from the second quarter of next year.”This means the current economic crisis is expected to last 24 months, said Mr Seah. In comparison, the Asian Financial Crisis and the Global Financial Crisis both lasted about 18 to 19 months.
The impact of the current recession will be deeper and wider than previous downturns, the economists reiterated. This is unlike the Global Financial Crisis, which started in the United States’ financial sector and whose ripple effects were felt in Singapore. It is also different from the severe acute respiratory syndrome crisis in 2003, which was largely contained within Asia.The severity of the crisis also means that sectors which are seeing a temporary rebound - after Singapore and other countries reopened their economies - are by no means immune to layoffs.
However, other industries will need to grow and adapt to the uncertainties ahead rather than wait for government support, the economists cautioned. The 49-year-old, who has three sons aged between 12 and 24, said he had his family foremost in mind when he received the news. Nevertheless, he will be searching for jobs in the burgeoning pharmaceutical industry but may become a private-hire driver if he is unsuccessful.
Though he was retrenched on the day he was notified, he received one extra month of pay in lieu of notice, which meant that his retrenchment benefits totalled eight months’ pay, as he had been with the company for seven years. “More than four days' actual notice would've helped, although I don't know the full story behind this so I can't judge,” said Mr Wong.
On the part of the employers, they said the retrenchment process has become less personal due to the COVID-19 restrictions, coupled with the growing number of retrenchment exercises which they have had to carry out. “In the past, the retrenched employee will get to go to the office, and someone will be there to talk to them face to face … Normally the manager will propose new openings to them,” he said.POST-CIRCUIT BREAKER, RETRENCHED WORKERS SHOULD BE INFORMED IN-PERSON: MOM
There should also be few instances where employers would need to engage security officers to escort an employee out of the work premises. “Such practices are insensitive and unwarranted,” said the spokesperson. The MOM spokesperson reiterated that employers should adhere to the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment, which had been updated in March to provide clearer guidance on cost-saving measures and to encourage the training and upskilling of employees.
Urging employers to conduct retrenchment exercises in a “responsible and sensitive manner”, Mr Sim said that for instance, employers should explain to affected employees the business situation faced by the company. They should also outline how the retrenchment exercise will be carried out, and specify the assistance being offered to those affected.
Singapore Industrial and Services Employees Union president Sazali Zainal said that his union will be working with unionised aerospace firms “to take necessary actions to reduce costs and save jobs, while keeping a longer-term view in terms of manpower needs”. Ms Cham said that should layoffs be inevitable, the unions will ensure that the selection criteria for retrenchment is fair, and they will work with companies to go through the list of retrenched workers to safeguard the Singaporean core.
Almost all the retrenched workers interviewed have yet to find full-time employment, with some working part-time to get by.
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