'In Singapore, instead of focusing on cutting jobs to save costs, we focus our energy, our efforts on cutting costs to save jobs', said Mr Lim Swee Say. -- ST PHOTO: JOYCE FANG
WITH difficult times lying ahead, labour chief Lim Swee Say says the critical question that bosses, unions and the Government must ask is this:
'Do we focus our minds and efforts on cutting jobs to save costs, or cutting costs to save jobs?'
He is clear about what the answer must be - a uniquely Singapore solution:
'In Singapore, instead of focusing on cutting jobs to save costs, we focus our energy, our efforts on cutting costs to save jobs.
'This is the way to ensure that not only will we be able to achieve the right outcomes for businesses, but at the same time, a good outcome for workers. And this is a win-win outcome - one that will strengthen trust, not weaken trust, one that will strengthen tripartism, not weaken tripartism .'
Mr Lim, the NTUC secretary-general and Minister in the Prime Minister's Office, said declining global demand meant that companies and industry were operating under-capacity.
There will be downsizing, some companies may not even survive - resulting in retrenchments and an increase in unemployment.
'From the labour movement's point of view, we are realistic. We are realistic that we'll not see another year of low retrenchments in 2009; we'll not see another year of full employment in 2009 ... For us, the top priority must be one of guarding against massive retrenchments and preventing a rapid rise in unemployment.'
But Mr Lim warned against taking the approach of cutting jobs to cut costs. That will translate into 'masive retrenchments ... (and) a massive rise in unemployment'.
It may achieve the right outcome for businesses, but the wrong outcome for Singapore workers, he said.
Read the full story in Saturday's edition of The Straits Times.
