He told them to take the initiative and meet bosses to find out what can be done to cut costs to save jobs.

His call is prompted by what he says is the worst global recession he has seen in his working life.

He referred to the World Bank's global growth forecast for next year. At 0.9 per cent, it is the bleakest in 40 years, he told about 400 unionists at a two-hour dialogue yesterday on how to cope with the downturn.

'You seldom see me speaking so seriously, but I'm not in the mood to tell any jokes. I'm very worried,' the 54-year-old added.

Mr Lim was replying to Mr Francis Lim, president of the United Workers of Electronic and Electrical Industries, who feared manufacturing companies could not stay afloat in this recession.

He was among six unionists who stood up to voice concerns about the weak economy and job market, with unemployment and retrenchments expected to rise.

Mr Lim, sketching a global economy crippled by the financial crisis, said the situation looked set to get worse.

One school of thought is that Asian economies can maintain the growth momentum but that is 'overly optimistic', he said.

That is because global trade is reliant on the more developed economies, such as the United States, Europe and Japan.

All these countries have slipped into recession. And as their economies contract next year, they are likely to consume less and global trade, in turn, will fall.

The situation is so bad in the US that even retirees are seeking jobs to earn a living. They are labelled the 'unretired', noted Mr Lim.

In China, the fall in exports has led to the closure of many factories in Guangdong, he added.

It is against such a dismal economic backdrop that Singapore has introduced help measures for companies and workers, instead of waiting to unveil them in the coming Budget.

Businesses have easier access to loans, and a training scheme called Skills Programme for Upgrading and Resilience, or Spur, was launched on Dec 1. It will give employers more money to retrain, rather than retrench, workers.

So far, 22 unionised companies have signed up about 2,500 workers for Spur. And almost half of 100 companies polled by the Singapore National Employers' Federation are keen to follow suit.

But this is not enough, said Mr Lim.

He urged union leaders to engage employers immediately on ways to cut costs.

'As we go through this downturn, we must be as pro-business as never before to minimise downsizing,' he said.

'And to companies, MNCs which want to downsize...I appeal to management to be as pro-worker as never before.'

Only with such attitudes can Singapore stem the surge in layoffs and recover from the recession, he added.

'If we don't move fast, we allow management to move unilaterally ahead of us to cut jobs to save costs, and it will be too late for us,' he said.

Earlier in the dialogue, NTUC deputy secretary-general Heng Chee How also reiterated the labour movement's position on cost-cutting options.

Companies ought to consider measures such as a shorter work week, a reduction in overtime, reducing shift work or cutting bonuses and pay before resorting to layoffs, he noted.

So far, nearly 40 per cent of unionised companies in the manufacturing sector have stopped or reduced overtime.

Almost 10,000 workers were also put on a shorter work week this year, up from 361 last year, he said.

And when it comes to layoffs, MrHeng reiterated that Singaporeans should come last, after foreigners.

Mr Lim, in bracing unionists and workers for tougher times ahead, said: 'Be prepared. It's going to be much worse and much longer. We cannot act like before. We have to be more proactive.'

sueann@sph.com.sg