Spike in number may signal wave of layoffs to come, says NTUC
By
Li Xueying, Political Correspondent
IN A signal that a wave of retrenchments may be on the way, the number of unionised workers told to go on a shorter work week or to clear their leave has risen drastically in the past month.
On Nov 25, when the labour movement began tracking the situation, there were 6,876 such workers.
The number has since more than doubled to 15,000 as at Sunday. Last week alone, there was a 25 per cent jump from 12,000 as at Dec 28, according to the National Trades Union Congress (NTUC).
This means about 5 per cent of NTUC's 294,000 unionised workers have been affected so far.
The significant uptick is 'a precursor to retrenchments', Mrs Josephine Teo, NTUC's assistant secretary-general, said yesterday.
'It's quite realistic to expect that after the Chinese New Year, in the first quarter leading to the second, we will see an increase in retrenchments,' she warned.
A total of 3,773 unionised workers were laid off last year, compared to 2,943 in 2007.
Mrs Teo attributes the recent spike to 'the Chinese New Year effect' - manufacturing companies deciding to close their factories for a longer period of time during the festive holiday period.
Some have also given feedback that they have 'no orders to fulfil this year'.
At the same time, the numbers could be an effect of recent guidelines urging companies to manage excess manpower by measures such as shorter work weeks and flexible wages, rather than retrenchments.
Mrs Teo discloses that the workers hit so far are typically in export-dependent manufacturing sectors, such as electronics or chemical processing. Relatively fewer numbers are seen in the service industry.
For these workers, shorter work weeks and temporary layoffs - where employers can ask workers to take up to half of their annual leave and pay them half their wages - have translated into pay cuts ranging from 10 per cent to 50 per cent.
One of those affected is Mr Tan Koon Ban, 45, a production supervisor with a manufacturing company. He started on a shorter work week in February last year. The situation, however, had worsened by last month, and he was told not to go to work for nine working days out of the month. His take-home pay of $1,600 shrank to between $1,200 and $1,400, and his wife had since taken on a part-time job as a shop assistant, he told The Straits Times.
With more workers facing such a predicament, one danger is that family ties will come under strain.
NTUC and the National Family Council (NFC) are planning a series of activities to help combat this, Mrs Teo disclosed.
These include a series of talks beginning this Saturday to help workers and their spouses. For instance, they will be advised on matters ranging from budgeting to handling spousal conflicts.
Initially, the series will be held at the NTUC Centre in the business district, moving later to the heartland.
There are also plans to organise joint programmes with family service centres, and use new media such as Facebook and online forums to offer advice to families hit by the downturn.
NFC chairman Lim Soon Hock called these measures a 'pre-emptive strike'.
'Job losses, repossessed properties or investment losses do not just affect individuals. They can devastate entire families when they are not prepared to cope with the emotional trauma,' he said.
Past experiences show financial difficulties can be a catalyst for families breaking up, added Mrs Teo. A recent NTUC poll appeared to bear this out. Among 302 polled, three in four said they were worried about the impact the downturn was having on their families.
'It's quite realistic to expect that after the Chinese New Year, in the first quarter leading to the second, we will see an increase in retrenchments.'
Mrs Josephine Teo, NTUC's assistant secretary-general, citing a shorter work week as a precursor to layoffs
