THE Government has accepted the National Wages Council's recommendations that companies persist with focus on cutting costs to save jobs, in view of the continuing risk of a severe and extended downturn.
In a statement sent shortly after the council announced its recommendations for this year and 2010, the Government said on Wednesday it strongly supports the NWC's call for employers to look at ways to manage costs, stay viable and save jobs, including implementing wage freeze and cuts, and other cost cutting measures recommended in the revised tripartite guidelines on managing excess manpower issued on May 17.
'Employers should also be responsible and fair to their workers. At the same time, workers should play their part by being adaptable and flexible, willing to make adjustments, taking on different jobs and having realistic expectations,' said the statement.
On its part, the statement said the Government has implemented measures to help companies and Singaporeans cope with the downturn, such as the Jobs Credit Scheme, Skills Programme for Resilience and Upgrading (Spur), enhanced government financing programmes for companies, lower corporate taxes and the Workfare Income Supplement (WIS) Special Payment.
The Government has also been expanding the CET system and increasing the reach of Spur, to help job seekers reskill and upskill, and take up jobs available in new and expanding sectors.
'These measures have helped to buffer companies and workers from the impact of the downturn. The Government will continue to monitor the situation to see if further measures and assistance are needed,' said the government.
The statement said since the NWC released its revised wage guidelines in January, the global outlook has remained weak. The first quarter saw GDP contracting by 10.1 per cent, compared to a 4.2 per cent dip in the fourth quarter of 2008.
The Ministry of Trade and Industry has forecast the GDP growth for this year to be between -9 and -6 per cent Preliminary estimates show that total employment declined by 1,000 in the first quarter as the economy continued to worsen.
The seasonally-adjusted unemployment rate rose to 3.2 per cent (overall) and 4.8 per cent (resident) as at March. Some 12,600 workers were made redundant in the first quarter, compared to 9,410 in the previous quarter. The labour market is expected to remain weak for some time.
The Government said it also supports NWC's call to use this downturn to strengthen Singapore's competitiveness and prepare for the upturn.
'The Government is confident that with close tripartite co-operation and partnership, the NWC wage guidelines will be successfully implemented to help companies ride out the current downturn, preserve jobs for workers and emerge stronger in the upturn,' added the statement.
