TO help companies and workers cope with the impact of the sharp economic downturn, the Ministry of Manpower (MOM) on Wednesday released a revised set of guidelines on dealing with excess manpower.

The tripartite guidelines, with input from the Singapore National Employers Federation (SNEF) and the National Trades Union Congress (NTUC), strongly encourage companies to manage their excess manpower and consider retrenchment only as a last resort.

Companies are urged to consult the unions to ensure that the layoff is carrie dout responsibily and smoothly, said MOM in a statement.

They should also notify MOM as soon as possible of their impending retrenchment when a decision has been made.

'Early notification will enable the Ministry and the relevant agencies to help affected workers find alternative employment expeditiously and/or to provide them with relevant training for enhanced employability', added MOM.

To help save jobs, companies should first consider alternatives such as making use of the Skills Programme for Upgrading and Resilience (Spur) to send workers for training, redeploying workers to alternative areas of work, implementing shorter work-week, temporary lay-off, flexible work schedule or other flexible work arrangements, and managing wage costs through the use of the flexible wage system, said MOM.

Companies should take a long-term of their manpower needs when deciding on the best course of action, the ministry advised.

On the shorter work week option, MOM said firms can ask their workers to take up to 50 per cent of their annual leave or reduce the work week, which should not exceed more than two days a week and not last more than two months.

The guidelines aims to help employers and workers to better manage the economic downturn and at the same time reposition our workforce to seize opportunities when the economy recovers, said MOM.

'When there is a need to implement any of the above measures, the principle and spirit of leadership by example, close consultations and transparency should prevail. This will enhance the level of trust between employers and workers/unions and help to smoothen implementation'.

'For instance, when salary needs to be adjusted downwards, senior management should lead by example by cutting their salaries earlier or accept similar or deeper cuts.

'The Tripartite partners would like to urge companies, unions and workers to work closely together to overcome this downturn, and make sacrifices where necessary to ride out the storm'.

'Companies, with the support of unions and workers, should take advantage of SPUR and other skills upgrading programmes to upskill and reposition their workforce so that they could emerge stronger for the benefit of the company, workers and the economy'.

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