It does not see the need to make more drastic recommendations despite no improvement in the gloomy economic conditions.

The reason is Government measures have helped to buffer companies against the force of the recession as well as minimise job losses, said NWC chairman Lim Pin on Wednesday.

Citing a survey of 1,900 employers at end-March, Prof Lim said more than six in 10 say they do not intend to retrench because of measures like the $4.5 billion Jobs Credit scheme, in which the Government subsidises a worker's salary.

'The measures have made a significant impact in helping companies and workers cope with the downturn,' said Prof Lim, while urging companies to continue tapping on such schemes.

If there are pay cuts to be made, management should take the lead, it added.

The Government has accepted the recommendations, saying it supports the call 'for employers to look at ways to manage costs, stay viable and save jobs'.

In announcing the wage guidelines on Wednesday, Prof Lim cautioned against expecting a quick economic recovery, despite 'green shoots' suggesting an imminent recovery.

Read the full story in Thursday's edition of The Straits Times.

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