Forum: Shape better work future by making retrenchment benefits mandatory
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Tripartism has always been a competitive edge for Singapore since its founding days. But the world has changed and so has Singapore.
With new headwinds coming our way, maybe we should relook how tripartism can still be that balanced and cooperative solution.
The new businesses that Singapore hopes to attract have different profiles from those of the 1960s to 2000s.
Artificial intelligence and other newer technology-driven approaches will bring about both opportunities and disruptions. But common among the most innovative and emerging businesses is their need for speed and scale.
In that mad rush, successes and failures come quickly. With failures, retrenchments and closures are inevitable.
When these new businesses fail, can we still say that tripartism still provides that balanced approach for all stakeholders?
The reality is that the business life cycle has shortened, as seen in businesses such as e-commerce, ride-sharing, fintech and even digital banking.
Employees are a critical part of the accelerated growth story, but when things go south, businesses will downsize and revisit their current business model if there is no alternative future ahead.
Do not, however, let the “hire fast, scale fast, and cut headcount if things do not go well” model be accepted as inevitable in how businesses conduct themselves.
Instead of the Ministry of Manpower’s oft-used “shaping the norms” phrase for all stakeholders, why not consider “shaping the outcomes” instead?
Let us be bold and legally enshrine what are the retrenchment benefits. If severance pay is a minimum two weeks’ pay for every year of service with a cap on the amount, let that be enshrined.
Will we lose out on attracting new investments? We are no longer the backwaters of the world. Workforce competitiveness is only a subset of what attracts investments to Singapore.
By enshrining retrenchment benefits in law, we are not just shaping the norms, but we are also shaping the future.
Right from the onset, businesses have to factor in the implications of their conduct of business here. With such a move, we can shape a better future.
Too Kah Sam
