S’pore must balance worker protection with business flexibility to keep jobs here in long term: Zaqy

SINGAPORE – Even as Singapore sets out to protect workers from unfair treatment during retrenchment exercises, it must also provide business flexibility that preserves and creates good jobs here for the long haul.

Flexibility allows businesses to adapt to market conditions and transform their business models, Senior Minister of State for Manpower Zaqy Mohamad told Parliament on Oct 15, responding to questions from MPs in the wake of recent retrenchments at consumer electronics giant Dyson.

“There are other countries where the labour market is more rigid, or where there is a more confrontational relationship between the unions and the employers,” said Mr Zaqy.

However, these make a country less attractive for companies to invest in, he said.

“If we do not get the balance right, we may think that we are protecting our workers, in the short term.

“But in the longer term, the good jobs for our workers may be reduced as we become a less attractive place for companies to invest in and firms may choose to site the operations or even outsource the jobs elsewhere.”

Mr Zaqy was responding to questions from four MPs that touched on various aspects of worker protection, including rules on providing advance notice of impending retrenchment exercises to the Government, as well as action taken against errant companies.

He said that while it is mandatory for employers here to notify the Ministry of Manpower of layoffs within five working days of notifying affected employees, about 30 per cent of the notifications received from 2019 to March 2024 were submitted late.

Nonetheless, around half of these late submissions were still made before the retrenchment date of the affected employees, which Mr Zaqy said still allowed the Taskforce for Responsible Retrenchment and Employment Facilitation to assist affected employees in a timely manner.

He also clarified that workers, including professionals, managers and executives not covered by a collective agreement, can still seek union assistance to be represented as individuals.

The MPs’ questions came after

Dyson laid off an undisclosed number of workers here on Oct 1.

Though the firm laid off non-unionised workers, and adhered to the laws and tripartite advisories in place here, it drew criticism from the United Workers of Electronics and Electrical Industries (UWEEI) for giving the union only one day’s notice.

In a subsequent exchange, Dr Tan Wu Meng (Jurong GRC) noted that Dyson’s global headquarters opened here in 2022 to much fanfare, with then Prime Minister Lee Hsien Loong present at the opening ceremony.

Dr Tan asked if Dyson ought to be benchmarked to a higher standard than the “minimum legal standard of what is acceptable”, given the recognition accorded to the firm.

He also wanted to know what the Government is doing to ensure norms of good employment practices are not eroded over time.

In response, Mr Zaqy said there are multiple layers of protection beyond collective agreements signed with unions, including existing regulations, laws and advisories.

He added that Dyson provided retrenchment benefits to all affected workers, even though they were not covered by the collective agreement, and went above and beyond prevailing tripartite advisories to include affected workers who had been on the job for less than two years.

“I think there are very few countries in the world (where) you find the government stepping in, unions and employers (coming) to a consensus,” Mr Zaqy said, thanking both UWEEI and Dyson.

Getting more companies to inform unions of impending retrenchments a month in advance is a potential area for improvement he identified.

Nonetheless, he acknowledged that business considerations may make such early notice infeasible in some cases, generally speaking.

For instance, companies, especially listed ones, may not have informed shareholders at that point, and it would be “very odd” to inform unions before the market, he said.

In a separate written reply, Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong said Singapore remains an attractive location for investments.

He was responding to a question filed by Mr Yip Hon Weng (Yio Chu Kang) on the factors that spurred multinational corporations (MNCs) to relocate their headquarters, withdraw operations or retrench workers in Singapore.

“Companies, including MNCs, may choose to close or reduce their presence in Singapore for various reasons, such as changes in market dynamics leading to poor performance by the firm, or shifts in the company’s global strategy leading to changes in their operating structure.

“In such situations, the Government works closely with the companies and unions to assist the retrenched workers with skills upgrading and job matching.”