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Oral Answer by Mr Tan Chuan-Jin, Minister of State for National Development and Manpower, to Parliamentary Question on retrenchment situation

Notice Paper No. 39 of 2012 for the Sitting on or after 17 Feb 2012
Question No. 251 for Oral Answer.

MP: Ms Ellen Lee

Question:

To ask the Deputy Prime Minister and Minister for Manpower (a) since the beginning of 2012, whether the Ministry has received any notification of possible retrenchments of Singaporean and non-Singaporean workers in view of the much expected slower growth this year; (b) if so, which industries are the retrenchments taking place in; (c) what are the expected numbers of Singaporeans and non-Singaporeans who will be affected; and (d) what plans does the Ministry have to help retrenched Singaporean workers.

Answer

  1. In January 2012, MOM received 22 notifications from employers on prospective retrenchments. About two-thirds of these planned retrenchments were in the services sector and one-third in manufacturing. Some 230 workers - 60% of whom are residents - are expected to be affected. As these notifications are provided by employers on a voluntary basis, the actual numbers of retrenchments and affected workers could be higher.1
  2. Based on this feedback, there is no indication yet that the number of workers facing retrenchment has gone up sharply. The proportion of residents retrenched, based on the notifications, is also comparable to the proportion of residents employed in our workforce.2
  3. MOM is nevertheless watching the retrenchment situation closely. While our employment numbers are very strong, unemployment is low, we do fully understand what individuals go through when retrenched. Hence the need to do what we can to minimize retrenchments to ensure good employment opportunities and to step in to help when it does happen. For example, during the last downturn in 2008/2009, the Government, in close collaboration with our tripartite partners, introduced several measures to help companies alleviate the situation, including ways to help them manage their workforce flexibly instead of resorting to retrenchment. These measures helped keep many Singaporeans in their jobs. If the need arises, we will once again be prepared.
  4. Where retrenchments are inevitable, companies should carry out such exercises responsibly. This includes providing affected workers retrenchment benefits where possible, to help tide them over when they are searching for employment. Companies are strongly encouraged to notify MOM of any impending retrenchments early so that we can work closely with WDA and e2i to provide employment assistance or retraining to the workers affected as well as to help facilitate their transition to new employment.

 

1 The actual numbers of retrenchments and affected workers for Q42011 will be released in MOM’s Labour Market Report, on MOM’s website by mid-March 2012.

2 Source: Administrative Records