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Written Answer by Minister of Manpower Dr Tan See Leng to PQ on wage cut notifications

Employment practices

NOTICE PAPER NO. 1325 OF 2022 FOR THE SITTING ON OR AFTER 13 SEPTEMBER 2022
QUESTION NO. 2085 FOR WRITTEN ANSWER

MP: Mr Leong Mun Wai

To ask the Minister for Manpower (a) whether a monthly breakdown can be provided on the number of wage cut notifications received by the Ministry from March 2020 to July 2022; and (b) whether the Ministry will consider re-implementing the wage cut notification measures as a way of monitoring businesses that use wage cuts as a solution to overcome business challenges.

Answer:

  1. In March 2020 with the onset of COVID-19, MOM introduced a temporary requirement for employers with 10 or more employees to notify MOM if they implement any cost-saving measures that affected employees’ monthly salaries. This would encourage responsible implementation of such measures and allow MOM to monitor the scope and scale of the measures. This would also enable tripartite partners to step in to provide the appropriate support to both employers and employees when needed.
  2. As the economy progressively recovered, the number of cost-saving notifications received fell from a monthly peak of 1,937 in April 2020 to a monthly average of 9 between January and July 2022.
  3. Given the fall in the number of notifications received to a very low level and that it has been sustained at that level for several months as we emerged from the pandemic, the tripartite partners did not see a need to continue to impose the requirement on employers. We have no plans to reinstate the requirement at the moment.
  4. Notwithstanding the above, the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment (TAMEM) remains in place to guide employers on the implementation of cost-saving measures to preserve jobs. Employers should consult their unions and employees to discuss and reach an agreement before implementing wage cuts. Employers who need clarification on TAMEM can approach the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) for advice. Employees who feel that cost-saving measures have not been implemented fairly can also approach the Tripartite Alliance for Dispute Management (TADM) for assistance.