Manpower Minister Josephine Teo appears to have responded to an allegation made by an individual who spoke out in a closed-door session with Trade and Industry Minister Chan Chun Sing during her Budget debate speech in Parliament on Feb. 26.
Teo was speaking of the "right way" for companies to manage the problem of excess manpower, but said there was a "wrong way" to do it.
"An employer claimed she was recently told by MOM to lay off employees, much against her wishes. This sounded really odd to me. It turns out the employer did not tell the full story."
Was it the same employer who was heard speaking in the leaked recording?
Although Teo did not name the employer, or give further details about the case, the incident she described sounds similar to the story related by a business owner who is heard speaking in the leaked audio clip of the Singapore Chinese Chamber of Commerce and Industry (SCCCI)'s meeting with Chan.
The transcript of which we have here:
The exchange came at a point after Chan asked his audience not to sack their workers "immediately", but instead take government assistance to help them stay on.
It then sounded like he accepted a question from a member of the audience. Here was their exchange:
"Audience member: Okay, in fact I actually try to talk to Ministry of Manpower… I agree with what you say, we should think after this critical period. How we better groom up our business, I mean the turnover, all these thing. But then MOM was saying to me that if let’s say you’re not able to retain the staff, then let them go.
Chan: Don’t be so ji dong (agitated, 激动).
Audience member: I don’t want to sack my staff, but MOM was asking me to sack my staff."
This situation would fit in with Teo's description:
- The employer did not want to sack her staff.
- The Ministry of Manpower was asking her to sack her staff if she was not able to retain them.
The employer asked her staff to take no-pay leave
On this particular individual Teo referred to in her speech, though, the minister clarified that in fact, the lady she was referring to had decided to temporarily shut her operations, and told her staff to take no-pay leave until further notice.
Teo said it was unfortunate that she had to close her operations, given the support initiatives announced in this year's Budget for companies that included jobs support and wage credit.
However, she added that asking the workers to bear the uncertainty, waiting for the business to open again was making matters worse.
"For those workers without savings, they will need other jobs to pay their bills! It is one thing to ask if her employees would like to volunteer for no-pay leave; it is quite another to force it upon them."
Teo also pointed out that since the employer stopped paying wages, it would be unfair of her to expect her foreign employees to remain in Singapore, with limited means to support themselves.
"Instead of seeking levy waivers, MOM advised her that it would be more appropriate to repatriate the foreign workers responsibly, and to reapply for work permits in future when business picks up."
Alternatives for employers do exist
Teo highlighted that employers had alternatives to firing workers or putting them on no-pay leave, such as redeploying them, having shorter work weeks, job sharing or adjusting wage components.
For employers with excess foreign workers, Teo said the Singapore Business Federation has a temporary scheme that allows the transfer of workers to companies with manpower shortage.
"This will help employers whose Chinese (national) workers have not gotten approval to return to Singapore, and also cannot hire new Chinese (national) workers because we have suspended approvals."
You can read Teo's full speech below:
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Top image via Josephine Teo's Facebook page.
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