Impact of Job Cuts on Singapore Economy

This assignment analyzes the impact of job cuts in Singapore's economy during 2016. It specifically focuses on the banking and tourism sectors, examining reasons for layoffs such as global economic conditions, industry restructuring, and bad debt problems. The assignment also discusses government policies implemented to manage excess manpower and mitigate the effects of retrenchment, including tripartite guidelines and advisory on responsible retrenchment practices. Finally, it explores the potential consequences of these job cuts for individual workers and the overall Singaporean economy.

Running head: LAYOFFS & PLANT ISSUES IN SINGAPORE
Employment Relations in Asia
[Layoffs and Plant Issues in Singapore]
Name of the student:
Name of the university:
Author note:

1LAYOFFS & PLANT ISSUES IN SINGAPORE
Table of Contents
Introduction:....................................................................................................................................2
Layoffs and plant closure issues in Singapore & Role of employers:.............................................2
Role of employee:............................................................................................................................3
Role of government:........................................................................................................................4
Should government be involved at all?...........................................................................................5
Conclusion:......................................................................................................................................6
References:......................................................................................................................................8

2LAYOFFS & PLANT ISSUES IN SINGAPORE
Introduction:
Plant closing and a consequent layoff is a serious setback for the local & national
government, the employers and the labors. A plant closing can be defined as an impermanent
shutdown which has no certainties for when it will reopen or will it remain closed forever.
Layoffs can be defined as a temporary or a permanent removal of workers (Kopelman & Rosen,
2016). This assignment is purposefully aimed at identifying the roles that the employers,
employees and the government can play to prevent layoff cases in Singapore. This is to be noted
that there have been few layoff cases in Singapore such as with few reputed organizations that
had also being described in this paper.
Layoffs and plant closure issues in Singapore & Role of employers:
According to government norms, employers need to follow a proper and an ethical
retrenchment process in situations like plant closing (Ford & Gillan, 2016). A standout amongst
the hugest cases of such a shutdown is of the Coca-Cola Singapore Beverages (CCSB) in Tuas.
The firm was rolling out infrastructural improvements and making arrangements in forms of
investments, to move its plant to Malaysia from Singapore, which was evaluated to have been
influencing 200 representatives. In any case, the organization employed 450 specialists across
Singapore a while later, after proposals and suggestions that were being made by the NTUC.
Employers are likewise expected to inform the Ministry of Manpower (MOM) when they are
choosing to close down and are committed to give their representatives the possibility and
information of a notice period, the length of which relies upon to the extent the particular
employee was part of the organization (Mom.gov.sg., 2017).

3LAYOFFS & PLANT ISSUES IN SINGAPORE
The procedure has extraordinarily helped in guaranteeing the human rights of the works
as on account of employees of Resorts World Sentosa (Leong, 2016). The administration of
RWS worked pair with MOM and the Attractions, Resorts and Entertainment Union (AREU) to
ensure the representatives get their legitimate benefits. This case required the help of the
worker's parties as the people who did not take the conservation offer were sacked. The
organization had indeed needed to chop down expenses and preparing the workers. So that, it
could be ensured that workers acquire below SG $ 4500 were given repayment and training
(Leong, 2016).
The standards of retrenchment policies additionally helped workers on account of
Goldman Sach's downsizing of representatives in Singapore. The Goldman Sach's increasingly
cuts workers to keep up a productive income in terms with their rivals (Reuters, 2016). The
Management of Goldman Sach's ensure that representatives who are being conserved are advised
in advance and given appropriate repayment. The administration paid the representatives a
decent sum as a separating advantage as it was in moving activities. The representatives of the
Goldman Sachs were given better opportunities in aggressive firms to enhance their odds at
getting work.
Role of employee:
The labors and the labour unions have a noteworthy part to play in dealing with the
cutbacks in the association helping in the best possible management of the distinctive issues
emerging between the management and the employees amid the cutback procedure (Marginson,
2016). As per the laws in Singapore, the workers who have served over two years are qualified

4LAYOFFS & PLANT ISSUES IN SINGAPORE
for the retrenchment benefits while the other employees may get payments for the maintenance
of the generosity of the organization (Marginson, 2016).
On account of the cutbacks by the Standard Chartered bank of Singapore to cut the
activities cost of the bank, the repayment and the retrenchment of the workers were given as they
were provided a specific notice period to serve before their last cutback. The labor unions in
Singapore act as medium and correspondence channels between the businesses and the labors.
The organiation of the cutback and the retrenchment of the worker were arranged by the diverse
experts representing the bank with the assistance of the neighborhood union body (Independent,
2016). The union played a dynamic part in decision of the repayment benefits and the training of
the workers.
The Australia and New Zealand bank is one of alternate illustrations where the laid off
representatives figured out how to learn different exchanges and the NTUC played an essential
part in this (TODAYonline, 2016). Since the retrenchment was all around overseen and in little
bunches it was not featured by the organization. The MOM and the WSG ensured that the
retrenched workers get employment facilitation support. The HSBC bank is Singapore too is
concentrating on cutting expenses by lay off representatives and the labor unions ensure that
these organizations follow retrenchment policies and the privileges of the workers are not
hampered. The representatives for the most part moved to various banking jobs with the
assistance of MOM (The Straits Times, 2016).
Role of government:
The government involvement in dealing with the correspondence of the cutbacks in the
diverse associations helps in ensuring that the privileges of either party are not hampered. There

5LAYOFFS & PLANT ISSUES IN SINGAPORE
are various issues amid the laying off that are solved by an alternate arrangement of laws
(Woolfson, 2017).The government regularly faces intense difficulties in providing openings for
work as in account of oil and gas representatives when they were laid off (AsiaOne, 2016). The
government retrenchment and retraining strategies haled these representatives land distinctive
positions via training them with various ranges of abilities.
In case of retrenchment, the retrenchment rules ensured that the Workforce Singapore
(WSG), the tripartite accomplices – MOM, NTUC and the Singapore National Employers
Federation (SNEF) ought to be educated to upgrade the employability of the people through
training (Mom.gov.sg., 2018). This played a critical part when Rakuten cut off its activities in
Singapore laying in excess of 100 representatives and the government ensured their necessities
were fulfilled. The workers were given one month's notice and retrenchment advantages, for
example, repayment and support for the preparation and the improvement program as the firm
was not unionized. The tripartite laws consider the diverse practices of retrenchment of the
representatives on account of the end of an organization (Mom.gov.sg., 2018).
The government guarantees that the warnings are taken after as on account of Maersk
Line which had a gigantic cutback of 4000 workers in 2017. The absence of financing for the
tasks caused this choice yet government assumed liability to give different chances to the
representatives and they were given one month's notice and a proportionate measure of cash. The
tripartite laws consider the distinctive practices of retrenchment of the representatives on account
of the end of a union. MOM ensured that the businesses take after the Tripartite Guidelines on
Fair Employment Practices (Mom.gov.sg, 2018).
Should government be involved at all?

6LAYOFFS & PLANT ISSUES IN SINGAPORE
Positively, it is very pivotal for government to intervene and take activities for enhancing
the layoff circumstance. In the modern times, because of the automation of most of the
procedures over various organizations the advisory and rules of retrenchment help in securing
the privileges of the workers in the nation. One of the rules that given out are the voluntary
separation schemes which will be given by the businesses if the position is getting to be excess
or the organization is in the rebuilding procedure. The rules about the retrenchment approaches
of the workers and benefits given to them come under the Tripartite Guidelines. Thus, the staffs
can have an informed consent with a reasonable detail and choose whether or not they need to
take after the plan. The rules consider the notice time of illuminating the worker about the
retrenchment, and the distinctive parties to be educated beforehand, the reason to be appeared to
the employees while advising about their retrenchment (Mom.gov.sg, 2017).
One of the cases of extraordinary government interventions in retrenchment was that on
account of Singapore Press Holdings where the employees were educated about the activity cut
minutes previously. For this situation, the monitory of Manpower and the NTUC held a career
counselling and work drive for them and furthermore gave retrenchment grants (Marginson,
2016). The Barclays Bank additionally retrenched 100 workers in Singapore in what is viewed as
one of the most noticeably awful retrenchment works out. In such case government intervention
enables the labors to land alternative positions and a specific undisclosed sum as repayment
(Boon, 2016). Royal Bank of Scotland is another bank which retrenched very nearly 2600
representatives. The government helps and the career counselling helped them discover
employments in the developing banks in Singapore like the Commonwealth Bank of Australia
(Independent, 2016).
Conclusion:

7LAYOFFS & PLANT ISSUES IN SINGAPORE
Therefore, the distinctive strategies and by the legislature and the diverse assemblages of
labor parties in Singapore ensure that the labors get their due offer of rights in the changing
market and the organizational changes. The way that emerges is the government and the labor
unions go the degree of training the employees to enhance their activity prospects incredibly
stands out. The responsibility of the government is to guarantee the welfare the privilege of its
citizen and by the retrenchment strategies and their capable execution, it ensures that the
privileges of the working populace isn't hampered.

8LAYOFFS & PLANT ISSUES IN SINGAPORE
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retrenched-senior-banking-staff/ [Accessed 19 Feb. 2018].

9LAYOFFS & PLANT ISSUES IN SINGAPORE
Kopelman, J. L., & Rosen, H. S. (2016). Are Public Sector Jobs Recession-Proof? Were They
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Leong, G. (2016). Resorts World Sentosa laying off 400; analysts cite bad debt problem. [online]
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sentosa-laying-off-400-analysts-cite-bad-debt-problem [Accessed 18 Feb. 2018].
Marginson, P. (2016). Governing work and employment relations in an internationalized
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Mom.gov.sg. (2017). Tripartite Guidelines on Mandatory Retrenchment Notifications. [online]
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10LAYOFFS & PLANT ISSUES IN SINGAPORE
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