Analyzing Plant Closures & Layoffs: Singapore's Employment Relations

This essay examines the complexities of plant closures and layoffs in Singapore, focusing on the roles of businesses, labor unions, and the government in managing these events. It discusses the responsibilities of employers in ensuring ethical retrenchment processes, citing examples such as Coca-Cola Singapore Beverages (CCSB) and Goldman Sachs. The essay highlights the importance of labor unions in mediating between management and employees, referencing cases involving Standard Chartered bank and Australia and New Zealand bank. Furthermore, it emphasizes the government's role in providing job opportunities and retraining programs, using Rakuten and Maersk Line as examples. The essay concludes that the government and labor bodies in Singapore ensure that workers' rights are protected during organizational changes and economic shifts, particularly through training and support programs.

Employment Relations in Asia
Employment Relations in Asia ()
Neena John
Student number:

1EMPLOYEE REALTIONS IN ASIA
Table of Contents 34
Introduction........................................................................................................................2
Managing closing of plants, layoffs and the role of business............................................2
Labour Involvement in Managing Layoffs..........................................................................3
Government involvement in managing Layoff...................................................................4
Justification of Government Involvement..........................................................................5
Conclusion.........................................................................................................................6
References.........................................................................................................................7

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Introduction
The shutting down of a company, industry or a firm can be attributed to various
reasons like a slowdown in the economy, which has many negative consequences
attached to it. Employers, employees, the industry, the society and the government are
all affected when a company shuts down. The closing down of a plant can be defined as
an act of stopping the operations of a part of a plant or complete shutting down of the
entire plant with the aims of downsizing, which itself is instigated by a poor or slow
economic condition (Gaudencio, Coelho & Ribeiro, 2017).
Managing closing of plants, layoffs and the role of business
By ‘business’, one typically refers to different organizations, the employers and
the companies. According to government norms, it is the responsibility of the employer
to make sure that the retrenchment process is done properly and ethically, when a plant
shuts down. Strategies must be adopted so that the company is operating in the most
efficient manner and not incurring any costs (Chung & Lee, 2017).
One of the most significant examples of such a close down is the case of the
Coca-Cola Singapore Beverages (CCSB) in Tuas. The firm was making infrastructural
changes and making plans in forms of investment, to shift its plant to Malaysia from
Singapore, which was estimated to have been affecting 200 employees. However, the
company hired 450 workers across Singapore afterwards, after suggestions and
recommendations that were made by the NTUC. Employees are also supposed to be notifying
the Ministry of Manpower (MOM) when they are deciding to shut down and are obligated to

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give their employees the chance and knowledge of a notice period, the length of which depends
on for how long the specific employee part of the company is (Smith, Ang & Gan, 2017). The
process has greatly helped in ensuring the rights of the labors as in the case of
employees of Resorts World Sentosa (Leong, 2016). The management of RWS worked
in tandem with MOM and the Attractions, Resorts & Entertainment Union (AREU) to make
sure the employees get their rightful benefits This case required the support of the labor
unions as the individuals who did not take the retrenchment offer were sacked as the
company had to cut down costs and gave training and made sure employees earning
below SG $ 4500 were given reimbursement and training. The norms of retrenchment
policies also helped employees in the case of Goldman Sach’s downsizing of
employees in Singapore. The Goldman Sach’s increasingly cuts employees to maintain
a profitable revenue in terms with their competitors (Reuters, 2016). The Management
of Goldman Sach’s make sure that the employees who are being retrenched are notified
beforehand and given proper reimbursement. The management paid the employees a
good amount as parting benefit as it was shifting operations. The employees of the
Goldman Sachs were given better opportunities in the competitive firms to improve their
chances at getting work.
Labour Involvement in Managing Layoffs
The labours and the labour unions have a major role to play in managing the
layoffs in the organization helping in the proper management of the different issues
arising between the management and the employees during the layoff procedure
(Seow, 2015). According to the laws in Singapore, the employees who have served
more than two years are eligible for the retrenchment benefits while the other

4EMPLOYEE REALTIONS IN ASIA
employees may get payments for the maintenance of the goodwill of the company ( Yue
& Das, 2015).
In the case of the layoffs by the Standard Chartered bank of Singapore to cut the
operations cost of the bank, the reimbursement and the retrenchment of the employees
were provided as they were given a certain notice period to serve before their final
layoff. The labour unions in Singapore act as buffers and communication channels
between the employers and the labors. The management of the layoff and the
retrenchment of the worker were planned by the different authorities governing the bank
with the help of the local workers union body. (Hardasmalani, 2015). The union played
an active role in decision of the reimbursement benefits and the training of the
employees.
The Australia and New Zealand bank is one of the other examples where the laid
off employees managed to learn other trades and the NTUC played an important role in
this (TODAYonline, 2016). Since the retrenchment was well managed and in small
batches it was not highlighted by the organization. The MOM and the WSG made sure
that the retrenched employees get employment facilitation support. The HSBC bank is
Singapore too is focusing on cutting costs by laying off employees and the labour
unions make sure that these companies follow retrenchment policies and the rights of
the employees are not hampered. The employees mostly shifted to different banking
jobs with the help of MOM (The Straits Times, 2016).

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Government involvement in managing Layoff
The government involvement in managing the communication of the layoffs in the
different organizations helps in making sure that the rights of either parties are not
hampered. There are a number of problems during the laying off that are solved by a
different set of laws (Bhaskaran, 2016). The government often faces tough challenges
in providing job opportunities as in the case of oil and gas employees when they were
laid off (AsiaOne, 2016). The government retrenchment and retraining policies haled
these employees get different jobs by training them with different skill sets.
In case of retrenchment, the retrenchment guidelines made sure that the
Workforce Singapore (WSG), the tripartite partners – MOM, NTUC and the Singapore
National Employers Federation (SNEF) should be informed to enhance the
employability of the individuals through training (Cascio, 2014). This played a very
important role when Rakuten chose to close its operations in Singapore laying off more
than 100 employees and the government made sure their needs were fulfilled The
employees were given one month’s notice and retrenchment benefits such as
reimbursement and support for the training and the development program as the firm
was not unionized. The tripartite laws take into account the different practises of
retrenchment of the employees in the case of the closing of an organization. (Chuan,
2016).
The government ensures that the advisories are followed as in the case of
Maersk Line which had a massive layoff of 4000 employees in 2017. The lack of funding
for the operations caused this decision but government took responsibility to provide
other opportunities to the employees and they were given one month’s notice and a

6EMPLOYEE REALTIONS IN ASIA
proportionate amount of money. The tripartite laws take into account the different
practises of retrenchment of the employees in the case of the closing of an organization.
MOM made sure that the employers follow the Tripartite Guidelines on Fair Employment
Practices (Mom.gov.sg, 2018).
Justification of Government Involvement
Certainly, it is quite crucial for government to intervene and take initiatives for
improving the layoff situation. In the modern times, due to the automation of the majority
of the processes across a number of organizations the advisory and guidelines of
retrenchment help in protecting the rights of the labours in the country. One of the
guidelines that given out is the voluntary separation schemes which will be provided by
the employers if the position is becoming redundant or the company is in the
restructuring process. The guidelines about the retrenchment policies of the employees
and the retrenchment benefits given to them cone under the Tripartite Guidelines.
Hence, the staffs can have an informed consent with a clear detail and decide whether
or not they want to follow the scheme. The guidelines take into account the notice
period of informing the employee about the retrenchment, and the different parties to be
informed beforehand, the cause to be shown to the employees while informing about
their retrenchment (Mom.gov.sg, 2017).
One of the examples of great government interventions in retrenchment was that
in the case of Singapore Press Holdings where the employees were informed about the
job cut minutes before. In this case the monitory of Manpower and the NTUC held a
career counselling and employment drive for them and also gave retrenchment grants

7EMPLOYEE REALTIONS IN ASIA
(Seow, 2017). The Barclays Bank also retrenched 100 employees in Singapore in what
is seen as one of the worst retrenchment exercises. In such case government
intervention helps the employees get alternative jobs and a certain undisclosed amount
as reimbursement (Boon, 2016). Royal Bank of Scotland is another bank which
retrenched almost 2600 employees. The government help and the career counselling
helped them find jobs in the growing banks in Singapore like the Commonwealth Bank
of Australia (Independent, 2016).
Conclusion
Therefore, the different policies and by the government and the different bodies
of labour parties in Singapore make sure that the labours get their due share of rights in
the changing market and the organizational changes. The fact that stands out is the
government and the labour unions go the extent of training the employees to improve
their job prospects greatly stands out (Abdullah & Chan, 2016).The responsibility of the
government is to ensure the welfare the right of its citizen and by the retrenchment
policies and their able execution it makes sure that the rights of the working population
is not hampered.

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