<TABLE border=0 cellSpacing=0 cellPadding=0 width=452><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published August 8, 2009
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Jobs Credit helps firms stave off planned layoffs
MOM survey shows 40% of firms not using Spur
By TEH SHI NING
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JOBS Credit, Spur and the tripartite guidelines on managing excess manpower are having their desired effect on the ground, a Ministry of Manpower survey has found.
<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD>
</TD></TR><TR class=caption><TD>MR GAN
'Most companies view retrenchments as a last resort after exhausting other measures.'</TD></TR></TBODY></TABLE>Close to three quarters of the companies which planned retrenchments prior to the introduction of Jobs Credit, have postponed or reduced the number of lay-offs as a result of government measures, manpower minister Gan Kim Yong said, at the ministry's National Day observance ceremony yesterday. The ministry surveyed 4,200 private establishments employing a total of 930,000 employees between May and July.
Among hotels and restaurants in particular, 90 per cent of those which intended to retrench workers reported that the government initiatives had had a positive impact on their plans. Overall, less than 10 per cent of the companies had resorted to retrenchments, which Mr Gan said indicated that 'most companies view retrenchments as a last resort after exhausting other measures'.
However, Mr Gan said that the survey also revealed that 40 per cent of companies had not sent, or had no plans to send their workers for training under Spur. Reasons given ranged from Spur being 'not relevant to their company or industry', to companies already running their 'own in-house training'.
Acknowledging that productivity numbers have trended south for six consecutive quarters now, Mr Gan addressed a point raised by labour leader Josephine Teo on Thursday.
Ms Teo, the National Trades Union Congress' assistant secretary-general and a member of parliament, had called on the government to 'retune' its foreign worker policy to halt productivity decline.
But, Mr Gan said yesterday that any policy response must be carefully calibrated. 'It may be too simplistic to assume that reducing employers' access to foreign manpower will automatically lead to an improvement in productivity,' he said.
This could instead cause rigidity and distortion in the labour market, which could add to costs and undermine businesses' competitiveness. 'To achieve real sustainable growth in productivity, there is no alternative to concerted efforts by all parties and a lot of hard work on the ground. We need all stakeholders to take ownership of the productivity challenge,' said Mr Gan.
</TD></TR></TBODY></TABLE>
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Jobs Credit helps firms stave off planned layoffs
MOM survey shows 40% of firms not using Spur
By TEH SHI NING
<TABLE class=storyLinks border=0 cellSpacing=4 cellPadding=1 width=136 align=right><TBODY><TR class=font10><TD width=20 align=right>
</TD><TD>Email this article</TD></TR><TR class=font10><TD width=20 align=right>
</TD><TD>Print article </TD></TR><TR class=font10><TD width=20 align=right>
</TD><TD>Feedback</TD></TR></TBODY></TABLE>JOBS Credit, Spur and the tripartite guidelines on managing excess manpower are having their desired effect on the ground, a Ministry of Manpower survey has found.
<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD>
</TD></TR><TR class=caption><TD>MR GAN'Most companies view retrenchments as a last resort after exhausting other measures.'</TD></TR></TBODY></TABLE>Close to three quarters of the companies which planned retrenchments prior to the introduction of Jobs Credit, have postponed or reduced the number of lay-offs as a result of government measures, manpower minister Gan Kim Yong said, at the ministry's National Day observance ceremony yesterday. The ministry surveyed 4,200 private establishments employing a total of 930,000 employees between May and July.
Among hotels and restaurants in particular, 90 per cent of those which intended to retrench workers reported that the government initiatives had had a positive impact on their plans. Overall, less than 10 per cent of the companies had resorted to retrenchments, which Mr Gan said indicated that 'most companies view retrenchments as a last resort after exhausting other measures'.
However, Mr Gan said that the survey also revealed that 40 per cent of companies had not sent, or had no plans to send their workers for training under Spur. Reasons given ranged from Spur being 'not relevant to their company or industry', to companies already running their 'own in-house training'.
Acknowledging that productivity numbers have trended south for six consecutive quarters now, Mr Gan addressed a point raised by labour leader Josephine Teo on Thursday.
Ms Teo, the National Trades Union Congress' assistant secretary-general and a member of parliament, had called on the government to 'retune' its foreign worker policy to halt productivity decline.
But, Mr Gan said yesterday that any policy response must be carefully calibrated. 'It may be too simplistic to assume that reducing employers' access to foreign manpower will automatically lead to an improvement in productivity,' he said.
This could instead cause rigidity and distortion in the labour market, which could add to costs and undermine businesses' competitiveness. 'To achieve real sustainable growth in productivity, there is no alternative to concerted efforts by all parties and a lot of hard work on the ground. We need all stakeholders to take ownership of the productivity challenge,' said Mr Gan.
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