Singapore Needs To Balance Protecting Workers and Business Flexibility

Senior Minister of State for Manpower Zaqy Mohamad had called for the nation to strike the right balance between worker's welfare and the country's pro-business stance. This statement comes after a recent layoff in Dyson.

In many countries, unions adopt a confrontational relationship with employers, making the country less attractive for companies to invest in. Mr Zaqy stresses that there needs to be a good balance between protecting employees and allowing some flexibility for business.

Mr Zaqy highlighted that if the balance is not right, then it might have a crippling effect on the country's workforce in the long term. He said that businesses need to have the flexibility to adapt to market conditions and transform their business models, and Singapore needs to preserve its economic competitiveness.

Building a bond between unions and employers

In Dyson's case, the period of notice given to the union was negotiable because the retrenched employees were not unionised. For unionised employees, the norm is to inform the union a month before notifying employees.

Dyson also explained that the company also faced its own restraints. That is why they couldn't give more advanced notice. Despite its iffy methods, Dyson's hasn't broken any laws with their actions.

The company submitted its mandatory retrenchment notification to MOM on time, within five working days of notifying affected employees. On top of that, the firm provided retrenchment benefits to employees who were with the company for less than two years.

Mr Zaqy says that trust between the Union and employers is essential for them to work together effectively. But this trust cannot be taken from granted, and it needs to be forged overtime through hardwork.

He ended off by saying

"Managing retrenchment isn't easy. We need to continue achieving the right balance between the interests of the business, while ensuring that our workers remain protected and well supported during this difficult period of disruption."