Do we cut jobs or costs?
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WITH difficult times lying ahead, labour chief Lim Swee Say says the critical question that bosses, unions and the Government must ask is this:
'Do we focus our minds and efforts on cutting jobs to save costs, or cutting costs to save jobs?' He is clear about what the answer must be - a uniquely Singapore solution:
'In Singapore, instead of focusing on cutting jobs to save costs, we focus our energy, our efforts on cutting costs to save jobs.
'This is the way to ensure that we will be able to achieve not only the right outcome for businesses, but at the same time, a good outcome for workers.
'And this is a win-win outcome - one that will strengthen trust, not weaken trust; one that will strengthen tripartism, not weaken tripartism.'
Mr Lim, who is secretary-general of the National Trades Union Congress, and a Minister in the Prime Minister's Office, said declining global demand meant that companies and industries were or would be operating under capacity.
There would be downsizing and some companies might not even survive - which would result in retrenchments and an increase in unemployment.
'From the labour movement's point of view, we are realistic. We are realistic that we'll not see another year of low retrenchments in 2009. We'll not see another year of full employment in 2009... ' said Mr Lim.
'For us, the top priority must be one of guarding against massive retrenchments and preventing a rapid rise in unemployment.'
But he warned against taking the approach of cutting jobs to cut costs. That would translate into 'massive retrenchments ... (and) a massive rise in unemployment'. Such an approach might achieve the right outcome for businesses, but the wrong one for Singapore workers, he stressed.
'This would be a win-lose situation: a win for businesses, a lose for the workers. This win-lose situation would eventually turn into a lose-lose situation,' he said.
'Trust would be weakened and eventually cooperation would turn into confrontation. This is not what we want to see happening in Singapore.'
To Mr Lim, the uniquely Singapore approach of cutting costs to save jobs is a win-win solution.
He said the desire to forge a win-win outcome is also why the labour movement welcomed the broad shape of the upcoming Budget - which will focus on helping businesses lower their costs - as well as the new measures announced yesterday to help companies with financing and to fund training.
Mr Lim's call for companies and employees to rally together was echoed by Singapore National Employers Federation (SNEF) vice-president Bob Tan.
Mr Tan said he expects most companies to observe the guidelines issued on Wednesday by the Manpower Ministry, NTUC and SNEF regarding how to manage excess manpower.
The guidelines urge bosses to save jobs through steps such as reducing variable wages, sending staff for training or having shorter work-weeks - and to consider retrenchment only as a last resort.
'Many companies have realised that as far as possible, they'd like to retain their workforce, their talent,' said Mr Tan.
'It's an investment. You don't just throw those investments out of the window at the earliest opportunity.'
SNEF members have been asking about the guidelines, he added, which suggests they are looking at ways to cut costs first, rather than cutting jobs.
Mr Lim noted that some companies are already taking steps in this direction.
Referring to e-mailed updates he received on Thursday from unionists in the electronics and chemical sectors, he said that one firm had introduced wage cuts of 5 per cent to 20 per cent - and that senior management was taking the deeper cuts. Although he did not name the company, The Straits Times understands it is Chartered Semiconductor.
Another company had redeployed its excess workers to other projects it is undertaking, and was also looking at tapping the larger training grants that have been announced.
Mr Lim also disclosed that two other companies had decided not to renew the work permits of their foreign workers when they expire.
Although the guidelines are not legally binding, Mr Lim, like Mr Tan, believes that employers will abide by them because it is the right thing to do.
Recalling the stance taken by his professor at a business ethics course he attended 18 years ago, Mr Lim, 54, said the class was told that as they rose up the ranks, they would discover that doing 'what is legal and what is good for business' is the easy thing to do.
'He said every good chief executive officer is able to do that. But he said the bigger challenge is to do things that are ethical and that are socially responsible.'
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as if the employers care.
axing head count is the best way to cut cost as far as employers are concerned.
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axing could be not best solution, mostly company if remain "BASIC" "SIMPLE" this should not be happen, un-necessary expention,
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look at the mentality of the senile management... they're all about the same..
=> Big Three Auto CEOs flew private jets to ask for taxpayer money
CEOs and top management are all similarly divorced from reality...
now.. how asinine is this example? and how common is it with the rest of the CEOs and top management?
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and also to spurt millions for a golf game cum don't what.
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heard this 1
"you die better than I die"
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Originally posted by SevenEleven:
and also to spurt millions for a golf game cum don't what.
this is done mostly for double tax deduction purpose -
u think the bosses will cut their entertainment? cut their expenses??? so the easiest thing to cut is cut job lor..... just 2 job 1 person do lor.. take it or leave it..
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Originally posted by the Bear:
look at the mentality of the senile management... they're all about the same..
=> Big Three Auto CEOs flew private jets to ask for taxpayer money
CEOs and top management are all similarly divorced from reality...
now.. how asinine is this example? and how common is it with the rest of the CEOs and top management?
my company's top management will say... their time is money lor.. the time cost is greater than this small transportation cost lor... -
Cutting job will reduced cost while the job will be shared among the remain worker. If able to cut cost and retain worker who have nothing much to do now, why bother to retain ? Still end of day, cut job ... LPPL ...
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he thinks MNC are humans orientated. Even GLC cut people like no one business,...who cares,..in the real business environment, cut first and talk later, that is the key to survive,...what cut wages, for what, still hv to pay and infact morale get lowered and people tends to work less productive. Bosses best solution if to cut them. They have the right, ethic subject is not even an requirement in business school to get graduated, what is he talking about???
To stay flexible, swift with the niche to turn around and overcome competition, bosses need to act fast, not delee darelee and wait for the cow come home, like this hor, business collapse liao. And As a boss, if i dun cut a few now, i may hv to remove the whole lot if my business go down, at least by removing a few, restructure or re enginneer it, I can still ride this wave over.
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Originally posted by angel7030:
he thinks MNC are humans orientated. Even GLC cut people like no one business,...who cares,..in the real business environment, cut first and talk later, that is the key to survive,...what cut wages, for what, still hv to pay and infact morale get lowered and people tends to work less productive. Bosses best solution if to cut them. They have the right, ethic subject is not even an requirement in business school to get graduated, what is he talking about???
To stay flexible, swift with the niche to turn around and overcome competition, bosses need to act fast, not delee darelee and wait for the cow come home, like this hor, business collapse liao. And As a boss, if i dun cut a few now, i may hv to remove the whole lot if my business go down, at least by removing a few, restructure or re enginneer it, I can still ride this wave over.
Many of the shrew boss is like your thinking lor ... - (not that your are shrewed or anything hor) ... do thing do it the most effective and efficient way ... no need to be kind as they don't owe the worker any thing ... definately don't owe the government at all . . .
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Originally posted by ORIGAMIST:
Many of the shrew boss is like your thinking lor ... - (not that your are shrewed or anything hor) ... do thing do it the most effective and efficient way ... no need to be kind as they don't owe the worker any thing ... definately don't owe the government at all . . .
Correct mah, you hv to right to work or resign, boss hv the right to hire and fire, fair mah. If u work with human ethicals and emotions, most likely you are going to get bully or out of business. Be realistic, if i can employ again with lesser paid next time, why i need to hold back people here, train them, cut their wages and make them work less hours, might as well pay them a few months and wish them all the best, they good, we also good, no hard feeling. -
Originally posted by angel7030:
Correct mah, you hv to right to work or resign, boss hv the right to hire and fire, fair mah. If u work with human ethicals and emotions, most likely you are going to get bully or out of business. Be realistic, if i can employ again with lesser paid next time, why i need to hold back people here, train them, cut their wages and make them work less hours, might as well pay them a few months and wish them all the best, they good, we also good, no hard feeling.
sad to say that such attitude put the worker today at risk or rather the mercy of bosses ... you never know when you are asked to leave.. that is why my hair is dropping, my sleep is getting lesser and my weight is increasing ( stress make me eat more ) ... sigh ... "tan si leow " . .. -
Originally posted by ORIGAMIST:
sad to say that such attitude put the worker today at risk or rather the mercy of bosses ... you never know when you are asked to leave.. that is why my hair is dropping, my sleep is getting lesser and my weight is increasing ( stress make me eat more ) ... sigh ... "tan si leow " . ..
mai sacre lah, steady lah, many peoples are more worst than you ok, as long as u hv a job, do it nice nice..dun worry about thing that you cannot control. Be happy and stay cheerful, and most important, dun own people asset or money, also dun loan people anything. Go exercise and be with nature more often. In Singapore, no one die of hunger ok..so be steady, got time, take up some skill courses ya. -
Originally posted by angel7030:
mai sacre lah, steady lah, many peoples are more worst than you ok, as long as u hv a job, do it nice nice..dun worry about thing that you cannot control. Be happy and stay cheerful, and most important, dun own people asset or money, also dun loan people anything. Go exercise and be with nature more often. In Singapore, no one die of hunger ok..so be steady, got time, take up some skill courses ya.how not to worry ? they took away most of my duty and leave me to do the unimportant one ... that is why everyday can surf sgforum lor .. now waiting for them to announce my departure lor ...
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Originally posted by ORIGAMIST:
how not to worry ? they took away most of my duty and leave me to do the unimportant one ... that is why everyday can surf sgforum lor .. now waiting for them to announce my departure lor ...
that is call cold turkey treatment, same as what CNB use to treat drug addict, leave them to riot. For your case, just take yr paid, since you know u are waiting for them to announce, take this opportunity to upgrade yourself, learn a different skill or upgrade your current skill. Do yourself a flavor, work harder and never give up in upgrading or reskilling opportunities. Be cool and steady, dun alway think Boss are cool, they only go for the weak one who look unsteady and no confidence.
Be a lady or a gentleman, dun take life as what it offer you, you can control your life and not let life control you ya.
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Originally posted by angel7030:
that is call cold turkey treatment, same as what CNB use to treat drug addict, leave them to riot. For your case, just take yr paid, since you know u are waiting for them to announce, take this opportunity to upgrade yourself, learn a different skill or upgrade your current skill. Do yourself a flavor, work harder and never give up in upgrading or reskilling opportunities. Be cool and steady, dun alway think Boss are cool, they only go for the weak one who look unsteady and no confidence.
Be a lady or a gentleman, dun take life as what it offer you, you can control your life and not let life control you ya.
riot?
riot don't sound good
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He needs to be seen as doing his job, be it to "express disaapointment" or ask his ministry to come up with some "guidelines" .
Remember, he is paid a million dollar salary.
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Originally posted by skythewood:
riot?
riot don't sound good
rot..sori type too fast liao -
Originally posted by angel7030:
that is call cold turkey treatment, same as what CNB use to treat drug addict, leave them to riot. For your case, just take yr paid, since you know u are waiting for them to announce, take this opportunity to upgrade yourself, learn a different skill or upgrade your current skill. Do yourself a flavor, work harder and never give up in upgrading or reskilling opportunities. Be cool and steady, dun alway think Boss are cool, they only go for the weak one who look unsteady and no confidence.
Be a lady or a gentleman, dun take life as what it offer you, you can control your life and not let life control you ya.
I already made plan and even called CDC, WDA asking for tranining but none of the course suitable for me .. I mean cannot just anyhow take a course right ? if no interest then how ? anyway, what you say is true la ... must constantly upgrade our selves ...
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Cut jobs to save costs -> massive retrechments, high unemployment index, not good for statistics.
Cut costs to save jobs -> workers take pay cut to retain job, workers had to work harder or do more work to earn that pay cut salary cause if you don't, there will be people queuing up for the job. When economy improves, workers' pay cut salary will not be restored to its original state and workers still has to continue to work equally hard cause if you don't, there will be people queuing up for the job. Low unemployment index, good for statistics but workers get exploited.
Either way workers lose out.
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Originally posted by ORIGAMIST:
I already made plan and even called CDC, WDA asking for tranining but none of the course suitable for me .. I mean cannot just anyhow take a course right ? if no interest then how ? anyway, what you say is true la ... must constantly upgrade our selves ...
it is not a matter of anyhow take a course, as long as there are avenues for you to take courses here, go look for what you are interested, we need to be nimble and flexible in order to survive better in this society where you are competiting in a global workforce while living in a high cost small country.If you are an accountant, can try HR or BA, if you are a waiter, can try to learn to be captain and serve with international std, or you can choose to be a wine consultant or tour guide or etc etc..of course if u can take a course of your interest, that will be the best, but u should know that in life, most things dun come perfectly as you like. So be a bit more lax on the line ya.
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Originally posted by angel7030:
it is not a matter of anyhow take a course, as long as there are avenues for you to take courses here, go look for what you are interested, we need to be nimble and flexible in order to survive better in this society where you are competiting in a global workforce while living in a high cost small country.If you are an accountant, can try HR or BA, if you are a waiter, can try to learn to be captain and serve with international std, or you can choose to be a wine consultant or tour guide or etc etc..of course if u can take a course of your interest, that will be the best, but u should know that in life, most things dun come perfectly as you like. So be a bit more lax on the line ya.
tks ... -
cut costs
my foot