Daily Lesson from Life 01 February 2009

"Sun, Feb 01, 2009 The Straits Times - How trust saved 30 jobs in two companies

ABOUT 30 jobs were at risk two weeks ago when two plastic manufacturers, facing reduced demand, wanted to retrench their workers. Officials of the Chemical Industries Employees' Union (CIEU) got wind of it and suggested they opt for a shorter work-week as a cost-cutting measure instead.

Initially, they made no headway with the companies' human resource officers. But when the unionists went to the bosses, they were pleasantly surprised. The union's suggestion was accepted.

CIEU president Rajendran Govindarajoo related this story to The Straits Times yesterday, to show how unions and management need to work and communicate even more closely in this recession.


Mr Lim Swee Say, NTUC's secretary-general (and Minister without Portfolio in the PM Office), urged companies and unions to be more pro-active in engaging one another and not to jeopardise the existing mutual trust which would take years to rebuild. He recounted how he had to intervene in one negotiation because the company's management did not want a meeting with the unionists to discuss its performance and ways to tackle the slump.

Said Mr Lim, who did not name the company and union involved: 'The management told the union: 'Sorry, the situation is changing so fast that anything I tell you today will be outdated tomorrow, so no point talking'.'
Mr Lim spoke to its chairman, who said his management should have kept the union in the loop. But such behaviour is inevitable, the labour chief added, as some would 'get it wrong', because they fear what they tell the union now would be held against them later.


While most of the 1,000 unionised companies here have frequent dialogues with union leaders, the non-unionised sector remains an area of concern, Mr Lim told reporters later.

He urged their human resource department to step up communication so that their workers have a clear understanding of the companies' performance and management, of the workers' anxieties.


The Singapore Chinese Chamber of Commerce and Industry (SCCCI), however, does not think there is a communication problem between bosses and workers of small and medium enterprises (SMEs) in the non-unionised sector. Up to 80 per cent of its 4,000 members are SMEs, mostly non-unionised.

Said the SCCCI's secretary-general, Mr Lim Sah Soon: 'If there is no business, the employees can immediately feel it...it's also difficult for these SME bosses to hide information.' He also said Chinese companies tend to treat their workers well, with some even looking after their staff's family. 'That's why a lot of their workers stick with them their whole life, unlike in big companies.' "

1st day of February 2009! I start with this interesting piece of news. Job losses are of paramount concerned to everyone worker in Singapore. The government and the labour union are trying their best to get employers to 1st considered cutting cost in any other ways before retrenchment is exercised!

Lessons for me are:

1. to have a healthy relationship, employers/management and employees/unionists must keep each other informed of what is going on with the company consistently. The employers must have good people values of: integrity, respects, and fair play. The unionists must have the proper sense that nobody own you a living! As long as the performance appraisal is fair and the reward system equitable, the workers cannot demand unreasonably. Anyone who is not performing cannot expect the protection of 'no retrenchment unless it is the last resort!';

2. there should really be no difference between how the SMEs and Big Corporations treat communication between employers and employees. Employees in big corporations are also able to discern any significant deterioration of business as they are the ones who perform services or manufacture or procure for business production and sales!;

3. there must be thorough follow up with the companies that did not retrench after speaking to Mr. Lim as it is possible that they gave 'face' to the Minister and Labour Chief temporarily. So, unless the bosses really embraced the values of integrity, respects, and fair play, there will be no commitment!

Great that 30 jobs were saved. Hopefully that two companies can get back to healthy growth and that everyone is back to full normal workweek in the not too distance future!