Daily Lessons from Life 13 October 2009

"Firms, unions say Jobs Credit extension will buy them more time - Channel NewsAsia 13 October 2009 2105 hrs

SINGAPORE : Businesses and unions have welcomed the extension of the Jobs Credit Scheme, although it took some by surprise. They said it will buy them more time to prepare for an eventual economic recovery.

The electronics sector saw signs of improvement in the last quarter, giving some relief to workers. And unions hope that an additional six months of Jobs Credit are enough to keep workers in their jobs. They hope that when the Jobs Credit Scheme ends next June, the pick-up in the economy will prompt companies to start hiring again.

Some companies said having stepped-down payments will help struggling firms more than a cold turkey treatment. Madam Halimah Yacob, deputy secretary-general, NTUC, said: "These are really sound companies, really good companies. But they have been severely impacted, affected by the downturn, and they need a bit more time to give them breathing space for them to be on even keel.

"That time is also necessary and crucial for us (the labour movement) because that would also buy time for the workers. So workers would at least have some stability assurance that over the next six months, their company is getting support and assistance, they have that sense of stability over their own jobs." Others feel the move to have reduced payouts gives the government more room to manoeuvre.

Stephen Lee, president, Singapore National Employers Federation, said: "Employers for some time have been concerned about the consecutive quarters of productivity decline, so now with the economy stabilising, they are now turning their attention to the things we need to do, to improve the economy in the next phase."

The labour movement too, is looking ahead. Lim Swee Say, secretary-general, NTUC and Minister in the Prime Minister's Office, said: "Our main focus is no longer on Jobs Credits. What we should be focusing on today is that as we phase out Jobs Credits, how can we move faster in becoming a cheaper, better, faster economy." NTUC said it will increase efforts to get more workers to go for training."

Well. Buy time indeed. Singaporeans who are uncompetitive in their own country.

Lessons for me are:

1. the small size of the country is a limiting factor;

2. when Singaporeans become uncompetitive in Singapore and have to rely on the government's subsidies to stay in the job, it is a stark reminder that something is wrong!!;

3. training is great. At the same time, when you have no opportunity to apply your learned knowledge and skills and tools you will NOT be a master. Also, if the job you are trained for is no longer competitive, it will go away. So, competition will take over your jobs! Simple and cruel! With the million of low waged Foreign Workers, I really feel for the Singaporeans who have to compete there. They really have very little chance to match the FWs!

May the leaders, who are paid millions, find the solution for this inevitable trend! If they can reverse the 'inevitability', they can take some more money from Singapore and none of us will begrudge them!!