Daily Lessons from Life 03 June 2009

"Cut costs to save jobs
NWC says management is to lead by example. -Wed, Jun 03, 2009 AsiaOne

The National Wages Council (NWC) has completed its deliberations on wage and wage-related guidelines for 2009/2010.


It recommends that employers, unions and the government press on with concerted actions recommended in NWC's January 2009 guidelines to cut costs, save jobs and enhance competitiveness.

For companies whose business, profitability and/or prospects are affected by the economic downturn, the NWC recommends that they could, in consultation with their unions/workers, implement a wage freeze or wage cut in line with their performance and prospects, in order to help companies stay competitive and save jobs.


Companies which perform well should reward their workers with moderate wage increases, preferably in the form of variable payment, so that their long-term cost competitiveness would not be affected.

It also endorses the updated Tripartite Guidelines and strongly urges companies with excess manpower to implement the various recommended measures such as shorter work week, temporary layoffs, no pay leave, and other work arrangements as alternatives to retrenchments.


The council reiterated that in implementing such measures, including wage freeze or cut, management is to lead by example. Employers and unions/workers are urged to continue to tap on the various tripartite measures and initiatives available to manage the impact of the downturn, reduce costs and minimise job losses.

Governments and companies are also urged to continue to look at ways to reduce non-wage costs so as to lower the overall business costs and enhance Singapore's competitiveness.


Meanwhile, job seekers are advised to adjust their expectations and make career switches, if necessary, to take up available jobs. Employers too, should be open to taking in workers with little or no relevant experience, and set appropriate employment terms reflecting the market realities of their sectors.

The NWC recommendations cover the period from 1 July 2009 to 30 June 2010."

This is an uniquely Singapore organization - this NWC! It normally just repeat what the government said. This time, there is no exception. Except this time, I also agreed with what it has to say!

Lessons for me are:
1. in bad and hard time, the leaders always take the lead to set example. It is unfortunate the top political leaders still feel that they deserved the multi-million dollar package. And that they had done their bit by adjusting to the lower market rate!;

2. the NWC's method, and that of the Singapore authority approach, is back-to-basic. The 3 parties must work together to achieve something sustainable and equitable. The debate is often set at: are sacrifices equally shouldered? In Singapore, relatively speaking, the workers get the shorter end of the stick!;

3. the real economy has not really improved, so in time like this, the people has to be resilience and keep their heads in expectations as well as having their contingent plans all laid out. When one is flexible, albeit temporarily disadvantaged, one will survive and get through the storm and emerged stronger!

May NWC also counselled the government to really consider what is a reasonable pay package instead of just saying their pays are pitched to the market rate of the top 6 professions benchmarked!