SINGAPORE: To remain attractive to companies, Singapore has to strike the right balance between workers' welfare and the country's pro-business stance, Senior Minister of State for Manpower Zaqy Mohamad said in parliament on Tuesday (Oct 15).

He was responding to questions from Members of Parliament about retrenchments and notifying unions in advance, which came after a recent layoff in consumer appliances firm Dyson.

The United Workers of Electronics & Electrical Industries (UWEEI) said it was given only a day's notice, and escalated the issue to the Ministry of Manpower (MOM). Dyson is a UWEEI unionised company.

Mr Zaqy said the ministry has engaged the parties, and both have agreed to work together "in the spirit of tripartism".

He noted that in some other countries, unions and employers have a more confrontational relationship, or the labour market is more rigid.

"This makes a country less attractive for companies to invest in," he said, adding that there needs to be a good balance between protecting employees and allowing some flexibility for businesses.

"If we do not get the balance right, we may think that we are protecting our workers in the short term. But in the longer term, the good jobs for our workers may be reduced," he said.

That's because Singapore could become a less attractive place for companies to invest in, and firms may choose to operate overseas or outsource jobs elsewhere, said Mr Zaqy.

He said businesses need to have the flexibility to adapt to market conditions and transform their business models, and Singapore needs to preserve its economic competitiveness. 

TRUST BETWEEN UNIONS, EMPLOYERS

In Dyson's case, Mr Zaqy said 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.

The company has explained why it was not able to give more advance notice to the union, he said, adding that businesses may have their own constraints.

"Dyson handled the recent retrenchment exercise in accordance with our laws and tripartite advisories," he said.

The company submitted its mandatory retrenchment notification to MOM on time, within five working days of notifying affected employees, said Mr Zaqy.

On top of that, the firm provided retrenchment benefits to employees who were with the company for less than two years, who are not eligible based on local advisories.

Mr Zaqy said trust between the union and employer is important for them to work together effectively.

"This (trust) cannot be taken for granted, and it needs to be built over time. Companies should value Singapore’s tripartite culture and work closely with the unions," he said.

Managing retrenchment issues is not easy, he added. 

"We need to continue achieving the right balance between the interests of the businesses, while ensuring that our workers remain protected and well supported during this difficult period of disruption."