The Big Read: With Covid-19 annihilating jobs, many are feeling the pain — and it would get worse
Saturday, 15 Aug 2020 06:51 PM MYT
“The CEO did not even leave a word via WhatsApp,” said Nicholas. “Naturally, many outlet staff were quite upset, as they were already on no-pay leave, and were waiting for the circuit breaker to end so that they could resume working.” Nevertheless, employers whom TODAY spoke to stressed that they had retrenched workers as a last resort, and had used unconventional methods due to the safe management measures in place.
In his National Day Message on Aug 9, Prime Minister Lee Hsien Loong said that with business closures, retrenchments and unemployment will likely go up in the coming months. While manufacturing saw an increase from 720 retrenchments in the first quarter to 1,600 in the second, services saw a corresponding increase from 2,360 to 4,600.
In July, Resorts World Sentosa and professional networking site LinkedIn were reported to have axed staff. This was followed by firms in the aerospace sector such as Pratt & Whitney and its majority-owned unit Eagle Services Asia laying off hundreds of their staff. DBS Bank senior economist Irvin Seah, who forecasted in April that there might be 45,600 retrenchments by the end of the year, said that the retrenchments figures are likely to be mitigated by the Government’s job support measures.
“There has also been a lot of moral suasion that if companies really do need to lay off , they should protect the Singaporean core,” she said.He said that the scheme had helped to save jobs in the F&B and retail sectors, which were the most badly hit during the circuit breaker period. These sectors had seen a modest recovery since June when the restrictions were lifted.
Ms Ling noted: “After August, the question is if the businesses foresee that the demand is not going to pick up significantly... Then you may get many who will throw in the towel.” Even as retrenchment figures rise, the official numbers may still not capture the full picture since they do not include firms with fewer than 25 employees or affected workers in the gig economy, economists told TODAY.
However, the pandemic has dealt a fresh blow to the gig economy, said the economists. Many gig workers such as freelance performers, artists, tour guides, and private-hire drivers, have seen a drastic drop in their incomes or job opportunities drying up. Maybank Kim Eng economist Chua Hak Bin noted that some gig economy workers, however, could still thrive during this time, such as those working in food delivery and those who can bring their expertise online, such as tuition teachers. The expectation that retrenchments are likely to increase stems from the severe depth of the current recession, which is set to be longer than the ones which Singapore experienced during the Asian Financial Crisis and the Global Financial Crisis.
With such a long-drawn battle ahead, Dr Chua said the authorities may even have to think twice about saving some companies that may not see demand return in the next few years. The expectation that retrenchments are likely to increase stems from the severe depth of the current recession, which is set to be longer than the ones which Singapore experienced during the Asian Financial Crisis and the Global Financial Crisis. — Phot
For instance, the recent increase in demand in retail, F&B and entertainment sectors may not last if the economy continues to dive further, and people begin to tighten their belts again. “Ultimately it is the survival of the fittest, and the fittest are the ones who are able to adapt and grow,” Mr Seah said. Apart from Daniel and Nicholas, TODAY also spoke to five others who have lost their jobs due to the pandemic. Most of them declined to be named.
“It’s every unemployed guy’s concern — putting food for the family on the table, but there’s nothing much we can do for now but just hope, keep looking and searching for employment,” he said. Another former worker at Pratt & Whitney, who was a continuous improvement lead with the firm, said that the entire retrenchment process was done in a respectable manner and the retrenchment benefits were generous.
He added that representatives from the Employment and Employability Institute were present during the exercise to recommend alternative employment possibilities, and his manager also stayed up late to write a letter of recommendation.Unlike the former Pratt & Whitney employees, others who were interviewed felt that their companies could have done better with the retrenchment process.
For Nicholas, who was retrenched from his F&B company over email, he said that the company did not lay off workers in this manner before the pandemic. An employer who oversees the retrenchment process at a multinational electronics firm said that human resource staff members will read out the bad news to employees via video conference while they are working from home.
“This includes the manner in which affected employees are notified and the type of support they receive thereafter,” the spokesperson said. Employers should also help affected employees look for alternative jobs. They can tap on resources provided by agencies such as Workforce Singapore and e2i. “Employers who are assessed to be irresponsible or unfair in their employment practices, whether in cost-saving measures or conduct of retrenchment, may be denied future Government support or have their work pass privileges suspended.”
“The union is recognised and empowered to represent workers on employment and workplace issues, to negotiate with the companies on all industrial matters including retrenchment and retrenchment benefits,” she said. For the manufacturing sector, Mr Melvin Yong, the executive secretary of the United Workers of Electronics and Electrical Industries , said that the union has been “working with our management partners to support companies in their hiring and training needs”.
“While we hope to be able to resolve issues at the company and union level, we are prepared to take actions against the companies if the need arises,” Ms Cham added. She is currently working part-time in sales planning at a small local trading company earning S$120 a week — some 90 per cent lower than what she was earning from her previous job.Daniel, who was retrenched from the online travel agency, has also been working part time at security firm Certis since February, where he helps to call persons under quarantine to check on their details.However, he knows that the role is not permanent and is looking for full-time employment.
In July, the 34-year-old secured a job at a local infocomm technology firm as an associate engineer, matching his previous salary.
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