Timely reminder about doing right by employees in retrenchment

SINGAPORE'S latest economic report card confirms what has been apparent on the ground for several quarters: the economy is plodding along at a sluggish pace, with no pickup in sight in the near term, the global economic outlook having weakened since early 2016.

The first three months of the year saw the Singapore economy rack up just 1.8 per cent growth - more or less the same quarterly pace since Q2 2015. Against the preceding Q4, Q1 growth was virtually flat at 0.2 per cent. The official trade forecasts for the year have also been slashed, following sharp declines in exports and total trade in Q1. And the latest leading economic indicators have in fact dipped into the red, pointing to subdued gross development product (GDP) growth ahead.

Against this dismal backdrop, retrenchment figures have shot up as companies downsize or ship out altogether in response to the downturn. 2015 saw a spike in the number of layoffs to 14,400 - the highest since 2009. While the number of workers made redundant in Q1 this year has eased from the preceding quarter, it remained a good 30 per cent higher than a year ago. In themselves, the retrenchment surge, job market woes and business difficulties during the current downturn aren't particularly surprising, as much as they are a matter of concern, and bear watching and managing. What has perhaps piqued interest is a call this week for "responsible retrenchment", with the government warning that errant employers will have their work pass privileges curtailed.