Employers should manage wage costs and excess manpower responsibly in Phase 2: SNEF

THE Singapore National Employers Federation (SNEF) has urged employers and employees to "work together and make mutual sacrifices to sustain businesses and preserve jobs", in view of the current Phase 2 (Heightened Alert) measures.

In a press statement issued on Wednesday, SNEF said it expects the more stringent measures under Phase 2 to bring about a negative impact on businesses in Singapore - particularly those in the recreation, construction, F&B (food and beverage) services, hospitality, marine, process and retail sectors.

It noted that such businesses may temporarily face excess manpower as activities scale down amid restrictions.

Highlighting the extension of the National Wages Council's guidelines until end-November 2021, the federation also "strongly encouraged" employers to refer to the Tripartite Advisory on Managing Excess Manpower to manage their wage costs and excess manpower responsibly.

Some examples of measures which employers can take include implementing a shorter work week as well as asking employees to clear their annual leave or take no-pay leave, it said.

For employees who cannot work due to the stricter measures during Phase 2, employers should discuss with these employees and their unions to agree on the level of salary support to be provided.

"Employers could tap on the Enhanced Training Support Package to upskill and reskill their employees whilst receiving substantial wage support from the government. The government has also increased support for F&B businesses under the Jobs Support Scheme to 50 per cent of the first S$4,600 of gross monthly wages paid to local employees during the period for which dining-in is prohibited," stated SNEF.

Additionally, the federation reminded employers to notify the Ministry of Manpower if they intend to implement cost-saving measures that will affect employees' salaries.

"By enduring short-term pain together, we can preserve our capabilities and capacity and emerge stronger when our economy reopens safely again."