7% of employment contracts at Raffles Hotel not extended due to Covid-19

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"Our immediate focus is the continued support of the affected colleagues in all ways possible throughout this challenging time. All affected colleagues will receive appropriate packages. We will also do our utmost possible to second affected colleagues where possible to sister properties locally and overseas," he informed.

He added that the company will also be organising a series of virtual programmes which will include resume writing and interview coaching classes for them.

All this follows news that Resorts World Singapore had a "one-off workforce rationalisation" this week, although roles that were axed and the number of staff affected were not disclosed.

In June, Marina Bay Sands (MBS) also said that it would not be renewing the contracts of some of its foreign employees whose fixed-term contracts expire in the third quarter of this year. Most of the affected staff were working in food and beverage operations.

MBS said that this represents a very small percentage of its overall workforce and is "not a retrenchment exercise", as non-renewal of fixed-term employment contracts takes place from time to time, as part of its ongoing review of short, medium, and long-term manpower needs across its operations. It added that MBS continues to recruit staff for positions across the integrated resort, and the workforce continues to be paid in full even as operations were suspended during the pandemic.

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The Covid-19 pandemic has battered the tourism industry. Statistics released on Friday showed Singapore's tourism receipts taking a hit in the first quarter of this year, sinking 39 per cent from a year ago to S$4 billion. The decrease in tourist receipts was across the board - from shopping to sightseeing, entertainment, gaming, food and beverage and accommodation.

Colliers International's associate director of valuation and advisory services Lee Pei Yee said that given the muted outlook for international visitation to Singapore in the near term, added to the fact that no government support is given for foreign workers, it is to be expected that hoteliers and the wider tourism sector would continue to look at cost-saving measures. "Of course, this will be done on the basis of merit, with poor performers and non-key staff finding themselves at the forefront (of the exercise).This is likely to continue the longer the current travel restrictions remain in place, with the entire hospitality and wider tourism sector likely to adopt a similar approach."

She added that hoteliers will inevitably weigh the question of what the cost will be to re-hire staff when business starts to pick up again against the decision to let them go now.