8 January 2009
I refer to ST Forum letter of 6 Jan, "Fresh ideas needed to help professionals" by Mr Gilbert Goh. His view is that the priorities listed by NTUC Secretary-General are not new and that professionals, management and executives may not benefit from retraining.
I would like to make three points. First, cost-cutting and re-training measures are critical in helping to save jobs, prevent massive retrenchment and a rapid rise in unemployment. In the fourth quarter of 2008, our unionists on the ground witnessed significant pressures faced by companies, resulting in higher retrenchments, shorter workweeks and temporary layoffs. Had the tripartite partners not taken decisive action to cut costs and upgrade skills, the level of retrenchment would likely have been much higher. Whilst these measures may not be new, they remain effective. Just like an umbrella, they help our workers stay as dry as possible when caught in an economic storm.
Second, contrary to Mr Goh's view, Professionals, Management, Executives and Technicians (PMETs) have benefited from retraining. Last year, about 900 PMETs approached the Labour Movement for employment assistance. 20% were able to secure employment in their current field of expertise. 32% opted to go for retraining so that they could pursue new careers through professional conversion.
With grit and determination, PMETs have successfully made the transition to new industries with good growth potential and career prospects. Their inspiring stories reinforce our conviction that professional conversion is the right solution for the increasing numbers of PMETs affected by the downturn. We welcome the enhanced support for PMETs under SPUR, and the recent expansion of courses from 150 to 800 will greatly encourage companies to train their workers, including PMETs, to do their current jobs better and help employers cut cost and save jobs.
Lastly, we do not advocate the setting up of an unemployment fund to provide unemployment benefits and welfare. Judging from the experience of other countries, it may cost as much as 4% to 6% of the total payroll. It is also liable to abuse, as those who continue to try to secure employment end up subsiding those who do not even try. Instead, there is better protection afforded to PMETs who save regularly for a rainy day. They stand to gain more by accessing generous funding support for retraining, upgrading and professional conversion so as to build a better future for themselves.
Mrs Josephine Teo
Assistant Secretary-General
National Trades Union Congress
