Retrenchment is a dreaded word no worker hopes to ever hear over the course of a career. Should it ever become a reality, the Labour Movement is well poised to respond.
Working together, NTUC’s industrial relations officer (IROs), leaders of its affiliated unions and NTUC’s e2i (Employment and Employability Institute) are always on standby to help affected workers bounce back and re-enter the workforce as quickly as possible.
Leading The Front
Should retrenchment of workers be the last resort for a company, the foremost priority of a union is the welfare of all the workers involved. Upon notice of an impending exercise, IROs will work together with union leaders and company management to look into how affected workers can be assisted. Simultaneously, NTUC’s industrial relations department (IRD) will track the exercise.
“No matter how deep our relationship with the company is, one of the first few things we’ll talk about is the retrenchment benefit quantum. I will arrange for a meeting with the company’s management as soon as possible to see what the company can share with us, and check that the payments are all in place,” shared Michelle Ong, a senior IRO with the Shipbuilding and Marine Engineering Employees’ Union. She is pictured above with IRD Principal Specialist Mariammah Shafii.
Payments include retrenchment benefits, annual wage supplement, leave encashment and possible ex gratia for union members only. Considerations for these depend on industry norms, the company’s financial situation and tripartite guidelines.
“What’s key,” shared Michelle, “is having the retrenchment benefits locked down because in today’s economic setting, it can take between six to nine months for displaced worker to find a new job.
“Our role is in ensuring that workers are compensated fairly. For the job search part, we will also do our part for them through internal referrals to other unions and companies who have opportunities.”
To enable IROs like Michelle to better assist the workers, the Tripartite Guidelines on Managing Excess Manpower and Responsible Retrenchment recommends that unionised companies consult their union(s) as early as possible ahead of any retrenchment exercise.
Concurrently, Michelle will also inform e2i about the upcoming retrenchment exercise so that they can tailor the support for the affected workers.
“The toughest part is when things fall through the cracks,” said Michelle, citing her first case where the retrenchment benefits were less than ideal.
The workers had only received two months of compensation regardless of their length of service. Follow-up negotiations enabled the union to secure additional compensation for members.
“When things are better organised, such as having retrenchment benefits pre-agreed in a collective agreement, it would be easier to negotiate,” she said.
For every retrenchment exercise the unions handle, all the details surrounding the company, numbers of affected workers and reasons for the retrenchment are logged and tracked by IRD to enable both NTUC and its affiliated unions to better understand their respective industries.
Pillar Of Support
e2i senior employability coach Celina Koh (pictured below) said that one of the key messages she shares with workers during a retrenchment exercise is that they are not alone.
“We are there for you. Even if you are not ready to look for a new job right now, our doors are always open to support your needs whenever you are ready,” said Celina.
As part of the support, e2i officers will first conduct a group presentation for affected workers, followed by individual sessions with an employment coach for those who may need a little more emotional support.
The sessions will cover topics such as the economic outlook, different types of assistance available at e2i, and how job search skills can help workers quickly find a new job.
“Our team’s average response time to a retrenchment exercise is within one working day. However, with an advanced lead time, e2i officers will be able to better develop customised retrenchment kits for the workers,” shared Celina.
Besides giving out kits containing flyers for job fairs and information about services, e2i may also plan employability skills programmes for the recently retrenched workers.
“For workers who have registered with us, we will check in with them on whether they have found a job, or if they need any help, support or training. Officers may also contact these workers about upcoming events that are suitable for their job search,” she said.
Labour Movement: Dealing with Retrenchment
Union Action
- Companies should inform the union as early as possible if they intend to carry out a retrenchment exercise. This will enable the union and e2i to better render assistance to the affected workers.
- Upon receiving notice of a retrenchment exercise, NTUC’s Industrial Relations Department will log the case down and note the company’s name, the intended period for the retrenchment exercise, reasons for the exercise and number of workers likely to be affected.
- The union’s industrial relations officers (IROs) will engage the company to negotiate retrenchment benefits and plan for the assistance than can be rendered to the affected workers.
- Concurrently, union and IROs will share the worker profiles with NTUC’s e2i (Employment and Employability Institute) so that targeted assistance can be rendered.
e2i’s Support
- Upon receiving news of a retrenchment exercise, e2i officers will work closely with the union and its IROs to co-ordinate arrangements for support.
- At the same time, e2i officers will customise retrenchment kits with relevant collaterals for affected workers.
- A group engagement session will be done on site, followed with one-to-one career coaching.
- Affected workers can register for career coaching or employability skills training during the session, or when they are ready.
- e2i will subsequently check in with registered workers on the progress of their job search and share details about upcoming events.
