By Fawwaz Baktee
The exgratia payment agreed between Surbana Jurong Private Limited’s management and unions was a fair outcome for the 54 workers dismissed, said Manpower Minister Lim Swee Say in Parliament on 7 February 2017.
“This episode serves as a good reminder to employers that termination exercises should be conducted in a responsible and sensitive manner,” said Minister Lim.
Employers who terminate contracts on the grounds of poor performance have to substantiate their claims and apply relevant and objective criteria which should be made known to all employees, he added.
“I spent many years with the Labour Movement and now MOM. To the best of my recollection, this is the first time an employer has conducted such a major termination exercise and announced publicly it was due to the workers’ poor performance … As Manpower Minister, it is something I do not find acceptable.”
Minister Lim also remarked that work environment and HR practices could also contribute to employees’ performance that is not up to standard.
“Performance management should be the joint responsibility of employer and employee. For most organisations, if the working relationship reaches such a stage whereby the employer and employee can no longer continue … They will find a way to go their separate ways … But you don’t label publicly. So that’s why I think the management realised that as well and publicly acknowledged this,” said Minister Lim.
The Building Construction and Timber Industries Employees’ Union (BATU) said on its Facebook page on 8 February 2017 that the union is currently working with partners and leveraging on its network to help the affected members find other employment opportunities.
Better Handled
On 24 January, Surbana Jurong admitted that the termination of the workers due to “poor performance” could have been better handled. This came after the company’s management met up with BATU and the Singapore Industrial & Services Employees’ Union (SISEU).
In a joint statement with both unions, the company’s management acknowledged “the process could have been better managed”, and that Surbana Jurong and the unions “are working closely together to provide an equitable and mutually agreeable arrangement for the workers and help them find new employment.”
Moving forward, Surbana Jurong and the unions have made a commitment to work on strengthening labour-management relations.
Following Due Process
On 14 January 2017, it was reported by main media that 54 workers were terminated by Surbana Jurong, a Temasek Holdings-linked infrastructure consultancy.
In an email to staff on 17 January 2017, Surbana Jurong Group Chief Executive Wong Heang Fine defended the dismissals by saying that the dismissed workers were a small group of "poor performers" who could not be allowed to drag down the rest of the organisation. This drew strong reactions from the unions.
Responding to the process of after the news of the dismissals, SISEU General-Secretary Philip Lee said in a Facebook post: “Every good HR knows that it is common practice to give warning as an initial step before eventual termination of employment and to give feedback and opportunity for employees to improve. Where is the due process here?”
BATU President Nasordin Mohd Hashim said: “Usually before a union member is terminated, the details of the case would be officially given to the union to ensure our members will be given fair treatment and that due process is followed. This was not observed.”
