Good morning,
There are a few key reasons why we had embarked on this publication.
2. Firstly, we wanted to document our experiences in dealing with one of the worst recessions in Singapore’s history that had affected the electronics sector the most. We felt that we should not let this event pass without properly documenting it as this is indeed a part of our history, and the efforts made behind the scene should be told. It was a testimony of how UWEEI and the companies in the electronics sector worked together to weather the storm and came out with win win solutions.
3. Our experience last year, was also a remarkable demonstration of the strength and resilience of our industrial relations system. It showed that the systems and processes that we had put in place to deal with issues in a non confrontational but fair and objective way, really worked. The test of whether we have a durable and sustainable system comes not during good times, when there are plenty to share, but during bad times like last year, when we really had to persuade workers to go on shorter work weeks or SPUR training, and work with employers to minimize retrenchments. The fact that our system did not disintegrate into a morass of strikes and industrial actions, despite the strong tensions imposed on it, speaks volumes. But apart from the systems and processes, we also know that a key ingredient is the trust and confidence which had been built during good times, and which came in handy last year. As a result, all the six companies that we had captured in this publication clearly stated that they felt that their relations with the union had strengthened after what they had gone through last year.
4. Secondly, in our view, handling a recession of this gravity and extent, if properly recorded, would provide a useful source of reference materials for industrial relations practitioners, union leaders, human resource managers and anyone interested in the development of industrial relations and union management collaboration in Singapore. Whilst the stories that we had told concerned UWEEI and the electronics companies, nevertheless, albeit on a smaller scale because their sectors may be less affected, it is also fairly reflective of how union management collaboration had resulted in win-win strategies among other unions and companies as well. Currently, there are really very few reference materials on how we handled past recessions, and probably none at all documenting individual union and company experiences. We hope that the stories captured in this publication could also be used as teaching material in OTCi as well as a source of reference for overseas institutions interested in labour management collaboration in Singapore.
5. Thirdly, we hope that this publication would contribute towards a better appreciation and understanding of the role of the labour movement in helping Singapore get out of the recession and, more generally, how we had contributed towards Singapore’s progress and development. The history of modern Singapore could have been different or Singapore’s progress could even have been slower, if we had unions that do not focus on the big picture, or do not view development from a longer term perspective or believe in exclusively pursuing only the interest of their members without regard to the interest of all Singaporeans.
6. We gained many insights as we prepared for this publication. A key one is the way in which our workers responded to the crisis. Many had to grapple with pay cuts because almost overnight, overtime dried up or they had to endure shorter work weeks. In the more severe cases, they lost their jobs. Despite this, we did not sense the bitterness and anger arising from the various belt tightening measures that they had to accept. They fully understood their companies’ predicament and were prepared to do whatever they could to help in the turn around. The resilience, sense of responsibility and strength of our workers, is certainly an important factor in helping companies manage the downturn. This in turn had a positive effect. A couple of companies told us that when they had to decide where among their overseas locations they had to shut down a line or to close a plant, they decided on their other locations as they had faith in our workers and our system.
7. I must also say that I am very gratified at the way our staff and union leaders handled the crisis. Nobody blinked or baulked at the difficult tasks that they had to perform despite the fact that on some days they had to handle as many as three retrenchments simultaneously. They went about their work in a highly professional and calm manner although they were all highly stressed up. Our union leaders deserve special mention too as despite being very worried themselves over their own jobs, they were able to provide support and comfort to their members, persuading them to go for training or explaining the reasons for some of the cost cutting measures that had to be implemented.
8. But above all, we are also acutely aware that we would not have been able to survive the recession that well without the strong and very fast government support in the form of the Jobs Credit and SPUR. These two schemes truly helped companies to cut costs quickly and to save many jobs. Because of this, at least 10,000 workers in our sector benefitted from higher skills, which they had acquired through the SPUR training, and companies now have workers with better capabilities.
9. In addition, the unwavering support of NTUC which provided strong leadership, such as through our SG’s visits to the companies and his dialogue session with many CEOs, as well as through the U Care Interim Assistance Scheme, which helped provide some financial relief to our affected members, was invaluable. We could not have done it without NTUC’s support.
10. I wish to thank all our six management partners and branch committee members for agreeing to be featured in this publication and to have their stories documented. Although all the six stories had a common theme on how we worked closely together to manage the downturn, nevertheless each also had a different focus, the reason for choosing these six companies, ie, PRDS, Murata, Energiser, Pepperl + Fuchs, Hoya Magnetics and GlobalFoundaries. Murata was the first company in Singapore to embark on the SPUR programme thus saving about 200 jobs, and Energiser initiated its cheaper, better, faster efforts through lean management and started production of its high value added lithium batteries last year. PRDS stood out as the only company that did an employee survey to assess their response and gather feedback on its cost cutting measures, while despite a global directive, Pepperl + Fuchs’ MD flew to Germany to account for the company’s decision not to retrench workers in its Singapore plant and even acquired two new production lines from its competitor last year. GlobalFoundaries partnered with five other wafer fabrication plants last year to launch the first industry wide WSQ programme, and Hoya Magnetics concentrated on breaking bottlenecks, such as insufficient training places and suitable courses for its employees, during its three month long plant shutdown. There are many more companies that we had strong collaboration with but due to space constraints are not able to feature all of them but we nevertheless value the strong partnership with them.
11. I would also like to thank Evelyn Wong who acted as the editorial and project consultant for this publication. Her past experience serving in the labour movement for many years is invaluable in helping us to shape this publication. And I would like to make special mention of our IRO Sabrina, who prepared the first draft of this publication, conducted the interviews as well as all the research needed. She may be young, but her passion and commitment is truly outstanding.
12. This publication seeks to show how strong tripartism, supported by a solid foundation of labour management cooperation at the individual union and enterprise level, is a competitive advantage for companies, and a strategy to improve workers’ lives. I hope that you will find it useful.
On this note, I wish to thank our GOH, SG Lim Swee Say for gracing this occasion, and everyone for your presence here today to support our launch of “Managing the Downturn in Singapore – Union Management Collaboration in the Electronics Sector.
Thank you.
