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Suntec Singapore Retrenchment Affects 85 Workers; Majority of Workers Retained are Singaporean

Union and Suntec Singapore have been working together leading up to the retrenchment exercise to ensure affected workers are treated fairly.
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By Fawwaz Baktee 27 Aug 2020
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As Sulaiman (not his real name) opened the letter issued to him, he felt a lump in his throat.

He was seated on one of the many chairs placed one meter apart in the hall at the Suntec Singapore Convention & Exhibition Centre.

COVID-19 has made a dent on Singapore’s meetings, incentives, conventions and exhibitions (MICE) industry, with events suspended since April 2020. 

“I kind of expected this to happen. There were signs that pointed to it for a few months now. But I believe the company is being fair to us workers,” said Sulaiman.

He is an audio and visual technician who had been with Suntec Singapore for seven years.

Nearby, Suntec Singapore CEO Arun Madhok was walking to every worker to wish them well and apologise for having to make the announcement.

Union representatives from the Building Construction And Timber Industries Employees’ Union (BATU) were also seen assisting the workers.

Retrenchment Exercise

Sulaiman was one of the 85 workers affected by Suntec Singapore’s retrenchment exercise on 27 August 2020.

Some 60 of the affected workers were local, and 25 were non-local. 

The exercise affected workers across the company, including sales, operations, and support functions such as finance and HR.

Before the retrenchment, Suntec Singapore employed 149 locals and 29 non-locals. Of the remaining workers, Suntec Singapore will retain a Singaporean core of 89 locals, with four non-local staff.

According to Suntec Singapore, the retained staff possess the best fit of experience, qualifications, knowledge and skills to bring the business forward post-COVID-19.

The company had also taken due care to ensure an ageless workforce, maintaining staff across the various age groups.

Affected and eligible workers will receive a month’s salary for every year of service as a severance payment, following the collective agreement signed with BATU.

Eligible staff will also be paid their pro-rated annual wage supplement for the year and be allowed to encash their remaining annual leave entitlements.

All affected staff will be allowed to use their entire notice period to focus on and plan for their future, such as taking time to attend job fairs, interviews and training.

“This decision has not been taken lightly and does not, in any way, reflect the performance of any staff. Every individual in our team has contributed to the success of our company for many years, and I am truly sorry to have to ask many of our wonderful and talented people to look for alternative employment,” said Mr Madhok.   

Ensuring a Fair, Transparent Exercise

BATU and Suntec Singapore said in a joint statement that they had been working closely together to ensure the exercise was carried out with care, transparency, fairness, and responsibility.

Suntec Singapore also complied with the NTUC Fair Retrenchment Framework, tripartite advisories as well as the collective agreement with the union.

The well-being of all affected staff was made a priority throughout the process, with a focus on maintaining a strong Singaporean core, said the two parties.

For the past few months, BATU has been working very closely with Suntec Singapore to explore ways to help the business whilst protecting jobs. We are deeply appreciative to be able to maintain an honest and transparent discussion with Suntec from the start, especially so when the company has to inevitably conduct a retrenchment while keeping BATU in close consultation throughout.

“BATU and the Labour Movement stand ready to assist affected workers as best as we can, providing much-needed support, be it in terms of employment assistance or emotional support for our workers during such distressing times,” said BATU Executive Secretary Zainal Sapari.

Providing Assistance and Support

According to BATU and Suntec Singapore, local affected workers will receive assistance from the NTUC Job Security Council (JSC) to be matched to job openings based on their skills and experience.

NTUCe2i (Employment and Employability Institute), as the ecosystem manager for the NTUC JSC, has successfully identified at least two job opportunities for every affected local staff.

These job opportunities include roles in the F&B industry, and sales and events.

BATU and e2i will also arrange for affected staff to attend virtual or physical job fairs and employability workshops, and offer further assistance with job applications and counselling.

Additionally, Suntec Singapore will give a one-off training grant of $25,000 to BATU. The amount will be used to support union members’ efforts in upskilling or re-skilling for new jobs.

Eligible union members would also be assisted in applying for the NTUC Care Fund (COVID-19), which provides additional one-off support worth up to $300.

“The long-drawn fight against COVID-19 will continue to affect many businesses and workers. e2i has been working closely with the affected industries and businesses, drawing them under the NTUC Job Security Council to provide greater job security for workers.

“Likewise, we will be working with Suntec Singapore to provide employment facilitation support – which includes customised job matching efforts, virtual and/or physical job fairs, and dedicated employability workshops – for the affected workers. We also urge other businesses to approach us so we can come in early to provide job facilitation support and help affected workers to transit quickly into new employment,” said e2i CEO Gilbert Tan.

Looking Towards the Future

Like many of his affected colleagues, Sulaiman has applied for some of the assistance and support. He and his wife are expecting their first child in February next year.

Sulaiman already has a license to be a security officer, which he will use as a backup if he cannot find new employment in the next few weeks.

“I just hope this COVID-19 situation gets better. I know it will not go back to how it used to be, but at least be better,” said Sulaiman.