Balance worker protection with business flexibility to keep jobs long term: Zaqy

Even as Singapore sets out to protect workers from unfair treatment during retrenchment exercises, it must also provide business flexibility that preserves and creates good jobs here for the long haul.

- Tay Hong Yi

Flexibility allows businesses to adapt to market conditions and transform their business models, Senior Minister of State for Manpower Zaqy Mohamad told Parliament on Oct 15, responding to questions from MPs in the wake of recent retrenchments at consumer electronics giant Dyson.

“There are other countries where the labour market is more rigid, or where there is a more confrontational relationship between the unions and the employers,” said Mr Zaqy.

However, these make a country less attractive for companies to invest in, he said.

“If we do not get the balance right, we may think that we are protecting our workers, in the short term.

“But in the longer term, the good jobs for our workers may be reduced as we become a less attractive place for companies to invest in and firms may choose to site the operations or even outsource the jobs elsewhere.”

Mr Zaqy was responding to questions from four MPs that touched on various aspects of worker protection, including rules on providing advance notice of impending retrenchment exercises to the Government, as well as action taken against errant companies.