11 Sep Companies need to act in their best interest to survive in tough times
This post is written as a brief comment to the job cuts by Singapore Airlines and how businesses need to act in their best interest to survive in tough times.
The Minister of Manpower has recently spoken emotionally about how Singaporean workers are in her heart.
The government, through the tried and tested Tripartite approach in combination with support measures from the 4 official and 5th de facto budget, notably the JSS, has tried to retard the rate of natural unemployment.
It has morally lectured employers on not retrenching but upskilling and upgrading.
However, after the massive cull announced by SIA of its workforce, the government has no moral standing to lecture, add friction or prevent any business owner from doing what is required to ensure the survival of the business and to protect the interest of the shareholders.
SIA is a publicly listed company but it not only has been held up by this same government as symbolic of Singapore. Its largest minority shareholder is Temasek from which it has recently received a multibillion-dollar bailout. Thus, if such a company can take such aggressive workforce reductions, then no company, large or small, Singaporean or foreign-owned, should be inhibited or publicly shamed for doing what is in its best interest.
We fully support the government’s emphasis on observing the proper processes and respecting exiting workers. But the moral high ground was lost today.”
– Devadas Krishnadas
CEO, FMG