Companies urged to use Budget, Spur to keep post-LNY retrenchments downUpdated: 26th January 2009, 1430 hrs
PM Lee speaking to MD GlaxoSmithKline Christopher Dobson (left) during the plant visit
Companies have been urged to use the recently announced Budget measures and Spur training programme to keep post-Lunar New Year retrenchments down.
Prime Minister Lee Hsien Loong made this call during his visit to GlaxoSmithKline's plant in Jurong this morning.
Saifulbahri Ismail with more :
The chemical industries have already seen some 200 to 300 retrenchments in the month of January alone.
They are expecting about 100 to 200 more within the first quarter of this year.
During the Lunar New Year, manufacturing companies traditionally close their factories for a longer period for the festive holiday.
But during times of recession like now, many may take the opportunity to retrench.
Prime Minister Lee is well aware of this and is urging companies to use the massive measures laid out in the Budget last week, and the Skills Programme for Upgrading and Resilience or SPUR announced earlier to stave retrenchments :
"What we do know is that there are plants which have some retrenchments in the pipeline. We hope that they will at the overall situation and consider carefully not just from the immediate point of view but from the longer point of view, take everything into consideration, including the Budget measures that we have, the Jobs Credit , the SPUR programme and then make a careful decision and consider retrenchment as the final choice rather than the first choice."
The various unions have been working closely with companies to monitor these retrenchment numbers.
Rajendran Govindarajoo, President of the Chemical Industries Employees' Union is hoping retrenchments in the industry will not hit above 500 in the first quarter.
He's optimistic that companies will use the Budget measures and Spur programme to good effect :
"We think they will hold, we already signal to some of the bosses, use the Budget and the Spur programme. The Spur programme, we're already pushing very hard, but with the Budget, the rental has gone down, because they have been complaining, the utilities, which is down already in January, and the rental which has helped them. Because some companies are paying like a few hundred thousand (dollars) per year, and this amount will be very good saving for them."
Employees in pharmaceutical company, GlaxoSmithKline would be relieved that the company will not be laying off anyone this year.
Still, it's Vice President and Managing Director Christopher Dobson says, things might not be so rosy going into 2010 :
"I think our volume is definitely coming down through 2010 - 2011, and we may have to look into staff numbers, we will have to look into staff numbers for that period. But we've been controlling our recruitment very carefully as much, because of the challenges the pharmaceutical industry faces as for the recession."
PM Lee speaking to MD GlaxoSmithKline Christopher Dobson (left) during the plant visit
Companies have been urged to use the recently announced Budget measures and Spur training programme to keep post-Lunar New Year retrenchments down.
Prime Minister Lee Hsien Loong made this call during his visit to GlaxoSmithKline's plant in Jurong this morning.
Saifulbahri Ismail with more :
The chemical industries have already seen some 200 to 300 retrenchments in the month of January alone.
They are expecting about 100 to 200 more within the first quarter of this year.
During the Lunar New Year, manufacturing companies traditionally close their factories for a longer period for the festive holiday.
But during times of recession like now, many may take the opportunity to retrench.
Prime Minister Lee is well aware of this and is urging companies to use the massive measures laid out in the Budget last week, and the Skills Programme for Upgrading and Resilience or SPUR announced earlier to stave retrenchments :
"What we do know is that there are plants which have some retrenchments in the pipeline. We hope that they will at the overall situation and consider carefully not just from the immediate point of view but from the longer point of view, take everything into consideration, including the Budget measures that we have, the Jobs Credit , the SPUR programme and then make a careful decision and consider retrenchment as the final choice rather than the first choice."
The various unions have been working closely with companies to monitor these retrenchment numbers.
Rajendran Govindarajoo, President of the Chemical Industries Employees' Union is hoping retrenchments in the industry will not hit above 500 in the first quarter.
He's optimistic that companies will use the Budget measures and Spur programme to good effect :
"We think they will hold, we already signal to some of the bosses, use the Budget and the Spur programme. The Spur programme, we're already pushing very hard, but with the Budget, the rental has gone down, because they have been complaining, the utilities, which is down already in January, and the rental which has helped them. Because some companies are paying like a few hundred thousand (dollars) per year, and this amount will be very good saving for them."
Employees in pharmaceutical company, GlaxoSmithKline would be relieved that the company will not be laying off anyone this year.
Still, it's Vice President and Managing Director Christopher Dobson says, things might not be so rosy going into 2010 :
"I think our volume is definitely coming down through 2010 - 2011, and we may have to look into staff numbers, we will have to look into staff numbers for that period. But we've been controlling our recruitment very carefully as much, because of the challenges the pharmaceutical industry faces as for the recession."
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