Thailand
Singapore: More workers take wage cuts in July, dragged down by construction sector
NEARLY 23,000 workers were affected by plans to slash business costs in July, led by a spike in the construction sector, according to Ministry of Manpower (MOM) data out on Thursday.
The latest wage cuts take the number of affected workers to 224,800 for the period March 12 to end-July, although the volume of cost-saving notifications from employers has trended downwards since the peak of the “circuit-breaker” coronavirus shutdown.
Just over half of these workers – who face measures such as tweaked monthly salary components, no-pay leave and reduced work weeks – come from the accommodation and food services, construction and wholesale and retail trade industries.
The construction sector, which has been hammered by the spread of the coronavirus in migrant labourer dormitories, saw a sharp spike in the number of workers affected. The figure rose to 42,000 as at end-July, from 25,000 in an earlier MOM release on June 24.
That’s even as staff in accommodation and food services – such as hotel and restaurant workers – still made up the bulk of those affected, at 52,600 employees, against 45,000 before.
Wholesale and retail trade businesses, such as eateries and department stores, fared third-worst, with 23,800 employees affected, from 19,000 previously.
Both local and foreign employees have been hit by these cost-saving measures, with a roughly even split between the two groups, according to a statement from MOM.
The latest data was released in a weekly “jobs situation report” that Manpower Minister Josephine Teo inaugurated on Aug 11, in a bid to offer timelier labour market updates.
Employers with at least 10 workers have had to notify MOM since March 12 if they roll out cost-saving measures that affect the monthly salaries of their staff.
Based on the five months from March to July, the volume of employer notifications “peaked during the period of ‘circuit breaker’ but has since decreased significantly”, MOM found.
Of the 6,300 employers that have submitted notifications so far, the lion’s share – around 2,800 companies – did so in April. Just 600 businesses indicated plans to cut staff costs in July.
The number of affected workers peaked at 83,000 in April – the first month of the “circuit breaker” – but has since come down to 22,800 in July, which is lower than the 46,000 in March.
“This suggests that companies were making concerted efforts to hold back retrenchments, likely encouraged by the broad-based support measures provided by government (sic),” according to MOM.
The ministry reiterated that cost-saving measures are recommended alternatives to the last resort of retrenchments, even as it acknowledged that “job losses will still happen with the mounting pressure on businesses due to the Covid-19 pandemic”.
Source: https://www.businesstimes.com.sg/government-economy/more-workers-take-wage-cuts-in-july-dragged-down-by-construction-sector