More tourism layoffs expected despite redeployment strategy

Thu, Jul 23, 2020

Annabeth Leow


EFFORTS are under way to avoid "catastrophic job loss" in the ailing tourism sector, which has shed thousands of jobs this year.

Even so, Minister for Trade and Industry Chan Chun Sing warned business leaders on Wednesday that "it will be inevitable that some segments of our industry will have ... to let go of workers in the short term", given the freeze on mass-market travel.

This is even as he billed business transformation as "the best way to help ... because they have a new and sustainable market proposition".

Another part of the strategy is to move affected workers to parts of the economy still in need of warm bodies, according to Singapore Tourism Board (STB) chief executive Keith Tan.

The STB is also working with the Ministry of Manpower (MOM), government agency Workforce Singapore and the labour movement, to find new roles for redundant workers.

Even if a tourism business has to resort to shedding jobs during this crisis, "can they quickly bring back those workers if the demand comes back quickly?" Mr Tan suggested.

"We're trying to find ways to work to create these mechanisms for flexibility in the job market, but that's an ongoing conversation with the unions and with MOM as well."

He called the situation "unprecedented" for a sector that had previously faced labour crunches instead.

But with job creation not expected to be on the table for at least the next nine months, his aim is "to cushion the impact so that there is no catastrophic job loss or massive retrenchments".

Such a move could destabilise not only the economy, but also Singaporeans' sense of well-being and confidence, Mr Tan remarked.

Recent high-profile cuts include contract non-renewals at Marina Bay Sands in June, a "one-off workforce rationalisation" at Resorts World Sentosa last week, and a 15 per cent headcount reduction at the Raffles Hotel.

Said Mr Tan: "I have not received any further confirmed plans yet, but naturally we must expect further retrenchments and furloughs and other forms of measures... because international demand is so depressed."