Advertisement

Suntec Singapore retrenches almost half its workforce as MICE industry badly affected by COVID-19

A man rides the escalator at the Suntec convention centre during the 33rd ASEAN summit in Singapore, Monday, Nov. 12, 2018. (AP Photo/Bernat Armangue)
Suntec Convention Centre. (AP file photo)

SINGAPORE – Nearly half of the workforce at the Suntec Singapore Convention and Exhibition Centre (Suntec Singapore) will be retrenched as Singapore’s meetings, incentives, conventions and exhibitions (MICE) industry continues to be badly affected by the COVID-19 pandemic.

The retrenchment exercise will affect 85 workers across the company, including sales, operations, and support functions such as finance and HR, said Suntec Singapore and the Building Construction And Timber Industries Union (BATU) in a joint statement on Thursday (27 August).

The MICE industry has been severely impacted by the ongoing COVID-19 pandemic with events suspended since April, both added.

Of the affected workers, 60 are Singapore residents – Singaporeans and permanent residents – while 25 are foreign staff members.

With the retrenchment exercise, Suntec Singapore will have a workforce of 89 Singapore residents and four foreign staff members.

“Due care has also been taken to ensure an ageless workforce, maintaining staff across the various age groups,” said Suntec Singapore and BATU.

Suntec Singapore began working with the union from early February on cost control measures, including eliminating non-essential spending, hiring freezes, external redeployment of staff, clearing of annual leave, and shorter work-weeks, they added. Temporary salary reductions were also made in the form of unpaid leave.

The management of Suntec Singapore also took up to 40 per cent in pay cuts, the joint statement said.

Suntec Singapore later closely consulted BATU throughout the retrenchment exercise, while complying with the NTUC Fair Retrenchment Framework, tripartite advisories as well as the collective agreement with the union.

Suntec Singapore CEO Arun Madhok said that the decision leading to the retrenchment exercise was not taken lightly and did not reflect the performance of any staff.

“Every individual in our team has contributed to the success of our company for many years, and I am truly sorry to have to ask many of our wonderful and talented people to look for alternative employment,” he added.

Retrenched employees will receive a month’s salary for every year of service as severance payment, following a collective agreement signed with the union.

They will also be paid their pro-rated annual wage supplement for the year and be allowed to encash their remaining annual leave entitlements.

Local retrenched employees will also receive assistance from the NTUC Job Security Council (JSC) to be matched to job openings based on their skills and experience.

So far, the NTUC’s e2i (Employment and Employability Institute) has identified at least two job opportunities – including roles in the F&B industry, as well as sales and events – for every affected Singaporean or PR staff.

Virtual or physical job fairs and employability workshops, and further assistance with job applications and counselling, will be arranged by BATU and e2i.

Suntec Singapore will also give a one-off training grant of $25,000 to BATU to support union members’ efforts in upskilling or re-skilling for new jobs.

Eligible union members will also be assisted in their applications for the NTUC Care Fund (COVID-19), which provides additional one-off support worth up to $300.

NTUC secretary-general Ng Chee Meng said in a Facebook post on Thursday that he was first informed of Suntec Singapore's “impending” retrenchment exercise “some time back”.

“In this tough situation, the strong labour-management relations between BATU Building Construction And Timber Industries Employees' Union and Suntec Singapore has resulted in a fair process. A strong Singaporean core remains in the team,” Ng added.

Stay in the know on-the-go: Join Yahoo Singapore's Telegram channel at http://t.me/YahooSingapore

More Singapore stories:

Monthly salary threshold for employment pass applicants to be increased to $4,500: MOM

Top Singapore lawyer Harry Elias dies at 83

Teacher who took meth was suffering from mental disorder after father's death: lawyer

Teens in 'how to spread Wuhan virus' video given probation

Molest trial: Witness claims accused teacher abused boy at fast food outlet