THE fate of local staff of the Bank of America (BoA) remains unclear after the giant company announced that it would slash 30,000 to 35,000 jobs across the world over the next three years.
The Straits Times understands that the bank employs more than 2,300 staff across the Asia-Pacific region, but it is unclear how many work at its Republic Plaza office here.
BoA also owns giant investment bank Merrill Lynch - acquired in a fire-sale deal during September's financial meltdown - which has a sizeable unit here.
Merrill employs about 1,500 staff across front- and back-end services, making it one of the largest financial services employers in Singapore.
Mr Rob Stewart, Merrill Lynch's Asia-Pacific spokesman in Hong Kong, declined comment.
A BoA spokesman in Singapore said: 'Details about specific reductions in communities, markets, or by line of business, have not been determined.'
Meanwhile, job losses are piling up here, with analysts estimating that 10,000 people will be laid off this year, while the number next year could well surpass the high of 30,000 set in 1998.
Philips Electronics said on Wednesday that it was axing close to 100 staff - or 5 per cent of its consumer lifestyle sector - here as part of a worldwide cutback to focus its business. The affected staff have been informed.
The Straits Times also understands that job cuts at Credit Suisse have begun this week, with some employees in the investment banking division told to go.
Credit Suisse announced last week that it would slash 5,300 jobs, or 11 per cent of its total staff worldwide, as part of a restructuring exercise.
Trade union heads have been urged by Mr Lim Swee Say, secretary-general of the National Trades Union Congress (NTUC), to meet bosses to help on saving costs and preserving jobs.
NTUC deputy secretary-general Heng Chee How told The Straits Times that companies should continue to communicate closely with their employees and unions, because clear and early information would address uncertainty, allay fears and quell rumours even if the news is bad. Management should also proactively seek business and look for ways to save costs and cut waste, to show their employees they are not just relying on cost- cutting and retrenchments to survive.
Companies can retain staff by sending them for training, as opposed to retrenching, using the government-initiated $600 million Skills Programme for Upgrading and Resilience.
Even for multinational companies, Singapore Bank Employees' Union general secretary Bobby Tay agreed that retrenchment should not be a first resort. He said those operating here should have a sense of social responsibility and look at ways to retain staff as far as possible.
This article was first published in The Straits Times on December 13, 2008.
