PUTRAJAYA, MALAYSIA - Reduced overtime, shorter working hours, temporary lay-offs or smaller pay packets - these are some of the suggestions made by a high-level government committee to prepare for the expected economic backlash next year.

The crux of the matter is to make retrenchment the very last resort for companies facing a crisis.

If there are no other options, the first to go will be foreign workers.

The joint committee arrived at this decision at a meeting on Dec 10. It comprised representatives from the Human Resources, Finance and International Trade and Indus-try ministries; trade bodies such as Cuepacs and MTUC; Malaysian Employers Federation; Master- builders Association; Malaysian International Chamber of Commerce and Industry and the Federation of Malaysian Manufacturers.

It was the first time that the committee - which had gathered in past economic crises - had convened during this economically-challenging period.

There is some heartening news for Malaysian employees. The committee believes the national economy will be chugging along nicely next year.

Labour Department director-general Datuk Ismail Abdul Rahim said the National Committee on the Monitoring of Retrenchment has been reactivated to compile the latest information on job losses and the performances of companies.

'The committee also discussed the outlook of the national economy. At present, it still looks good.

'The number of people retrenched between January and now is about 28,000, which translates to an average of 2,000 to 3,000 workers each month. This is normal.

'However, we have received reports that some businesses are already complaining of cancelled contracts and reduced demand.

'Although we are still all right, some people are worried that the real impact will only hit us in January or by March. So we want to be prepared,' he told The Star yesterday.

Ismail said the Government emphasised to employer representatives during the meeting about the importance of informing it of any plans to scale down operations or to retrench workers.

'This is so that we can mobilise our resources to help both employers and workers think of other options besides retrenchment.

'The suggestions revolve around less overtime and reduced work days and hours, and temporary lay-offs with lower wages while waiting for demand and production to pick up.

'We want to convince employers that it is better to keep their workers and preserve jobs, rather than downsize as a way to cut costs.

'The employer bodies present at the meeting were agreeable to the suggestions but the matter will be further discussed,' he said, adding that it was crucial for unions and employers to come to an understanding.

On overtime, the director-general said the unions were agreeable to less payments but wanted this to be done fairly.

He said Human Resources Minister Datuk S. Subramaniam would be announcing guidelines on retrenchment procedures.