By Nur Dianah Suhaimi & Cassandra Chew

COMPANIES that have emerged from the recession unscathed or stronger have been urged to review their cost-cutting measures, with an eye on phasing them out gradually.

They were also encouraged to consider giving moderate wage increases or one-off bonuses to their employees for the support they showed and sacrifices they made in the past year amid
the global economic crisis.

The call to companies yesterday was made in a joint statement by the National Trades Union Congress (NTUC), the Singapore National Employers Federation (SNEF) and the Government.

It comes amid emerging signs of a recovery in Singapore, with the economy growing by 14.9 per cent in the third quarter over the previous quarter.

In the tripartite guidelines to employers on preparing for recovery, the statement also acknowledged that those that are still struggling will need to continue with their cost-cutting measures to stay afloat.

But those no longer facing excess manpower should re-look such measures as a shorter work week and no-pay leave, said the tripartite partners.

But do it in consultation with trade unions and their employees, they added.

These companies should also take the next step and review their business strategies for better days, they advised.

Said Manpower Ministry divisional director Ong Yen Her: 'Companies should start to shift their focus to managing their long-term manpower challenges and prepare for the upturn.'

The labour movement, however, wants companies to think of their workers. Noting that many took pay cuts, NTUC deputy secretary-general Heng Chee How said: 'Now, with more of the economy on the mend, it is right for these guidelines to urge companies doing well or recovering strongly to recognise their employees' sacrifices and reward them appropriately.'

Some have already made the move, labour chief Lim Swee Say noted in a separate statement.

'We are very happy to see that, in some cases, companies have decided to give a one-off payment, in the form of bonuses; some call it ang pow.

'But basically it's a one-off payment in recognition of the sacrifice made by the workers. We welcome that,' he said.

Other firms, he added, are exploring partial or full restoration of wages, or ending wage freezes.

It is a move supported by SNEF president Stephen Lee. He said better-performing companies 'should consider one-off bonuses as a way to reward workers for supporting earlier wage freezes or cuts'.

However, the tripartite guidelines advised caution when taking steps like wage reinstatement, given the uncertain economic outlook for next year.

Economists like Dr Randolph Tan of Nanyang Technological University (NTU) hailed the guidelines as timely and appropriate, given that Singapore has survived the downturn extremely well.

'Some companies, especially those in the service sector, are not only in a position to phase out their cost-cutting measures, they are able to offer more jobs now,' he said.

Many companies in the electronics sector have already phased out their cost-cutting measures, said Madam Halimah Yacob, NTUC deputy secretary-general and executive secretary of the United Workers of Electronic and Electrical Industries union.

'During the downturn, as many as 20,000 workers in the electronics sector were on a shorter work week.

'Now, almost all are operating normally, except for a handful of companies which are struggling,' she said.

Property consultancy Knight Frank told The Straits Times yesterday that it had reinstated salaries and returned the pay it deducted from its employees in the past nine months.

The company had cut wages by up to 20 per cent in February but eventually, it fared better than feared.

Said managing director Danny Yeo: 'Our staff know that if we make money, we will pay back. It's a matter of trust.'

This article was first published in The Straits Times.