THE challenge: How to balance the books this year on half the revenue, without resorting to massive job cuts.
That was the problem facing the chief executive officer (CEO) of a multi-national company here when its revenue slumped from $400 million in 2007 to a projected $200 million this year.

But he came up with a plan, thanks in part to the aggressive measures in the recent Budget and the close relationship of the Government, employers and worker unions.

The company will save money from the Government training subsidies as well as wage subsidies announced in the Budget. It also scaled back the flexible component of wages and made flexible work arrangements.

Labour chief Lim Swee Say told this story at a tripartite forum yesterday. He did not name the company, but cited it as one that benefited from the Budget and the tripartite relationship.

'In many other countries, it will be almost impossible for this CEO to be able to satisfy the headquarters' requirement, break even ... and yet, at the same time, try to save jobs,' he said.

What he found more exciting was that the management of the company promised that if it manages to bring in $250 million this year and turn in a profit, it will share some of it with workers, before ploughing the funds back to shareholders.

Mr Lim was among many who shared stories yesterday on the impact the Budget has made. Employers and workers slipped in words of thanks in between fielding questions for the panel.

One of the first was Mr Rajendran Govindarajoo, president of the Chemical Industries Employees' Union.

He said that workers at 16 companies in his union would benefit from the Government training subsidies. His employer, ISK Singapore, would save about $1 million from the various measures.

Mr Abdul Subhan Hussein, a senior engineering supervisor at the Royal Plaza on Scotts, stood up to say that the hotel would save some $600,000, thanks to the Jobs Credit Scheme, and another $140,000 because the Government was helping to pay the wages of staff sent for training.

Mr Loh Oun Hean, director of human resources at Deloitte and Touche, said the Jobs Credit Scheme helped reaffirm his company's decision to hire 150 new graduates.

The last to speak during the hour-long forum was Mr Tan Peng Heng, president of the Singapore Industrial and Services Employees' Union (Siseu). He was given one minute to wrap up, but insisted on taking five.

He told of how an aerospace company that was not badly hit by the downturn would make use of savings from the Jobs Credit Scheme to subsidise training of its workers. The same scheme allowed another logistics company to shelve retrenchment plans.

His last point before he sat down: 'Most importantly, I think I have to say this - our workers, as well as Siseu members, were relieved that the CPF was not cut.'

JEREMY AU YONG

This article was first published in The Straits Times.