Singapore labour chief Lim Swee Say censured DBS for its sudden decision to retrench workers without consulting its staff union.

In an eight paragraph statement released to the media yesterday, the adviser to the DBS union expressed his disappointment at the lack of communication between the bank's management and the union.

"We are disappointed with the sudden decision.

"There was no prior consultation with the DBS staff union. There was no exploration with the union on other cost reduction alternatives.

"It is regrettable because trust takes a long time to build, but a short time to destroy," Mr Lim, the secretary-general of the National Trades Union Congress (NTUC) added.

"Perception on the ground is that DBS has decided on retrenchment as the first resort. Ground reaction is critical and highly negative.

"We (NTUC) do not demand zero retrenchment because we know full well that at times, it is better to let go of some workers so that the remaining workers can survive and keep their jobs, than for the business to be closed down and for all workers to lose their jobs.

"However, we do not support retrenchment as the first resort because there are alternatives for us to explore together to reduce costs and save jobs - from a flexible wage system to flexible work arrangements."

In response to Mr Lim's criticisms, DBS defended its decision, saying that cuts affected 3.5 per cent of junior ranks, compared to 16 per cent of senior management, reported a local television news network.

DBS had also said that a hiring freeze had been in place before the bank decided to retrench 900 staff, continued the report.

The bank also told the network that it had considered cutting wages, but decided against it due to different labour laws in countries where the bank has branches in.

OCBC Bank and UOB Bank have also denied rumours that they were cutting staff.