WHEN times are bad and business takes a downturn, your head may be on the chopping block as your company looks for ways to cut costs.

But your boss should not be so quick to wield the axe. Instead, he should be looking at other ways to cut costs first.

Yesterday, the Ministry of Manpower, Singapore National Employers Federation and the National Trades Union Congress (NTUC) recommended some measures.

So, if your boss hands you the pink slip, here are eight questions you should ask him:

1. Why not send me for training?

The Skills Programme for Upgrading and Resilience (Spur) can help both you and your employer ride out the downturn and invest in skills for the upturn.

You can get high-quality, subsidised continuing education and training (CET) at more than 40 CET centres.

How does training help you in a recession?

It raises your productivity.

Your company gains too.

Training makes it easier for your boss to redeploy you to jobs that need higher skills and better knowledge.

It will also help retain good workers who are harder to come by when the labour market is tight.

2. Can I work shorter weeks?

You can help your boss out by agreeing to take up to half of your annual leave.

But the cut in the work week should not be more than two days and the cut should not last for more than two months at any one time.

You should not be paid less than half of your salary on the days when you are not working, during the period when the shorter work week is implemented.

3. Can I take a break?

This is a temporary layoff, which means you take up to half of your annual leave.

But you should not be 'laid off' for more than one month at any one time.

And you should not be paid less than half of your salary during this period.

4. Can I go part-time?

You can also discuss other flexible work arrangements with your boss.

5. Why not remove or cut my variable bonus?

This is the first component of your wage to be cut during a downturn as it is directly linked to your company's performance.

6. Why not cut my annual wage increment or freeze my pay?

The extent of this cost-cutting measure depends on your company's financial position.

7. Why not adjust my monthly variable component (MVC)?

The MVC, which forms part of the basic wage, allows your company to adjust wages quickly in response to changes in the business environment.

This means that it does not have to wait until the end of the year to adjust variable bonus payments and other annual variable components.

If your company has already put in place an MVC in the wage structure, it can consider adjusting the MVC downwards.

If your company has yet to implement the MVC or any flexible wage component, it should consult you and your colleagues to explain the reasons for the wage cut.

If your company has a staff union, the latter has to agree to the wage cut.

8. Why not cut my annual wage supplement (AWS)?

The AWS is usually a month's salary that is paid to you at the end of the year.

Help laid-off workers cope

BUT when all else has failed and the axe has to fall, here's what employers should do:

• If the company is unionised, discuss with the unions to make sure the retrenchment exercise is carried out responsibly and smoothly.
• Inform the Labour Relations and Workplaces Division at MOM as soon as possible after the decision to retrench has been made.

This will allow the ministry and the relevant agencies to help affected workers to find new jobs or to give them training.

• Tell affected workers the bad news before they are given the notice of retrenchment.
• Help affected workers look for new jobs in associate companies, other companies or through outplacement assistance programmes.

This article was first published in The New Paper on November 20, 2008.