SENIOR management should lead by example - by reducing their salaries earlier or accepting similar or deeper cuts - before cutting the wages of their employees.

Guidelines issued on Wednesday outlining cost-cutting steps available to companies in a time of economic slowdown, say that when there is a need to implement any measures, 'the principle and spirit of leadership by example ... should prevail'.

There should also be close consultations with unions and affected empolyees and transparency in the process.

For more The Straits Times stories, click here.