'My strong message to management is this: We've done an excellent job in the way we managed the downturn.

'Labour-management relations on the ground - I think we worked very closely.

'Now the way we wrap up this downturn could be even more important. Because if you wrap up the downturn in a way that is socially responsible, it will further strengthen the trust between labour and management.

'What this means is that the next time round, the workers, the unions will be even more responsive.

'But if we wrap up this downturn wrongly - if we only give consideration to the stakeholders, give them more dividends, in some cases, special dividends, and neglect the whole contribution of the workers - then I think the next downturn, it will be harder for them to expect the labour movement to respond accordingly.

'On the whole, I would say that we've done well up till now. Let's continue to build trust. We built trust during the downturn. I think it's very important for us to continue to build trust as we go through this upturn.'

NTUC secretary-general Lim Swee Say

Reward and review

REVIEW

• Companies which recovered from the downturn and do not have excess staff should review if cost-cutting measures are still needed or can be gradually phased out.
• Review should be in consultation with workers and unions, and take business conditions and company prospects into account.

RECOGNISE

• Companies that did well or are recovering strongly could recognise employees 'fairly and appropriately' for their support and sacrifice. They could grant moderate wage adjustments and/or give one-off bonuses.
• Wage adjustments should take the uncertain outlook next year into account. Companies should consider the latest National Wages Council guidelines when granting annual increments.

THINK LONG-TERM

• Rethink and reposition business strategies and operations.
• Implement a flexible wage system. This helps companies respond quickly to adverse economic conditions.
• Innovate with new products and services, and by improving on how things are done.
• Improve quality of services, without relying solely on more workers.

This article was first published in The Straits Times.