(Bloomberg) -- Employers in Singapore can consider implementing reasonable temporary wage cuts if such a move minimizes retrenchments, the National Wages Council said in a statement.
Employers should seek employee support to do this and the burden of such cuts should not fall excessively on any one group, the Council said.
The Council added that management should lead by example and “take earlier and deeper cuts to their wages” to effect the desired extent of cost savings.
Wage cuts accepted in good faith by employees should be restored when business conditions allow, the NWC said.
Employees should also support and work with employers on redeployment opportunities and training programs to preserve and upgrade critical capabilities or to enable business restructuring, the NWC said.
