Singapore - In the face of a severe downturn, the National Wages Council's (NWC) recommends that companies focus on cutting costs to save jobs.

On Wednesday, the government says it strongly supports the NWC's call for employers to look at ways to manage costs, stay viable and save jobs, including implementing wage freezes, cuts, and other cost-containment measures recommended in the revised tripartite guidelines on managing excess manpower issued on 17 May.

"Employers should also be responsible and fair to their workers. At the same time, workers should play their part by being adaptable and flexible, willing to make adjustments, taking on different jobs and having realistic expectations," says the statement sent shortly after the council announced its recommendations.

The statement also said the government has implemented measures to help companies and Singaporeans cope with the downturn, such as the Jobs Credit Scheme, Skills Programme for Resilience and Upgrading (Spur), enhanced government financing programmes for companies, lower corporate taxes and the Workfare Income Supplement (WIS) Special Payment. In addition, they have also been expanding the CET system and increasing the reach of Spur, says a report by The Straits Times.

"These measures have helped to buffer companies and workers from the impact of the downturn. The Government will continue to monitor the situation to see if further measures and assistance are needed," says the government.

When NWC released its revised wage guidelines in January, the global outlook has remained weak. The GDP in the first quarter contracted by 10.1%, compared to a 4.2% dip in the fourth quarter of 2008. The total employment declined by 1,000 in the first quarter and the seasonal-adjusted unemployment rate rose to 3.2%(overall) and 4.8%(resident) in March, with some 12,600 workers made redundant.

The government says it also supports NWC's call to use this downturn to strengthen Singapore's competitiveness and prepare for the upturn.

'The government is confident that with close tripartite co-operation and partnership, the NWC wage guidelines will be successfully implemented to help companies ride out the current downturn, preserve jobs for workers and emerge stronger in the upturn,' adds the statement.