About a quarter of the 7,000-strong workforce has been laid off in the massive retrenchment exercise
Resorts World Sentosa (RWS) has retrenched about a quarter of their 7,000-strong workforce, or 2,000 staff, according to local media. When probed, the organisation did not want to confirm a figure.
They have, however, stated that the retrenchment exercise was a ‘one-off’ and a ‘last resort’. RWS assured that the decision was made after a carefully deliberated and consulted process.
Besides ‘fair’ compensation, most affected workers will have access to at least two or three new job opportunities.
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“We fully understand the difficulty and anxiety this means to impacted team members and their families,” said RWS. “We stand in solidarity with the Singapore government in identifying all possible opportunities to help them transition smoothly to new careers.”
The HR team is working closely with various parties, including the attractions, resorts and entertainment union (AREU) to ensure a responsible retrenchment exercise.
In a joint statement with e2i, the labour union said that they were given advance notice of the retrenchment exercise – as is protocol. According to The Straits Times, the union said that RWS had helped workers as much as they could in the past few months.
Other measures they’ve taken to cope with crisis include a pay cut of up to 30% for management, a review of all costs and cutting of ‘non-essential’ spending.
Despite this, the tourism-dependent resort operator continues to be hard-hit by the impact of COVID-19, with RWS noting that there’ll be “pervasive and lasting effects” in the industry which will require “significant adjustments” by industry players.
RWS will be thus continue their journey to adapt and transform the organisation. Digital transformation efforts had begun last year, when the organisation announced a $4.5billion investment – this will go to an upgrade of existing facilities as well as the retraining of staff.
Workers unaffected by the retrenchment will be retrained and designated into redesigned jobs that aim to streamline processes, increase productivity, and offer better remuneration prospects.
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Focusing on both the short- and long-term impact of the crisis is crucial to ensure a healthy recovery, said one industry leader.
“With the uncertainty surrounding the COVID-19 crisis, some organisations may be taking stringent measures to manage their current costs, however they cannot be short-sighted in their approach,” said Godelieve van Dooren, partner at Mercer. “They must consider the resources needed to ensure the organisation can rebound to growth post-crisis.
“How businesses respond to the crisis today will have a lasting implication on employee behaviour – their ability to attract new talent, levels of productivity and engagement, and employee commitment.
“Organizations that succeed in balancing the people and profitability metrics and put responsibility for shared futures above short-term gains are the ones that will thrive in the long run.”
