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The National Wages Council (NWC) will reconvene in early January 2009 to review its Guidelines issued in May this year.
In its May Guidelines, the Council recommended that companies grant built-in wage increase reflecting the companies' performance as well as business prospects.
Among other recommendations, companies were asked to consider giving a one-off special lump sum payment to rank-and-file workers to help cope with the high inflation.
Such recommendations were made under a more favourable economic environment.
Since then, Singapore's economic outlook took a downturn with its GDP forecast for 2008 revised downwards to around 2.5%, and for 2009 to be -1.0 to 2.0%.
In view of the continued deterioration of regional demand and increased uncertainties, an increasing number of companies will face issues of low demand and overcapacity.
Cost cutting measures to cope with the severe business downturn will be necessarily applied.
In view of the worsening economic outlook, "there is a need to...review its May Guidelines to help companies and workers manage the downturn," NWC Chairman, Professor Lim Pin urged.
The latest review and Council's recommendations are expected to be released by mid-January 2009.
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