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The Singapore Maritime Officers Union has been assured by Neptune Orient Lines that none of its seafaring members will be affected by the retrenchment exercise that the global cargo transport and logistics company announced on 19 November 2008.
SMOU, which represents the seafaring officers who are employed under the NOL Group, have been in dialogue with the Singapore-listed shipper that hires about 11,000 people globally.
"Seafaring is a specialised skill, and our officers represent the ‘cream’ of the maritime industry. There is presently an industrial shortage of seafaring officers, and many of the seafarers onboard vessels under the NOL Group are foreigners. The market demand for seafaring officers is still buoyant," said SMOU General Secretary Thomas Tay.
As shipping is about delivering containers to customers, a drop in the demand for goods also means the industry is severely affected by the global economic crunch.
Last month, NOL reported an 82 per cent fall in third-quarter profit to US$35 million, and added that it was expecting an operating loss in the fourth quarter. It said its container shipping business APL will reduce capacity in Asia-Europe trade by about 25 per cent, saving the group about US$200 million in costs next year.
The retrenchment exercise is the company’s second cut-back. NOL said it will slash 1,000 jobs worldwide to combat industry downturn. Although the reductions will come mainly from its North American operations, some 50 from its headquarters in Singapore will also be affected.
"At SMOU, we have been closely monitoring the situation and are prepared for the impending economic challenges," said Mr Tay, who is also NTUC Vice-President.
"The important thing for those affected is to carry on with union membership as it stretches their dollar and there is insurance coverage. There is everything to gain and we will be with them all the way. NTUC is also helping with training programmes and job placements," added Madam Kang, who is also NTUC Vice-President.
"In the event that our seafarers lose their jobs, SMOU will work closely with our tripartite partners and the National Trades Union Congress on alternative schemes that will assist our members. We will also work with our maritime training provider, Wavelink Maritime International, to develop a series of skill upgrade programmes to facilitate the re-employment of any affected members in other capacities within the industry."
 The retrenchments at NOL show the stress in that sector and adds to the gloom. The workers laid off locally are from the non-unionised land-based functions. They can seek help with job placement from e2i, which NTUC runs on behalf of the tripartite partners. Although the seafaring employees of NOL are not affected in this layoff, their union the SMOU is keeping a close watch over developments. Given such a volatile and uncertain climate, I urge workers in all sectors and industries to join the union quickly for their own good."
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