Layoffs not considered: Study

MORE than 60 per cent of business leaders who participated in a recent market survey have indicated that they have not considered laying off staff over the next six months, the PNG Business Council says.
Executive director Douveri Henao said this was a strong signal in the market that businesses had adjusted to the current situation.
He said that in their adjustments, they had used the various redundancy programmes such as the reduction of work hours or remuneration and the use of a skeletal workforce.
“It’s an increase from 12 per cent from our Q12020 (first quarter) numbers where this confidence in the market on staff reduction would not occur in the next six months,” he said.
Henao said that the preferred strategies used included employee head counts or redundancy where 19 per cent had been applied, which was an increase of 12 per cent in Q1; skeletal workforce had seen 18 per cent; reducing working hours or remuneration was 17 per cent.
“During this period, we saw an increase on redundancy programmes but this increase has actually plateaued,” he said.
“There was anxiety in the market that there will be mass redundancy programmes and they will be queued up in nasfund and elsewhere to collect their entitlements after the mandatory three month grace periods are over.
“We haven’t seen that come out into the market place largely because there is confidence in the market to retain jobs.
“So those that have been laid off was not to the extent where there has been a complete increase or a sharp rise in redundancy.
“And that’s also reflected in our conversations with the superfunds as well. They haven’t seen the large numbers prevailed throughout the year.
“There’s been a period in Q1 and the beginning of Q2 but that levelled off because most of these MDs (managing directors) and CEOs (chief executive officers) are quite confident that they could retain their staff.
“Although people had been laid off, there have not been large redundancy across the market,” he said.
Henao added that the top five sectors that had extensive redundancy programmes were the tourism and hospitality, real estate and property, retail and consumer, manufacturing and professional services.
He noted that the businesses had done the necessary redundancies and they were now ready to function or operate under the new normal.