PERTH: Drawing lessons for Singapore from the current face-off between the management of Qantas Airlines and its staff, Prime Minister Lee Hsien Loong said this highlights the importance of business competitiveness as well as a close relationship among companies, unions and the Government.
Asked if there were any takeaways from Qantas' situation for Singapore, he said: 'It shows how important it is for all companies to be competitive and for employers, unions and government to work closely together to manage the problem.'
Qantas, he noted, faces a competitiveness problem - it is losing A$200 million (S$266 million) a year and its operating costs are 20 per cent higher than those of other airlines.
When the management could not resolve the issue with unions, they took the 'drastic step' of grounding flights.
On its part, the Australian government has been unable to resolve the situation, and can only order workers back to work while giving them more time to talk.
'It is a very painful adjustment and they have not been able to reach an agreement,' Mr Lee observed.
In recent weeks, Qantas employees have gone on strike over wage and job cuts, work conditions and outsourcing of jobs.
On Saturday, the management retaliated by taking the unprecedented step of grounding all its flights worldwide.
An unhappy Australian government called for an emergency arbitration hearing by an independent tribunal to resolve the matter. Early this morning, the tribunal ordered an end to the dispute.
'We have to make sure we stay competitive because if we allow ourselves to become non-competitive, we will be in as unhappy a position,' said PM Lee.
Asked about Singapore employers' complaints about the Government's recent curbs on foreign worker supply, he said he was aware of their pain and the business opportunities lost.
He acknowledged that it would be particularly painful for the many small and medium enterprises and local companies which had previously depended on foreign workers.
But there is no easy choice, he said.
'Because it's not as if you send away all the foreign workers or keep out all the foreign workers, then we live in paradise. There is a price, and it's a quite a high price to pay. As we try to manage the population in Singapore, we are going to also accept a lower growth rate,' he said.
Emphasising the trade-offs, he said that having fewer foreign workers in Singapore will lead to slower growth - if Singapore achieves 3 per cent or 4 per cent growth in a year, 'we should consider it not a bad year'.
'We've been used to 5, 6, 7 per cent, or even more, in the past, but it's (now) a different phase. When you're an adolescent, you grow and shoot up inches every year; but when you're mature, you hope to grow, not necessarily taller, but wiser and better. We have to make that change of gear,' he said.