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Singapore PMEs turn to unions as job losses rise amid AI and offshoring pressures

• By Ria Duneja
Singapore PMEs turn to unions as job losses rise amid AI and offshoring pressures

More white-collar workers in Singapore are turning to unions and trade associations for help after losing their jobs, as retrenchments linked to business restructuring, offshoring and artificial intelligence continue to rise, as reported by multiple media reports. 

New figures from the National Trades Union Congress (NTUC) show that more professionals, managers and executives (PMEs) are seeking support during layoffs, even as the country's unemployment rate remains low.

In 2025, NTUC handled more than 3,900 retrenchment and termination-related cases involving PMEs, a 5 per cent increase from the previous year.

NTUC assistant secretary-general Patrick Tay said some of the cases were linked to companies relocating operations overseas to reduce costs.

In some instances, roles are being shifted out of Singapore "even when local PMEs are experienced and capable", he said.

AI impact

Tay said artificial intelligence is also emerging as a factor behind workforce restructuring, although economy-wide data remains limited.

"We are also seeing businesses cite investments in AI as a factor for workforce restructuring. Some workers find themselves displaced because job roles are changing faster than they can adapt."

While Singapore's unemployment rate remained at 2% in both 2024 and 2025, retrenchments have more than doubled in recent years. Layoffs rose from 6,440 in 2022 to 13,020 in 2024 and reached 14,490 in 2025.

Tay said NTUC is particularly concerned that many PMEs are unaware they can join unions and seek representation during retrenchments.

Workers in professional services, finance, and the infocomm and technology sectors are among those most exposed to the impact of generative AI, he added.

Mediation success

One worker who benefited from NTUC's intervention was an IT professional identified only as Benjamin.

After 18 years at a non-unionised company, Benjamin said he was unexpectedly dismissed in February 2026 despite receiving positive performance reviews throughout his career.

His employer initially declined his request for additional compensation beyond the notice period.

Benjamin, who had joined NTUC as a general branch member in 2024, sought assistance from the organisation's PME unit.

Following mediation, the company agreed to provide six months of ex-gratia payment and an additional month's bonus. The final settlement amounted to S$47,600.

Another worker, banking technology executive Raghu, also turned to NTUC after being retrenched in January 2024.

The 55-year-old, who was the sole breadwinner for his family, said the job loss came as a shock.

Although his contract contained retrenchment benefit provisions, he initially received only a one-month notice period from his employer.

After receiving guidance from NTUC, he successfully negotiated three months' salary in lieu of notice and an additional two months' salary in retrenchment benefits.

Reflecting on his experience, Raghu said many professionals fail to prepare for the possibility of losing their jobs.

"We are so caught up with working and we don't think about anything beyond that. Very few of us really think about upskilling, preparing for an alternative career."

He eventually secured a new role after six months and used the period to gain coaching certifications with support from NTUC career advisers.

Protection debate

Ray Chiang, senior partner at law firm Dentons Rodyk, said employees at unionised companies generally enjoy stronger protections because retrenchment benefits are often outlined in collective agreements.

Workers at non-unionised firms can still seek NTUC's support, but retrenchment benefits are rarely guaranteed unless they are explicitly stated in employment contracts.

Chiang noted that NTUC can encourage employers to offer fair compensation but cannot compel them to do so.

"The benefits in the tripartite guidelines are followed by a vast majority of employers, but the guidelines are not strictly legally binding."

He added that including retrenchment benefits in employment contracts remains the strongest safeguard for workers, although such provisions are still uncommon in Singapore.

Calls for reform

NTUC is now pushing for stronger protections for PMEs as industries continue to transform.

Tay said the labour movement has advocated for earlier retrenchment notices and broader access to the SkillsFuture Jobseekers' Support Scheme for workers who lose their jobs involuntarily.

The organisation is also participating in the ongoing review of the Employment Act and hopes to secure additional protections for PMEs.

"We're trying to get more of the PMEs to be aware that they can be part of a union and that actually we can represent them."

Labour economist Walter Theseira from the Singapore University of Social Sciences said workers are currently "too exposed to the risks of retrenchment", although introducing extensive legal protections could affect Singapore's competitiveness.

He suggested expanding unemployment support to include higher-income workers and exploring retrenchment insurance schemes funded jointly by employers and employees.

According to Theseira, a risk-pooling approach could provide workers with more reliable protection while encouraging them to continue reskilling and searching for new employment opportunities.