The National Trades Union Congress (NTUC) fully supports the fair recommendations in the National Wages Council’s (NWC) guidelines for 2015-2016 to grant sustainable wage increase to employees, taking into account company performance and prospects. These recommendations are reflective of the current tight labour market situation, and further recognise the need for productivity growth to remain a primary focus across all sectors.
Concerted tripartite efforts to spearhead SkillsFuture and PWM
As productivity growth is the key to sustainable broad-based real wage increases, NTUC would like to call on tripartite partners to strongly support the efforts by the Government to invest in the re-skilling and upgrading of the workforce through SkillsFuture, and the NTUC’s call to adopt the Progressive Wage Model (PWM) for all workers in every sector.
With the strong support from the tripartite partners, we have put in place cluster tripartite workgroups and tripartite committees across different sectors to advance PWM in different sectors.
Our unions will build on this momentum and continue to engage companies to quicken the implementation of PWM. We believe that with the adoption of PWMs, reinforced by skills upgrading and productivity enhancements, companies will be able to make better use of manpower and pay higher wages; and businesses will also be able to retain their workforce and remain competitive. This is a tripartite effort and every partner has a role to play to ensure our efforts translate to better jobs, better careers, better skills and improved productivity.
More low wage workers to benefit from increased wage threshold
The Labour Movement has always paid special attention to helping low wage workers through better skills, better jobs and better pay. We are heartened to see that those earning less than $1,000 have dropped from 9.8 per cent in 2012 to 6.8 per cent in 2014, and we will continue to work closely with tripartite partners to raise the wages of our low wage workers.
This year, the NWC has called for employers to grant a built-in wage increase of at least $60 for low wage workers earning a basic monthly salary of up to $1,100, an increase from the $1,000 last year. The increase in wage threshold to $1,100 will also enable us to help more low wage workers and ensure a larger base of low wage workers benefit from the guidelines.
Furthermore, NTUC fully supports NWC’s recommendations to grant low wage workers earning above $1,100 with an equitable and reasonable wage increase and/or one-off lump sum based on skills and productivity, so as to ensure that they continue to receive higher wage increases.
We would also like to encourage employers and buyers of outsourced services to make a special effort to incorporate NWC wage recommendations into outsourced service contracts and share their productivity gains with this group of low wage workers.
As an all-inclusive Labour Movement, NTUC also wants to urge employers to share productivity gains fairly with all workers, including professionals, managers and executives (PMEs) and re-employed workers, in a sustainable manner. Employers should take into account the prevailing economic and labour market conditions, as well as companies’ business performance, prospects and sustainability when giving wage increases.
With MediShield Life (MSHL) slated to be effected by the end of this year, our unions will also actively engage employers to work towards restructuring their current medical benefits to be portable to improve the cost-effectiveness of medical expenses. This will allow all employees who are Singapore Citizens or Permanent Residents to benefit from portable and lifelong medical coverage provided by MSHL.
Special SG50 appreciation to workers
Beyond the NWC recommendations, NTUC calls upon companies that are doing well to show special recognition to workers for their hard work and contributions toward Singapore’s economic progress as we celebrate 50 years of nation-building. We are happy to note that every one of our NTUC Social Enterprises are supporting this initiative, and will be giving a SG50 gift to all employees in cash or in kind, over the next three months.
Strengthen tripartite efforts to tackle challenges ahead
Singapore’s unique tripartism has helped us overcome numerous challenges over the last five decades, and provided us with the competitive edge to attract good investments and create better jobs for Singaporeans. NTUC will continue to play an active role in strengthening tripartism and we are confident that the concerted efforts of the tripartite partners will help Singapore workers and companies tackle the challenges ahead successfully. Riding on our tripartite unity, we will continue to create sustainable long-term growth and improve the lives of our workers and all Singaporeans.
Cham Hui Fong
Assistant Secretary-General
National Trades Union Congress
###
For more info:
- National Wages Council (NWC) Recommendations At A Glance
- NWC Guidelines for 2015/2016
- Government Response to NWC Guidelines
- Singapore National Employers Federation Response to NWC Guidelines
- Singapore-German Chamber of Industry and Commerce's Statement
