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Looking After The Workforce

Productivity growth and helping low-wage workers – the Labour Movement welcomes recommendations made by the National Wages Council
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29 May 2015
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By Ramesh Subbaraman

There is a need for productivity growth to remain a primary focus across all sectors in Singapore.

Employers have also been urged to help low-wage workers with based on a quantitative wage guideline.

The salary threshold for low-wageworkers to benefit from the quantitative guideline has also been revised.

These were the key thrusts of the wide ranging recommendations made by the tripartite National Wages Council released on 29 May 2015 which cover the period from 1 July 2015 to 30 June 2016.

Fair Recommendations

Giving its response to the slew of recommendations, NTUC’s Assistant Secretary-General (ASG) Cham Hui Fong said the Labour Movement fully supports the NWC’s fair recommendations.

In a statement, she said 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.

This should be done through SkillsFuture, and NTUC’s call to adopt the Progressive Wage Model (PWM) for all workers in every sector.

Said ASG Cham: “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.”                        

Low- Wage Workers

On the subject of low-wage workers, the Labour Movement was 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.

“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 a one-off lump sum based on skills and productivity, so as to ensure that they continue to receive higher wage increases,” said ASG Cham.

Being all-inclusive, the Labour Movement urged employers to share productivity gains fairly with all workers, including Professionals, Managers and Executives and re-employed workers, in a sustainable manner.

SG50 Appreciation

Beyond the NWC recommendations, NTUC has also called on companies doing well to show special recognition to workers for their hard work and contributions toward Singapore’s economic progress as the country celebrates 50 years of nation-building.

On its part, ASG Cham said that every one of NTUC’s Social Enterprises are supporting this initiative.

They will be giving a SG50 gift to all employees, in cash or in kind, over the next three months.

Source: NTUC This Week

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- NWC Recommendations At A Glance
- Meet NWC's New Chairman