Stephen Lee, President, Singapore National Employers Federation
In 2010, the Singapore economy rebounded strongly by 14.5 per cent after contracting by 0.8 per cent in 2009. The strong recovery is due in part to the strong tripartism that exists among and between the Government, the Labour Movement and employers.
Over the last 25 years, the tripartite partners had faced four recessions together and taken measures to help both companies and workers ride through each crisis. In 1987, we took the drastic measure of cutting employers' Central Provident Fund (CPF) contribution rate by 15 percentage points to improve our wage cost competitiveness. This was very difficult on workers but the Labour Movement held the ground. In 1998, where the number of workers retrenched hit a record high of 29,000, we developed the Tripartite Guidelines on Managing Excess Manpower and the National Trades Union Congress (NTUC) initiated the Skills Redevelopment Programme to help workers to be re-skilled, re-deployed and re-employed. In the aftermath of the recession in 2001, we pressed on with economic and wage restructuring to strengthen our competitiveness.
In the most recent 2008/2009 recession, the strong tripartite cooperation in managing excess manpower was again evident. Government drew on its reserves for the Jobs Credit scheme to support employment. About 4,800 employers and 334,000 workers benefitted from the training under the Skills Programme for Upgrading and Resilience (SPUR) and as many as 26,500 workers went on shorter workweek or temporary layoff at one point to help companies cut costs and avoid retrenchments. Retrenchments moderated to 20,000. Fortunately, the recovery came and we were able to seize growth opportunities quickly with a better skilled workforce.
We have faced each recession together, taken tough measures to help companies stay afloat, saved jobs and helped workers to upgrade. In the good years, we have together trained the workforce, created good jobs and prepared for the future. Employers have also rewarded workers with wage increases and bonuses for their contributions. The Labour Movement led by NTUC has played a key role in creating an environment that attracts investments, in restructuring and upgrading the economy, in creating better jobs and in securing better benefits and wages for workers.
As a small and open economy, we will continue to be susceptible to changes in the global economic environment. Our close cooperation, flexibility and our resilience must be nurtured and further strengthened to enable us to cope with and overcome future challenges so that we can sustain growth.
One of our key challenges is to raise productivity by two to three per cent per annum to support income growth of workers in real terms by 30 per cent in the year 2020. While it is the primary responsibility of management to lead in productivity improvements, the support and cooperation of unions and workers are crucial. NTUC has taken the lead by championing a Cheaper Better Faster economy. On the ground, union leaders have been working with management on productivity improvement initiatives and gain-sharing for workers. More employers must take the initiative to lead in the productivity drive, engage their workers and seek to entrench a culture of productivity at their workplaces.
A second challenge is to share the fruits of productivity fairly among all workers to ensure inclusive growth. Employers need to manage diversity to strengthen cohesion at the workplace and enable everyone to contribute to the best of his or her abilities. NTUC's Inclusive Growth Programme will go a long way in helping to build an inclusive workforce. I call on employers to support this effort.
A third challenge is to give all workers the opportunities to upgrade their skills so that they can continue to contribute and work for as long as they are able. This includes the professionals, managers, executives and technicians (PMETs), who form 52 percent of our workforce. PMETs also need to update and upgrade their skills in the fast-changing economy. Thanks to the Singapore Workforce Development Agency (WDA), more training opportunities and skill upgrading paths are now available to all workers. Workers and employers alike must make use of these opportunities and transform the workforce into one that is highly skilled.
Over the last 50 years, the Labour Movement has gone from strength to strength. It has played a vital role in creating a harmonious industrial relations climate that has supported economic growth and brought many benefits to workers. It has also defied the global trend of declining union membership by growing it to a movement of 60 affiliated unions and 615,000 members. Together with its 12 social enterprises and four related organisations, NTUC also helps its members to stretch their dollars and enhance their employability. NTUC has indeed achieved the better part of its vision of securing a better life for all workers.
On behalf of the 2,000 corporate members of the Singapore National Employers Federation (SNEF), I wish NTUC and the Labour Movement a very happy 50th Anniversary. SNEF looks forward to our continuing partnership to raise productivity, and to create and sustain inclusive growth.
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