Singapore’s economic growth slowed down to 1.3% in 2012 from 5.2% in 2011. Despite the slower growth, employment grew by 129,100 and the unemployment rate stayed at 2.0%. For 2013, the Ministry of Trade and Industry has projected the economy to grow by between 1 and 3%.
Better Labour-Management Cooperation for Higher Productivity
Productivity is a key challenge as it contracted by 2.6% in 2012. Arresting this decline must be our priority this year. The US experienced a productivity resurgence between 1995-2004 when productivity growth accelerated to 3.1% p.a. from the 1.4% p.a. between 1975-1995. Much of this was attributed to better management practices and the adoption of technologies in the service sector.
While management plays a pivotal role in raising productivity, employers must also recognise that the support and cooperation of workers and unions are crucial. They must prepare their workers to adapt to new management methods, new technologies and new work processes. Likewise, unions and workers must also work with management to implement productivity measures effectively.
Better Gainsharing for Sustainable Wages
The Government has announced a package of measures in the 2013 Budget to support companies in a new phase of upgrading and transformation. In particular, the Wage Credit Scheme will support employers in their productivity efforts and gainsharing with workers over the next 3 years.
Specifically, management should also commit to uplifting their low wage workers. In this respect, we commend the employers from the Cleaning, Security, Landscaping and Hospitality sectors who are already working with NTUC on Progressive Wage Models to increase wages with skills upgrading and higher productivity. Employers can further leverage on the Workfare Income Supplement Scheme and Workfare Training Support Scheme to help their low wage workers. I strongly encourage employers to make concerted efforts to work with the labour movement to enhance the skills, employability and wages of our low wage workers.
Better Protection for More Workers
The tripartite partners, through extensive consultations, have reached consensus to amend the Employment Act next year to provide better protection for an additional 450,000 workers, including PMEs.
In many countries, labour law reforms have been painful for workers as governments were compelled to make changes to regain competitiveness to create jobs.
To avoid their plight, we must continue to ensure that our labour market remains flexible and globally competitive so that we can attract investments. This will grow the economy and create good jobs.
Leveraging on Tripartism for Quality Growth
The tripartite partners will face many new challenges in the years ahead. We will need to focus our collective energies to help companies achieve quality growth that is productivity-led, sustainable and inclusive. This would ensure that all workers share in the benefits of such growth.
On behalf of our 2,700 employer members, I wish all workers a Happy May Day!
