MayBank and its unions respond swiftly to Tripartite Guidelines on Re-employment of older workers
20 November 2009
Media Release
Maybank inks re-employment policy with SBEU & SBOA
1. After the release of the Tripartite Guidelines on the Re-Employment of Older Employees (“Guidelines”) by the Tripartite Implementation Workgroup to better prepare employers and employees for the re-employment legislation, Maybank Singapore and its unions - the Singapore Bank Employees’ Union (SBEU) and the Singapore Bank Officers’ Association (SBOA) – made a timely decision to sign a re-employment policy based on the updated and amended Guidelines.
2. As the first mover in its industry, Maybank Singapore has made a commitment to support the recommendations of the recently released Guidelines. Led by Mr Wong Keng Fye, Head of Human Resource, Maybank Singapore, who is also the Chairman of the SNEF Banking Group’s HR Panel (HRP), Maybank is the first unionised company in the industry to go beyond a Memorandum of Agreement (MOA) to sign a re-employment policy in line with the Guidelines after close consultation with SBEU and SBOA.
3. Apart from pre-retirement counselling 12 months before the employees turn 62, and an ample three months’ notice to inform employees of their re-employment status, Maybank will provide Out-Placement Service to assist the employee for employment outside the bank should there be no match of staff vacancies. In the event that Maybank is unable to find available jobs that are suitable despite its best efforts in the out-placement service, the bank will offer eligible employees a one-off Employment Assistance Payment.
4. For older workers who will reach age 60, Maybank has also decided not to apply the discretionary cut of up to 10% in wages (a provision under the Extension of the Retirement Age Act) for all its employees. This is because the Bank has moved away from a seniority wage system, into a performance and job-worth wage system.
5. Lastly, to make the work environment more age-friendly, Maybank has also tied up with NTUC under the Advantage Scheme to organise health activities on a regular basis and made ergonomic adjustments to the workplace. For example, the lighting system in its warehouse has been enhanced for better vision and the computer screens at workstations are enlarged for the convenience and comfort of older workers.
6. The SNEF Banking Group’s HRP is made up of senior personnel or human resource practitioners of member banks representing about nine core banks. It aims to provide support in formulating policies on industrial relations and labour management issues affecting the industry and beyond. Some unionised banks which sit in this committee, such as OCBC, HSBC J.P. Morgan, Standard Chartered Bank and Citibank, have also signed an MOA on re-employment with their respective unions. In total, the HRP committee represents banks with about 3,400 ordinary union members from SBEU and SBOA.
7. “The number of mature members age 55 years and above in SBEU and SBOA is close to 540. Therefore, we hope that more banks can take the initiative to tackle the issue of re-employment using the newly released Tripartite Guidelines as a good reference point. Instead of taking a “wait and see” attitude, we want to adopt a proactive approach with the banking management partners on putting in place a sound policy with proper procedures on re-employment. This way, more employees can continue to work beyond age 62. We are heartened that Maybank is like-minded on a systematic approach towards re-employment. In the long run, this is a significant impact on the banking industry and our members,” said SBEU Executive Secretary Michael Chang.
8. “We value our human capital, and believe in rewarding our staff based on his or her performance, rather than seniority. Over the years, in close consultation with our unions, we have moved away from a seniority wage system and have strengthened the link between pay and individual performance. Today, the annual increments and salary ranges for our bargainable staff are negotiated annually, rather than as stipulated in our Collective Agreements. This actually gives the Bank and unions the flexibility to be more responsive to market and economic conditions, and make adjustments to our wage costs whenever necessary. We have also made progress in determining job worth. This has paved the way for our management's decision today not to apply the discretionary pay cut for all employees when they reach the age of 60.
Talent retention is a priority at Maybank Singapore and this applies to all staff regardless of their age. Another area we focus on is in creating a conducive work environment where we are able to optimise our human capital capabilities and build sustainable growth. This includes introducing programmes that promote work-life balance, and investing in the development of our people. We take pride in the fact that just this year, Maybank Singapore became the first in the banking industry to achieve triple certification for Business Excellence in Singapore Quality Class, Singapore Service Class and People Developer. We are also the only Bank that received accolades for our pro-family and work-life initiatives by clinching the Work-Life Excellence Award 2008 for the second time”, said Mr Wong.
9. As a pro-worker employer, Maybank Singapore has also passed one-third of the funding received under the Jobs Credit Scheme to its staff in the form of extra bonuses. As a result, 400 employees, who make up one third of its workforce, received an additional 0.5 to 1.5 months’ pay in their bonuses for 2009.
10. Looking forward, NTUC hopes that this move will encourage other banks and financial institutions in the industry to follow the lead in adopting the Tripartite Guidelines so as to significantly increase the momentum for systematic re-employment throughout the economy before the law kicks in by 2012.
Mr Heng Chee How
Deputy Secretary-General, NTUC
Leader, Re-employment Expert Group, NTUC
