Media Release: NTUC co-operatives reaffirm their social responsibilities

Media Release: NTUC co-operatives reaffirm their social responsibilities

21 Aug 2002

The National Trades Union Congress (NTUC) presented its 2002 social report card in a media conference today. This is the fourth year the NTUC Group of co-operatives presented its social report card. The report card showed how the co-operatives have achieved their key social objectives of providing quality products and services at affordable prices; and helping workers and ordinary Singaporeans stretch their hard-earned dollar.

Speaking at the media conference, NTUC Secretary-General Mr Lim Boon Heng said, "Each co-operative was set up by the workers for the workers, with clear social objectives. The social report card measures the extent we have met the objectives. Last year was a difficult year for our workers and indeed all Singaporeans. I am pleased to report that our co-operatives have helped Singaporeans in a meaningful way. In particular, the $52 million aid package to cope with the recession was very well appreciated. We stand ready to do more if necessary."

The Report Card showed that once again,

• Fairprice had nearly 90% of its basket of 400 essential items priced lowest among the major supermarket or hypermarket chains surveyed.
  
• Income has distributed or reserved about 98% of its surpluses to policyholders. This compares with an average of 90% for private insurers.
  
• Healthcare has 92% of their 60 common healthcare products priced lower than its competitor.
  
• Foodfare has the lowest price for common beverages and soft drinks compared to other coffeeshops and foodcourts. Their prices are also lower or equal on selected cooked food items.
  
• Choice Homes' executive condominiums are priced in the middle range and are competitive in the 99-year suburban private condominiums segment.
  
• Fees charged by NTUC Childcare are at the median of the market. For its standard centres the fees of $410 are among the lowest, while the fees for upgraded centres at $480 are at the median.
  
• Thrift offers the highest savings rates of 1.25% for deposits below $50,000 accounts. Its fixed deposits interest rates are also competitive as compared to major financial institutions. It also offers competitive interest rates for car, renovation and housing loans.
  
• Denticare's fees are on average lower than clinics in HDB estates. They are also lower than the Singapore Dental Association's Indicative Cost Recovery Fees Schedule.
  
• Eldercare priced its fees at the median of the market. It also introduced new eldercare services and expands existing ones to benefit a greater number of elderly.
  
• Media achieved a wide circulation of 270,000 for its "Lifestyle" magazine and 13,000 readers for "NTUC News". Both publications aim to promote understanding of labour and current issues among the public and union members.

The detailed social indicators and an estimation of the household potential savings are attached as annexes to the news release.

A recent public perception survey conducted by the labour movement showed that most Singaporeans appreciated the social role of co-operatives in keeping the costs of basic necessities down. Overall, 82 per cent found this social role of keeping cost of basic necessities down to be very relevant to them as an individual and of these, 74 per cent is satisfied with the co-operatives' performance in this area.

Commenting on the survey results, Mr Lim added, "The survey reaffirms our belief that NTUC co-operatives have had a significant impact in improving the lives of workers and Singaporeans. The first NTUC co-operative was set up more than 30 years ago. Since 1969, we have remained focused in our objective to help workers stretch their hard-earned dollars.. This complements well the unions' traditional roles of protecting the worker at the work place and securing better terms and conditions for workers. It's all about providing a better life for our workers!"

"During the good times, the NTUC co-operatives moderate cost increases by setting benchmark prices. During tough times, they have an added responsibility of helping workers tide over the difficulties. For example, in the last two recessions, the NTUC co-operatives come together and put together a package of price cuts and financial relief, $26 million in 1998 and $52 million in 2001 and 2002."

NTUC's $52 million package of price cuts and financial relief has helped the lower income and retrenched workers cope with the recession. Recently, the co-operatives such as Fairprice, Foodfare, Healthcare and Childcare have also announced their commitment to help cushion the impact of the GST increase on Singaporeans next year. By taking the lead, NTUC co-operatives hope to set an example to other service providers.

Mr Lim added: "It is not possible for NTUC co-operatives to be the lowest priced for every item. But on a basket of essential items, we pledge to give workers and consumers the best value. Our co-operatives are home-grown enterprises proudly owned by thousands of workers. Many of them are now household names and are market leaders in their respective fields. Collectively, we are committed to keep prices low, and do so by setting benchmark prices."

"As it is, the economy is showing signs of recovery. There are still uncertainties, but we hope it will turn for the better. However, if the current economic difficulties were to continue, we stand ready to do more, through price cuts and reliefs. This is our pledge to Singaporeans," Mr Lim stressed.