NTUC Co-Operatives remain committed in their social missions to help Singaporeans

National Trades Union Congress Co-Operatives remain committed in their social missions to help Singaporeans

25 April 2005

Key Highlights
a) Amidst an increasingly competitive economic climate, the National Trades Union Congress's (NTUC) Co-operatives remain committed in their social missions to help fellow Singaporeans, and have been working relentlessly to better the quality of workers' lives.

b) In 2004, the NTUC Co-operatives gave back more than $81 million in savings and through social programmes to help reduce the impact of higher costs of living on workers, by absorbing the Goods and Services Tax, whilst moderating the prices of essential household items.  This translates to an average of $88 per resident household.  Through their various social programmes and initiatives, the NTUC Co-operatives also support the creating of more value for workers, educating of the young and our future, doing more for charities and playing an active role in public education.

c) Beyond stretching the dollar for workers and Singaporeans in general, the NTUC Co-operatives have also extended their assistance and support towards persons and communities affected by the Tsunami disaster by raising almost $1.2 million in relief aid, and supporting Mercy Relief and the Singapore Red Cross.

d) Harnessing the momentum of a recovering economy, NTUC Co-operatives will continue its efforts to help fellow Singaporeans faced with financial difficulties, particularly the unemployed and elderly, on their road to recovery in 2005.

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1 The National Trades Union Congress (NTUC) and its co-operatives  continue to be committed in our social objective of helping workers and Singaporeans stretch their hard-earned dollar through the NTUC Co-operatives by maintaining the cost of living, and helping workers get the best value for their money through the Co-operatives’ products and services.

2 In the release of the 2005 Social Report Card (covering the period from 1 January 2004 to 31 December 2004), the NTUC said that it will draw on its collective resources to meet the social needs of workers, and prepare them for the changing economic landscape ahead.

3 In 2004, the NTUC Co-operatives gave back more than $67 million in savings to workers, and gave out more than $14 million through social programmes to help needy workers and their families.  Compared to 2003, there had been an increase of $9 million in savings and $5 million in social programmes given out in 2004.  In effect, the NTUC Group had contributed back to workers an average of $88 per resident household in Singapore.  The savings and rebates had helped to reduce the impact of higher costs of living on workers and to moderate prices of essential household items for them.  Workers also benefited from the assistance programmes initiated by the Co-operatives, particularly in the areas of study grants and food vouchers.

Prompt Relief Efforts for Tsunami Victims

4 The NTUC Co-operatives extended their assistance to persons and communities affected by the Tsunami disaster in December 2004.  NTUC FairPrice raised $800,000 through the Food Relief Package and provided donation tins for shoppers to donate funds through Mercy Relief, while NTUC Healthcare donated $120,000 worth of much-needed medical supplies.  NTUC Income contributed $100,000 to the Food Relief Package and its staff donated items such as blankets, bed sheets and clothes, which were delivered to the Sri Lankan High Commission here.  NTUC’s affiliated organisation, NTUC Club, also helped to collect up to $116,000 by matching dollar-to-dollar for donations from staff and visitors to Downtown East.

Creating More Value for Workers

5 NTUC Co-operatives’ social mission is to provide more value for workers.  We continued to do this last year with NTUC FairPrice providing the lowest overall price for 88.3% of an overall basket of essential items, among the major supermarkets or hypermarket chains surveyed.  On average, NTUC FairPrice Supermarket’s house-brand products were also priced 20.9% lower than those of comparable national brands.  NTUC Foodfare continued to ensure that all of its food outlets made available the best value on a basket of essential items – quality, good-for-value cooked food meals and lowest, if not, equal priced beverages.

6 NTUC Healthcare’s Unity pharmacy chain also offered lower prices for 95% of 60 common healthcare products.  On the whole, Unity’s price for the basket was 17% lower than its competitors.  Fees at NTUC Denticare and Medicare chain of clinics were lower than the recommended guidelines by the Singapore Dental Association’s Guidelines of Fees and the Singapore Medical Council, respectively.

7 NTUC Income had also generated greater value for its policyholders, rewarding them with $126 million in savings through better returns, lower premium rates and lower loan rates.  Notably, NTUC Income was able to distribute 98% of their surpluses to policyholders, compared to 90% by commercial companies.  NTUC Thrift also played its part in delivering value to union members in 2004, by paying 0.075%-0.275% higher premium interest rates than a benchmark group of local banks and financial institutions on 65,848 savings and fixed deposit accounts.

8 NTUC Childcare gave out $143,000 to union members in the form of discounts at its network of childcare centres.  NTUC Childcare also extended its Financial Assistance Fund to provide families of retrenched workers rebates on their monthly fees for a period of three months.  Similarly, NTUC Eldercare gave annual rebates of $60 to all clients whose family members were union members.  Conscious of the current economic climate, ElderCare continued to offer monthly discounts of 7% from its normal rate.

Doing More for Charity

9 The NTUC family is also attuned to the plights and needs of the less fortunate in our community.  Each year, NTUC Income contributes 1% of their surpluses to support national community projects.  In 2004, NTUC Income made a total contribution of $2.4 million in support of local arts, sports, education, healthy lifestyle, charity and other programmes.  It also played an active role in charitable causes by raising funds for President’s Challenge 2004 through the sale of soft bear toys.  NTUC FairPrice launched its Care & Share Charity Fund in August 2004, where a certain portion of sales of its house-brand products was donated to the Fund.  To date, more than $500,000 has been raised under this fund.

Educating the Future

10 In terms of educational grants, NTUC FairPrice provided $550,000 worth of study grants to some 500 children last year to relieve the financial burden of members and employees for their children’s education.  NTUC FairPrice’s used textbook scheme also enabled some 7,000 children to benefit from the use of these free textbooks.  NTUC Childcare was also keenly involved in giving out of books to children from low-income families through its special Literacy Time programme.

Programmes for Children

11 The labour movement also pays special attention to the nurturing of our young.  Last year, NTUC Childcare, in collaboration with NParks, participated in the Green Thumbs Project, where children at NTUC Childcare centres were guided into cultivating a mini-garden or a plot of land near their centres.  In March 2004, NTUC FairPrice sponsored the “Disney On Ice” event and treated some 1,000 underprivileged children, including children from its adopted charity, Club Rainbow , and their families, to the opening gala performance.  During the Singapore Kindness Week, NTUC Foodfare fulfilled children’s wishes to visit the zoo.  NTUC Thrift also celebrated Children’s Day with 48 less-privileged children from its adopted homes with a visit to the zoo.

Playing a Role in Public Education

12 Public education is another key area where NTUC Co-operatives play an important role in contributing back to society.  In 2004, NTUC ElderCare organised free public education workshops for the elderly at the community level, while NTUC Healthcare’s Unity pharmacy, conducted regular talks to educate the public on health-related issues.  NTUC Media organised a seminar and workshop on Retirement Planning for the general public.  It also brought the Healthy Lifestyle Hub exhibition and talks to union members and their families at the HDB Hub, where they were able to enjoy special discounts on health-related merchandise as well as services.

13 With financial planning becoming more important for sustaining wealth and retirement needs, NTUC Thrift supported the initiative by distributing educational materials on basic financial planning and managing credit to the union members.  NTUC FairPrice actively partnered the Health Promotion Board and the Agri-Food & Veterinary Authority in a series of activities within its supermarkets and in the mass media to promote healthy eating and food safety among consumers.

Conclusion

14 Amidst the increasingly competitive economic climate, NTUC Co-operatives had worked hard to create more value for workers’ hard-earned dollars.  From setting benchmark pricing on services and essential goods, to providing affordable recreational facilities for our workers, NTUC Co-operatives will continue to work relentlessly towards enhancing the quality of workers’ lives.  In the course of furthering their social objectives, NTUC Co-operatives are constantly challenged to provide better value than their competitors, engage in social programmes, and yet remain viable and competitive.

15 In recent years, the NTUC Co-operatives had provided generous relief packages to help workers tide over their financial difficulties.  They helped to ensure that essential items did not suffer shortages or price hikes in times of crises.  In 2005, the Co-operatives reaffirm their commitment to provide a comprehensive safety net for workers from effects of economic restructuring and other crises.

16 Commenting on the results of the 2005 Social Report Card, NTUC Secretary-General Lim Boon Heng said, “I am glad that the Co-operatives have done well and were able to give more than in previous years.  Although the economy is on the road to recovery, there are still many Singaporeans who face financial difficulties, particularly the unemployed.  Through the Co-operatives, we hope to help them alleviate their financial burden.”

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Tabulation of Figures for Social Report Card 2005

I) Total Savings

                          *Figures are rounded to nearest thousand

II) Costs for Social Programmes

     *Figures are rounded to nearest thousand