1 The National Trades Union Congress (NTUC) launched its efforts today on the re-employment of older workers. This is in support of the recommendations by the Tripartite Committee on Employability of Older Workers. The NTUC has been pushing firmly to raise the effective retirement age of Singaporeans. The launch this afternoon saw the labour movement and some of these companies re-affirmed our commitment and efforts to the employment of older workers and re-employment of workers beyond the retirement age.
One Goal
2 The main goal of our efforts to enhance older workers’ employability is to help older workers stay longer in employment beyond their retirement age, so that they would remain competitive, productive and relevant to the needs of the employers, and continue to enjoy income stability and lead fulfilling lives.
Three Types of Companies
3 Our efforts to enhance the employability of older workers require the close co-operation of the employers. It is with their strong support that we are able to enhance the employability of older workers through the implementation of sound re-employment human resource policies, wage systems and job redesign efforts. The companies that we have been working closely with, have put in place re-employment systems and policies, which can be broadly categorised into the following:
a) Companies offering older workers to continue with their current job, at the same pay and with no or minimal changes to the terms and conditions of employment;
b) Companies offering older workers to continue with their current job, at a lesser pay, with possible reduction to the terms and conditions of employment; and
c) Companies offering older workers different jobs within the same company, at a lesser pay and with possible reduction to the terms and conditions of employment.
4 This year, we target to reach out to 50 unionised companies to help them fine-tune their re-employment policies and wage systems; and embarking on job redesign efforts. These companies can take advantage of the various schemes, like the $30 million ADVANTAGE scheme over the next two years, which have been put in place to make it even more feasible for them to employ older workers. Of the 50 companies, we would like to see at least 50% of their workers reaching retirement age in 2006 offered re-employment.
Four Approaches
5 Our efforts to enhance the employability of older workers can be classified into the following four main approaches:
a) Implementing a Competency-based Wage System
We will initiate pilot projects with companies to implement a competency-based wage system for older workers so that their wages are in line with their skills, competencies and job requirements. This will make older workers more competitive and less vulnerable compared to younger workers. In contrast, the current seniority-based wage system has made older workers less cost-effective and thus, more vulnerable than younger workers.
b) Fine-tuning of Re-employment Policies
We will work with companies to fine-tune their human resources practices, especially on re-employment policies, wage systems and training opportunities. This will increase the productivity of older workers and enable companies to overcome obstacles in hiring older workers. Employers should adopt fair human resources practices, and recruit, retain and reward people solely based on merits and not because of their age.
c) Re-designing Jobs for Older Workers
We will step up efforts to help older workers cope with job demands at the workplace, especially when the jobs are physically demanding. We will assist companies in their efforts to redesign such jobs and work arrangements so that older workers can continue to perform on these jobs more effectively and efficiently.
d) Changing Perceptions Towards Older Workers and Helping Mindset Change Among Older Workers
Negative perceptions towards older workers among some employers are one of the pressures that older workers face in their efforts to remain employed or find new jobs. At the same time, older workers too must be prepared to change and adapt to new demands at the workplace in a fast changing work environment. Together with our tripartite partners, we will do our part to assist older workers in making the transition and embracing new or different work opportunities.
Conclusion
6 With the launch of the labour movement’s efforts to enhance the re-employment of older workers, we seek the close co-operation and support from the other tripartite partners and the workers themselves, so as to sharpen the competitive edge of our workforce and to enable our older workers to enjoy income stability and lead a more fulfilling life.
Mdm Halimah Yacob
Assistant Secretary-General
National Trades Union Congress
