Today, NTUC Secretary-General Lim Swee Say and 40 other union leaders from the NTUC Transport & Logistics Services Cluster embarked on a Learning Journey to YCH Group (YCH), a unionised company with the National Transport Workers' Union.
The leading integrated end-to-end supply chain provider featured a highly-efficient solution comprising YCH's proprietary Warehouse Management Solution (WMS) integrated with a state-of-the-art satellite automated cart storage system. This is a productivity-driven strategy by YCH to boost the standards of logistics and supply chain management in Singapore and Asia Pacific.
The new system replaces the old Pallet racking system, which requires built-in aisles between the racks for the forklift or reach truck to retrieve or store goods. Such a system is thus not space efficient. It is also not operational or labour productive as a material handler would need to spend at least three hours per day on average, just to move the pallets within the distribution centres. This amount of time could instead be utilised to increase the volume of goods distribution.
Worth more than $1 million in investment, the technology investment inclusive of warehouse management system customisation, improves space optimisation by more than 30 per cent as the system does not require any built-in aisle, freeing up more storage space. It also enhances workplace safety as workplace hazards and incidents are brought down through reduced exposure to direct pallet handling and minimising operator stress.
More importantly, the reduction in time of storage and retrieval of goods and the manpower required to manage the work allows YCH Group to re-deploy its workers to do higher value-added jobs. Reach truck and forklift operators now have more opportunities to cross-train in job processes and gain multiple skills. This translates to a marked improvement in workers' productivity by 67 per cent.
Dr Robert Yap, Chairman and Chief Executive Officer, YCH Group, said, 'As an innovation-driven company focused on achieving continuous productivity and scalability for our customers, YCH deploys a variety of best-in-class automation in supply chain management across our dedicated logistics establishments. The automated facility installed in our warehouse within the Tampines LogisPark increases the productivity and efficiency of our operations significantly as compared to conventional warehousing methods." He adds, "Operations staff now have the opportunity to up-skill and learn about new technologies and workflow processes, thereby increasing the value of their work and contribution to the company. These improvements, together with our upcoming Supply Chain City', reinforce the position of YCH as a leader in innovation for the supply chain management industry and catalyst for the creation of a knowledge economy."
Progressive Wage Model to impact at least 30 per cent of YCH Group's drivers
Beyond the implementation of the new system to help provide better jobs and better working conditions for its workers, YCH Group also worked with its union, the National Transports Workers Union and the NTUC Transport & Logistics Services Cluster (TLSC) to put in place a Progressive Wage Model (PWM) for its material handlers. The PWM will help these workers move up their preferred career ladder by up-skilling them.
Traditionally, material handlers work their way up to become Assistant Supervisor, to Supervisor and finally Senior Supervisor. With the PWM put in place, two more career pathways are added for the material handlers.
Existing material handlers can continue to take on the supervisory pathway by up-skilling themselves with forklift training, reach truck training and systems training. If not, they can also undergo the Training Programme for Class 3 and Class 4 Driving Licences launched by the NTUC TLSC and the e2i (Employment and Employability Institute) last year, to up-skill themselves to become lorry drivers and Prime Mover drivers. To tap on the expertise of Prime Mover drivers who have served for many years, a new designation of senior Prime Mover driver will be created to allow them to take on a mentor/training role to guide new drivers along.
To promote the Singaporean Core, the third pathway is newly created for new entrants who are Singaporeans/PRs with at least 'O' Level or Nitec qualifications to become a logistics assistant. Through systems trainings and customer service training programmes, the logistics assistant can then progress to become an executive. Tapping on e2i's previous recruitment fair, YCH has successfully hired 10 new entries who will progress by the third pathway.
The new system which improves both operational and labour productivity, coupled with the PWM which will be put in place, will impact 70-80 workers, both existing and new entrants. Not only has their jobs been made Easier, Safer and Smarter (ESS), the existing workers will enjoy an annual wage increase of 15 per cent from $1,100. New entrants will be hired at a new pay scale of $1,300 to $1,500. (correct to say that?) Going forward, YCH Group targets to roll this new PWM out to impact at least 30 per cent of its (how many) workers.
'YCH Group has done well in moving ahead of competitors by putting in place new technology and automation to help make workers' jobs Easier, Safer and Smarter. It is also assuring that they are concerned about their workers' development with the implementation of the Progressive Wage Model to help their workers grow in career and wages. They are the first unionised company in the logistics industry that has put in the place the PWM, and we hope that more companies can be inspired by the benefits that will come their way,' said Ms Jessie Yeo, Cluster Lead for the Transport & Logistics Services Cluster, NTUC.
TLSC: 800 low-wage workers secure better jobs and better wages through the Training Programme for Class 3 and Class 4 Driving Licences
As part of the cluster's efforts to improve wages of low-wage workers progressively and develop a strong Singaporean core in the industry, it had launched the Training Programme for Class 3 and 4 Driving Licences in July last year. The training programme aims to help low-wage workers who are currently working in the transport and logistics services sector, and attract those who are not, to join the sector. Through this programme, they will receive help in getting the Class 3 or Class 4 driving licence faster and be placed in transport and logistics-related jobs.
Under the Class 3 Licence Programme, more than 170 workers have obtained their driving licences while 800 are still undergoing training. About 20 per cent of these workers who were unemployed have secured jobs in the transport and logistics industry with a starting salary of at least $1,500. The remaining ones who were employed had their job scopes enlarged, with driving as part of their roles, or were tasked to drive larger vehicles. These workers enjoyed a pay increase from below $1,440 to $1,700.
Under the Class 4 Licence Programme, 704 workers have obtained their licences. Out of which, 278 employed ones have gotten their pay increased to more than $2,120 from between $1,700 to $1,800. More than three-quarter of the remaining ones who were unemployed have been placed into jobs in the transport and logistics industry and are earning more than $1,800.
As the programme has garnered pleasing results, TLSC has secured another 2,000 training places for Class 3 driving programme, and this will be rolled out in the last quarter of 2013. 90 per cent of the course fees are funded by the e2i.
Doing more for the Transport and Logistics Industry
While the Cluster has managed to help some 900 low-wage workers through the Training Programme for Class 3 and Class 4 Driving Licences, it also plans to do more to extend the scope of reach to other workers. A new Place-n-Train programme for the Logistics Specialists and Operation Executives will be put in place to up-skill more Singaporeans and Singaporean PRs with the logistics domain knowledge to join the Supply Chain Industry.
The Place-and-Train (PnT) Logistics Specialists programme targets locals with at least 'N' level qualification and has a starting salary of at least $1,600. Participating employers who recruit new candidates as Logistics Specialists under the PnT will be eligible for funding support from Singapore Workforce Development Agency (WDA) and e2i, for 90 per cent of the course fees capped at $1,080 per trainee. Each trainee also gets a $400 training allowance per month, up to six months. The participating company is required to put the new hirer through classroom training and a three-month On-the-Job-Training.
The Place-and-Train (PnT) Logistics Operation Executives programme, targets local mid-career PMEs (Professionals, Managers and Executives) with Diploma qualification and has a starting salary of at least $2,500 hired as an Operation Executive. They will be put through a three-month Diploma Certification and a three-month On-the-Job-Training. The programme supports 50 per cent of the course fees, capped at $2,750 per trainee and $1,000 per month in training allowance up to six months.
'The Transport & Logistics Services Cluster is working very closely with e2i to help build up the Singaporean Core in the industry by putting in place different types of training courses for our workers. Our first one for the low-wage workers has worked well. Going forward, we hope to do more by extending the scope of assistance and outreach to more workers, including the PMEs,' concluded Ms Jessie Yeo, Cluster Lead for Transport & Logistics Services Cluster.
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