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Good morning,
- Prime Minister Brother Lee Hsien Loong, Cabinet Ministers,
- NTUC President Sister Mary Liew, fellow Central Committee Members,
- President Brother Robert Yap and Tripartite Partners,
- PAP comrades,
- Sisters and Brothers.
I am delighted to welcome you to May Day Rally 2023. Delighted and with a bit of pain because I came earlier and am just so happy to see all of you; I suspect that you are just as happy to see me, because now my right hand feels like it’s crushed.
APPRECIATION FOR OVERCOMING COVID-19 TOGETHER
It is good to finally overcome COVID-19 and be here with all of you. COVID-19 was indeed a crisis of a generation.
a. But thankfully, we’ve emerged stronger out of this, built trust, and are more united.
b. And in all this, I must say that the Labour Movement and our tripartite partners have played key roles.
To President Mary Liew, my fellow Central Committee members, union leaders and all my NTUC staff: Thank you for your 24/7 dedication and commitment in the darkest days of COVID-19 to protect the lives of our workers and their livelihoods.
To President Robert Yap, SNEF, and our employer partners: Thank you for being alongside NTUC to take care of our workers amidst the most challenging business conditions.
And of course, thank you to our Government – Prime Minister Lee, and all our sisters and brothers in the public service for leading our country out of the pandemic with all of us intact, and importantly, more united. And thank you for the practical support that you have given to our workers who continue along – not just our workers, but also to our businesses. Thank you, PM Lee, and the Government.
LAYING THE FOUNDATIONS FOR A BETTER FUTURE
However, as we leave COVID-19 behind, we face an increasingly uncertain and troubled world:
a. We all can literally see rising geopolitical tensions around us each and every day, economic uncertainties, and even now, international norms breaking down.
b. In many countries, including our Singapore, social issues are building up, and there are rising inequalities.
c. These all have impact on our workers and our businesses.
Specific to our Labour Movement, workers’ concerns on the rising costs of living remain top of mind.
In different parts of the world, we will see unions and workers going on strike on this very day to express their unhappiness:
a. Whether it is over stagnant wages,
b. Retirement ages,
c. Unfair work conditions, or simply
d. their inability to cope with all the inflationary pressures and rising costs of living.
These strikes disrupt essential services, disrupt the economic activities, and destroy value. The combative, confrontational approach leads to lose-lose outcomes, even if the intention was a good one.
In contrast, NTUC has championed workers’ interests and achieved win-win outcomes. We have championed workers’ interests while maintaining industrial harmony. And with NTUC’s collaborative approach, we have also value-added to many of our employer partners.
For example, in championing lower wage workers, we have expanded the Progressive Wage model to cover 135,000 lower wage workers by July 2023, and significantly, we have expanded it to sectoral PWM in Retail, and Food Services. These are all significant moves.
a. The PWM not only improves the wages of our lower wage workers;
b. It also drives productivity up and businesses can benefit. It is a win-win.
c. These efforts will go some way to alleviate the pressures of our lower wage workers.
In the platform workers’ space, NTUC has championed outside of current employment acts, for:
a. “employer” CPF contributions,
b. workplace injury benefits and financial support, and over the longer-term,
c. NTUC representation for fair work outcomes and conditions in a sustainable way.
d. We hope to wrap this effort up soon via the good work of the Tripartite Advisory Committee on Platform Workers and we hope to get this implemented really soon.
In the mature workers’ space, NTUC and our tripartite partners have increased retirement and re-employment ages and, importantly, are restoring CPF contribution rates as well.
a. Mature workers welcome this option of working longer, earning a living, and getting more CPF. They know and understand that there will be a need to upskill or reskill.
b. Employers are on-board too,
i. To tap on mature worker’s experience, and importantly, for their own business needs,
ii. Expand their labour pool.
c. This is in very marked contrast to widespread protests and strikes in a European country, even as we speak, on increasing retirement age and implementing pension reforms that are needed.
In the Social Enterprises, we have also taken significant efforts to moderate the rising cost of living:
a. Our NTUC FairPrice stepped up by introducing discounts to offset inflationary pressures on everyday essentials like eggs, rice, and cooking oil; (inflation tracks at about 7%, I’m told by Fairprice, and NTUC has managed to keep our costs below that line – not an easy task at all)
b. We have also introduced monthly price freezes on 50 popular daily essential items, and weekly discounts of up to 50% on selected items just to ease pressures.
Beyond these important work, we have also embarked on the #EveryWorkerMatters Conversations (EWMC) to hear the concerns and aspirations of our workers. You would have seen this on the way in.
a. This is an earnest effort to refresh our workers compact,
b. For NTUC to maintain the trust from our workers,
c. And be their champion for better lives and livelihoods.
In the last 9 months, we have engaged more than 40,000 workers across all worker segments, including PMEs via various platforms. They have shared with us:
a. Their daily pressures:
i. the cost of living,
ii. caregiving challenges,
b. To the longer term issues like:
i. income security, and
ii. retirement adequacy.
c. These are important worker voices, including the voices of all 165 NTUC staff and union leaders, who have voluntarily stepped up to make EWMC possible.
i. I am especially heartened to see them going beyond their call of duty, burning their weekends, sacrificing their family time to forge the workers’ compact they believe in and are willing to do their part for what they believe in, with earnest dedication.
ii. Thank you all 165 of you for your hard and “heart”-work and for inspiring many, including me.
NTUC wants to use the EWMC initiatives to complement the Government’s Forward Singapore. We want to use EWMC in the work we are doing to lay the foundation for a better future.
In forging a new social compact, NTUC aims to co-create an economically vibrant and inclusive Singapore, where every worker can have the dignity of making a good living and bettering their lives.
As we forge ahead, there will be much more work to do. Today, I will briefly cover 3 broad areas the Labour Movement will need to do:
a. One: Scale up the good work that we are currently doing;
b. Two: Strategise to do more and do better in the underserved segments; and
c. Three: Set in place a LM innovation culture where the good becomes better, and, in Brother Lim Swee Say’s words, the better becomes betterer.
SCALING UP THE GOOD WORK OF THE LABOUR MOVEMENT
In the last year, as I mentioned earlier, NTUC has done significant work to improve workers’ outcomes. We should scale these efforts to achieve the 3Ws—better wages, better welfare, better work prospects—for all our working people.
The NTUC Company Training Committees is one key NTUC initiative we must redouble our efforts to scale.
a. CTCs institutionalise training to bring win-win outcomes for both companies and workers.
i. For companies: they bring higher productivity for business outcomes.
ii. For our workers: they bring sustainable outcomes towards better wages, better welfare, and, over the longer term, better work prospects.
b. The CTCs are moving the needle in upskilling and reskilling.
c. Importantly, we have moved training for more than 100,000 workers across different sectors of the economy.
d. The CTCs have also helped over 400 companies in business transformation via the Operations and Technology Roadmapping, and new access to grants like the NTUC CTC Grant.
Our CTCs are making real impact.
For instance, when ST Logistics embarked on their plans to build a fully integrated and automated supply chain in 2019,
a. The ST Logistics, together with the SCEU (Supply Chain Employees Union), formed a CTC. This CTC developed corresponding training programmes to upskill and re-skill its workers, including the PMEs.
b. ST Logistics at that point in time was labour intensive and relied mostly on manual processes.
c. With the support of CTC, NTUC e2i and Learning Hub, they did the industry transformation and simultaneously trained over 1,000 workers across various levels, and equipped them with the necessary mindset, and skillsets for an automated environment:
i. The workers were able to streamline operations to become both paperless and cashless.
ii. Workers were able to apply data-driven processes to their new roles,
iii. And importantly, upped productivity.
d. Workers who upgraded themselves qualified for a Skills Allowance ranging up to $325 a month.
i. To-date, 76% of eligible employees have attained this skills allowance.
e. Apart from better wages, many ST Logistics employees have taken on higher value job roles too with their newly acquired digital skills! These are good outcomes.
f. Brother Rajesh Kumar is one such example.
i. He joined ST Logistics as a Logistics Supervisor, overseeing the manual processes of inbound, storage and retrievals, and outbound operations – all done manually.
ii. With new technology and new skills, he now operates, maintains, and even troubleshoots the automated systems for the warehouse ops.
iii. Rajesh now earns better wages and, importantly, holds a higher value job of Logistics Lead-Coordinator.
As I said, CTCs are moving the needle. It could be one worker at a time, it could be 100,000 workers at any one time. CTCs can benefit PME workers too.
a. Take for example the case of BDO Tax Advisory Singapore. SISEU and BDO came together to form a CTC and embarked on an OTR.
b. Consequently, BDO was able to leverage the NTUC CTC Grant to build a business process management system and collaboration platform.
c. BDO employees were trained on the new tech, and with new skills, are able to perform higher value tasks, including:
i. Value-added research for their clientele; and
ii. Performing data analysis; and
iii. Dashboard reporting to generate insights for better business performance.
d. All these bring better business outcomes. I am pleased to hear that, in conjunction with these business outcomes, BDO staff will also enjoy a good wage adjustment too.
e. These are win–win outcomes in action!
f. By the way, BDO, previously non-unionised, has voluntarily become a unionised company, giving SISEU direct recognition.
Today, NTUC has formed more than 1,300 CTCs with partner companies. We must redouble our efforts to scale this important work:
a. 2,500 CTCs by 2025
b. Drive Industry 4.0 transformation with our industry partners,
c. And ultimately, come back to our core purpose, to achieve better wages, better welfare, and better work prospects for all our workers across all collars. This will be an important endeavour which I hope to get all our union leaders’ and business partners’ support.
DOING MORE AND DOING BETTER IN UNDERSERVED SEGMENTS
This brings me to my second point. Beyond the current work, we must do more and do better in worker segments that NTUC has underserved.
In the PME space, we have moved decisively with key proposals to level the playing field and improve HR practices.
a. Minister for Manpower, Brother Tan See Leng has responded with the COMPASS and Workplace Fairness Legislation to level the playing field; and
b. NTUC will support the endeavours and importantly, support the efforts to certify 12,000 HR practitioners to comply with these fair employment practices.
c. NTUC will continue to keep our ears close to this PME segment, so that we can continue to;
d. Champion their interests and concerns in the way ahead.
However, in the Youth segment, NTUC recognises that we can do more to serve the Youth better. And we will do so.
One year ago, we launched the Youth Taskforce to hear directly our Youths’ aspirations, needs and challenges. We have now engaged over 10,000 of our youth to hear directly from them.
They shared with us their key concerns:
a. Career prospects and opportunities,
b. Finances, and
c. Mental well-being
And specific to careers, the youth desire quality internships and career mentorships to help them gain real work experience as they transit into the workplace.
At the same time, in my conversations with employers such as Brother Bicky from Rolls-Royce, they often share with me their difficulties in recruiting and retaining young talents due to the tight labour market and competition.
It got me thinking – can NTUC play a part to create a win-win for youths and employers, and complement the good work that the IHLs are going in school internship programmes? We think that, especially for youth finishing NS and transiting into workplace, NTUC can potentially value-add.
As such, NTUC conceptualised a career trial where Young NTUC can potentially bridge the gap:
a. Where Youth can access quality jobs, with workplace mentors alongside as they transit into the workforce; Where Businesses can access a steady pipeline of young talents; and
b. Where key stakeholders and NTUC can all come together to co-create and sustain this potential career trial model.
I first tested this concept with Hewlett Packard Singapore late last year when I visited their Plant.
a. I wanted to know if businesses would buy into our career trial model, and
b. How NTUC can better scope the value proposition to the companies.
c. I was happy Fiona, and her management team welcomed this possibility.
I sounded out Brother Robert Yap, SNEF and other employers too.
a. They were receptive as it resonated with their own business needs.
b. They saw it as a way to build a steady pipeline of young talents into their companies, and they were all willing to do their part.
We’ve also reached out to MINDEF, MHA and the IHLs to sound them out on this enhanced career trial.
a. They expressed their interest; and
b. Are appreciative of Young NTUC’s support to complement their efforts.
I must thank all our stakeholders for coming onboard.
As a start, NTUC and SNEF will pilot a Career Starter Lab comprising 100 companies to provide high quality and structured career trials with mentorship to post-IHL youths, including those finishing NS, and seeking to enter the workforce.
NTUC wants to provide better support to these NSFs beyond what we are currently doing, like:
a. Career and education fairs organised by e2i and NTUC LHUB; or
b. Providing complimentary post-NS skills upgrading through the SkillsFuture@NS LXP.
We think that the Career Starter Lab pilot would round up the value chain and the value proposition.
Through the Career Starter Lab pilot, NTUC and SNEF will establish a quality career trial consisting of:
a. An onboarding process that can familiarise our youths with the company’s culture;
b. Clarity on their job roles and expectations;
c. Learning opportunities relevant to their field of study; and provide
d. Proper supervision and mentorship during this period of transition.
NTUC and SNEF will devote resources to the pilot’s success.
a. We will co-develop a career trial playbook to provide tips on onboarding;
b. We will put together a cadre of 300 in-company mentors, building on our existing pool of over 400 volunteer career mentors already providing sectoral mentorships;
c. Mentors will have access to Workshops and resources to develop their mentoring skills; and
d. NTUC and SNEF will deploy dedicated staff to support companies onboard this pilot.
We have started to build this ecosystem and hope to have the first Career Starter Lab participants in the second half of 2023.
Notable local enterprises and MNCs have already come on board this pilot
a. SIA, PSA, YCH, SIA Engineering Company, Rolls Royce, NCS, the list goes on.
b. Vicinity Studio, Resorts World Sentosa, Copthorne King, the Ascott International, Gardens by the Bay;
c. Uniqlo, HP, ST Engineering, Senoko Energy, Singtel and FairPrice Group. Just the top layer of companies that have responded to us in the initial phase.
d. Importantly, we have also linked up with MAS on their Polytechnic Talent for Finance scheme. MAS just announced this, and I am glad MAS is teaming up with NTUC in this career trial.
As we embark on this new pilot, I sincerely look forward to our government, our unions’ and our employers’ support. Let’s see what we can do in this space for our youth. Thank you very much for your support.
SETTING IN PLACE AN LM CULTURE OF INNOVATION
Let me now come to my final point - Setting in place an Innovation culture in NTUC to do better for our workers in a fast-changing world.
This culture is important to keep NTUC agile, adaptable, and relevant to meet the changing needs of our workers across all collars.
Four years ago at NDC 2019, you would recall that we set out to innovate our NTUC business model, our membership model, and our training model.
a. We said to ourselves this is urgently needed for
b. a new economy
ii. with changing workforce demographics and profiles, and
iii. new skills needed in an Industry 4.0 workplace.
c. At that time, we were not all together sure “how”, but we said, let’s “Dream, Dare, DO”.
Fast forward to 2023, we have made significant in-roads in all our Business Models across NTUC and our unions:
a. We’ve moved into the Freelancer spaces,
b. Developed a new model of partnership with Small and Medium Enterprises that now serve SME workers in over 700 SMEs.
c. We have introduced a new MWC (migrant workers) associate membership to reach out to migrant workers, and in less than a year, we have onboarded 25,000 migrant workers.
We have also innovated our Membership Model to increase inflow, reduce outflow, and enhance stickiness in the services that NTUC provides.
a. We are offering new membership benefits catering to members’ life cycle needs,
b. And we are leveraging digital technologies to enhance membership experiences through a refreshed NTUC website, new chatbots technologies and new NTUC app.
c. We have subsequently grown from 980,000 members in 2019, and are now at 1.12 million members today.
d. Our 1.5 million goal, by 2030, is not so distant a number anymore.
In our Training Model, we innovated to set up a new NTUC Training and Transformation Group and adopted a Whole of Integrated NTUC approach towards training.
a. We have innovated with the CTCs.
b. And with the NTUC LHUB, OTCi and NTUC e2i coming together to form an integrated Training and Placement ecosystem,
c. We are now, much better placed to support workers in their upskilling journey, matching them to jobs, and, for the longer term, new work prosects.
At our social enterprises, we are also pushing frontiers. Our successful foray into the digital banking space is one such example:
a. We have set up Trust Bank in partnership with Standard Chartered.
b. We leveraged best-in-class technologies,
i. to create differentiated customer experiences, to provide ease of access and transparency to customers.
ii. all the way from the point of signing up, to the day-to-day usage.
c. Today, I am heartened to share that Trust Bank has onboarded over 500,000 customers. I hear it is one of the fastest growing digital banks in the world. And all this was accomplished in the last 7 months!
Even in our supermarkets and food outlets, where it is a more mature industry,
a. We launched a “Digital First” FairPrice outlet at Sengkang where customers are empowered to self-serve.
b. We have also introduced e-payment at Kopitiam through the FairPrice app and digitalised the Kopitiam Card programme. Now, every customer can enjoy a 10% discount by paying through the Fairprice app, to alleviate the cost of living
c. And we will press on to leverage technology to keep business costs as low as possible and keep our prices affordable for all our members and the public.
It is without doubt that NTUC needs to keep pace with the evolving needs and aspirations of our workers in a rapidly changing world.
The key question is - how can we do this? And do it in a sustained manner?
a. NTUC, the LM, must build an innovative culture, develop the business strategies and implement decisively.
i. Dream, Dare, Do.
ii. We must embrace an innovation culture where we dare to try and sometimes fail. If we fail, we fail fast, and learn fast, in practice, not just in the intellect.
iii. Then we go out, try again, and move towards success.
b. Can we do so? Yes! We Can, U Can. In the last four years, we have started the 3Is of innovation in 2019, went through challenging covid conditions, and yet stand here today, as a stronger labour movement, as NTUC. Yes, we can. Yes, U can!
c. Let us press on, and set this innovation as a part of our NTUC Culture, so that we can continue with our mission and our purpose, to create better lives together with our workers.
CONCLUSION
Let me conclude. We have done a lot of good work in the past year to:
a. Champion our workers’ interest across the entire spectrum of workforce.
i. Traditional and new, young and mature.
ii. And we have done so in a collaborative manner, maintaining Singapore’s industrial harmony and value adding to both our conuntry and employer partners; and
b. We have made good inroads to innovate our Business, Membership, and Training models to meet the changing needs and aspirations of our workers.
This has not been easy. We failed in some but succeeded in others. Most importantly, we are building that innovation culture, try new things, accept that failing is part and parcel of the process, all these through a Whole-of-Integrated NTUC approach, a WIN approach.
We will have our work cut out for us in the road ahead. We live in a world that is growing increasingly uncertain, where change is no longer the “only” constant, but where change itself is changing!
NTUC must, and will continue our work in championing the needs of our workers across all collars. And address the concerns that keep them up at night. Ultimately, our role, our mission, as we celebrate May Day today, is to forge a workers compact with all our workers, to achieve better wages, welfare, and work prospects for our workers.
Happy May Day to all our Sisters and Brothers. Thank you very much!
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