NTUC Social Enterprises to be Best-in-Class for Greater Social Impact
7 May 2007
Media Release
1. The social enterprises under the National Trades Union Congress (NTUC), have over the years become an integral part of the Singapore society. Since the formation of its first cooperative - NTUC Income Insurance Cooperative in the 1970, NTUC has to-date set up a total of 12 social enterprises, fulfilling social mission across more than 10 different industries .
2. As social enterprises, the NTUC group continued to strive towards making social contributions and helping the workers stretch their dollars.
3. In the Social Report Card Press Conference held this morning attended by the Chief Executive Officers and senior management representatives of the various social enterprises, Mr Lim Swee Say, Secretary-General of NTUC said, “To realize our vision of a brighter future for all, the social enterprises under NTUC can go a long way in helping our workers and members to stretch every dollar, create time, reduce stress and live a fuller life.”
2006: A year of Social Contributions
4. In 2006, the NTUC cooperatives and related organisations made direct financial contributions of $64.5 million towards fulfilling various social objectives. $52.5 million went towards stretching the workers’ hard-earned dollar through schemes such as rebates, discounts, and the absorption of the Goods and Services Tax (GST). Another $12 million benefited workers and members through various social programmes. Other non-financial contributions were also made by the social enterprises such as stabilizing prices, improving care for elderly and employment of older workers.
Better value, stable prices
5. One of the biggest roles which the NTUC social enterprises played is that of helping to stabilize prices and bringing better value to the masses.
6. For example, in 2006, NTUC FairPrice, the biggest supermarket chain in Singapore, successfully kept a basket of 400 essential items, listed as “Everyday Low Prices” items, at low prices. NTUC Healthcare kept up with its commitment in keeping 100 commonly-purchased items at the lowest overall pricing. Affordable generic products as alternatives to the costlier brands were also made available at NTUC Healthcare’s Unity chain.
7. During the December 2006, when heavy floods in Malaysia affected the supply of vegetables in Singapore, NTUC FairPrice helped to stabilise the prices of leafy vegetables by holding steady the price of its housebrand vegetables. This helped to curb the potential exploitation of other suppliers in increasing the prices of the vegetables.
More Savings, better care for seniors
8. More than $1.32 million worth of savings was enjoyed by the senior citizens in 2006. The 2% discount at NTUC FairPrice supermarkets every Tuesday benefited more than 40,000 senior citizens in 2006. The 5% discount off non-promotional items at Unity created more than $422,000 in savings for the seniors.
9. Besides financial discounts, NTUC Eldercare expanded to four centres to bring affordable day care services to more seniors over Singapore. Union members saw a three times increased savings on the already very affordable rates at the NTUC Eldercare centres. New services and programmes were introduced to lift the level of care for the elderly.
Support for less privileged
10. Supporting the less privileged remained a strong pillar of the social contributions of the NTUC group in 2006.
11. NTUC Childcare announced its intention to set up the Bright Horizon Fund in 2006. The Fund is intended to provide financial assistance to families who could not afford to pay full childcare fees. The Fund will also support supplementary programs to support children who are weak in a particular area. So far, about $1.15 million has been raised. In 2007, NTUC Childcare expects to support 400 children, or about 10% of our enrolment, in financial assistance. NTUC Childcare also expects 300 children to benefit from its Read-to-Reach English literacy program.
12. The Family Recreational FUNd by NTUC Club benefited 25,000 needy families. Some 690 children got help in their education from NTUC FairPrice through its study grants. Over $6.9 million of contributions was made by the social enterprises through these and other various programmes.
Emphasis Moving Forward: Best-in-Class Social Enterprises
13. NTUC embarked on the Labour Movement 2011 (LM2011) journey in 2006. NTUC co-operatives and related organisations play an integral role in achieving this vision. In order for the social enterprises under NTUC to remain effective in serving people from all walks of live, they will strive to be best-in-class in their respective industry. This means creating a strong social impact while remaining viable.
14. In January 2007, a Social Enterprise Development Council (SEDC), chaired by Mr Lim Boon Heng, Minister, Prime Minister’s Office and former Secretary-General of NTUC, was formed to steer the social enterprises’ growth in both social impact and financial viability.
15. In an interview published in “Making Smiles-NTUC Social Report Card 2007”, Mr Lim Boon Heng said, “Our co-operatives should aim to be among the best-in-class for the business they are in, if not the best-in-class. To do so, talent in key. Our co-operatives should also be well run, according to the best practices of good corporate governance. In order to bring the best value to Singaporeans, our co-operatives will have to widen their market base to achieve greater economies of scale.” (Please refer to the publication for the detailed interview report.)
Conclusion
16. Collectively, as part of the labour movement, the NTUC co-operatives and related organisations will continue to help better the lives of workers and their families, and build a more inclusive society in Singapore.
17. Mr John De Payva, President of NTUC, said, “Imagine an organisation of people, services, leaders, professionals and politicians. If this forms one big cohesive organisation, everyone living and working in Singapore will benefit. Such an organisation is the Labour Movement, and LM2011 strives to achieve this goal in the near future.”
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For media queries, please contact:
Chong Yan Cheng (Ms)
Consultant
Corporate Communications Department
National Trades Union Congress
DID 6213 8190
HP 9797 8985
Fax 6327 3749
About National Trades Union Congress
The National Trades Union Congress (NTUC) is a national confederation of trade unions of workers in the industrial, service and public sectors representing about 480,000 workers in Singapore. It has 63 affiliated trade unions and six associations, as well as 12 social enterprises and 3 related organisations. NTUC’s objectives are to help Singapore stay competitive and workers remain employable for life; to enhance the social status and well-being of workers; and to build a strong, responsible and caring labour movement.
