NTUC develops Four-Tier Framework to push Re-employment of older workers
13 May 2008
MEDIA RELEASE
The re-employment outlook for older workers in unionized companies is bright. NTUC has developed a four-tier framework to track the commitment level of unionized companies to re-employment initiatives. As of the first quarter of this year, 433 out of the 1000 unionised companies have committed, at varying levels, with a total of 3910 older workers having been re-employed.
At a Learning Journey to SBS Transit for some 40 union leaders, NTUC gave an update on the progress of re-employment efforts spearheaded by the Labour Movement, and showcased companies with laudable re-employment initiatives.
In February 2006, NTUC launched its efforts to enhance the employability of older workers, in support of the recommendations of the Tripartite Committee on Employability of Older Workers. At that point, 23 unionised companies affirmed their support to help older workers stay employed beyond the retirement age of 62. Since then, NTUC, together with its tripartite partners, has made steady progress in getting more companies to commit to this national cause. As of the first quarter of 2008, the number has increased, with 433 companies having heeded the call, benefiting a total of 3910 workers.
Framework to Track Commitment
Two teams have been set up for the purpose of pushing the Labour Movement’s re-employment efforts – the Raising Effective Retirement Age Team (RERA) and the Re-employment Expert Group (REG).
REG and RERA have worked out a framework to categorise the level of commitment of companies to re-employment. There are four levels to this framework.
Level 1 refers to companies that are already re-employing older workers, but on an ad-hoc basis. Level 2 refers to companies that are already re-employing older workers and have a re-employment clause in their Collective Agreement or MOU with the unions. Level 3 refers to companies that have a formalised HR policy on re-employment. Level 4 refers to companies that are pro-actively seeking out new initiatives to ensure that their re-employment efforts are sustainable and scalable.
Out of the 433 companies that have committed to adopting re-employment initiatives thus far, 15% already have in place a formalised HR policy on re-employment. REG and RERA are working to encourage the other 85% to follow suit, so as to increase the proportion of companies at Levels 3 and 4.
Building up Knowledge and Expertise
As a strong advocate of the re-employment of older workers, NTUC, through its affiliated unions, has also been working with unionised companies to build up knowledge and expertise in re-employment initiatives.
RERA engages the unionised companies in various sectors through the NTUC-affiliated unions to promote re-employment initiatives, for instance in the areas of job re-design, training, and take-up of the Workforce Development Agency’s Advantage! scheme.
To strengthen the Labour Movement’s efforts, REG consolidates knowledge and expertise on re-employment initiatives. Thus far, REG has gathered a databank of 181 case studies on job re-design and training, wage and health benefits. REG is then able to provide expert advice on these areas.
NTUC recognises that there is no “one-size-fits-all” approach that companies can take to enhance the employability of older workers. The case studies are thus a valuable resource that companies can refer to as they fine-tune their own policies and practices to suit both the company’s and workers’ needs.
The work of REG and RERA, including the four-tier framework, signifies yet another practical and concrete approach that the Labour Movement has embarked on in order to assist companies in adopting re-employment initiatives.
Re-employment Opportunities in Various Sectors
The 433 companies come from a diversity of sectors that includes Food & Beverage, Education, Conservancy & Environment, Security, Banking, Insurance, Healthcare, Hospitality, and others. The majority come from the Public Sector, Retail & Services, Transport & Logistics, and Manufacturing.
What this means is that there are opportunities for older workers to continue working into their golden years in a variety of jobs, with their pay pegged to the value of their jobs.
Elaborating on this, NTUC Secretary-General Lim Swee Say said, “Re-employment is not about keeping mature workers occupied simply for the sake of lengthening their employment. It should be about making productive and meaningful use of the mature workers as an asset to the organisations. We are pressing on with re-employment across various sectors of the economy. Working together with our tripartite partners, we want to give our mature workers the respect and dignity they truly deserve.”
Companies with Good Re-employment Initiatives
At the Learning Journey, five companies that have adopted good re-employment initiatives were showcased. These initiatives fall into the areas of:
Also showcased were workers from these companies who have benefited from the re-employment initiatives owing to their positive mindset, resilience, willingness to adapt and overcome challenges.
Milestones Towards 2012
The national target for the employment rate of older workers aged 55 to 64 is 65%. Currently, 56% of workers in this age group are employed. With the Labour Movement’s relentless push to open up job opportunities for older workers, it is confident that the national target can be reached.
Going forward, the Labour Movement aims to bring 600 companies onboard the re-employment bandwagon by the end of 2008. This is expected to benefit 5000 workers. With the progressive year-on-year increase, the Labour Movement is on track to reach out to and enlist all 1000 unionised companies before the re-employment legislation kicks in come 2012.
NTUC thanks the companies, unions and partners that have come together to tap on the human capital potential of our older workers. This group of workers are a valuable source of manpower that will help put Singapore on the map as a country with one of the highest employment rates for all ages of workers. More importantly, our efforts to help older workers keeps them productive, competitive and relevant to society as they earn an income and lead fulfilling lives in their golden years.
Heng Chee How
Deputy Secretary-General, NTUC
Leader, Re-employment Expert Group, NTUC
