NTUC launches NTUC Workfare Initiative for low-wage workers and spearheads pilot project to re-employ older workers
13 January 2006
Media Release
1 The labour movement launched the NTUC Workfare Initiative (NWI) today to help low-wage workers take on better jobs and earn better pay. This is in line with the report of the Ministerial Committee on Low Wage Workers.
2 The key thrust of the NWI is the Job-Recreation Programme (JRP) which will be ramped up to re-create 10,000 existing jobs each year. To improve career prospects for low-wage workers, JRP efforts will be widened to more sectors and the current targeted income range of $1000 to $1800 will be expanded to also cover higher-skilled and supervisory level jobs that pay up to $2,500 a month.
3 At a media conference held this afternoon, NTUC Secretary-General Lim Boon Heng disclosed that NTUC and the Workforce Development Agency (WDA) had jointly requested $40 million from the Government to fund the JRP. He was happy that the Ministerial Committee on Low-Wage Workers has supported this proposal.
4 He also announced that the Singapore Labour Foundation, chaired by Minister Mah Bow Tan, has agreed to contribute $10 million to support the expansion of the JRP. Mr. Lim said, “I am hopeful that our funding request would be fully supported by the Government and I look forward to the early set-up of a $50million JRP Fund.”
5 He has identified the NWI, an umbrella programme targeted at low-wage workers, as one of NTUC’s top priorities for 2006. Besides the ramped-up JRP, the other key programmes under the NWI include:
a) Rolling out the Best Sourcing Initiative (BSI) this year to focus on promoting “best sourcing” among companies rather than “cheap sourcing”. With “best sourcing”, NTUC aims to improve the terms and conditions of employment of workers so that they could earn more and work in better conditions.
For 2006, NTUC will target four to six sectors, including air transport, banking, cleaning and education services, and 10 to 15 companies from these sectors, as early adopters of BSI.
b) Stepping up its Customer-Centric Initiative (CCI) efforts, to promote better services, particularly in the services sector.
By doing so, companies can generate better revenue. In turn, their workers will get to enjoy higher salaries through the implementation of commission and profit-sharing. The CCI involves a total of 900 retailers and 20,000 workers. NTUC, together with SPRING, WDA, its affiliated unions and other partners, will embark on a second wave of CCI in 2006.
c) Helping more low-wage workers, especially those in SMEs as well as “atypical” workers, to go for training. For low-wage workers who are union members, the NTUC will provide enhanced financial support under the NTUC Education and Training Fund. More efforts will be made to reach out to these workers so that they would account for up 60% of the training places to be supported by the Skills Re-Development Programme.
7 Besides these job-related measures, the NTUC will also help low-wage workers stretch their dollar by providing affordable goods and services through the NTUC Co-operatives.
8 The labour movement will also continue to provide care and support to low-wage workers tthrough various programmes such as bursaries and scholarships, hardship and educational grants, assistance and financial aid schemes, SLF Gift Plus insurance scheme, “Back to School” programme and “Family Recreation Voucher” initiative.
RAISING EFFECTIVE AGE OF RETIREMENT
9 Another top priority of the labour movement in 2006 is to increase the employment rate of older workers, especially those in their 50s, and the re-employment rate of our older workers past the official retirement age of 62. For this, the NTUC will pursue a multi-pronged approach comprising the following:
a. Leading the move towards Job-Based Wage System, so that a worker’s remuneration will be based on the value of the job and his competency and capability levels as required by the jobs, instead of on his educational level and age. NTUC will target 40 to 50 companies over the next two years to enhance the employment opportunities for older workers and retired workers. These companies will include multi-national companies, SMEs and Government-Linked Corporations. This initiative to re-design jobs, re-train and re-tune human resource policies is expected cost $10-15 million;
b. Educating and preparing older workers for re-employment;
c. Implementing portable medical benefits to reduce the differentiation of medical cost between younger and older workers, and to provide for future medical needs of retired workers; and
d. Stepping up efforts with employers to re-design jobs, identify new job scopes, improve or adjust the working environment, so that these jobs would be better suited for older workers.
