NTUC supports 2007/08 National Wages Council Guidelines
23 May 2007
Media Statement
1 The National Trades Union Congress (NTUC) is pleased that Singapore’s economy performed very well in 2006. The Gross Domestic Product (GDP) grew by 7.9% and a record 176,000 new jobs were created. The labour market has also tightened.
2 The outlook for 2007 is healthy. The Ministry of Trade and Industry has just revised the GDP estimate from 4.5%~6.5% to 5%~7%.
3 Against this backdrop, the National Wages Council (NWC) has issued a set of guidelines that aim to reward workers for their contributions to the strong performance of the economy and their companies, while concurrently, tackle the core issues of sustained competitiveness and social progress.
Sustainable Wage Increase
4 NTUC calls on companies that have done well in 2006 to reward workers with good wage increases that commensurate with company and individual performances and prospects.
5 Wage increases must be sustainable and supported by productivity gains. This is critical for companies and the economy to remain competitive and for more jobs to be created in the long run. Hence, NTUC urges companies to follow NWC’s guidelines to increase the use of variable bonuses as rewards and to grant one-off special bonuses if performance in 2006 has been exceptional.
6 NTUC fully supports the recommendation to grant higher wage increases to low-wage workers, including through the use of a dollar quantum.
Wage Restructuring
7 In 2005 and 2006, NTUC called for the continued restructuring of the seniority-based wage system towards arrangements that are job-based, competency-based and performance-based. We also urged the fuller implementation of the Monthly Variable Component (MVC) and the stepping up of the use of Key Performance Indicators (KPIs) in paying and rewarding workers in a more transparent and objective way.
8 We are pleased that progress has been made and will press on with tripartite collaboration in these areas.
Helping Low-Wage and Contract workers
9 The basic challenge facing low-wage and contract workers is the low value of the jobs that they hold. To help such workers stay in work, the Government has introduced the Workfare Initiative. NTUC supports the Workfare Initiative, which together with the Workforce Development Agency’s WSQ skills upgrading scheme and the NTUC’s Job Re-creation Programme and Best Sourcing Initiative, will help low-wage workers meet their immediate needs and improve their long term prospects.
Helping Older workers
10 Singapore’s population and local workforce are aging. Companies and workers must adjust to the trend. A key adjustment is for companies to devise sustainable ways to employ older workers over a wider range of jobs and longer, and for workers to work longer and more flexibly.
11 NTUC joins the NWC in supporting the final recommendations of the Tripartite Committee on Employability of Older Workers.
Better Future for All
12 NTUC fully supports the 2007/2008 NWC guidelines and will work closely with the tripartite partners to implement them. With sustained and concerted tripartite collaboration and efforts, we will create a better future for all workers in Singapore.
Heng Chee How
Deputy Secretary-General
National Trades Union Congress
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For media queries, please contact:
Goy Kae Lip
Consultant
Corporate Communications Department
National Trades Union Congress
DID 6213 8184
HP 9792 0650
Email goykl@ntuc.org.sg
