We refer to The Straits Times article, “No automatic pay cut at 60 for 34,400 workers”, dated 25 November 2010.
The National Trades Union Congress (NTUC) agrees that any wage cut at age 60 should not be automatic but be justified by the "reasonable factors" as laid out in the Retirement Age Act. These factors include the seniority element in the wage structure, and the job scope and responsibilities, productivity and performance of the worker. As these parameters change over time, unions will work with companies continually to review the need for, and extent of, any such reductions.
The Singapore Manual and Mercantile Workers’ Union (SMMWU), which is an affiliated union of NTUC, was cited as one union that has yet to convince employers to make the switch to not automatically cut the wages of workers who reach 60 years of age. However, the full picture is that SMMWU has been engaging employers on this issue and today, the majority of the 230 companies unionised through SMMWU do not cut wages at age 60. Out of the group, only 15 have such wage-cut policies, and the percentage of wage cut varies and is not necessarily at 10%.
Heng Chee How
Deputy Secretary-General
National Trades Union Congress
Ong Ye Kung
Executive Secretary
The Singapore Manual and Mercantile Workers’ Union
