The Labour Movement applauds Budget 2015 for being forward-looking, and one which caters for the future needs of workers and businesses.
Strengthening retirement adequacy
The Labour Movement welcomes the measures to strengthen retirement adequacy and enhance CPF savings of Singaporeans. Earlier, the Labour Movement had called for an increase of the CPF salary ceiling to $6,000, restoration of contribution rates for workers aged 50 to 55, and an increase of the contribution rate for workers aged 55 and above. We are heartened that the Government has heeded our call, which will help workers save more for retirement and healthcare expenditures, and bring about fairer wages for older workers and further boost their retirement savings.
At the same time, the raising of Special Employment Credit (SEC) for workers aged 65 and above furthers the Labour Movement’s continued push for re-employment of older workers. The above, together with the Silver Support Scheme, will give our older workers greater assurance as they plan for retirement.
Future-Ready And Future-Proof Workforce
The Budget’s slew of SkillsFuture initiatives is aligned with the Labour Movement’s continued push to build a skilled workforce for the future. We had earlier mooted the idea of setting up an individual training account for every Singaporean worker to help them be future ready even as Singapore undergoes economic restructuring and transformation. We therefore welcome the creation of the SkillsFuture Credit scheme for all Singaporeans to use for their education and training needs. The Individual Learning Portfolio will also empower workers to take personal responsibility for their own training needs and career planning, which could also help raise productivity. This would also encourage lifelong learning, a mastery of skills and even second-skilling by supporting individual initiated training for a person's entire career and lifetime.
With the SkillsFuture Credit being made available for all Singaporeans, this will address current gaps for some workers who do not have access to the Workfare Training Support Scheme.
The Government’s plans to jointly develop Sectoral Manpower Plans to map skills for the future endorses the Labour Movement’s current approach towards pervasive tripartism at the sectoral level to better cater to the needs of the industries through better skilled workers and higher productivity. We look forward to enhanced collaboration with the various stakeholders.
Focus on Innovation
The Labour Movement urges companies to tap on productivity schemes to innovate and transform their businesses. We also encourage companies to make full use of the two-year extension of the Wage Credit Scheme, which will release resources for companies to invest in productivity enhancements and share productivity gains with their workers.
Managing Foreign Workforce Growth
The Government has reassured that the pace of tightening of foreign worker growth remains unchanged. At the same time, the hiring of higher skilled workers for the construction sector mirrors the Migrant Workers’ Centre’s call for quality over quantity.
More Assistance For Middle-Income Families
The Labour Movement had given feedback about the need for more help for the sandwiched class. We applaud the Budget’s targeted approach to alleviate the pressures faced by this group of Singaporeans by extending help in the areas of retirement, rising costs of living, building future skills, caring for elders, and children’s education.
Diana Chia
President
National Trades Union Congress
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