Overview
The overall local economic and labour market performance in 2011 was encouraging. Singapore’s economy grew by 4.9 per cent in 2011. In line with the positive economic performance, the labour market also witnessed strong employment creation, with 122,600 new jobs created. Overall unemployment rate was recorded at a new low of 2.0 per cent in 14 years.
However, the above-mentioned growth was amidst higher Consumer Price Index (CPI) inflation at 5.2 per cent in 2011. This meant that both businesses and workers in Singapore had to also deal with continued inflation and higher cost of living.
From 2010 to 2011, real total wages including employer CPF contributions grew at an annualised rate of 1.6 per cent per annum, which is slightly lower than the labour productivity of 1.7 per cent per annum. It is therefore crucial that more should be done to ensure that productivity improvement continues to drive sustainable real wage increases for workers.
Taking the above into consideration, the National Trades Union Congress (NTUC) fully supports the call by the National Wages Council (NWC) for employers to grant built-in wage increases and reward employees through variable wage components, wherever appropriate, in line with the companies’ performance and workers’ contributions in 2012/2013.
More to be done for low-wage workers
The tripartite partners note that the low-wage workers have not seen significant income growth over the last 10 years. We are thus heartened that NWC has accepted NTUC’s proposal to call for companies to grant low-wage workers with a built-in wage increase in the form of a dollar quantum and a percentage wage increase. Companies that are doing well are also urged to grant these workers an additional one-off lump sum payment.
After due deliberation, NWC recommends that the built-in wage increase for workers who earn a basic monthly salary of up to $1,000 to be at least $50. We believe that this quantitative element in the NWC Guidelines and the lump sum payment will not only give the low-wage workers a proportionately higher built-in wage increase, but also, to some extent, help them cope with rising costs of living.
Thus, NTUC strongly urges companies that are doing well to grant the low-wage workers an increment larger than $50. We will continue to work with the government and employers to help this group of workers achieve better jobs, better skills and better real wage increases.
Productivity improvement must be in line with wage increment
As productivity growth is the key to sustainable broad-based real wage increases, we will continue our push towards a Cheaper Better Faster economy. Our economic growth should be backed by a strong and competitive core of Singaporean workers from all sectors of the workforce. Finally, the growth must be inclusive as we strive towards “Better Jobs for All”, which is the Labour Movement’s 2015 vision.
In this light, we support the NWC guidelines for productivity improvement and inclusive growth. We urge companies to continue to take the lead to adopt technology and innovation in their work processes. To complement productivity innovations, we must ensure that the workforce is adequately trained to remain competitive and relevant to the fast-changing needs of the global economy.
Productivity enhancement and gain-sharing should be inclusive. We are thus committed to working with the tripartite partners to ensure that all workers, including low-wage workers, benefit from the productivity gains of a company. The end-goal in mind is to enable workers to enjoy sustained wage increases and inclusive growth.
Cham Hui Fong
Assistant Secretary-General
National Trades Union Congress
