The National Wages Council (NWC) calls on employers, unions and workers, and the Government to work together to mitigate the impact of Covid-19, and to position Singapore for eventual recovery.
The NWC convened in March 2020 to formulate wage guidelines from 1 April 2020 to 30 June 2021.
The new guidelines will supersede the 2019/2020 Guidelines with effect from 1 April 2020.
To sustain businesses and save jobs, the NWC recommends that employers should consider, in order of priority:
On reducing non-wage costs and managing excess manpower, the NWC recommends that employers focus on training and upskilling; allowing employees to adopt flexible work schedules; and be supportive of local employees who wish to seek a supplementary income.
The NWC also recommends bringing forward planned training for employees and the implementation of productivity initiatives in order to proceed with business and workforce transformation.
For companies that have not yet done so, the NWC recommends setting up of a Company Training Committee (CTC) with the Labour Movement.
According to a statement by the NWC, CTCs can help employers to build up their workplace learning capabilities, conduct operational and technological road mapping and re-strategise their business.
For employers who are adversely affected by Covid-19 and facing uncertain prospects, the NWC stated that employers may exercise wage reduction, with management leading by example.
If monthly wage levels are unsustainable due to the fall in demand, employers can consider adjusting their employees monthly variable wage component.
The NWC noted that any reduction in wages should be applied to both local and foreign employees fairly.
If retrenchment is inevitable, the NWC calls on employers to conduct retrenchment exercises in a responsible manner, as set out in the Tripartite Advisory.
In a media statement, NTUC President Mary Liew stated that NTUC supports the NWC guidelines for 2020/2021.
She stated that the congress will work with affected businesses to cut cost to save jobs – ensuring that workers are fairly treated and where possible, rewarded.
Even though she believed that Singapore’s unique model of tripartism will help the country through these challenging times, she noted that workers must be adaptable.
“Go for training, be open to flexible work schedules, accept new job roles or opportunities, and if necessary, accept wage reductions so that workers can retain your jobs,” she stated.
NTUC continues to ensure that the NWC guidelines pay special attention to low-wage workers.
In the negotiations with the tripartite partners, NTUC advocated wage freeze instead of wage reductions for low-wage workers in affected companies and built-in wage increase of up to $50 for low-wage workers in companies implementing wage freeze or wage increases.
NTUC also advocated for an ex gratia payment for low-wage workers who have stepped up to assist employers during this challenging period.
Ms Liew stated: “We are glad that the tripartite partners have agreed to this recommendation. We hope that employers will also consider extending similar ex gratia payment for other workers who have done likewise.”
The tripartite partners have agreed that business and workforce transformation is vital to ride the upturn when the battle against COVID-19 is won.
“We will also continue to work closely with businesses and employers to see how best we can help keep workers in their jobs so that they can continue to earn a wage during these unprecedented times,” added Ms Liew.
