Progressive Wage for Outsourced Workers

NTUC and affiliated unions work hand-in-hand with Changi Airport Group to take care of its outsourced workers 

Singapore Changi Airport, world renowned for providing excellent airport experience, has a community of over 32,000 workers working round-the-clock at one of the world’s busiest airports for international passenger traffic. And amongst them, more than one-quarter are outsourced workers. To ensure that the interests and well-being of these outsourced workers are looked into, the National Trades Union Congress (NTUC) Aerospace and Aviation Cluster of unions have been working closely with Changi Airport Group (CAG), the largest service buyer at Changi Airport, on several initiatives for them.

A Progressive Wage Model for Airport Trolley Retrievers was developed to help outsourced workers level up their wages, improve productivity and be able to advance along a tiered progression ladder. In addition, service providers’ adoption of the National Wages Council Guidelines will also be considered when CAG awards tender contracts.

Progressive Wage Model for Airport Trolley Retrievers

With effect from 16 July this year, a total of 240 Airport Trolley Retrievers were converted from daily-rated workers to monthly-rated workers. Their salary was levelled up from the earlier drawn salary of between $570 - $590 per month, to the current monthly base salary of $800 plus $200 incentive. In addition, they also have a written employment contract with the service provider, which is a better safeguard of their interests as they are aware of their employment rights and entitlements.

In conjunction with the salary revision, a Progressive Wage Model (PWM) was developed to achieve sustainable wage increase through productivity improvement and streamlined work process. There are currently more than 10,000 trolleys at Changi Airport. Airport Trolley Retrievers are responsible for collecting trolleys across the airport and consolidating them at various trolley points. The PWM also includes a career ladder for them to advance by up-skilling to take on bigger responsibilities. New positions will be created to support the introduction of productivity enhancement initiatives.

In summary, what this means for:

NTUC Aerospace and Aviation Cluster

1. protects the interests of outsourced workers
2. helps outsourced workers advance in wages, skill, productivity and career progressively

Outsourced Workers

1. fair wage increase commensurate with productivity improvement
2. career progression with enhanced career ladder
3. easier and smarter work with improved work flow

Service Buyer (Changi Airport Group)

1. increase in labour productivity to better meet demands of growing passenger traffic
2. better-skilled outsourced workers who can complement the adoption of technology to streamline work flow and improve efficiency of processes

Service Provider (Contract Companies)

1. improved labour productivity helps to tackle challenge of manpower shortage
2. more skilled workers with higher wages leads to more motivated workers, higher staff retention and lower staff turnover

Outsourced Workers also Benefit from National Wages Council Guidelines

CAG, as the largest service buyer with approximately 6,000 outsourced workers under its purview, supports the National Wages Council (NWC) Guidelines by making the adoption of the NWC guidelines an assessment consideration when evaluating tenders. CAG currently works with around 50 service providers.

This year, after the NWC recommended a $60 built-in wage increment for low-wage workers who earn a basic monthly salary of up to $1,000, CAG had encouraged its service providers to grant their low-wage workers this wage increase.

NTUC Aerospace and Aviation Cluster National Day Observance Ceremony

The above initiatives were shared by the NTUC Assistant Secretary-General Cham Hui Fong, who is also the Cluster Lead, at the NTUC Aerospace and Aviation Cluster National Day Observance Ceremony held at CAG Auditorium today. The ceremony was attended by about 150 participants, mainly staff of Changi Airport and union leaders from the Cluster’s unions. Guest of Honour was Mr Lee Yi Shyan, Senior Minister of State for Trade and Industry, and National Development.

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