RESPONSE OF THE NATIONAL TRADES UNION CONGRESS TO PRIME MINISTER LEE HSIEN LOONG’S NATIONAL DAY RALLY SPEECH 2007
24 August 2007
Media Release
1. From the economic perspective, MTI has revised upwards the growth potential of the Singapore Economy over the next 5 to 10 years from 3 - 5% to 4 - 6%. The labour movement is encouraged by the upward revision as this will translate into more and better job opportunities for Singaporeans. We believe that a key factor in realizing this growth potential lies in our ability to develop, upgrade and expand our workforce.
2. From the social perspective, Singaporeans have to face up to the reality of longer life expectancy. As we live longer, we need to ensure that we have sufficient resources to lead an active and fulfilling life in our twilight years - where our housing, medical and retirement needs are well taken care of.
3. Against this twin backdrop of economic potential and social imperative, the labour movement supports the policies relating to older workers as announced in Prime Minister Lee Hsien Loong’s National Day Rally Speech – legislation on re-employment of older workers; raising of the CPF Minimum Sum Draw Down Age; compulsory buying of longevity insurance; higher CPF interest rate; and enhanced Workfare Income Supplement for older workers.
4. From the economic standpoint, the policy announcements will enable us to shore up our manpower pool by tapping on older workers in order to help achieve our growth potential. From the social perspective, the announcements provide the support needed to ensure that Singaporeans age actively and enjoy fulfilling lives in their golden years.
5. Among the raft of policy announcements, the legislation on re-employment of older workers is the key. On the one hand, workers are concerned whether there will be jobs available for them, on fair and reasonable terms, when they hit the retirement age. On the other hand, businesses are concerned that with a seniority-based wage system, they will be saddled with higher business costs.
6. Hence, the labour movement recognises that re-employment of older workers can succeed and be sustainable only if we address both workers’ and businesses’ concerns, i.e. the re-employment of older workers must be simultaneously pro-worker and pro-business.
7. While we learn from the best practices of other countries like Japan, we are also mindful that we will need to adapt their best practices to suit our local context and apply them in a uniquely Singapore way.
8. The labour movement is confident that by working closely with our tripartite partners, we can succeed in opening up opportunities for our older workers on a sustainable basis. Our confidence derives from two key factors.
a) Strong tripartite partnership: Working together, the tripartite partners are well-poised to adopt a holistic approach to addressing re-employment for older workers. This is a five-pronged approach that revolves around jobs, skills, wages, health and enhanced Workfare Income Supplement for older workers. Together, the tripartite partners can: make jobs and the workplace elderly-friendly; upgrade the skills of our older workers; ensure workers remain healthy; move away from a seniority-based wage system; and provide the Workfare Income Supplement to enhance the social well-being of low-wage older workers.
b) Labour movement’s early successes: In the last 18 months, the labour movement has seen some change in mindset among both workers and employers towards the re-employment of older workers. Thus far, 209 unionised companies have re-employed more than 3,000 older workers beyond the retirement age of 62. These companies are among the 275* that have given their commitment to re-employ their workers when they reach the retirement age. The labour movement calls on all companies to implement a consistent and long-term policy of re-employing older workers. As for workers, we are encouraged that many wish to and can work beyond 62. We will continue to provide them with opportunities for skills upgrading and urge them to understand that re-employment after retirement may not necessarily mean same job, same pay.
Time is of the essence. To maximize the effect of legislative changes in 2012,
we call upon workers and employers to start embracing change now.
9. Between now and 2012, the priorities for the labour movement, and our tripartite partners, are clearly cut out. We need to strengthen our holistic framework for the re-employment of older workers. And we will expand and intensify on our efforts to effect a mindset change among more employers and workers. We urge employers not to wait for the legislation to come into effect but to start now to work with the tripartite partners to implement practices that would enhance the re-employment of older workers. We particularly call on the larger companies to take the lead and set the pace. To older workers, we say, upgrade, adapt and stay in employment till 65 and beyond, if possible.
John De Payva Lim Swee Say
President Secretary-General
National Trades Union Congress National Trades Union Congress
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* The rest of the 66 companies do not have workers who have reached retirement age as of yet. But they have commenced working on policies for the re-employment of older workers.
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About National Trades Union Congress
The National Trades Union Congress (NTUC) is a national confederation of trade unions of workers in the industrial, service and public sectors representing about 480,000 workers in Singapore. It has 63 affiliated trade unions and six associations, as well as 12 social enterprises and three related organisations. NTUC’s objectives are to help Singapore stay competitive and workers remain employable for life; to enhance the social status and well-being of workers; and to build a strong, responsible and caring labour movement.
