The re-employment age ceiling is currently 65. But tripartite partners are working to raise it to 67. However, many unionised companies are already selectively re-employing workers beyond 65.
Early Adopters
ComfortDelgro and Prima Ltd, for example, have made it part of their Human Resource policy.
At Wildlife Reserve Singapore, a member of The Singapore Manual & Mercantile Workers’ Union, each case is reviewed at least seven months prior to the staff’s retirement date and they are engaged three months before they are due to retire.
Staff may be re‐hired in the same job, with modifications to their existing job, or in a different job altogether, depending on their skills, competencies and suitable opportunities available as well as the company’s needs.
“Our older employees take on roles as buddies and mentors to our younger and newer team members. This ensures continuity and the transfer of knowledge, experience and expertise,” said a company spokesman.
One such employee is 70-year-old Lee Kue Pak, a technician in the Estate Management division of Singapore Zoo.
“My job scope remains the same, I take care of the civil works in both Singapore Zoo and Night Safari. Of course, in the early years it was a lot simpler, I only needed my tools to work. Now, there’s more technology involved so I have to understand the technical aspects of the job better,” said Mr Lee said.
Hire Now To Avoid Increasing Wage Costs
“For those companies who have concerns, some refer to potential concerns including healthcare cost, adaptability to new technology, and complicating renewal of the ranks. These can be addressed. They are not, and should not be misconstrued as show-stoppers,” assured NTUC’s Deputy Secretary-General (DSG), Heng Chee How.
The labour market is very tight and there is pressure on nominal wages to go up when supply is hard to come by.
“If employers don’t move when they can to expand their local manpower pool, they will end up paying more in wage cost just to retain workers. This will damage their competitiveness,” explained DSG Heng.
If the cost is passed through to consumers, it would lead to higher inflation, intensifying the cost of living concerns among the population, he added.
As such, DSG Heng said it would be wiser for the tripartite partners to move on the issue of extending the re-employment age earlier rather than later.
Win-Win Solution for All
“In relative terms, raising the re-employment age ceiling is the lowest hanging fruit that is a win-win for both employers and mature workers who wish to continue working. This is practical problem-solving” said DSG Heng.
In addition, if the re-employment age ceiling is raised from 65 to 67, there will be greater assurance for most workers reaching 65 of another two years of pay.
The additional pay also attracts CPF savings.
“In short, it adds to the lifetime earnings of the worker. Hence, it directly strengthens retirement adequacy,” emphasised DSG Heng.
Original article written by Ramesh Subbaraman, and can be found in NTUC This Week (27 July 2014)
