Mr Speaker Sir,
Tackling Age Discrimination: A Path Towards Equal Opportunities for All Workers
Despite progress in many areas of employment equity, age discrimination continues to be cited as a barrier. This challenge will be heightened by our growing demographic shift toward an ageing population, and if age discrimination is not adequately addressed, it could have serious economic and social implications.
The State of Age Discrimination in the Workplace
Recent reports indicate that age discrimination continues to be present in our labour market. In 2023, age discrimination was the most commonly cited form of workplace discrimination according to the Tripartite Alliance for Fair & Progressive Employment Practices (TAFEP) figures and is placed ahead of complaints about race discrimination and gender discrimination. The stickiness in age bias indicates that there are older workers who continue to face barriers in accessing good job opportunities and prospects on a fair basis.
This issue would be particularly pertinent in industries where experience and expertise are highly valued, and where older workers still find themselves sidelined in favour of younger workers or younger candidates. The struggle is especially evident in Professional, Managerial, and Executive (PME) workers who are in their 40s and 50s. These workers often report that their age is viewed as a disadvantage, and it limits their in-employment prospects. A survey conducted by the National Trades Union Congress (NTUC) found that 60% of older workers surveyed felt that they were discriminated against when it came to training opportunities, with younger workers receiving priority for consideration for upgrading and upskilling programmes. This gap in access to opportunities for growth and development because of age is not trivial.
Economic Impact of Ageism
The effects of age discrimination extend beyond individual workers. They ripple through the entire economy. The ageing population is one of the most significant challenges facing global economies today. As populations age, fewer young workers enter the workforce while more older workers reach the end of their work lives — they retire — leading to a declining labour force participation rate. In our case in Singapore, for example, our labour force participation rate has shown a small gradual decline, for example, over the last 3 years. This demographic trend is expected to limit workforce growth, exacerbating the challenges of economic sustainability.
Older workers represent a critical component of the workforce. In Singapore, workers aged 50 and above account for approximately 37% of our resident workforce, and this is a substantial portion that cannot be overlooked. However, when ageism hinders their employment opportunities, wages, and career progression, it not only impacts individual workers but also reduces the overall productivity potential of our economy. A Organisation for Economic Co-operation and Development (OECD) study has shown that an age-diverse workforce actually offers a larger set of skills and enhances organisational sustainability and profitability. By excluding older workers from the labour force by not giving them fair opportunities due to age bias, businesses miss out on the valuable experience and expertise that can help drive growth and innovation.
Furthermore, with the increasing rate of job turnover, especially in sectors like information technology (ICT) and financial services, mid-career workers are especially vulnerable to age discrimination. Even not-so-old workers, like those retrenched in their 40s or 50s from these industries, may struggle to find new employment opportunities due to biases in recruitment and hiring practices. This not only affects the workers but also their families, as they face what could be prolonged periods of unemployment or underemployment.
Legal Protections Against Ageism
To address these issues, it is therefore important that our legislative frameworks evolve to offer stronger protection against age discrimination and to promote age fairness. I therefore welcome the introduction of the Workplace Fairness (WFL) Bill. This Bill marks a significant step in the fight against workplace discrimination, including workplace ageism, in Singapore. And I’m glad that this point is acknowledged on both sides of the House. Under the WFL, age is recognised as a protected characteristic, meaning that employers cannot make adverse employment decisions based solely on a person's age. This legislative clarity sends a clear signal and message that age discrimination will not be tolerated and that every worker, regardless of age, deserves equitable opportunities in the workforce, and in the workplace.
The WFL not only prohibits discriminatory practices but it also allows for policies that favour older workers in certain contexts. For example, employers can give preferential treatment to senior workers in hiring decisions, which can be particularly beneficial in helping to address the challenges of an ageing population. The WFL, together with other age-friendly laws such as the Retirement & Re-employment Act (RRA) will further strengthen the advocacy and realisation of equitable protection of the rights of older workers vis-à-vis their younger counterparts.
Building Age-Friendly Workplaces
While legal protections are essential, they are not sufficient on their own to eliminate ageism or as Minister puts it, it is not a panacea. Together with the law, it is critical that organisations also adopt age-friendly workplace practices that promote inclusion and provide equal opportunities for workers of all ages. Flexible work arrangements are one of the common ways in which employers can accommodate the needs of older workers, allowing them to remain productive and engaged in the workforce longer, while simultaneously facilitating succession and renewal for the organisation. A joint study conducted in 2023 by NTUC with Singapore University of Social Sciences (SUSS) and Tsao Foundation revealed that nearly half of the employers surveyed said that they had implemented such practices to extend the employment of older workers. These flexible arrangements help to mitigate the challenges that come with ageing, such as physical limitations or caregiving responsibilities, and allow workers to continue contributing their skills and expertise to the organisation.
Additionally, job redesign is another key area where employers can create more inclusive workplaces. Age-friendly job design takes into account the needs and capabilities of older workers and provides them with the tools and resources necessary to succeed. For example, companies can offer training programmes to help older workers develop new skills, especially in areas like digital literacy, which is critical in today’s rapidly evolving job market. Through various Government schemes and tripartite initiatives, including the NTUC Company Training Committee (CTC) Grant and various other job redesign grants, employers can work together with their unions to create age-friendly workplaces and businesses can ensure that their multi-generational workforce remains competitive and well-equipped to meet the challenges of the future.
The recruitment stage is also an area that employers must be vigilant about to carefully examine the tools they use in recruitment and hiring. For example, on top of potential human biases, in other words, the interviewers, you can also see that companies may increasingly make use of artificial intelligence (AI) tools in their hiring processes and depending on the way in which their algorithms are determined, that can inadvertently also introduce biases into the process. Therefore, it is important that employers be vigilant about these potential downsides and take concrete action to make sure that their human recruiters are properly selected, trained and briefed, and that their AI filters and hiring algorithms avoid ageist biases. So that the companies can benefit from capable candidates, regardless of their age, and give all candidates a fair shot at securing employment and that their organisation can bring on the best candidate to serve its purpose.
Conclusion
Age discrimination undermines the potential of older workers and the broader economy. As our workforce ages, it is critical that we address the barriers that prevent older workers from accessing good jobs, that bar them from training opportunities, and deprive them of fair career progression. This requires a multi-faceted approach, combining strong legal protections, age-friendly workplace practices, and ongoing efforts at the tripartite level and in each workplace to promote inclusivity and diversity in the workforce. By strengthening and systematically promoting age fairness and tackling ageism resolutely, we can help ensure that older workers are given the respect and opportunities they deserve, and that businesses can benefit from the wealth of experience and knowledge that they bring to the table. Ultimately, fighting age discrimination is not only a legal matter nor is it just a moral imperative but it is also an economic necessity that will help sustain long-term prosperity for all.
Mr Speaker, the slant of my speech is really to say that age discrimination has got to be tackled in terms of its negative manifestations, the biases against older workers. But at the same time, I think we should pay good attention to the name of this Bill and its core intent, which is ‘fairness’. And I think there is a difference between just acting against discrimination as against also focusing enough attention on promoting and operationalising ‘fairness’, and I think those two must go hand in hand in terms of how we can get the best out of our workforce and how we can leverage our strong tripartite relationship and industrial harmony to do the best for Singapore and Singaporeans.
Mr Speaker, I support the Bill.
