Speech By RADM Teo Chee Hean, Minister For Defence At The May Day Dinner

Guest-of-Honour, Rear-Admiral Teo Chee Hean
Distinguished Guests
Ladies & Gentlemen

I warmly welcome you to our May Day Dinner this year.

2003 - A Tough Year

Last year, at around the same time, I addressed you at the 2003 May Day Dinner. The mood then was a sombre one, brought low by the crises that hit us one after another. I'm sure you still remember them clearly - Sars, the Iraq war, terrorism and the economic downturn. Not one person was spared from the fear and gloom that engulfed Singapore in 2003.

Workers took a beating too, as many were faced with wage cuts and freezes, or worse, retrenchments. Indeed, statistics testified to this state of affairs, with the unemployment rate reaching 4.7% last year, higher than the rate in 2002. Retrenchment numbers touched 16,400 workers, although this was lower than 2002. Add to this the CPF cuts that were instituted last year, and the pressure on workers was greatly increased.

We Overcame Great Challenges

But instead of turning tail and running away from our problems, Singaporeans opted to face these challenges head-on. We rallied together, coming out with ways and means to protect ourselves, help one another and move the country forward. Though Sars and the recession threatened to bring us to our knees, we persevered and overcame the obstacles that came our way.

These challenges - economic, political and social - also re-enforced the importance of the labour movement as a vital part of the tripartite relationship, among the Government, employers and unions. Time and again, this partnership has helped Singapore overcome national challenges, while maintaining stability and growth.

Role of Labour Movement in Overcoming Obstacles Last Year

Like many organizations in Singapore, the NTUC family was taken by surprise by the impact of Sars on our lives. Not only did it threaten our health, its impact on the economy was also greatly felt, as people stopped venturing out and tourists stopped coming. However, NTUC, its affiliated unions and co-operatives reacted swiftly to help manage and reduce the effect of Sars. The following are just a few examples of how we helped workers and their families during this health and economic crisis.

• The NTUC, its affiliated unions and co-operatives made a $280,000 contribution to The Courage Fund.
  
  
• NTUC-affiliated unions and their members were committed to work together with management on measures that would help companies tide over the tough economic period and, in turn, keep workers in their jobs. Hence, unions worked closely with members and management to bite the bullet and make the necessary sacrifices for the sake of retaining companies and jobs in Singapore. These sacrifices entailed wage cuts and freezes for workers, among others. Based on wage settlements in 786 unionised companies last year, 21 companies cut basic wages and 326 froze basic wages. These wage cuts and freeze affected 84,893 workers. Some 11,575 workers in industries directly hit by Sars were asked to take unpaid leave. For example, members from the Food, Drinks and Allied Workers' Union (FDAWU) who worked in hotels took a cumulative total of 101,384.5 days of unpaid leave to help hotels solve their cash-flow problems during the Sars crisis. This translated to about $5 million in savings for the employers and helped to save jobs.
  
  
• NTUC, together with the CDCs, funded a $6 million public transport voucher scheme, or PASS, which enabled the school-going children of needy Singaporeans, including union members, to save costs when traveling on public transport. This helped to ease the burden of their parents, many of whom were affected by the poor economy.
  
  
• NTUC co-operatives also played their part in helping workers and their families cope with the impact of Sars on daily living and the economy. For example, NTUC FairPrice ensured that there was no shortage of fresh vegetables or price increases when the Pasir Panjang Wholesale Market was closed for 15 days. NTUC FairPrice also donated $1 million worth of food vouchers to unions, which benefited needy members, as well as another $1 million to needy families in Singapore through the CDCs and CCCs. NTUC HealthCare donated all the necessary medical equipment required for the Taxi Industry Task Force against Sars to conduct health-screening checks in an effort to contain the disease. As a Group, NTUC and its cooperatives absorbed about $17.6 million in GST in 2003.

Making the Best of Improving Times

That was last year. Today, standing before you, I see happy and relaxed faces. Not only because you've started enjoying your food and drinks, but also, I'm sure, because of the improving economy. The advance 1st Quarter estimates of 7.3% GDP growth confirms what we've been feeling for some time - the return of optimism and work, and a fall in retrenchments. Hope is returning that job opportunities will rise, and the unemployed will be able to find jobs quickly.

We're satisfied that our sacrifices have paid off. Both unions and members worked together and supported one another through the tough economic period. Good labour-management relations also paved the way to a "give-and-take" mentality which produced positive results.

However, now is not the time to sit back and relax. Just as the economy is turning around and the pressure on companies and workers is lifting, it is also an opportune time for the NTUC to push on with measures that will increase workers' competitiveness, self-reliance and lifelong employability.

Bearing this in mind, we remain focused on our efforts, as a partner in the Tripartite Task Force on Wage Restructuring, to encourage wage reform so as to enhance companies' and workers' flexibility and competitiveness. Skills upgrading is a cause that is close to our hearts, and our commitment to it is unwavering. We are pleased that so many workers have taken up the call to re-train and re-skill.

This May Day, as we come together to demonstrate our solidarity, take stock of our achievements and chart our common path ahead, we also take heart that the labour movement has stayed true to its cause - the protection of workers and their families.

Let me now invite the Guest-of-Honour, Rear-Admiral Teo Chee Hean, to address us. Please enjoy the rest of your evening.