President NTUC, Bro John de Payva
NTUC Central Committee members
Tripartite and Management partners
Guest speakers
Distinguished guests
Bros and Sisters
Ladies and gentlemen
Good morning. On this occasion, I wish to do three things.
1 First, I will report the progress of the NTUC-driven re-employment efforts for the unionised sector and set the targets ahead.
2 Next, I will explain how re-employment fits into the larger picture of increasing growth for Singapore and NTUC’s next initiative to spearhead “Back to Work for Active Agers” so as to further raise the employment rate for older employees, and fuel GDP growth for a better life for all Singaporeans.
3 Finally, we will launch a re-employment guide to help companies, unions and employees become re-employment-ready as soon as possible through implementing the Tripartite Guidelines on the Re-employment of Older Employees that were recently issued.
Update on NTUC Re-employment Efforts
4 When the NTUC first started our efforts to drive re-employment in 2006, 23 unionised companies signed on as partners. Today, we have secured the commitment of 890 companies to re-employ their older workers. As a result, 9,087 older workers who reached retirement age in these companies have been re-employed.
5 In other words, practically 90% of unionised companies are now on board re-employment.
6 In terms of the quality of commitment, we used a 4-level framework to gauge. Level 3 companies are those that have adopted the earlier Tripartite Advisory (now the Guidelines) on Re-employment of Older Workers in their HR policies; and Level 4 companies are those that are exemplary in the implementation. We set a target of having 40% of unionised companies reach Levels 3 and 4 by end 2009. In the end, we achieved more than that, and 45% of unionised companies attained those levels by last year end.
7 Progress has therefore been very good. We now set our sights even higher. We will strive for 100% participation of all unionised companies in re-employment by mid-2011, ahead of the effective date of re-employment legislation in January 2012. We will also push for 60% of unionised companies to attain Levels 3 and 4 of re-employment readiness and performance by end-2010.
Bigger Picture of Raising Employment Rate for Older Employees
8 Why are we doing all these? There are three key reasons, and they have to do with the individual, companies and the economy as a whole.
9 Firstly, with an ageing population, it is imperative that we enable our workers to work for as long as they are able to. This way, they can earn more to provide for the added years and at the same time remain engaged and continue to contribute to the economy.
10 Secondly, with the early baby boom generation entering retirement in increasing numbers now on, and with the long trend of declining fertility, companies will surely face a growing shortage of experienced manpower. Companies must thus act in their own self-interest and actively pursue re-employment in an operationally effective way to relieve the rising tightness in labour supply.
11 Third, re-employment also fits in nicely with the drive toward maximising growth for the economy. Economic growth is fueled by two sources – growth in workforce and growth in productivity of workforce. Growth in workforce in turn comes from new entrants, foreign manpower and making maximum use of existing manpower.
12 With growth in foreign manpower managed more sustainably moving forward, and the number of new local entrants constrained by low fertility, increasing the employment rates of existing manpower must take on increasing importance.
13 What are the facts as regards our employment rate? According to the MOM’s Labour Force Survey, the employment rate for older residents (both male and female) aged 55 to 64 in Singapore in 2009 was 57.2%. This was unchanged from 2008, despite the severe recession which saw the overall employment rate for those aged 25 to 64 dip from 77.0% in 2008 to 75.8% in 2009. The overall rate was sustained through the increased employment rate for men aged 55 to 64 years old from 73.8% to 74.7%.
14 What these numbers mean is that there is scope to push for higher employment rates among women across wide age bands and among the slightly younger cohorts of men below the 55~64 age band. For example, the overall labour force participation rate for men begins to turn down after around age 50. On a workforce of 2 million locals, a 1% improvement in overall employment rate creates a pool of 20,000 workers for our economy. This is equivalent to more than half a year’s cohort of babies.
15 For this reason, NTUC is embarking on a “Back to Work for Active Agers” initiative. This initiative will complement the ongoing Re-employment and Back to Work for Women initiatives to help raise overall employment rates for Active Agers. A study is ongoing on the detailed employment rates within the sub-age bands as well as the different sectors of industry, so that targeted efforts at outreach, confidence building and adaptation, training, and job matching and placement can be designed and mounted. We will share more details in due course.
Re-employment Guidebook
16 On this note, I am happy to launch the NTUC “Re-employment Guide, An insight into Practices and Implementation”. This guide translates the Tripartite Guidelines on the Re-employment of Older Employees released this March into a simpler form that employers, unions and employees can use to become re-employment ready fast. We will also be uploading this guide onto our website at www.ntuc.org.sg in the next few days. I urge all interested parties to make full use of this aid and move quickly to put in the necessary policies ahead of the re-employment law in 2012.
17 Let us press on to make Singapore’s economy even more productive, skillful and innovative, and one that is sustainably powered by a harmonious workforce of all ages, collars and nationalities.
Thank you.
