In recent months, we have heard the suggestions put forward by various sub-committees of the Economic Review Committee and the Re-making Singapore Committee. A review of what we do is necessary, in the light of changes that are taking place worldwide. We must adapt to change, if we are to maintain and improve our living standards.
Today let me use the opportunity to highlight some changes that your union, and members, should expect.
Firstly, the pace of change is faster. New products are introduced at a faster pace. Just look at handphones. Hardly have you got used to your "new" handphone when a new model is rolled out to entice you! The bad news is that there is less certainty at work. Workers are retrenched when products become obsolete, and they do not have the skills to make new products.
Secondly, fierce competition has led companies to restructure their organisations, doing more with fewer people. Technology has allowed them to do this. In factories, the conventional assembly-line has given way to "cell production". The plus point is that monotonous repetitive work is gone, and in place there is greater variety and responsibility at work. The minus point is that fewer people are needed.
Thirdly, new centres are opening up. They have lower wages and lower land costs. Some of them even have workers with good education.
These three factors change the way your members work. They have to understand, and be prepared for it. Fortunately, the pace of change in your sector is not as rapid as in other sectors such as the electronics sector. Let me briefly indicate the impact on three broad groups within your membership.
Food manufacturing
A successful food manufacturer has to continuously improve or modify its products to retain the consumers' interest. It has to offer new products.
Some examples?
Look at bread. Look at the range of bread we can now buy in the supermarkets.
Then look at pastries: they now come with fancy names that tickle the imagination!
Look at drinks. One example is Pink Dolphin, made more popular by the film "I Not Stupid!"
Therefore research and development is more important today. Do we have sufficient people who are qualified to do R&D in food products? This is where the higher paid jobs are. For R&D to succeed, there has to be a critical mass of food manufacturers here. My observation is that there is not as much R&D done here. So our food manufacturers do R&D elsewhere. Unless we can expand the pool of R&D work here, I am afraid the factories will move to cheaper locations. We will then import the goods that we make and consume here.
I know this is out of your hands. However, those of you who want to stay in the industry and can upgrade your skills, should look out for upgrading courses.
Restaurants
Singapore is well known for its food. Some people say Singaporeans live to eat! I am not sure that is right, but certainly many of us enjoy the variety of food we have here. Many of our traditional dishes should be preserved, and the cooks well trained to serve out the best.
However, we also need variety, and new innovations. I am told that Singapore is beginning to thrive as a place of innovation. For Chinese food, some even say we are displacing Hong Kong!
This means that our chefs should constantly upgrade their skills, and innovate as well.
There is also change in another area. We have seen in the invasion of fast foods from the West. Now some of our people are using the same concept for local food. Komala's come to mind! For workers, this means adjusting to a new way of work.
Hotels
We are now a high cost country. We have a range of visitors with different spending power. No longer can we offer them largely the same product - full luxury service hotels. There is a demand for lower price hotel rooms for visitors with low budget.
More than 30 years ago, I was a low-budget tourist in Europe. My friends and I took a tour. There were more than 30 persons in the tour group. At one stop, we were taken to a small pensione. We were greeted by a man who asked us to go into the lobby. There he distributed room keys. He told us to go to our rooms, and the luggage would follow. He also told us the time for dinner. Some time after, the same man appeared at the door to deliver our luggage. Later, when we went for dinner, the same man served us! We found out that he was also the cook! At dinner he told us to leave our luggage outside our doors by a certain time, and also when breakfast would be ready. It was an entirely one-man show!
There is a need for some of our hotels to transform into low cost hotels. But it means that the traditional way in which work is done will have to change. No longer can we say: "It is not my job!" Employers change their recruitment policies too. They will take in more part timers and workers on contract. How should the union regard them? Should they be members? Should they be covered by the same one collection agreement, or should there be different agreements? Should such workers have a voice in the union?
I hope these simple examples are helpful to you as you discuss the issues that your union will face in the next few years.
I hope you have a fruitful discussion!
