Good evening, Ladies and Gentlemen
About CAs
Every year, some 300 to 400 Collective Agreements are signed, each applicable for a period of 2 or 3 years.
When I shared this figure with my German counterparts several years ago, they were surprised at what seemed like a big number for a country as small as we are. In the German system, collective bargaining takes place largely at the industry level. They therefore thought we should have comparatively fewer CAs. However, since we adopt an enterprise-based system, the number of CAs are larger than under the German system. Yet we maintain a harmonious industrial relations climate.
Strength of our IR Framework
The Singapore workforce had consistently been rated number 1 by BERI. Among other things, BERI considered Singapore as having a good IR climate that was conducive for investments. We have also been ranked best in the flexibility of our labour legislations and the productivity of our labour relations in the latest World Competitiveness Yearbook.
In Singapore, wherever possible, disputes are settled through direct negotiations between unions and management, more often than not at the plant level. If our services are needed, we in the NTUC are always ready to help the union to get the management to strike a mutually acceptable compromise. The more difficult problems are referred to the Ministry of Manpower which has experienced conciliation officers. Very rarely are issues referred to the Industrial Arbitration Court.
For example, in 2001, only some 270 cases were referred to the MOM for conciliation, out of about 6,100 cases that our unions dealt with. Of these 270, only 5 were referred to the Industrial Arbitration Court for arbitration.
Having been involved in Industrial Relations since the 1980s, I had grown increasingly convinced that we had developed a very sound Industrial Relations framework based on conciliation and arbitration.
The reason I say this is because the current framework allows some give-and-take on the part of both parties. Had an Industrial Relations matter been pursued in a civil court, the win-lose nature of the adjudication process would lead to greater Industrial stress and more costs all round. This would not be an ideal way to resolve IR conflicts.
In connection with this, the government would be looking at amending the appropriate laws to allow partial representation of executives by unions. Once this is done, more workers would be brought under the existing conciliation and arbitration framework for IR matters.
In the past decades of growth, the labour movement has played a constructive role in promoting industrial harmony and tripartite cooperation. This has strengthened Singapore's competitive edge, consequently attracted new and better investments and created new jobs.
Over the years, the profile of our workforce has changed. Today, 21% of the workforce possessed at least post-secondary education compared to 16% ten years ago. Twenty years ago, this figure was only 9%. With an increasing proportion of our workforce being better-educated, more employees are expected to join the executive ranks.
Indeed, our unions already represent the interests of executives, and more than 20% of our union members are executives. As the profile of our workforce changes, the labour movement needs to change in tandem to remain a credible voice for all workers.
Allowing partial representation of executives would allow IR matters to continue to be resolved under the current industrial relations framework, which had worked well all along. It would also allow more to enjoy minimum standards on the process of resolving IR matters.
This change would also allow the employers to ride on the harmonious labour-management relationship to better manage the IR issues for executives.
We all know that unions perform an important need - to assure workers that what is being done in the company is in their best interests, not against their interests. We all know that people get unsettled when there are changes, and in the company, the presence of the union gives workers assurance that someone is looking after their interests. I am happy to say that the role which unions play is appreciated by management generally.
Importance of Harmonious IR
In my conversations with unionists, the feedback that I sometimes get is that some management personnel are downright haughty. At the same time, in my conversations with constituency grassroots leaders, some of whom hold management positions in their workplaces, the feedback is that unionists are very unreasonable. Fortunately for both cases, such haughty or unreasonable people are in the small minority.
However, this highlights the importance of mutual respect and open-mindedness. It is also important for both to focus on the long-term vision even as disagreements arise over IR matters.
As one of the captains of the petrochemical industry, Exxon-Mobil has an influence on the IR climate of Singapore. I am glad that the merger of the union branches had taken place smoothly. In connection with the merger of Exxon and Mobil, I was told that terms and conditions and cultural norms had just been harmonised right now.
Teething issues related to cultural adjustments would take time to work themselves out. In such matters, mutual respect for one another would serve to underpin future continued good relations.
I am happy to note that the former Mobil had excellent labour management relations with its union. With the merger and the signing of this CA, I look forward to a continuation of these relations within the Exxon-Mobil entity.
Have a good evening!
