Mr Noriyuki Suzuki, General Secretary of ICFTU-APRO,
Mr Lee Shil-Kwan, Regional Director of ICA-ROAP,
Mr Huseyin Polat, ILO Representative
Mr John de Payva, President, NTUC
Mrs Yu-Foo Yee Shoon, Chairperson, Board of Trustees, SNCF
Mr Seah Kian Peng, Chairman, Executive Council, SNCF
Comrades,
Ladies and Gentlemen,
Singapore is pleased to host this distinguished gathering of co-operators, union leaders, and officials from the International Labour Organisation. The National Trades Union Congress is pleased to be co-organising this regional workshop, together with ICFTU-APRO, ICA ROAP and SNCF.
This workshop: "Building and Strengthening Cooperation between Cooperative and Trade Union Movement" will focus on recommendation 193 of the ILO, which calls on member countries to engender a more conducive environment for the development of co-operatives.
Global Trends
This discussion of the role of co-operatives in the modern economies could not be timelier.
The last 5 years has been difficult times especially for Asia. Recently, SARS caught us in the midst of making the necessary restructuring to our economy.
Today, we have emerged from the SARS crisis, stronger. However, there remains much work to be done. The rapid globalization, coupled with technological advancements, is creating unprecedented challenges for millions of people worldwide.
We are now living in a more volatile social and economic environment.
To cope with economic fluctuations, companies restructure for greater flexibility, greater mobility. They are hiring workers on contract, out-source, or employ temporary employees. When business is up, they would hire. When business is down, they would fire.
What is happening in Singapore?
The Singapore trade union movement has been studying these trends for some time.
What is the trend in Singapore?
Between 1997 and 2002, temporary employment has increased more significantly (45.5%) compared to permanent employment (8.1%). Temporary employment made up 3.7% of Singapore's workforce in 2002. Full-time temporary employment, a subset, made up 2.4% of Singapore's total workforce in 2002, up from 1.8% in 1997
Temporary workers made up 4% of the US workforce in 2001, Japan had 3.3% in 1999, while the EU had an average of 11.4% in 2000. Singapore's figure is therefore comparable to some of the developed countries.
We should expect the temporary workforce to grow. Already, we are witnessing certain industries, such as the hospitality industry, electronics, and precision engineering, collaborating to form part time work agencies to better manage the fluctuating and cyclical workforce demand.
Temporary workers tend to earn lower income than permanent workers. They are concentrated in, but not necessarily confined to, lower skilled jobs.
They have lower education, and receive less training.
They face risks of exploitation by labour suppliers who avoid paying statutory benefits.
Temporary workers often do not have the benefit of trade union protection.
The rise of temporary workforce forms only part of the picture. Even workers in permanent employment are faced with greater uncertainty.
What trade unions and cooperatives do?
What can trade unions and co-operatives do to help workers in such an economic landscape?
What do workers need to survive in such a new economic landscape?
I believe trade unions and co-operatives have a crucial role to play.
In Singapore, the SNTUC set up co-operatives to promote the social well-being of workers and the society at large. The current environment of persisting economic volatility has only accentuated this responsibility. In these times, the SNTUC co-operatives play a critical role to a holistic response to workers needs.
The combined synergy of trade unions and co-operatives, in a relentless process of regionalisation and globalisation, can set a trend and influence private corporations to be more socially responsible to their stakeholders and the consumers. In this context, the co-operatives can be the torch bearers by demonstrating their concern and commitment to the communities in which they operate.
In Singapore and in many countries, the system of social security is structured around the State and the enterprise. Examples of these are retrenchment and medical benefits. These benefits accrue to workers who are in formal or permanent employment. They are likely to be better in situations where there is a union in the company.
The SNTUC mooted the concept of seamless membership, and portable benefits. Seamless membership allows workers to continue to be a union member even when they are in-between jobs. Some 56% of union members in Singapore now pay their membership dues through Giro. This has enabled workers to keep their union membership even when they change jobs. We expect more union members to switch to Giro, so that they also benefit from the programme. Trade union membership is now at an all time high of 413,000, or roughly 20% of the workforce.
The SNTUC pushed for the concept of portable medical benefits, to allow workers to be able to retain their medical benefits even when they lose their jobs, or change jobs. A tripartite committee is now studying how to implement this.
We have decided that the best assurance to employability in the new landscape is skills. But not all workers have the opportunity to go for training. Some employers are unwilling or unable to send their workers for training. Therefore, the SNTUC acts as "surrogate employer" for these workers, and provides generous subsidies for training leading to certification.
We also advocate the concept of individual learning accounts. This has not yet been accepted by the Government, but we will continue to push for it.
Union Membership - "Survival Tool Kit"
I have likened trade union membership to a survival tool kit, to survive and grow in a difficult environment. The key components of the survival tool kit are:
Union membership protects you as well as helps you look after yourself better.
What about co-operative membership?
I suggest that we can look at Union and Co-operative like a friend, a helpful friend. A friend is someone whom we trust, one who will help us in times of need, one who will help us help ourselves in achieving a better life for ourselves and our family.
There are now 9 co-operatives founded by the SNTUC, out of a total of 74 co-operatives affiliated to the Singapore National Co-operative Federation (SNCF). The largest of these co-operatives, NTUC FairPrice and NTUC Income, touch and improve the lives of almost every Singaporean.
The Singapore Government understands the role of cooperatives and has provided a conducive environment for cooperatives to grow. But co-operatives must be able to compete on an equal playing field. They compete for talent, capital, and resources with private enterprise.
NTUC's co-operatives have a difficult job. They must fulfill their social objectives in the midst of fierce competition. Our workers and members expect them to do so.
Our co-operatives understand that they must do well, in order to be able to give back to society. This means employing professional management, and ensuring a high degree of integrity and governance. These operating principles laid down by their founding fathers have put the co-operatives in good stead.
The SNTUC is proud that our co-operatives have provided a stabilizing force in a free market economy, helping to improve the lives of ordinary Singaporeans.
Indeed, our vision is to help workers in times of need, to help them achieve a better life for them and their family, to be their friend in need.
Conclusion
In the next three days, leaders from trade unions and cooperatives will be sharing your vast and diverse challenges in this region, in discussing the principles of ILO Recommendation No. 193 on the promotion of cooperatives, and how to build and strengthen cooperation between the cooperative and trade union movements.
Experiences of SNTUC in Singapore and HMS in India will be shared as case studies.
There is much scope for cooperation and synergy, to bring together our collective knowledge, experience and networks to meet the challenges ahead.
Many of us, regardless of whether from the trade union or from the cooperative movement, shared the same vision to help our workers and their families achieve a better life.
I wish all participants fruitful discussions and a successful workshop ahead.
