1. Last year our economy grew at the rate of 8.4%. It was a welcome change after several years of ups and downs. In general, take-home pay for workers improved. This was either in the form of higher annual increments or higher bonuses, or both.
2. Unemployment had risen to 5.7% in September 2003, fell to 3.5% in September 2004, but has risen to 3.9% in March 2005.
3. Our economy has been restructuring. The manufacturing sector is transforming to knowledge-intensive activities requiring workers with higher education and higher skills. In the services sector, companies are doing more with fewer workers because falling costs of IT made it cheaper to process with computers than with manpower. Low-end processing has been moved offshore.
4. In the face of such changes, our unemployment rate is relatively low. This is because:
a) we have linked our wages to productivity, and made our wages more flexible, thereby enhancing wage competitiveness, so that companies that still needed to restructure could do so by shedding only the lowest number of workers;
b) we have a buffer of foreign workers; and
c) we have devoted a lot of resources to the retraining of our workers.
5. We could not have done these without committed, able and sensible trade union leaders and industrial relations officers. We are fortunate that many of the leaders and industrial relations officers who experienced the downturn in the mid 1980s are still around during these past few years. They learnt from the experience of the mid 1980s. Their bonds with workers were strengthened. Without these union leaders and industrial relations officers on the ground, the industrial relations climate would not have been as calm as it had been. And we could have had higher unemployment. In other countries undergoing restructuring, there have been industrial unrest, and unemployment had risen to double-digit figures.
6. We have taken the practical approach. Instead of fighting against the current, we swim with it and adjust.
7. By working together with our tripartite partners, we have developed the best workforce in the world. BERI has continuously ranked us as Number One since 1980. And BERI has ranked us Number One again! This is a clear testament to Singapore’s forward-looking political leadership and sound economic policies; the quality of our workforce; and our unique and successful tripartite relationship – the Government, businesses and unions – in managing our workforce. Our strong tripartite relationship has proven over the last 27 years to be a winning formula! This May Day, Singapore workers can once again celebrate with heads held high! Well done, fellow workers!
8. Now is the time to look forward. We need to reach out to more young workers to join us as members. We also need to nurture a core of young unionists who exhibit the same characteristics of commitment and dedication, to become leaders. What we have built up will be great only if it lasts. Without fresh leaders to build on what we have achieved, the union movement can only decline.
9. Over the past few years, we have lowered the average age of our industrial relations officers. With more training and grooming, they will become effective agents of change.
10. Today 53% of the workforce is below the age of 40 years, and 48% of the union membership is below 40 years. However, only 27% of our union leaders are below 40. It is natural for leaders to be older, but I think we can do better. It is our collective duty to induct and groom younger leaders.
11. Some union leaders had been keenly conscious of the need for self-renewal. One such person is Comrade Paul Tan. His first task, as President of AUPE, was to identify his successor. He tested out Comrade Teo Yock Ngee, groomed him, and handed over.
12. Some of the older leaders have soldiered on – beyond the retirement age. I am glad that some of them know that the future of the union is put at risk if they do not find younger leaders to take over from them.
13. Recently Comrade Sim Boh Kwang stepped down from the Amalgamated Union of Statutory Board Employees, and is now actively helping to groom his successor.
14. Other long-serving union leaders are actively finding potential successors. I hope that by the next NTUC National Delegates’ Conference in 2007 there will be a few more young union leaders who will contest for seats on the NTUC Central Committee. Then we will have a good balance of fresh and experienced union leadership on our Central Committee, pushing through new initiatives to improve the lives of our workers and their families.
15. As we strive to raise the effective retirement age of our workforce, union leaders who retire should also stay active, not only to continue earning a living, but also to continue living a fulfilling life. They have skills and expertise that can be useful in other areas. We recognize their years of contribution to the labour movement, and we will work with them to put their expertise and experience to good use.
16. The work of trade unions is never-ending. On this May Day, I wish to thank all our union leaders and industrial relations officers for the good work you have all done. With the launch of Young NTUC last night by the Prime Minister, I consider my main task in the immediate future to be that of helping to bring out a core of younger union leaders. I look forward to your full support in this task.
Happy May Day!
