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Speech by Ms Diana Chia, President, National Trades Union Congress, at NTUC May Day Model Partnership Awards 2013, on 18 May 2013, at Resorts World Convention Centre

Today, Singapore faces many challenges, such as an aging population, low birth rate and slowing global economy. Our low unemployment rate of 2% is encouraging but manpower shortage and slow wage growth remain two of the most crucial concerns that we have to overcome.
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20 May 2013
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A Very Good Morning to our Guests-of-Honour,

Brother Tan Chuan Jin, Acting Minister for Manpower,

Brother John Ng, Vice-President of SNEF (Singapore National Employers Federation),

Brother Lim Swee Say, Secretary General of NTUC,

Awardees and Partners,

Distinguished Guests,

Brothers and Sisters,

I would like to thank all of you for taking the time and effort to join us for the May Day Model Partnership Awards. It is my pleasure to be here with all of you.

Today, Singapore faces many challenges, such as an aging population, low birth rate and slowing global economy. Our low unemployment rate of 2% is encouraging but manpower shortage and slow wage growth remain two of the most crucial concerns that we have to overcome.

Workers and partners – critical for Singapore’s success

As a small and open economy, it is crucial that we stay competitive to stay ahead.

Workers are our most valuable asset, especially so for Singapore which has no natural resources and thrive because of our human capital. Our tripartite partners recognise this and are continually finding solutions to help develop and support our workers, such as the recommendation for amendment to the Employment Act next year which will enhance protection for an additional 450,000 workers.

Everyone is important in creating the Singapore we desire. The Government provides balanced policies and programmes. Companies raise productivity and invest in their workers. Workers work with companies to innovate and stay relevant through continuous upgrading. Associations strive to push for improvement for industries. The Labour Movement represents and pushes for positive change for workers. Partnership is critical for all-round success.

Thus we are here today to recognise, celebrate and get more partners on board our mission to embark on progressive wage, strengthen the Singapore core, develop an adaptive workforce and promote inclusive growth so as to strive for “Better Jobs for All”.

Embarking on Progressive Wage

The Progressive Wage Model (PWM) is an important initiative by the labour movement, with collaboration from tripartite partners. This model aims to help Singaporean workers climb the four ladders of skills upgrading, productivity improvement, career advancement and wage progression.

Early success can be seen in some sectors like the Tripartite Cluster for Cleaners which successfully pushed for progressive wage to be required for licensing of cleaning companies starting from 2014. The government took the lead to uplift cleaners’ wages by implementing progressive wage for all new cleaning contracts starting from 1st April this year, under the NEA Enhanced Clean Mark Accreditation Scheme (EAS).

Recently, 3,800 of our cleaners on the Ministry of Education (MOE) contracts received a pay increase of $300. Rather than waiting for their current contracts to expire, the government worked with tripartite partners to tailor training programmes and adopt technologies which can raise cleaners’ productivity and move them on-board the Progressive Wage Model.

As we work towards “Better Jobs for All”, we have to ensure that the growth is inclusive for all our workers, especially our lower-wage workers. The Inclusive Growth Programme (IGP) and Best Sourcing Initiative (BSI) are funding schemes we have in place to help companies and workers achieve that. With the recent announcement by the government on the wage credit scheme, I am certain that more can be done to restructure and push for productivity improvements, which will lead to sustainable wage increase.

Strengthening the Singaporean Core

A strong Singaporean Core will equip Singaporeans with good skills and jobs, and reduce our dependence on foreign manpower. We need to ensure that Singapore remains globally competitive and anchored by capable Singaporean workers, be it rank-and-file workers or Professionals, Managers and Executives (PMEs).

One of our model employers, Singapore Power, assures all their employees of a structured training programme and career path. During PUB days in the 1980s, more than 3,000 daily rated employees were upgraded to full-fledged technicians. Last year, semi-skilled workers and assistant technicians were trained and promoted to technicians. Mature workers reaching the age of 62 will retain their salary and bonus, and re-employed staff with at least 30 years of service is eligible for a gratuity.

Developing an Adaptive Workforce

To ease the manpower crunch, we encourage women and mature workers, who are able and willing, to continue working; and companies to provide age-friendly workplaces and flexible work arrangements. We are glad to see that the employment rate of residents aged 55 to 64 rose from 45% in 2003 to 64% in 2012. Training and automation will ensure that our older workers are well-equipped with the skill sets necessary to perform in their jobs.

My colleague Mr. Chittoo Suppiah had Primary 6 education when he joined the Singapore General Hospital. To improve himself and add value to his workplace, he requested to go for upgrading and successfully completed the Health Service course despite limited English proficiency at the age of 45.

His team also developed a hydraulic leg holder to lighten the workload in the Operating Theatre. His commitment to take ownership and do an excellent job has seen him rise up the ranks from a healthcare attendant at the age 20 to a fully competent Operating Theatre Technician.

Promoting Inclusive Growth

With the changing socio-economic structure, the working arrangements and environment has to be conducive for our workers. WorkPro, a new 3-year scheme supported by the tripartite partners, will benefit both employers and workers as we provide a more age-friendly workplace, foster work-life harmony, and enhance employability of back-to-work and mature locals.

One of the companies which value their older workers is Systematic Laundry & Uniform Services. Faced with rising labour cost and stagnant productivity, the company embarked on the Silver Productivity Programme to explore ways to improve their operations. After identifying workflow gaps and processes to automate, older workers were trained to operate new equipment such as spring–lift trollies, IT system for administration and sales order, and automatic sorting and assembling equipment which improve accuracy and ease physical strain.

With that, the company raised sales revenue and production output by 30%. Workers were rewarded with assured employment, improved work environment, and salary increase of between 3-8%.

Conclusion

Moving forward, let us continue to strengthen tripartite cooperation and work hand-in-hand to resolve the challenges ahead.

Today, we are very grateful to have 37 individual award recipients and 67 institutional award recipients. Let us show our appreciation to these awardees, their families, and partners who supported them.

Let us continue our commitment and efforts to create a more inclusive workforce while championing an enlightened employment approach to work towards better life for all workers. Martin Luther King said, “We must learn to live together as brothers or we are going to perish together as fools.” Together, let us press on at all levels – national, industry, company and individual – to make Singapore a stronger and better place for all!

Thank you.

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